A successful operation is normally measured by the number of vehicles in use or worker efficiency. However, equipment management is also a critical part of the business and regularly the most critically overlooked. If you’re in the business of renting or utilizing high volumes of equipment, you won’t want to miss these seven tips for highly effective equipment inventory management.
Equipment Inventory Management Best Practices
1. Inventory Organization
The first step of a successful process is complete knowledge of what equipment makes up your inventory. This organization can range from something as simple as the vehicle color to something as specific as a cooling system. A trap business leaders fall into is underestimating the value of their inventory; active inventory organization is the first step to preventing this.
2. Inventory Management System Selection
Before you go ahead with a new system, you need to find one that best suits your needs and is ideally tailored to your industry. While there are a variety of solid options when selecting an equipment inventory management system, the amount of functionality that directly impacts your organization is more important than the number of bells and whistles which come along with the system.
Construction equipment companies, for example, have several factors to consider when choosing equipment management software, including services, parts, financials, and rental tracking. Baseplan Software Group provides a range of software options for effective inventory management across industries.
3. Technological Integration
Another part of getting to better know your inventory is by embracing an equipment inventory management software, which is then leveraged to track inventory levels, monitor orders, follow sales levels, among other uses. A common feature of an inventory management system is a radio-frequency identification (RFID) label, which are then used to automatically identify and track various pieces of equipment.
4. Expense Minimization
Generally, when businesses attempt to restock inventory, they will buy more of everything, which is by nature a wasteful practice. A perk of a successfully organized and technologically integrated system to manage equipment inventory is expense minimization. This is achieved by a better understanding of inventory levels, which means that when it comes time to replenish the supply, you only need to purchase necessary items, rather than every item, regardless of the item’s current level of supply.
5. Location Optimization
While all of the above tips are highly appealing, it’s easy for things to flop if you lose track of where your assets are. The appeal of a technologically integrated management system is that you know where your assets are and when they got there. A common struggle in supply chain management is ensuring that equipment is not languishing in one location when there is a dire need at another. With a thoroughly implemented system, you should be able to avoid any lags in equipment shipping.
6. Equipment Maximization
In order to make the most of your equipment, it is important to track the condition and the age of the equipment, a vital part of any quality ERP software for equipment management companies.
As we mentioned above, one benefit of inventory organization as part of an equipment management system is that you come to know your equipment quite well. The result of this is that you can then blend your tacit knowledge of the system with knowledge gathered from RFID labels, such as the age and usage of each piece of equipment. It is not a cause for concern when low-impact pieces of equipment begin to age, but it is something to be aware of when high-impact pieces of equipment begin to age, as one mechanical breakdown can spell disaster.
7. Maintenance Accommodation
Part of any good equipment inventory management system is knowing when it’s best to conduct maintenance and repair pieces of inventory. As discussed, one large mechanical breakdown or several small mechanical breakdowns can spell disaster for your daily operations. For this reason, it is important to use an inventory management system to help coordinate repairs with when pieces of equipment have their idle time.
In more extreme maintenance cases, it is better to have a piece of equipment idle and repaired, rather than having it in use, only then to break. The amount of time and costs needed for maintenance are almost always lower than the cost and time associated with acquiring a new piece of equipment.
Boost profits and peace of mind with a successful management system
Hopefully, these tips can help you and your business reach new heights, both in terms of efficiency and equipment use value. A good amount of time spent with an equipment inventory management system can result in a massive amount of positive change for your business.
For those in the rental and fleet management industry, Baseplan’s offers businesses equipment inventory management software, which can help with equipment management and improve your bottom line. For more information about their software, contact Baseplan today and one of their industry professionals will assist you.