The way you manage your company’s inventory has a direct impact on your profitability, customer satisfaction, and ability to make informed business decisions. PSA (professional services automation) software can turn simple asset management into a data goldmine. Harnessing that information turns today’s problems into tomorrow’s opportunities.
Here’s how PSA software solves six common inventory management challenges for technology services companies like yours.
1. Multiple inventory locations
The problem: Your inventory is likely spread out over multiple locations such as warehouses, storage units, storefronts, and work trucks, making it easy to lose track of any one item. Lost inventory results in placing unnecessary orders or reorders and can have a negative effect on your bottom line. You work hard for those dollars, so why let them fall through the cracks?
How a PSA can help: A centralized inventory management portal via PSA software will allow you to maintain oversight of inventory in the main warehouse and work trucks, as well as view items still out to vendors that have not come back
2. Technology lifespan
The problem: All inventory has a lifespan, even if it’s a Twinkie. In the technology world, items can become obsolete very quickly, leaving you with an excess of unusable inventory that you have no choice but to liquidate or give away.
How a PSA can help: With the asset management feature within a business automation solution, you can view the lifespan for every single item on-demand or even receive alerts when items are in inventory greater than six months with no sales. Incorporating serial numbers can also ensure that the oldest items leave the warehouse first.
3. Sales and invoice control
The problem: Keeping track of materials used while servicing a client requires meticulous record-keeping by your sales team or field technicians, and sometimes used parts are accidentally overlooked.
The Solution: In order to make sure you aren’t giving away valuable inventory, suffering shrink, and missing out on sales, give your techs access to real-time inventory in the field. The best PSA software solutions have a mobile app your tech can pull up via their phone or tablet instead of relying on hand-written notes that could get lost along their service route before they can be given to the billing department for invoicing.
4. Customer service
The problem: The only thing worse than having too much inventory is not having enough to service your customers. This can cause delays in service that damage your brand reputation and credibility, as well as costing you money in lost sales or extra fees needed to rush items.
The solution: A PSA software system will keep track of use, current levels, and items on order, plus alert you when certain items hit set minimums or maximums.
The Problem: The best way to make a profit from your inventory is to ensure that it’s priced correctly, to begin with. You need to be able to track cost changes, as well as monitor inventory use so that you can wisely take advantage of special offers from distributors.
The Solution: With the right business automation system in place, you can view real-time price book updates from top vendors, accurately forecast inventory use, and then set and adjust your pricing with ease. You can even take it a step further and value your entire inventory by location for P&L (Profit & Loss) and tax purposes.
6. Loss prevention
The Problem: It’s not something we like to talk about, but sometimes employees steal. Identifying theft is complicated without a system that allows you to track inventory quickly, easily, and in real-time.
The Solution: PSA software’s inventory control features and historical data not only protect you from intentional loss but also provide you with a record in the event the ex-employee files a wrongful termination suit.
Take the first step toward transforming your inventory and asset management into increased profits by finding the right PSA software for your managed technology practice. Download our PSA Checklist for Technology Service SMBs and get started today!