The ROI of Inventory Control: Reduce Purchase Orders by 89%

  • Posted by: Scott Berlin

For many service contractors, a healthy economy can result in substantial growth in their company. While that growth is the desired outcome of many years of hard work and dedication, it can come at a surprising cost. Operational procedures that may have worked when a company was smaller, with less technicians out in the field, can suddenly become a detriment. As a service company grows, small inefficiencies in the beginning can develop into monumental failures.

It’s not uncommon for smaller service contractors in fields such as HVAC, plumbing or electrical to use traditional methods of managing inventory, like spreadsheets or even pen and paper. The challenges with that, however, multiply with the addition of each new technician and each new vehicle. More moving parts in the business lead to more opportunities for inventory mismanagement, costing companies thousands in unnecessary material costs every month.

To solve this problem, service contractors need a simple and more effective way to track material usage, minimize errors in reporting and reduce the number of purchase orders generated on a regular basis. Fewer purchase orders enable companies to have increased control over spending and budget planning, thereby avoiding poor cashflow management. What’s more, contractors can benefit from more efficient bookkeeping and accounting processes associated with improved inventory control.

With MarginPoint’s Mobile Inventory solution, service contractors can:

  • Maintain optimum level of inventory in each stocking location
  • Improve inventory tracking and accountability
  • Manage spend more transparently and efficiently
  • Reduce unnecessary paperwork and manual processes for time savings
  • Reduce time spent generating purchase or procurement orders


With automated replenishment available through MarginPoint’s Mobile Inventory solution, contractors can bundle parts needed to complete a work order and set up regular orders to be sent to suppliers. This tremendously reduces the overall number of purchase orders throughout the entire company. MarginPoint customers have experienced 89% less purchase orders for each truck per week on average. Multiply those costs by the number of trucks you have out on the road and the savings are astronomical.

Not only can companies expect cost savings from making less purchase orders, but automated replenishment can improve supplier relationships, ensuring more timely delivery, more accurate invoicing and easier processing of orders.

There’s no better time than now to pinpoint the operational inefficiencies that exist in your company and implement solutions that can help position you for long-term growth and sustainability. Take back control of your inventory management with MarginPoint today.

Request a free demo today.

Author: Scott Berlin