Effective inventory management is a critical part of running a successful Automotive Workshop in Australia.
Having strong inventory management will optimise costs, reducing the risk of stockouts, or overstocking, and will ensure smooth operations.
That leads us to the question. How can your Workshop achieve strong inventory management?
In this article, we will delve into 5 essential tips for achieving strong inventory management at a Mechanical Workshop.
Let’s dive into it!
1. Implement Inventory Tracking System
One of the main reasons why so many Workshops and product based businesses alike struggle with Inventory Management is because they record and report on inventory management numbers manually.
The first and most effective way to achieve strong inventory management at your Mechanical Workshop is by implementing an inventory tracking system like a Workshop Management Software. The benefit of using a Workshop Management Software like Workshop Mate to manage stock is the system will automatically record and report on inventory numbers as your shop buys and sells.
Using technology to manage your Workshops inventory will increase efficiency, reduce the risk of error, and equip you with the right information needed to make more strategic inventory decisions.
2. Train Staff
Staff play a huge role in having strong inventory management. Think about it, if one mechanic is entering and recording stock one way and another mechanic is doing it a whole other way, there will be discrepancies and the numbers may not match.
To achieve strong stock management it is important that your Workshop implements a set inventory management process and trains all staff to perform the role as required. The benefit of having a set process is you reduce the risk of discrepancies and errors.
3. Forecast Ordering
There is nothing worse than having too much or too little stock. The last thing that your business wants to do is turn a customer away or have excess stock sitting around that you cannot sell, either option will cost your business thousands. A key fundamental of having strong inventory management is forecasting your ordering.
To forecast your ordering correctly it is important that your business records inventory sales figures. Once you have built enough data, you can go back and see if there are any trends or order patterns. The benefit of having this information is you can predict your future demand based on past figures and order accordingly.
4. Optimise Supplier Relationships
Your suppliers are vital for achieving strong inventory management. If your suppliers cannot provide you with the required inventory when you need it, you will have serious issues.
It is important that your Workshop continues to assess and build relationships with your suppliers. You need to do everything in your power to get your suppliers to achieve what you need, when you need it and most importantly at the price you need it for.
Having strong supplier relationships will help your Workshop effectively manage inventory and will ultimately position you to scale into the future.
5. Analyse Inventory Costs
Costs are rising and they show no signs of slowing. As a Workshop owner it is essential that you continue to analyse your inventory costs. Go back into your data and look at the prices that you are paying for inventory, the prices that you are selling that inventory for and most importantly the margin that you are generating on those sales.
Once you know where you stand, ensure you are selling your inventory at the right price point that generates profit and doesn’t impact the customer. The last thing that any business wants to do is sell a product that is too costly and doesn’t generate profit.
Having strong inventory management is a key fundamental of running a successful Automotive Workshop. By implementing the presented strategies, Workshop owners and managers can achieve better inventory management and stronger cashflow.
We hope you enjoyed reading this article. To read more articles like this, please visit the Workshop Mate latest news page here.
About Workshop Mate,
Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.
Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.
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