One of the most important aspects of managing and running a trade business is your inventory management - if you slip up on the amount of materials you have or equipment free for use, then it not only disrupts the workflow, it causes delays and impacts your clients. Strong and seamless inventory management will be the foundation of how efficient your business runs and how quick your turnaround times are on projects. As I said, inventory for trade business impacts everyone across the board - from suppliers and stakeholders to your bottom line and customers. Alongside your operational processes, be that internal organisation or trade business management apps, prioritising your inventory upkeep is a key component to any and every successful trade, be that construction crews, electricians or pest control.
That’s why Powered Now has put together the ultimate guide on managing your inventory so you can stay prepared and productive all year round.
Understand Your Needs:
Look into your past data as a business and understand what your demand is like throughout the year so you can plan for these periods effectively. All trade businesses have seasonal periods and low demand times, during which you must plan inventory accordingly. You can also begin to take note of the equipment, materials, and products (depending on your field) with short expiration dates to avoid unnecessary waste and issues in the future.
Build Relationships with Suppliers:
Great inventory upkeep starts with a reliable supplier or suppliers that provide you with everything needed to run your business smoothly. Develop clear communication channels with your suppliers for timely replenishment of stock, as well as maintaining a positive relationship with them to benefit you in the future. With a strong supplier relationship, you can better negotiate favourable products, terms, prices and turnaround times, ensuring your needs are always met.
Inventory Management Systems:
Consider implementing an inventory management system to track stock levels in real-time; this can then work hand-in-hand with your trade business management app for a seamless delivery of your services at all times. Use these platforms integrated into your operations to automatically reorder desirable materials, stock you are low on and new items to improve your productivity as a team. An inventory management software can help reduce the risk of overstocking or running out of equipment as you rely on the technology to keep your inventory operations in order.
Inventory Audits:
Routine inventory audits are essential for trade businesses as they allow you to align online/paper records with your real-time stock levels. This is also an opportunity to identify discrepancies in your inventory if damage, loss, theft or updates are required. Having found these issues quickly, you can assess the impact on your business and mitigate loss of profit or delays.
Your Suppliers:
You won’t be the only trade business in your field, in your location. Therefore, you will not be the only business looking for these products, supplies and materials. During peak times and demanding periods, you should avoid relying on one specific supplier for your inventory. This ensures you continuously have stock.
Plan for Contingencies:
As a business owner, you will know that nothing runs smoothly all the time. Therefore, it's significantly important that you are prepared for the unexpected. A contingency plan allows you to keep on top of stock, maintaining a working period against sudden demand spikes or supply chain issues. With backup stock, you can continue providing your services with some peace of mind, and you can manage expectations for a while until issues are mitigated. Always establish emergency supply agreements or quick response strategies for fast inventory replenishment.
Storage Solutions:
Storage space efficiently is key to your inventory management as your team will require quick and easy access to equipment and materials in emergencies or on the go. To set your inventory up for success, categorise and label it by size, service, or demand level. You can also get your employees to help with this organisation to see what layouts and processes work best for them.
Technology for Suppliers:
Powered Now has a seamless and efficient partnership programme that aids suppliers in operating professionally and productively at all times in the trade industry. We are a trusted partner with some of the largest trade suppliers and organisations in the UK and Europe. Help your customers digitise their processes and operations for streamlined inventory processes and successful supplier relationships.
Effective inventory management is crucial for any trade business. For those looking for the most effective ways to successfully manage your equipment and stock, you first must understand your needs, build a strong relationship with your suppliers, and plan plan plan! Ensure your electricians, plumbers, cleaners, gas engineers, construction crew and other employees are set up to thrive on the job. These inventory management strategies will not only help overhaul your operations; they will guarantee you run a more efficient and profitable company.
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