Another big reason your inventory can be MASSIVELY important is for insurance reasons. God forbid your warehouse is blown away by a tornado or consumed by fire, you should have an insurance policy in place with inventory coverage. Even if you do have insurance they will require you to demonstrate you had the inventory in place, which for most businesses involves the insurance company hiring a forensic accountant that will try to estimate your inventory value based on inventory purchases and product sales, meaning a lengthy review of your business’ financial documents. This process can take several months, during which time you won’t be getting any insurance payout, and it often results in some amount of claimed inventory not being paid out because it couldn’t be documented even with the review of financial docs. On the other hand, if you provide a detailed spreadsheet with recent inventory amounts and maybe a few photos of your warehouse pre-loss, you’ll get paid out your insurance money so much faster.
You could use a two bin system for your inventory: There are two bins filled with stock, on the bin is the quantity that it is filled with, and the supplier, and the part number. There is an open bin on top or in front of the reserve bin. When the open bin is empty it triggers a re-order. The reserve bin becomes the open bin, and the new bin is put behind or underneath it when it comes. This allows you to easily quantify your inventory, prevent overstock, prevent out of stock, all without requiring the labor of constantly counting and re-counting your stock. Alternatively you could use a three bin system like Toyota.
@@SuccessfulContractor That is very true, the space I think is an even bigger limitation than the bin cost. If the parts all have the same weight they make a digital scale thing under the bin that estimates the number of parts in a bin using weight. I saw some being used in factories. Those might be expensive, I don't know, but it might make your inventory work easier. Really depends how cheap you can get them. There might be some cheap third party that sells a knock off version of that inventory system. The biggest thing I like about bin systems is automating the counting of inventory, time and money spent manually counting inventory can really add up. Inventory control systems that eliminate that are a dream if you have lots of parts to track. I would look at the Kanban systems and inventory systems used by factories and see if any of them are affordable and work for your space requirements. There may not be a better option, but if you can find one it might make your day a lot easier.
Pushing 200k in revenue in first 10 months at 27. It's a start. But all these guys, Mr. Fence, Successful contractor, Ozark, Alex Hermozi. Game Changers. I struggle with the confidence to start the youtube journey. Ya boy out here with performance anxiety. ): Id love to document my start up journey and somehow get involved in all this networking online.
The best advice I can give you is, start! There will never be a perfect time and you’ll never be hundred percent ready but if you start, you’ll get better as you go. After that the most important thing to do is be consistent.
@@SuccessfulContractor Yes, please! The information you provided in this video was jam packed. I would like to see how you inventory the smaller components and where you keep them. Especially if you only have 1 item. Do you group them up in a box with miscellaneous items? This is where I struggle with my inventory and keeping it organized. Especially if there is no barcode, or item description.
Great content! I was recently laid off from my job, always had an upgrade from whatever previous job I had! I’ve seen a few inventory jobs, but I wanted to get more knowledgable on ideas of keeping inventory accurate & what to look for in keeping things organized!
Inventory cataloging is the foundation of your inventory management system. Making sure each item on the shelf is cataloged to the correct specification will reduce your duplication, overstocking and incorrect order of items.
I searched online about inventory management as I am working for an inventory software company, I have learned a lot from you and hopefully we can create a powerful software that will change the game of contractors making it easy for them to do inventory management
See if you can make an app that employees can have on their phones and can scan a bar code when they pull an item and then that gets added to a list that gets automatically reordered
What do you need to have before having an inventory system? How far should I know what my purpose is before getting what I need? And What’s a good inventory system?
