You offer high quality products in a competitive market, and the demand for your product is growing – so why isn’t your profit margin also growing? Where is the lost revenue disappearing to?

Chances are that it’s disappearing with a lost nut here, a loose bolt there, a missing screw somewhere else, etc. Those items may cost only a few pennies, and, although pennies seem insignificant, they add up pretty quickly.

So how are you keeping track of the nuts, bolts, and screws in your business? If it’s not by using parts inventory management, you need a new plan – parts inventory management.

First, you need to thoroughly audit your system to pinpoint the “leak.” Then, once you’ve clearly identified the section/department/area from which you’re leaking revenue, you can begin to find ways to make that area work more efficiently.

Now that you identified the problem, you need the most cost effective solution to stop the leak and get your profit margin back where it should be. Now is the time to learn the key parts of your process – where are they coming from? Do they arrive from overseas? Do you buy them in bulk? Where do you put the stock once you’ve got it in your warehouse? Do you have an easy-to-use and accurate counting system so that your stock numbers remain accurate at all times? Are all the necessary employees trained to use the system? Are accountability measures in place?

So, now that you’ve identified the problem and found a solution, you have to stay on top of it – to mind your nuts and bolts, if you will. Your profit margin depends on efficient parts inventory management. This means you have to know what you have, have it when you need it, and be able to track it to minimize lost time and maximize production.

At Acumen, it’s our job to pay attention to every detail. Our analytical reporting software and consultation services provide clear and accurate information about the nuts and bolts of your business.

Contact us to start saving money today!