How inventory management software can help improve cash flow.
Managing inventory is a balancing act. You never want to have so many parts in stock that it ties up your cash. On the other hand, you don’t want your shelves to be so thin you can’t fulfill orders and complete a job during the first appointment. So how do you find and maintain that perfect inventory balance?
Effective inventory management is critical if you want to increase cash flow and grow your field service company. The more efficient your parts inventory management processes are, the more cash you’ll have on hand, and the faster you can capitalize on investment opportunities. If you’re ready to improve your inventory cycle time, increase your cash flow, and take your business to the next level, here are five ways a proper inventory management system can help you do it.
5 Tips to Improve Inventory ManagementEliminate Manual Processes
We’re all human. If you’re monitoring parts stock levels, tracking orders, managing warranty information, and trying to keep warehouses stocked at the perfect levels manually, there are bound to be errors and wasted time. Any inventory-related task you can automate or complete through a single, all-in-one solution will save your team time and free up resources for growth.Use Serialized Inventory Tracking
Serialized inventory tracking assigns a special number to each part or piece of equipment. This could be using SKU’s, Barcode data, Suppliers, or lot numbers depending on your industry or type of warehouse. With this system, you can see where parts are, which warehouses or trucks are housing them, and the easiest routes to deliver the right parts to the right techs at the right time.Create Auto-Replenishment Rules
You don’t want excess inventory collecting dust on the shelf, nor do you want customers experiencing downtime because parts are not available. With advanced software, you can track your parts levels and automatically replenish stock. Using technology to keep your warehouses stocked at the perfect level can free you up to maximize cash flow.Find Your Dead Stock
If you work in an industry that relies on warranty returns, there may be piles of potential cash sitting in your trucks, warehouses, and job sites. With the help of inventory software technology, you can track inventory and see where your dead stock is, as well as where all of your returnable parts are so you can squeeze the maximum value out of your parts.Integrate with Supply Houses
When your inventory software is fully integrated with parts supply houses, you can receive real-time pricing and digitally order your inventory instantly. On top of the budget savings and protecting your margins, your streamlined parts management will free up your back office from chasing purchase orders and invoices so they can be more productive with other tasks.
Audit Your Inventory.
Businesses vary in their inventory management approaches, with some conducting a thorough yearly inventory count, while others opt for more frequent checks, ranging from monthly to daily, particularly for high-demand items. Regardless of the frequency you choose, make it a priority to consistently conduct physical counts of your inventory to verify its accuracy against your expectations.
Davisware’s software solutions can help you better manage your inventory and, in turn, optimize your cash flow. With the proper technology, you’ll streamline your field service business, saving time and money along the way.
If you’re ready to take control of your inventory and cash flow, give us a call at 847-426-6000 or schedule a demo today.