The ROI of effective financial management of your warehouse
By David Eason August 26, 2018 Reading time:
Get your warehouse in shape: save time and money
Normalisation and acceptance of ineffective financial management is a silent killer for any business.
For bus operators, whether it’s multiple systems across the business or reliance on manual data entry processes, the lack of an integrated solution is guaranteed to cost you time and money.
A LACK OF INTEGRATION COSTS MONEY
Inefficient systems that fail to provide real-time inventory visibility and tracking also fail to give you an accurate picture of what is happening within your warehouse.
Missing or inaccurate data constitutes a significant blind spot, allowing unnecessary or unauthorised financial expenses to go unnoticed.
Sometimes these costs can be minor, such as purchasing too much stock or staff including parts for their personal use within bulk orders. Others can pack a greater punch to your pocket, such as inefficient warranty tracking that causes your employees to miss opportunities to make claims.
A LACK OF INTEGRATION COSTS TIME
Time is a valuable commodity for any business, and just the thought of wasting it on processes that can be integrated and streamlined should be motivation enough to utilise automation wherever possible.
Are your employees wasting time going through filing cabinets when they could be using a search function in a digital database to obtain information in seconds?
What if those records are misplaced?
Do you see staff members entering the same data into multiple places because your software systems don’t talk to each other?
Think of how much more value-added work your personnel could carry out if they did not need to dedicate so much time to do things manually.
THE ANSWER: AUTOMATION
The good news is that through the use of systems that can automate processes, improvements are always possible and often significant. Having a system that enables workflow automation as well as inventory control can not only reduce unnecessary costs, but expose untapped cost efficiencies.
Having an in-depth understanding of your inventory, where parts are used and how often they are used gives you invaluable insights such as:
- How much value is attributable to each vehicle
- Total fleet fuel consumption, allowing you to see if any vehicles are over or underusing and make iterations based on this knowledge
- How parts move on a daily, weekly and monthly basis (specifically, which stock is being over or underused and how this information influences future orders)
This further allows for enhanced efficiencies in your accounting department, as more accurately tracked inventory can be accounted for and reported.
(Think of it as power steering for your business – the same results, but in less time and with less effort.)
This can be applied to various processes across the warehouse, including communication, inventory management and maintenance. As the saying goes, “time is money” and if you can improve the time-efficiency of your warehouse processes, you will see a return on your investment.
While the transition to new systems in and of itself is sometimes perceived as too time-consuming or difficult, failing to do so is likely to hurt your business more in the long term.
Seeking assistance with system integration from a technology partner with experience and knowledge of the bus industry will make the process easier and provide you with the support you require.
1. Fain,B. (2015, January 16th). 3 reasons why you need automated inventory management and reporting [Web log message]. Retrieved from https://www.stitchlabs.com/blog/3-reasons-why-you-need-automated-inventory-reporting/