One of the most important parts of running a trade business is managing your inventory well. If you misjudge your materials or equipment availability, it disrupts workflow, causes delays, and affects clients. Strong, seamless inventory management forms the foundation of your business’s efficiency and quick project turnaround. Inventory impacts everyone—from suppliers and stakeholders to your bottom line and customers. Along with operational processes, like internal organisation or trade management apps, inventory upkeep is essential. Prioritising inventory management is key for all trades, including construction crews, electricians, and pest control.

That’s why Powered Now has put together the ultimate guide on managing your inventory so you can stay prepared and productive all year round. 

Understand Your Needs:

Look into your past data as a business and understand what your demand is like throughout the year so you can plan for these periods effectively. All trade businesses have seasonal periods and low demand times, during which you must plan inventory accordingly. You can also begin to take note of the equipment, materials, and products (depending on your field) with short expiration dates to avoid unnecessary waste and issues in the future.</p>

Build Relationships with Suppliers:

Great inventory upkeep starts with a reliable supplier or suppliers that provide you with everything needed to run your business smoothly. Develop clear communication channels with your suppliers for timely replenishment of stock, as well as maintaining a positive relationship with them to benefit you in the future. By building strong supplier relationships, you can negotiate better products, terms, prices, and turnaround times to meet your needs.

Inventory Management Systems:

Consider using an inventory management system to track stock levels in real time. This system can integrate with your trade business management app for seamless service delivery. Use these platforms to automatically reorder materials you need or stock you run low on. They can also help you add new items to improve team productivity. Inventory management software reduces risks of overstocking or running out of equipment. Rely on this technology to keep your inventory operations organised and efficient.

Inventory Audits:

Routine inventory audits are essential for trade businesses as they allow you to align online/paper records with your real-time stock levels. This is also an opportunity to identify discrepancies in your inventory if damage, loss, theft or updates are required. Having found these issues quickly, you can assess the impact on your business and mitigate loss of profit or delays.

Your Suppliers:

You won’t be the only trade business in your field, in your location. Therefore, you will not be the only business looking for these products, supplies and materials. During peak times and demanding periods, you should avoid relying on one specific supplier for your inventory. This ensures you continuously have stock.

Plan for Contingencies:

As a business owner, you will know that nothing runs smoothly all the time. Therefore, it’s significantly important that you are prepared for the unexpected. A contingency plan helps you manage stock and maintain operations during sudden demand spikes or supply chain issues.
With backup stock, you can keep providing services and maintain peace of mind. You can also manage customer expectations until the issues are resolved. Always establish emergency supply agreements or quick response strategies for fast inventory replenishment.

Storage Solutions:

Storage space efficiently is key to your inventory management as your team will require quick and easy access to equipment and materials in emergencies or on the go. To set your inventory up for success, categorise and label it by size, service, or demand level. You can also get your employees to help with this organisation to see what layouts and processes work best for them.</p>

Technology for Suppliers:

Powered Now has a seamless and efficient partnership programme that aids suppliers in operating professionally and productively at all times in the trade industry. We are a trusted partner with some of the largest trade suppliers and organisations in the UK and Europe. Help your customers digitise their processes and operations for streamlined inventory processes and successful supplier relationships.

Effective inventory management is crucial for any trade business. For those looking for the most effective ways to successfully manage your equipment and stock, you first must understand your needs, build a strong relationship with your suppliers, and plan plan plan! Ensure your electricians, plumbers, cleaners, gas engineers, construction crew and other employees are set up to thrive on the job. These inventory management strategies will not only help overhaul your operations; they will guarantee you run a more efficient and profitable company. </p>