Published April 2, 2019
Inventory management and associated tools are not only up and coming but are growing amongst industries far and wide. The knowledge and appreciation surrounding inventory management are correspondingly growing, and almost everyone should pay attention.
Inventory management is the surveillance of a company’s spare parts that, if done right, increases efficiency and cuts costs. Typically, companies involved are those with high inventory levels and manufacturing/production rate. However, MS Dynamics World states that this concept can be applied to smaller companies, such as service contractors.
Small Scale Inventory Management
In the article, the author focuses on the opportunity for growth if these small service contractors activate this tactic within their own means. For these types of companies, the ‘pen and paper’ method is becoming outdated and detrimental. The issue at hand is that these companies don’t see the value in using the tools, in this case Microsoft’s Dynamics365, because at smaller levels the impact seems minimal.
That may hold some truth, but the detriment of not using available tools rises exponentially as the company’s growth rate increases. Small service contractors should take advantage of every tool possible to increase efficiency, and ultimately provide better quality customer service.
Application to Large Scale Companies
How does inventory management serve larger companies?
In many service companies, there are technicians that may go from one job to another without keeping tabs on what parts they do or do not have in their truck. This causes disorder in a sense that technicians may show up to a job and not have the part they need or in the quantity they need it, causing delays in job completion and ultimately delays in payment. This is not a sustainable way to ensure your company’s profitability and growth.
Much like small, and large, service companies, manufacturing companies experience the same “blindness” so-to-speak when it comes to what they have in their trucks … or on their shelves. That’s why companies turn to third parties, much like Synovos, to help them keep their spare parts inventory in line.
In our own experience, we have seen the reduction of inventory levels and cut costs of millions of dollars by studying our client’s inventory and identifying savings opportunities. All it takes is acknowledgement of the issue, time to implement inventory management, and a dash of expertise for companies to optimize their inventory’s value.
Benefits of Inventory Management Implementation
Regardless of partnering with a mobile app or a company that offers inventory management services, it is important to highlight the benefits for your company. Once you implement and follow the process of inventory management, you will more than likely see results of:
- Reduced stock wastage
- Service quality improvement
- Platform for company growth
Big and small, far and wide, you and your company should start looking for an inventory management tool that will ensure your company’s long-term success.
To read all of MS Dynamics World’s article, click here.