A Step-By-Step Approach To Field Inventory Management

Companies that typically see a need for field inventory management solutions can be divided into two major categories. The first group carries articles for sale, such as the Snap-on Tools dealer or the vending machine rep who fills your office candy machine. The second carries articles used for services, such as the friendly Maytag repairman or the contractor installing electrical service at a construction site. Regardless of which category your company happens to fall into, mismanaging inventory can be costly.

For those companies that fall into the items-for-sale category, there are many indicators that can illustrate the need for an effective field inventory solution. "Organizations that are seeing poor inventory turn in the field, have a hard time understanding turn levels, or can't provide turn levels by part number are prime candidates for field inventory management solutions," says James Quigley, managing director of mobility solutions at inCode Wireless. The same holds true for customers experiencing large percentages of unexplainable product shrink or loss.

For companies that fall into the parts and service category, the need for a formal inventory management solution may not be as apparent. However, the reasons are much the same. It is just as important for a service technician to have the necessary part on hand as it is for the tool dealer to have the right wrench in stock to sell. Additionally, service and repair items may be even more susceptible to unrecorded loss. For example, the electrical contractor may grab a carton of light switches to install at the construction site. The carton may contain a dozen switches. If the contractor uses only eight, but leaves the remainder of the box behind, inventory (and profit) has just been lost.

In any case, field inventory management is applicable to both big-ticket and smallticket inventory. "Field inventory management is and should be completely scalable, as long as you have the tools in place to collect accurate data. After all, an asset is an asset, no matter how small," says Bobbie Sauter, enterprise solutions marketing manager at InfoLogix. For example, with an integrated GPS system, data can be sent out on an ongoing basis. The data it transmits can reflect current inventory levels, current location, and perhaps even if the rear door has been opened. The information is important no matter what the price point of the item may be. "The system can report that the shipment of 20,000 rubber ducks in 200 cases has been idling in an identified suburban area for 30 minutes," continues Sauter. "Actions can be taken to identify why that is happening."