Managing inventory is a labor-intensive task that requires accuracy and efficiency. Statistics show that sales representatives typically spend 65% of their time on non-customer facing activities, such as inventory control.
As consumer demands change and inventory levels fluctuate, inventory management within a facility is critical for staying ahead of the market and competition.
Read on to learn three ways CMMS helps facility managers automate inventory control with features like comprehensive inventory reporting, barcoding and min/max planning.
1. Streamline inventory reporting and cost tracking
Inventory reports are an integral part of actively managing a facility. If too much inventory is stocked, the facility risks high carrying costs, or the chance that products may become outdated or devalued. To bring overhead costs down and keep a better pulse on inventory, managers use reporting tools to track progress, predict trends and manage maintenance budgets.
With CMMS software, facility managers are able to retrieve reports quickly and effortlessly for analysis. Not only does this simplify communication between facility managers and technicians, but it also reduces equipment downtime and improves inventory management. When used to its fullest potential, the CMMS becomes a central database for all maintenance-related expenses and operations.
Comprehensive inventory reporting is a proactive way for facility managers to control inventory and align budgets with set expectations. The result? Less asset downtime when maintenance is properly scheduled. From there, the facility manager is able to forecast budgets and reduce unnecessary spending.
2. Improve accuracy and productivity with barcoding
There are several factors facility managers consider when determining how much inventory to maintain in stock. A large inventory can have several notable disadvantages including illiquidity, markdowns and obsolescence. However, understocking can be just as dangerous, as you run the risk of missing out on sales and losing consumer loyalty. Plus, the maintenance team may suffer if an emergency work order comes in that requires out-of-stock inventory to fulfill it.
CMMS features, such as barcode scanning, improve management efficiency and productivity by eliminating manual data processes. With barcoding technology, facility managers are able to accurately record every aspect of a transaction. This reduces data-transcription errors common with paper records.
Barcoding technology also provides a quick way for facility managers to link work orders, perform inventory counts, and receive purchase orders. Not only does this eliminate error, but it also saves time and money.
3. Increase profits with min/max inventory planning
The ability to properly forecast customer demand is essential for inventory turnover rates. To optimize inventory, facility managers can rely on CMMS features such as min/max inventory ordering. This is frequently referred to as Economic Order Quantity (EOQ), the number of units that a company should add to inventory with each order to minimize variable inventory costs.
Min/max inventory planning gives facility managers the ability to monitor inventory levels and calculate appropriate reorders. As inventory is continually replenished, fewer shortages are bound to occur. This increases inventory turnover rates and satisfies customer demand. It also aids in spare parts management.
Mix/max inventory planning also reduces the chances of inventory stockout. This means that with no inventory, production comes to a halt. As a result, the facility is unable to complete work orders, which results in slower response rates, longer asset downtime and poor customer service.