Inventory Management Software For Construction Industry

Construction happens on the job site; however, the operations of a modern construction company go beyond the field. It involves properly and efficiently managing inventory-related data in the construction industry. 

Free inventory management software manages inventory-related tools, materials, equipment, and finished goods for construction. inventory management software for construction industry for the construction industry is a means by which companies and suppliers keep track of stock levels, materials, equipment, workforce, and plant. 

Inventory management software for construction industry is most important when a construction company manages various projects. It allows businesses to track, maintain, organize, and examine their inventory-related processes.

Vyapar app is an inventory management software for construction industry that helps construction companies manage and keep inventory tracking. A well-managed inventory benefits profitability, as misplaced, delayed, or lost items may lead to unnecessary costs and avoidable delays.

The inventory management process is everything a construction industry utilizes to sell or produce products, from finished goods to raw materials. Industries practice inventory management systems as it affects profitability and productivity. There are different types of inventory in business management. 

The four types of inventory commonly used are raw materials, work-in-progress (WIP), finished goods, and maintenance, repair, and overhaul (MRO). Using the Vyapar inventory management software, users can do better inventory control and management in the construction industry. So, choosing the best construction inventory management software for construction industry is essential to manage and track inventory.

Raw materials:

Materials required to turn the inventory into a finished product are known as raw materials. The inventory items are pieces of parts that are currently in stock. However, these items have not yet been used in finished goods or work-in-progress inventory. 

There are two major categories of raw materials: direct materials and indirect materials. Here, direct materials refer to items that are typically used directly in finished goods, whereas indirect materials refer to items that are a part of overhead or factory costs. For example, direct raw materials are the cement used in construction sites. Indirect raw materials can be the batteries and stairs that indirectly contribute to the construction site. 

Work-in-Progress:

Work-in-progress is the inventory that is being worked on. It includes the raw materials (including labour costs) still in production when the accounting period ends. You can keep an eye on your inventory levels as the production progress in every stage.

All the direct and indirect raw materials the businesses are using to create finished goods are WIP inventory. For example, a WIP shows that a construction project is 40% complete but has used up 60% of its budget. So, the small businesses can conclude that it will go over budget.

Finished Goods:

Finished goods are the inventory that businesses list for sale. It can be considered the most forward of all inventory types. Final products can be listed on the inventory, and the inventory management system adjusts the stock values as a sale is made.

You can track low inventory levels by setting up low inventory alerts. Any available product ready to be sold to customers is known as finished goods. For example, finished goods could be a well-furnished flat for customers.

MRO/Overhaul:

It is also known as maintenance, repair, and operating supplies. MRO inventory is needed to assemble and sell the finished product. However, it is not built into the product itself. 

Depending on the industry, the MRO inventory might be with a supplier, in storage, or transit out for delivery. For example, the basic supplies, such as pens, helmets, and papers, would be considered MRO inventory. 

Several types of inventory management methods can be used for efficient inventory management. Depending on the type of industry, a company can choose from several inventory management methods. 

The essential inventory management methods include:

• Just-In-Time Management (JIT).
• Economic Order Quantity (EOQ).
• Materials Requirement Planning (MRP).
• Days Sales Of Inventory (DSI).

Just-in-Time Management (JIT):

Just-in-time management allows companies to save money and reduce costs and waste by efficiently managing inventory. This method reduces the storage of items and insurance costs. It also reduces the cost of removing excess inventory of items.

JIT inventory management method can be a bit risky at times. Supposedly, if the demand increases unexpectedly, the manufacturer may need more time to get the inventory it needs to meet that demand. It, therefore, damages the reputation and goodwill with customers, thus, driving business towards competitors.

Economic Order Quantity (EOQ):

The EOQ model is used in inventory management. It is done by calculating the number of units a company needs to add to its inventory. It is done to reduce the total costs of the inventory on hand while assuming that the consumer demand is constant. 

The EOQ model ensures the correct inventory amount is ordered per batch. It is done so that a company does not need to make orders too frequently. It ultimately helps in keeping no excess amount of inventory. Assumed that there is a trade-off between inventory set-up costs and holding costs. Minimizing both these costs leads to minimizing total inventory costs. 

Materials Requirement Planning (MRP):

This inventory management method is dependent on sales forecasts. It means that the manufacturers should have accurate sales records to enable efficient inventory planning. 

These inventory needs should be communicated to the materials suppliers timely. The inability to forecast sales and manage inventory acquisitions minutely results in the manufacturer’s inability to complete orders.

Days Sales Of Inventory (DSI):

This inventory management method is a financial ratio method. It indicates the average time (in days) a company requires to turn its inventory, including work-in-progress goods, into actual sales. It is also known as the day’s inventory outstanding, the average age of inventory, and days in inventory, among many other interpretations. 

The DSI method indicates the liquidity of the inventory. The number represents how many days a company’s current inventory stock will last. In general, a lower DSI is preferred in the management software. It indicates a shorter duration to clear off the inventory items, clearing stock. However, the average DSI varies from one industry to another industry. 

Inventory management software for construction industry has several features that add value to the industry. The features of inventory management are discussed below.  

Companies in the construction industry often need help with excess or buffer stock. When efficient inventory management software is used, estimating and meeting unseen demands is easier. 

The right inventory management software for construction industry makes it easier to manage and track inventory. It helps you save a lot of time and further increases your productivity. When construction industries automate inventory management, it reduces the risk of human error. 

Vyapar inventory management software has an efficient cost management system. It helps construction companies determine the average inventory cost on hand. Also, it provides flexible, efficient, and reliable valuation. 

