If there’s a common mistake contractors make
it’s that they think they can manage their in-house warehouse and save money.
For
years, I’ve traveled around this country working with contractors and if
there’s a common mistake they make it’s that they think they can manage their
in-house warehouse and save money.
By far, those who have
listened and done the proper steps have found they can save money, time and
minimize shrinkage (fancy word for
theft!) by letting
outside professionals run their warehouse business for them.
I
don’t get a commission nor do I recommend any one vendor. But, I do recommend
you find a Primary Vendor and test these steps to exit the warehouse business:
1.
First put a dot or a date on a box or item and see if it sells. That first step
has always proven very telling to my clients. This is a must.
2.
At the same time, ask your current suppliers to provide you with a list of
items you’ve bought for the past year.
3. Create a basic
truck stock inventory list that is designed to have 80% of what the Tech needs
80% of the time. It works great for my clients and it’ll be indispensable to
you as well if you are able to set strict minimum and maximum stocking levels
for each item. This is where professional vendors really help.
4.
Remember to impress on those who are vying to become your Primary Vendor the combined
buying power you will now have when they develop their pricing.
5.
It’s also important to know that prior to doing this you’ll want to know what
you’re currently paying for materials as a percentage of sales to your
suppliers.
6. After you select one Primary Vendor (no more
than two if you absolutely must), have them come in and label bins and storage
cabinets, address the proper type of shelving, how to keep the warehouse locked
up and how to track the minimum and maximum stocking levels based on your
buying habits.
7. Place anything you can hang in pre-sealed
plastic bags on a peg board so you can have some visual accountability.
8.
Make sure there is a very friendly credit system for returns that come back
that go back to the vendor and not back into your warehouse so you don’t throw
off your inventory levels.
Do what you do best and let them do what
they do best and you’ll both profit!
PM Columnist Hosts
Online Growth Seminar
Business consultant Al Levi, who writes a
monthly column for
Plumbing & Mechanical and
blogs for other BNP Media trade magazines, will present an online business
seminar, “Growing Big In A Recession,” June 1, at 12 noon CST.
The
June date will be the first part of six total seminars with the others taking
place every two weeks. Each online seminar is expected to last one hour.
Levi
already held his first Grow Big seminar series last January and has since added
features to enhance to the experience. Participants will receive forms,
procedures, a “Grow Big Optimizer” CD and have the opportunity to e-mail Levi
for further support up to 60 days after the series is over.
For
more information and to register, log on to
www.GrowBigInARecession.com.
The website also includes several video testimonies from contractors who took
part in the first seminar series and got their phone ringing again and their
companies growing again.
Anyone interested in taking part
will need to register by May 25. Levi provides geographically exclusivity to
participants within a 30-mile radius of their businesses. There is a charge for
the seminar, but there is also a money-back guarantee.
