Construction businesses worldwide are implementing asset tracking to record the movement of tools and equipment across locations. When implemented correctly, asset tracking can drastically reduce costs, improve productivity and enable optimization.
This is important since construction companies face operational and management challenges on a daily basis. According to KPMG,about 50% of construction professionals report at least one or more underperforming projects annually. The solution lies within your asset management system. Use the actionable data available within the system to run a relevant asset tracking report . You will instantly gain valuable insights for important business decisions.
How can can effective asset tracking report policy benefit your construction business?
A cloud based tracking system offers a variety of features to record equipment and materials utilization. It also enables construction engineers to generate customized performance reports. This is important for business success because regular reports enable companies to set goals and devise strategies to achieve them in a timely manner.
This is especially crucial for construction firms because delayed projects mean increased overhead costs. Here is how a relevant asset tracking report can help:
- Real time insights into equipment lifecycle and costs
- Ability to regulate inventory cycles
- Implement improved asset security and accountability
- Run planned preventive maintenance events
- Set long term operational efficiency goals
3 Important asset tracking reports for your construction company
The main objective of construction companies is to deliver projects and services within tight deadlines without sacrificing quality. However, the scope of construction projects is so large that even a minute disruption can cause delays for days. To overcome such roadblocks, construction professionals break down their operational efficiency goals into smaller tasks which are easier to achieve.
Once you clearly understand your targets, you can generate project reports to analyze progress. Let’s look at how a specific asset tracking report can benefit your next construction project:
1. Equipment life cycle and depreciation report
Multiple types of tools and assets are being checked in and checked-out on a construction site. These include smaller items which have a higher risk of misplacement and large machinery which needs to be handled with care. Due to the large volume involved, it is challenging to monitor asset movement individually. An easier solution is to run asset tracking reports with the help of a cloud based software.
Let’s assume you want to check the status of equipment at a school construction site in Boston. You should run an asset utilization and depreciation report. By running this report, you will be able to access the current useful value of all assets on the construction site.
Pro Tip: Schedule these reports before and after every project. Doing so will help the managers retire old equipment at a salvage value. Such reports also display overdue assets which can be traced down in case of theft or lost items.
Running asset tracking reports for depreciation is also useful when there is leased equipment involved. This is quite common in the construction industry as many companies end up either leasing or renting machines due to budget constraints. Regular reports enable you to plan streamlined projects and work with reliable equipment.
2. Inventory procurement and vendor report
Construction inventory includes building materials such as cement, metal, sands, bricks and glass. All such items classify as consumables and are procured according to the demand of the company/project. In order to set a robust inventory management system, it is important to monitor consumption and reorders. One way to do this is to run an asset tracking report for your construction project.
Depending on your requirements, you can analyse purchase orders, inventory and vendor information. Let’s say you want to ensure that the correct quantities are ordered for cement, clay and bricks. For this, you can pull up inventory records along with associated purchase order data.
Such reports are comprehensive and include details like name of requester, delivery location and reorder quantities. By using this information, you can then filter out inventory allocations as per project demand. This ensures stock availability and lowers risk of outages.
A well managed inventory and asset stock means a higher chance of profitability and increased turnovers. This is possible because timely analysis enables you to control costs and avoid unnecessary delays.
3. Work order report
Labor productivity is essential for the successful completion of construction projects.Proposing an estimated project cost depends on the number of labor hours invested. If employees allocate work hours efficiently, there is a higher chance of profits for the company. In order to improve labor productivity and eliminate redundancies, it is critical to track work orders. This can be done by running an asset tracking report through an equipment management software.
Work order reports are a comprehensive compilation of different types of projects, work logs and linked inventory modules. A work order report on the hospital construction project shows how many hours have been allocated by employees. Apart from this, the report can also be customized to include the state of the project such as in progress, scheduled or completed.
As an added benefit managers can also find out inventory items being utilized for a certain work order. All this information is very useful when calculating project success rate; a critical key performance indicator for the constructions sector.
An in-depth analysis of the work order reports reveals whether workers need further training to use a certain piece of equipment or more efficient tools to get the job done.
Drive operational efficiency by running real time tracking reports
Construction companies have extensive key performance indicators (KPIs) which need to be addressed on a daily basis. An ideal solution to achieve this is to invest in equipment tracking software. Based in the cloud, the software keeps a record of all tools and assets checked-in and out for various projects.
In order to measure progress against KPIs it is important to analyse projects. This is where asset tracking reports come in. Let’s say for example you need a cost predictability analysis for a small grocery store project. You can simply pull up previous reports for similar projects and give a cost estimate. You can even negotiate prices with vendors to fit in a smaller budget to maximize profits.
Asset tracking reports enable construction companies to forecast demand and adjust according to the needs of the clients. Moreover, companies can also gain internal efficiency by improving labor productivity and optimizing equipment utilization.
EZOfficeInventory is a leading equipment tracking software. It allows you to track, maintain, and report on inventory from anywhere, at any time. We offer a free 15-day trial – no credit card required!