How Facilities Managers Can Prevent Inventory Mismanagement?

Have you ever wondered how efficient inventory management and control have an impact on everything from maintenance planning to budget allocation? This is because inventory management for facilities includes critical aspects like the procedures for ordering, storing, and using supplies and equipment. It ensures that you always have what you need when it counts the most.

Strong inventory management and control procedures are clearly necessary for success in facilities management. When you are aware of your inventory levels, strategic decisions become easier and more effective for your organization.

Given that 46% of warehouse errors are human errors, it is critical to deploy effective facility maintenance solutions and technologies. Read on to learn more!

The Function of Inventory Control in Facilities Management

Inventory control is critical for efficient facilities management in the following ways:-

• By regularly tracking inventory utilization and asset lifespan, you can arrange predictive maintenance to avoid unexpected breakdowns.
• It provides the visibility required to manage resources successfully.
• Maintaining thorough inventory oversight using software solutions or IoT technologies streamlines operations while lowering expenses, all of which are critical components in guaranteeing smooth services in your facilities management function.
• Tracking supplies and equipment allows you to make more educated purchase and resource allocation decisions. Using IoT sensors, you can receive quick warnings for any irregularities that require immediate attention.
• With real-time stock data, you can optimize your purchasing strategy by merging orders to reduce delivery costs, purchasing in bulk for discounts, and anticipating demand based on seasonal trends.
• Effective inventory control also helps to avoid overstocking, which wastes money and takes up valuable storage space.
• Knowing what resources are available and where they are placed allows for more efficient utilization throughout your facility. Instead of making fresh purchases, you can reallocate surplus items or reassign underutilized assets.

Challenges of Inventory Management for Facilities

Despite its importance, effective inventory management poses numerous challenges, such as:

• Lack of Visibility: Many facilities do not adequately manage inventory levels. This lack of transparency might result in stockouts or overstocking.
• Inaccurate Forecasting: Trying to predict future inventory demands might be difficult. Many facility managers rely on antiquated methodologies or gut instincts, which can result in considerable differences.
• Inefficient Processes: Ordering and storing parts can be unproductive, resulting in delays and errors.
• Poor Communication: Effective inventory management necessitates collaboration among multiple parties. Miscommunication can lead to misunderstandings, which exacerbate inventory problems.
• Inadequate Training: Many technicians lack the required skills to handle inventories, resulting in errors and mismanagement efficiently.

Perks of Inventory Management for Facility Managers

Implementing a strong inventory control system can yield numerous benefits for facility managers, including:

• Better Productivity

Effective inventory management leads to increased operational efficiency. You can quickly identify the materials you need. It saves downtime and enables you to focus on your primary responsibilities.

• Longer Lifespan of Assets

Proper inventory management enables prompt repair and replacement of equipment, extending the life of your assets. This way, effective inventory management enables preventive management and it is proven that preventive maintenance prevents 25% of repairing cost!

• Reduction of Overspending

You may avoid overbuying and save money by improving your inventory visibility and analyzing your usage habits. According to industry experts, effective inventory management can significantly reduce wasteful spending.

How Can Facilities Managers Prevent Inventory Mismanagement?

Are you a facility manager searching for ways to optimally manage your stock while avoiding most of the error potholes? Well, here is your solution – let’s discuss eight strategies to prevent inventory mismanagement.

1. Schedule Frequent Audits

Regular inventory audits can aid in detecting discrepancies and errors in your records. Schedule weekly or quarterly audits to ensure that your inventory data is accurate and up to date.

2. Connect With Systems for Procurement

Integrate your inventory and procurement systems to achieve comprehensive inventory management for facilities. This interface allows for continuous communication between purchase orders and stock levels, improving overall visibility and efficiency.

3. Classify Your Inventory

Organizing your inventory into categories may make it easier to track and manage. Grouping items helps you quickly assess what you have on hand and what needs to be refilled.

4. Keep Precise Logs

Digital inventory management systems can significantly increase the accuracy of your records. Ensure that each item is accurately logged, and establish a clear process for updating inventory data.

5. Track and Maintain Your Assets.

Use an asset tracking system to keep track of your equipment’s status and usage. This system should provide important details such as location, condition, and maintenance history.

6. Incorporate Predictive and Condition-based Servicing

Predictive and condition-based maintenance relies on data and analytics to determine when maintenance should be conducted. This proactive approach helps to prevent unexpected equipment failures and reduces maintenance costs. Using data and real-time analytics, a facility maintenance solution can monitor equipment health and identify potential problems.

You can successfully optimize your resources by only performing maintenance tasks when necessary, based on the actual state of the equipment.

7. Use the First In, First Out Technique

Using the First In, First Out (FIFO) technique guarantees that older inventory is used before fresh supply. This approach is especially important for perishable foods, as it can considerably reduce waste.

8. Implement Fault Detection and Diagnostics

Incorporating fault detection and diagnostics into your inventory management system might help you uncover problems before they worsen. Addressing issues early on can save you time, money, and resources in the long run.

To summarize, effective inventory management is critical for facility managers. Understanding the difficulties and using new techniques can help you reduce the risks associated with inventory mismanagement. The objective is to combine technology and practices to build a strong inventory management system.

So what are you waiting for? Take action now. Begin by evaluating your present inventory methods and identifying opportunities for improvement. Feel empowered to apply these ideas to your business. The journey to better inventory management is only begun!

Author Bio

Lindsey Walker is the marketing manager for NEXGEN, a Sacramento-based industry leader in designing advanced computerized maintenance management systems and asset management software tools for utilities, facilities, public works, manufacturing, and fleet industries. In her free time, Lindsey enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. She is committed to creating content that connects well with her readers, enhancing their digital experiences.