How to Prevent Overstocking/Understocking

 

Effective inventory management is a key component in what drives any business to success. Understanding what materials, parts, and equipment are necessary to complete a job, and having the right amount of those items on hand is the first step to a job well-done. If your business does not have a sufficiently balanced quantity of inventory stocked, your company’s revenue and reputation is at stake.

For instance, if a contractor is on the job and realizes that he or she does not have the right component to complete that job, they either must inconvenience the customer and make a stop at the nearest hardware store to pick up that piece or postpone the work order entirely. This often leads to loss of revenue and customer dissatisfaction.

With that in mind, it can be tempting to want to overstock your warehouses and service trucks. However, there is a fine line between overstocking and understocking products.

Loading up your service vehicle to the fullest may not actually be to your overall benefit. When too much product is loaded into your truck, parts can bump around during transit becoming damaged in the process, get forgotten about, or sit on shelves losing their efficiency. When this happens, your capital becomes tied up in faulty materials, resulting in a loss of profit. On the other hand, if a customer air conditioner (for example) is missing even a small, inexpensive piece, the entire unit cannot function and can be out of service indefinitely.

Having too little stock may result in operational issues and production problems, while having too much inventory means money is unnecessarily invested or wasted. The solution to this painful problem is simple: Invest in an inventory management system. MarginPoint is a leading provider in mobile-enabled inventory management solutions and helps over 800 companies regain complete control over their inventory and the purchasing process.

We provide your company with the best inventory management solutions tailored to your specifications to help you grow revenue and customer satisfaction. By providing real-time visibility of your inventory levels, MarginPoint helps you minimize stock outs, shortages, and eliminate the tedious need for physical inventory counts. Never again will you have to worry about mismanaged, misplaced, or unused inventory.

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