Controlling costs starts with efficient purchasing and stock control processes:
- There are only two ways to increase profits on any job or project - increase your prices or reduce your costs.
- Increasing prices or margins isn't easy in today's competitive environment and you need to make sure all of your costs are under control. Because of this, your purchasing and stock control processes need to be efficient.
- Other than labour and vehicles - and we'll cover them in Scheduling - stock is your most significant cost.
- Managing it and controlling it is vital.
- Too much stock and you're tying up cash unnecessarily. Too little and you're constantly chasing your own tail for parts and materials and wasting billable time.
- Purchase orders are raised through the system and allocated directly to the job.
- When you receive your supplier invoice, it's easy to check the job it was assigned to and if the price was right.