5 Benefits of Inventory Management Software for Builders & Suppliers
One home is built up of thousands of individual products, generally coming from dozens of Suppliers. Every product needs to be tracked from its manufacturer or location in a distributor’s warehouse to its final installation in the home and often beyond, for purposes of warranty work, maintenance and repair. An inventory management system is, therefore, an important component of the home building process.
One concern that we often hear about from Builders and Suppliers is that each organization has different processes and item numbers or SKUs for the same products. Also, what may seem like one installed component to a Builder, may actually require the delivery and installation of 8 or 10 different parts by the Supplier. It can cause serious problems when Supplier and Builder designations don’t align. Inventory management software can help prevent confusion and breakdowns in communication by bringing the two sides together and helping manufacturers and Suppliers plan, forecast and communicate effectively with Builders.
1. Access to master SKU catalog: One version of truth
When Builders and Suppliers work within a two-sided construction management network that includes inventory management software, both sets of users will have access to a single master catalog. Since there is nothing more irritating than trying to guess what a Builder wants from a different catalog than the one you’re using, ensuring everyone is on the same page reduces confusion and mistakes. Finding out on the job site that you guessed wrong can be very costly in time, money and Builder satisfaction.
2. Automatic SKU mapping
Remember that a single new home can involve hundreds of separate SKUs for thousands of separate pieces. That is an overwhelming amount of data to enter and check against purchase orders. When your Builders are using SKUs different from your system, or even from one another, the translation job alone is time and resource consuming. With a SKU mapping subscription, your inventory management software will automatically convert Builder purchase order data into your own product and quantity specific data. As a Supplier, this allows you to save time, enter orders more easily into your system, and verify pricing with accuracy before discrepancies cause problems.
3. Reduced supply chain issues
Every SKU has a separate supply chain of subcomponent materials, with its own potential for problems. A universal SKU language eliminates supply chain disputes that arise from disparate lists. Resolving SKU conflicts takes time, money, and manpower that could be put to better use generating new revenue and growth for your business.
4. Comprehensive digital manufacturer data
Not only can Builders and Suppliers rely on a single master catalog to eliminate errors in communication, a digital master catalog built from digital manufacturer data can be automatically updated as products change or are discontinued or replaced. Having access to up-to-date data can help you avoid issues related to product obsolescence or unavailability and choose the best products for your projects the first time around.
5. More accurate delivery and accurate transactions
By eliminating problems that arise from disparate SKUs, users can streamline transactions and increase accuracy. This reduces the costs associated with incorrect transactions and keeps projects on track by making sure Builders are purchasing and installing the correct items.
Explore The Benefits of An Inventory Management Software with Hyphen
SupplyPro is a construction management software system from Hyphen Solutions that is designed specifically for Suppliers, Contractors and Trades. It facilitates real-time communication between Builders and Suppliers and streamlines planning, scheduling and accounting to better manage your business.
SkuSphere, part of the SupplyPro product family, gives Suppliers the ability to eliminate error-prone and frustrating manual transaction data entry. With SkuSphere, Suppliers can automatically convert Builders’ SKU language to match their own, at the level of detail that they need. Using SkuSphere also enables users to explore product packages by line item, with service or product descriptions included.
To learn more about SupplyPro and SkuSphere, schedule a demo today.