Construction inventory management solution for contractors
The beauty of today’s business software is that most are flexible enough to adapt to any business. Say goodbye to ugly and limited on premise software. And you no longer have to look high and low for vertical industry solutions. Cloud applications enjoy wide distribution and availability. This means ready-made software can solve most problems faced by businesses.
For inventory management, in particular, we’ve seen how cloud apps such as EMERGE are equally at home managing the inventory of artisanal handmade jewelry, exotic car parts, and even industrial chemicals. Here, we’ll show you how EMERGE manages raw materials and finished products as used in the construction inventory management.
Before pouring yourself with us, i have to remind you. The focus of this blog post is on construction inventory management that engages in the simple assembly and production of final products used in the construction of a building. This is not about construction management ( planning, design, and management of a building project).
A. What’s the differentiation between Asset management and Inventory management ?
What’s asset management?
Asset management (or asset tracking) is responsible for tracking and managing the items of a company that used to make benefit and operate it. Asset management tracks equipment, vehicles, computers, devices, fixtures, furniture and essential documents. For example, construction sites need rugged laptops, walkie-talkies, and powered tools. But they’re not considered stock that is “sold” or expensed in putting up a building. Instead, depreciation is used.
However, let’s say that you trade rugged laptops, walkie-talkies and powered tools used by construction firms. Then these goods become part of your inventory. You buy and sell these goods in order to generate revenue, and hopefully a profit! Here, to track and manage these things is construction inventory management.
What’s inventory management?
Inventory management tracks stock as a company adds, sells, moves and stores it. The practice also determines when and what new stock to order to avoid shortages and helps a company maintain a healthy inventory turnover ratio.
Importantly, asset management software is not designed for inventory intended for sale, but it can be employed for asset tracking. In contrast, inventory management software is versatile enough for both inventory and asset tracking. When integrated, they synergize to help companies streamline supply chains, reduce operating costs, maximize ROI, and leverage real-time data.
So, the secret is why don’t you use just one inventory management software but can also handle asset tracking? With EMERGE, you get an all-in-one solution. In industries like construction, EMERGE plays a pivotal role in inventory management, enabling comprehensive oversight of assets while efficiently forecasting demand, managing orders, and controlling stock levels. This holistic approach helps companies mitigate common challenges faced during construction projects, such as cost overruns, delays, and communication gaps.
B. Inventory is used by construction firms
Now that we have outlined the parameters of this blog post and differentiated between asset and inventory management, let’s delve into the standard inventory utilized by construction sites. In straightforward terms, construction companies construct physical structures at a specified cost, adhering to plans and designs supplied by architects and engineers.
Projects often surpass their initial budgets due to unforeseen expenses, delays, and other unexpected circumstances. A significant contributor to construction cost overruns is the escalating cost of construction materials, including raw materials. Effectively managing the efficiency of raw material is the most important work in construction inventory management, enabling construction companies to exert control over both time and financial aspects of a project.
C. What’s highlighted in Construction Inventory Management software?
First off, it’s important to acknowledge the significant challenges that construction managers commonly face, including cost overruns, delays, slow adaptation to emerging technologies, inadequate communication, labor shortages, and issues related to poor planning, forecasting, and budgeting. Scheduling also poses a substantial challenge in the construction industry.
Recognizing the prevalent challenges construction managers encounter, EMERGE App presents itself as a potential remedy, particularly in the realm of construction inventory management software. By incorporating key features, EMERGE aims to address the industry’s common pitfalls, fostering efficient cost control, improved adaption to technologies, and enhanced planning for construction businesses..
1. Manage Multi-matrix product variants
Nuts and bolts arrive in bulk with varying lengths, widths, and fittings, and the same diversity applies to finishes like tiles with different sizes and materials. Consider final finishes such as cans of paint, where a building may require various shades and volumes of white paint for both interior and exterior use.
In construction inventory management, effectively handling a diverse range of raw materials is crucial to maintaining project efficiency. Tracking and adjusting stock and pricing for these raw materials are key measures to prevent cost overruns. EMERGE offers the feature to seamlessly monitor and manage your inventory, acting as your vigilant ally in construction inventory management.
2. Catch-up every circumstances
Delays from suppliers can be a nightmare for construction managers, given that one of the primary causes of project delays is supply chain disruption. As managers, we understand the challenges you face in ensuring the timely delivery of materials and equipment from suppliers.
For instance, managing three suppliers may be feasible, but when dealing with more than five, the complexity becomes significant. It is crucial to have a construction inventory management software or system or whatever which can efficiently handle these crucial input logistics.
EMERGE offers features within the ‘Suppliers’ module, empowering you to efficiently manage a multitude of suppliers. It facilitates tracking the progress of orders and provides the option to check and print PDF invoices as needed.
Additionally, the software enables you to streamline communication by sending purchase order invoices directly to your suppliers. This contrasts with manual processes that often involve downloading PDF invoices, selecting the correct one, and then sending it to the respective supplier, incurring significant time and labor expenses. With EMERGE, construction inventory management is simplified now, requiring only one employee to handle supplier-related activities and ordering.
3. Adapt technology easily
One of the most trickiest problems in construction business is the hesitation of adapting new technologies or using something new for the entire operation. But with EMERGE, you guys no longer have to worry about that. Now construction inventory management or even any else industries, you can learn to use the software in a really short time. And EMERGE give you a free training course and a 24/7 customer support. You really just need a day, or even just a few hours to understand and know how to run your business with this construction inventory management software.
4. Proactive in planing, forecasting and budgeting
The lack of accurate data and communication are two prominent reasons why managers struggle to plan and forecast effectively, contributing to project failures. This challenge extends beyond the construction industry; accurate information about products, customers, sales, and suppliers is crucial for managerial decision-making. A single mistake in any of these aspects can lead to significant financial consequences for your company.
Maintaining up-to-date information, including timelines, material costs, and labor expenses, is essential in any business. As an inventory management software, EMERGE not only provides real-time data on project progress and costs but also offers a variety of reports essential for decision-making and planning.
The evolution of construction inventory management software represents a pivotal advancement in the efficiency and precision of project oversight within the construction industry.
Through the exploration of EMERGE features, it becomes evident that software plays a crucial role in streamlining processes, mitigating challenges, and fostering informed decision-making. As technology continues to shape the landscape of construction, embracing innovative inventory management solutions becomes not just a necessity, but a strategic imperative for businesses seeking sustainable growth, cost-effectiveness, and heightened operational effectiveness in the dynamic realm of construction projects.