Construction inventory management is all about organizing, ordering, and using your company’s inventory. Whether you keep stock of raw building materials, lightweight tools, heavy equipment, work-in-process, or finished goods or output, an optimized construction management system is critical to ensuring that your company runs smoothly and profitably.
Construction companies often rely on free, inexpensive, and traditional options to manage and track their inventory. Printed construction inventory lists— which are basically just sheets of paper— and conventional spreadsheets are classic approaches to managing inventory for companies looking to cut costs. The question is, in these progressive times, would that be enough?
In today’s blog, we will talk about all the basics of inventory management and dive into why the subject, at its core, is such an essential process to each and every kind of business, especially in the construction industry. Then, we will identify the most common inventory management terms like the cost of goods and safety stocks. After that, we’ll review various inventory management process methods, including inventory spreadsheets, written inventory, and construction inventory software.