It has efficient barcode scanning that helps in instant inventory costs, increased consistency, and considerable error reduction. It also has the feature of efficient purchasing management. Increases vendor accuracy, streamlines the purchasing process, and stops unauthorised purchases. 

The various benefits of using inventory management software for construction industry are listed below: 

Improvement in Accuracy:

Improved accuracy is when you know what you have in stock and what you do not at a given moment. When efficiently managing inventory, you know what is in stock and what is not. You order items that are required to meet the demand. When you are aware of what is available and what isn’t, you do not oversell or undersell. 

Detailed Insight Into Products:

One of the biggest benefits associated with inventory management is that you get a detailed insight into products. Efficient inventory management software for construction industry allows users to get detailed insights into your products. You can track products, identify sales trends, and stock holding.

Reduced cost:

In cases where inventory is managed inefficiently, it may lead to a loss of money. It may occur due to avoidable errors and understocked and overstocked items. By automating inventory management software for construction industry, your business can save time and money in the long run. 

Improved Customer Experience:

When you effectively and efficiently manage inventory, you create a better customer experience. Your business completes customer demand by having the correct number of products in stock. It further creates a good customer management relationship. 

Vyapar is an inventory management software for construction industry that helps construction companies to track and manage inventory efficiently. The features available on the Vyapar software make it simpler and more accessible for construction companies to track inventory. 

Some amazing features of Vyapar inventory management software are explained below:-

Barcode Scanning Fastens The Process:

The Vyapar inventory management software for construction industry allows companies to use barcode scanners. It helps in adding items to the required bill. As and when products are purchased or sold, your inventory gets updated.

Using Vyapar’s free inventory management software for construction industry for inventory allows you to reduce time and effort. It further helps you to eliminate any slightest possibility of mistakes. Users can also save a copy of data in the drive to ensure its safety and security. 

Track And Manage Inventory On Smartphones:

No industry likes to have excess stock of items stored in warehouses. Vyapar’s free inventory management software allows companies to keep their inventory in check. It is done by analysing the sales reports of the company. 

Using Vyapar’s free inventory management software for construction industry, users will have the necessary supplies to run a business efficiently. Every time you purchase new products, employees can update the list in the Vyapar software.

Hence, Vyapar efficiently helps the construction industry track and manage inventory through smartphones. 

Real-Time Updates On Inventory:

Real-time updates on inventory give the best idea about the performance of a business. Vyapar’s inventory management software for construction industry helps take instant actions before the supply shortage occurs. Construction companies can keep the real-time inventory in check and place new orders with suppliers. 

Vyapar software for inventory management allows users to set up an automatic order placement with the respective supplier. However, in cases of unexpected demand or sales can be managed with real-time data. 

So the companies can be ready with a decent amount of stock in the inventory. It is done to retain every opportunity that comes along the way to maximize returns. 

Seamless Order Tracking:

Using Vyapar’s advanced inventory management software for construction industry for billing and accounting makes creating purchase or sales orders easy. It helps companies to set up a due date for seamlessly tracking orders. It further helps in tracking the inventory. 

Vyapar’s accounting and billing feature also gets an auto stock adjustment. It also helps to ensure the availability of inventory items. The tracking feature on the Vyapar app is helpful for completing orders timely. 

Tracking and managing inventory avoids unnecessary losses and saves time. Users get to save time with the tracking feature and use it to perform other daily tasks. It enables better customer satisfaction and relationship with the management. 

Print With Regular/Thermal Printer:

Construction companies may require their invoices in manual format instead of bill/invoice format. Vyapar’s free billing software and inventory management software for construction industry is the best option. Vyapar inventory management software for construction industry is compatible with regular (laser) and thermal printers. It allows users to get their desired printout within minutes.

Vyapar’s invoicing and inventory management software for construction industry is an efficient way to print bills, challans, and invoices. Users have the better option to instantly generate and create prints in various size options. 

It includes the regular paper size A4 & A5, thermal paper sizes 2″ & 3″, and other customised paper size options. You do not require printing and using digital methods like e-mail, WhatsApp, and SMS. 

Connect the Vyapar accounting software with your regular or thermal printer. It can be done through Bluetooth or a plug-in option to start printing the company’s invoices. Construction companies can use the Vyapar software to create and print invoices for customers. 

Record All Business Expenses:

Vyapar’s inventory management software is beneficial for small businesses. It helps businesses to track and manage all the money spent on basic business requirements. By recording expenses, companies can optimise business expenditures.

Recording customers help businesses save money and time, which can be used for growth. Vyapar is India’s inventory management software for construction industry that helps businesses to enter the GST invoice format of expenses. 

Vyapar’s free billing software is an efficient option for recording expenses. Construction companies can easily optimize their business expenditures to save time and money. Both the GST and non-GST expenses can be recorded. 

Create Purchase or Sales Orders:

Construction companies can track and manage inventory anytime and anywhere. You won’t have to place a new order on the construction site without checking inventory levels. With real-time inventory levels, Advance orders can be placed so that you have new and updated items before there is a shortage in inventory. 

Vyapar’s free inventory management software helps companies by setting up an alert for purchase orders. It is done before the stock goes down a specific level. So, the Vyapar free accounting app allows companies to create both purchase and sales orders. 

Vyapar software for inventory management also ensures that the customers do not return empty-handed. Using Vyapar’s mart inventory management software for construction industry is efficient for construction companies. Effective inventory management has helped both small and medium-sized businesses in India. It has helped them by cutting down the unnecessary stockpiling of items. 

Frequently Asked Questions (FAQs’)