Monday, June 10, 2013

Profit enhancement idea - Software designed to keep track of tools, supplies, inventory, etc.

If you run a construction business, no doubt you’ve wondered at times where certain supplies, small tools, shop inventory and the like end up.  You look at the costs you incur for these items and ask why it’s so high.  How many hammers, ladders, and other small tools and supplies have you had to buy over and over again?  It’s an issue I’ve heard about over the years and I’ve offered some suggestions to mitigate these losses including a quarterly tool allowance which the employee gets to use to purchase their own tools and keep whatever is left over.  This way there is incentive to not “lose” any tools and you fix the cost.  That can be effective, however with today’s technology there are alternatives.

Just this week one of my clients was raving about software that tracks tools, consumables, sundries, inventory and equipment so that these items don’t go unaccounted for.  It builds additional employee accountability into your system using bar coding methodology.  When an employee takes any item, they must scan it to a job which allows the job cost system to track it.  This enables management to see exactly how much of these items are being used on a particular job versus the budget. 

Waste in any area, including items in these categories, hurts the bottom line, the company and your ability to take care of your employees via year-end bonuses, etc.  The software is called Waterwheel Software and my client is a very satisfied customer.  As with anything I discuss on this blog, I have neither a financial interest in this company nor its products.  I haven’t ever contacted them and I personally have no experience with it.  Based on my subcontractor’s high satisfaction level, and that he was referred to it by another subcontractor happy with the offerings, I thought I’d pass the information along here.  I also noticed several customer testimonials on their website as well.  This seems to be a system worth considering.

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