Tool inventory control is critical in controlling costs and increasing profits in a service business. Many companies supply their employees with the necessary equipment for work without cost to the employee. Unfortunately, this can lead to misplaced equipment and tools. The cost of replacement is extreme and can quickly eat into the bottom line. To prevent this from becoming a problem, a company should employ some sort of inventory to track the use and placement of equipment.
The number one reason for this type of system is cost savings. Overwhelmingly, the price of constantly replacing misplaced or stolen equipment causes companies to go under or have a severely reduced profit margin. The simple fact is employees take better care of their own equipment than what is freely handed out for use. If they know the cost will be passed to them when they are careless, they will take better care to return the borrowed equipment.
The system allows employee tracking of equipment. When an employee checks out what they need, they will know that each piece is attached to their record. If the equipment is not returned, they can be charged for the cost of replacement. This method has proven very effective in reducing costs due to loss.
Tools and equipment can be tracked easily with bar-code scanners. Most systems will include a bar-code printer and scanner to allow each piece to be entered into inventory. When a piece is checked out, it can be tagged to an employee’s account. At the end of the day, month, or employment contract, management can easily see what equipment was checked out and never returned.
Manual systems do not work as well. Having a barcode system setup allows the faster and more accurate processing of checking things out. Since each wrench, hammer, caliper, and roll of cable can have its own unique bar-code; it is easier to see what is being used. Relying on people to write down each piece when they are in a rush to get to the job has been highly inaccurate.
Weekly audits are easy to accomplish. Using a wireless scanner, a warehouse employee can easily spend a few hours to do a full audit. This helps in reordering supplies and seeing what is being used by each employee. If there is a trend indicating misuse, management can be alerted to correct the situation.
The reports available help provide a picture of where money is being spent. The result is a better tracking system that gives management an idea of who is using what. Damaged tools can still be checked in, and then checked out to a damaged account. This relieves the employee of the responsibility since they did turn the equipment back in. The reports help control costs from a management perspective.
A good tool inventory control system is important if a company is spending a lot of money on replacement equipment. Anytime the company is responsible for the cost, the employees can be held accountable by having to check them in and out. The speed of the system also eliminates delays of checking items out and getting to the job site.
