Case Study: Custom Inventory Management System for Construction Firm
The Result: Complete visibility into the inventory tracking system of a construction firm reduces waste and optimizes equipment scheduling
The Opportunity: Optimize tracking workflows with a centralized and highly integratable inventory management system.
Our client was a large scale construction management company struggling to keep track of an extensive equipment inventory spanning multiple warehouses, yards and job sites in various states. Their legacy system relied on a sole-access database which could not keep up with the demands of tracking all equipment and tools and led to loss of material and stagnant inventory. Real-time inventory tracking was impossible with their reliance on written communications and limited database access, making scheduling materials for jobs a lengthy and error prone process. As their inventory increased in scale, the previous system became more difficult to manage and jobs faced avoidable bottlenecks due to slow asset mobilization.
Atigro created a centralized equipment and consumables database that was interactive and prioritized real time tracking of equipment location, making inventory tracking a shared task and manageable across all locations. Atigro also expanded on tracking the exact status of equipment inventory to go beyond simple location but also include how the equipment was being utilized. This allowed the inventory system to be truly integrated into other modules which controlled how and when the inventory would be moved, plans on where to move it to next, and maintenance of equipment inventory.
The Solution: A custom inventory management system that manages complex inventory across multiple warehouses, tracking workflows from ordering to delivery pickup after use and maintenance.
Efficient inventory tracking is the cornerstone of construction projects where job completion is reliant on correct and timely asset scheduling and mobilization. In order to handle their large inventories, many companies in the construction industry are implementing fleet management software to improve their operational efficiency and automate scheduling and inventory reporting. However it is important that the software seamlessly integrate into other modules not only for data exchange through an API, but also for true automation of the inventory movement based on input on work orders, services orders and reservations. In this way, the system supports job planning, equipment lifecycle tracking, preventative and repair maintenance, movement of the equipment, and accurate and detailed billing to the jobs.
Prior to the custom software development, inventory tracking was done individually through a database accessible to only one employee at a time. Physical paperwork and verbal communication was used to relay material condition and location information which meant that information was often already outdated by the time it was input into the system. Without visibility into where materials were and if they were usable, duplicate orders were made and usable materials were overlooked.
By creating a custom inventory management software system which allowed equipment and material tracking, ordering, tracking status, and transfer of inventory, our client was able to account for all equipment and easily transfer them from one location to another.
To fulfill reservation and order requisitions, integration with service orders and work orders ensured that materials were transported to the correct locations, and a trackable log could visualize the equipment use and maintenance over its lifetime. Business rules require technicians to record the condition and amount of each item they are transporting using images and written notes. For equipment left behind, a new service order is automatically created to transport it, ensuring no items are unaccounted for. By using these required inventory updates by field technicians, the system ensures that there is a complete elimination of lost materials and back office administrators can visualize the locations of the whole inventory when creating new orders or assignments.
The system maintains inventories for every location including items which are on order so that future reservations can be made for incoming equipment. By maintaining inventory from the moment that it is ordered to the time it is returned or no longer usable, there is no confusion as to where items are, how they have been used and which end customers are charged for their usage. Jobs are able to start and finish quicker, and equipment is optimally utilized to get the maximum return on every purchase. Additionally, this visibility of potential deliveries on a map allows for route optimization so that the closest materials can be utilized, reducing transportation costs and delays.
Key to the success of this inventory management software is the complete integration of all staff procedures with the inventory system and the automations requiring less data entry by staff. This improves accuracy by reducing the number of screens a staff member needs to go to in order to complete their work. The previous system was prone to duplicate entries or errors due to a mismatch of real inventory with what was logged in the system. With a continuously updated, hands-on system that all roles can access, the inventory is always up to date. No equipment is moved, used or ordered without it being logged and visible to everyone else who may need to reserve that equipment.
The Impact: Reduced resource waste, optimized asset scheduling, and accelerated job completion
The introduction of our custom inventory management system has allowed our client to have complete visibility into their inventory usage and automate their ordering and scheduling workflows. Real-time inventory tracking allows administrative staff to anticipate job site needs and maintain stock levels to prevent bottlenecks and improve operational efficiency. With an integratable inventory system which interacts with field service apps, ordering systems, and back office scheduling procedures, managers are able to maintain increased inventory visibility without additional workload.
The complete elimination of physical paperwork ensures a traceable log of equipment usage and condition to allow insight into high use products and necessary upgrades. Linking equipment with jobs means that project managers can now predict when equipment will be needed and at which job sites.
In addition to using GPS to simplify tracking equipment and tools, the use of image uploads to report the condition of equipment after use provides necessary data so that equipment can be scheduled to be taken out of rotation for maintenance or reordering before they break and obstruct job completion.
The custom inventory management system is transformational for scaling construction management. Replacing the legacy inventory workflows has reduced administrative workload and allowed jobs to be completed quicker and resources to be allocated more efficiently.
The Bottom Line
In the construction industry, costly delays and unnecessary waste occur without a well kept and organized inventory and the ability to track all consumables and equipment. A custom inventory management system integrated with other modules through sophisticated automations reduces labor for back office administrators and ensures that jobs are completed with the correct equipment and without job site backlog and employee frustrations. Using our system, our client will be able to take on more jobs, track equipment usage and streamline ordering workflows. Most essentially, the system will be able to grow the construction business without requiring significantly more labor to maintain.
With the custom inventory management system, all equipment and tools will be able to be ordered, assigned, and tracked from a centralized location. Automating key inventory workflows allows our client to take on more complex jobs with vast equipment needs without sacrificing quality or safety and without delay.