Tuesday, February 2, 2016

Keeping Overhead Low with Effective Supplies Management

If you are a contractor or related service professional, you understand the importance of keeping some basic supplies on hand. Having more frequently needed supplies on hand will help meet your customers’ need in a timely manner. For those less commonly used supplies, you may opt to order as needed or to keep a lower inventory in stock.

Whether you are preparing an estimate for a large job or simply restocking your warehouse, there are some strategies to keep in mind that will help to keep your overhead low. Oftentimes, building suppliers and parts suppliers will offer a discount for bulk orders. If space in your warehouse allows for bulk storage and the items are typically used in a reasonable amount of time, this option might make sense for you. If the materials are not likely to be used within a month or two, this option may not be best. Having materials sitting in a facility will constrain finances for longer than necessary.

Lastly, it is best to keep an up-to-date inventory list and to make note of lower inventory materials. It is more cost effective to order materials when they are running low then to pay expedited shipping rates for a faster turnaround time. Keep these points in mind as you order your supplies next time.

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