September 20, 2019
As we get closer to the end of the year, one thing in everyone’s mind is “Am I going to get a good bonus this year?” It can seem like a lot of it is out of your control, but there are a few key things you can do to significantly increase your chances of hitting your year-end KPIs (key performance indicators).
Companies that measure more often are able to squash out write-offs before they get out of control, helping keep their inventory numbers tightly in line with the finance system records. Every time there’s a write-off, it eats away at profitability and quickly erodes the chances for a good bonus for you and your team.
We’ve seen many aggregate production sites use Stockpile Reports to reduce their write-offs from $1 per ton down to less than $0.20 per ton.
Let’s face it. The fear of running out of material (FORO) at your plants chews up a lot of budget spend on material costs and ties up more trucks for deliveries. Do you really need 4 weeks’ worth of material to keep your plant running or can you reduce that down to 1 or 2 weeks? You might be currently tying up 8 trucks making 4 delivery rounds a day per each plant.
By doing more frequent inventory counts, you can operate with more confidence in your material levels, avoiding stock-outs, running leaner, and freeing up material and trucks to make more deliveries to customers. This can make customers happier, growing your customer loyalty, expanding your profits, reducing your costs, and therefore, increasing the chance for good bonuses at the end of the year.
We’ve seen ready mix plants use Stockpile Reports to reduce their cost per cubic yard by up to $2 by lowering their material levels on hand, freeing up several unneeded delivery loads per day per plant.
Keeping people out of harm’s way reduces your risk exposure. A single LTIR (lost time incident report) can kill the profitability of your sites or plants, erasing any chance at good numbers. Keeping people off of piles, and even not going in the yards at all, can prevent injuries from happening in the first place. Using the Stockpile Reports iPhone app to measure keeps people off piles on flat ground. Using drones to measure your piles keeps people out of the yard entirely. Best yet, your company can opt to use Stockpile Reports’ pilots to fly your sites/plants and shift the liability risks outside your company, removing your risk altogether.
It’s common for LTIRs to cost a company $50,000 per incident. Preventing even one of these per site/plant per year will make a big impact on profitability. Measuring your materials with Stockpile Reports reduces your risk footprint and keeps you and your team safe.
In summary, the power to affect you and your team’s bonuses are in your hands. Doing more frequent inventory counts gives you confidence in the numbers. Everyone can make better and safer decisions. With confidence in your numbers, trucks and materials can be freed up to make more customer deliveries. With that efficiency, customer loyalty builds, market share increases, and profits rise. As a result, at the end of the year, you and your team can count on receiving big, fat bonuses.
Stockpile Reports gives you the power to do fast, precise, and reliable inventory counts. Our highly automated system was built from the ground up, purely focused on the inventory process. It removes all the busy work and time suck associated with getting inventory done, freeing up you and your team to focus on other high-value work. If you’re serious about transforming the way your company operates, getting inventory in check, and operating as efficiently as possible, get in touch with us right now. We will set you up with an inventory expert to walk you through your options on a quick call.
Be the first to know about the latest Stockpile Reports news and features.