Construction work is a meticulous task which not only calls for an eye for detail but also requires inventory management skills since every piece of equipment plays a critical role in the entire process. Builders work together with architects to determine how much of each material is required by incorporating mathematical calculations to be perfectly sure of the quantities of different items they will be using. There are many safety regulations construction workers have to comply with as faulty construction can have serious and deadly consequences. This safety can only be ensured if the right material is used in correct quantities.
Although maintaining inventory can be tiresome especially for fatigued workers who already have too much on their hands. However, they can ease their minds by making use of a construction inventory management software to have an idea about the quantity and location of the construction material obtained for a specific project. All they must do is enter the data and the software will do the rest of the work for them. The work of inventory management will be significantly reduced if they resort to a software that will do all the calculations for them.
There are multiple reasons why keeping count of every brick and nail is significant:
1) Better Cost Control
The act of inventory management can save a company a significant amount of money by reducing how much it costs to store inventory. Inventory storage is expensive for the following reasons. Firstly, it requires a warehouse which may have to be bought or rented and both options are quite expensive. Secondly, it costs to get material moved around from one facility to another. It takes a lot of labor and fuel to make this possible. Thirdly, some of this equipment may have to be insured, especially if it is not so easy to find. All these costs accumulate and can be reduced significantly if construction companies can manage their inventory.
2) Prevention of Loss and Theft
With inflation on the rise around the world, construction equipment is no stranger to soaring prices. Construction companies are responsible for the material they acquire and utilize. Since construction sites are open to all and it is difficult to close off certain premises to the public, this puts equipment at greater risk of being stolen, misplaced or damaged. If there is a mishap with said equipment, it sets back the entire process and takes workers back to square one. Knowing the location and quantity of each material can speed up the stock checking process and in case something does end up getting misplaced, workers will know what exactly they have to replace instead of relying on their memory to guide them.
3) Timely Project Completion
Good inventory management means that all operations will be completed on time since all the necessary equipment will be present at hand and no delays will occur. The reduction of downtime means that resources can be supplied continuously and there will be no gaps in between processes. When delays are prevented, this saves companies the trouble of rehiring workers, which itself is a time-consuming task. Construction workers work on a contractual basis. If there are any unforeseen delays, contracts have to be renewed continuously. All these consequences come down to the efficient management of construction material. If inventory is managed properly, projects will also be completed on time.
4) Minimization of Waste
Construction workers tend to buy equipment on the plus side to avoid any hassle later. While this may be a strategic approach towards maintaining inventory, it incurs highly unnecessary costs which construction companies pay for. In case there is leftover material from a previous project that can be utilized for the next one, a lot of costs can be cut down during the company’s next purchase. Not only is this environmentally friendly but is also budget friendly and encourages mindful buying of equipment.
5) Increased Accountability
Many processes keep a margin for human error since it is humanly impossible to keep track of hundreds and thousands of construction materials. However, if inventory is managed accurately, this reduces the chances of employees slipping up or indulging in malpractice. Employees have easy access to material and can take advantage of the trust bestowed on them for personal gain. If effective inventory management is practiced, this can deter employees from stealing or misplacing equipment. Companies will also know whom they should reprimand for tampering with materials.
6) Better Forecasting
As construction workers go forth with projects, they gain more experience and become well versed in the amount of equipment they should get. However, this process can be further streamlined if inventory management is religiously practiced. Inventory managers can come up with better estimates to prevent overbuying and wastage of material while also ensuring no shortages occur mid construction. Forecasting is an essential step in the planning process and correctly executing this step can save construction companies a lot of time, cost, and resources.
Conclusion:
Not only does inventory management save construction companies a lot of time or money, it also saves them a lot of fatigue over misplaced or lost materials. This gives workers a lot of clarity when they start off with projects since they will know how much of each material is available. Inventory management can also alert companies if supplies are running low. This can enable them to stock up on time instead of causing unnecessary delays. Construction material is always bought in bulk, and it can be so easy to lose track of where each item is stored or how much of it was purchased in the first place.
If construction companies invest in inventory management, it may reduce profits in the early stages of implementation but in the long term, a lot of costs will be minimized. The concept of inventory management is slowly seeping into the construction industry. Although a lot of effort will have to be put in, those efforts will not be in vain considering how beneficial efficient inventory management can prove to be.