As we know, traditionally businesses have been using manual methods to track their work in progress. Automated metrics helps you track work in progress.
This method is highly time-consuming and is prone to errors. Manually inputting of data is hence inefficient and ineffective in businesses dealing with automobile dealerships.
There is never enough time to do everything! This is why it is important for businesses to eliminate manual labour work which can be easily automated. A business should consider one such feature under automation which is tracking its work in progress.
Live data helps in real-time progress tracking which is essential for the active monitoring of cars during the sales phase of a business and for the after-sales analysis. To assure proper delivery of a dealership the business requires efficient and reliable performance control processes.
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Overview – Live data collection for progress tracking purposes
Live data can be very helpful in tracking these changes very quickly and also in cash flow management. As cash is tied in inventory a good work in progress management can help in sIn the automobile industry, a sound work in progress management is extremely vital.
Businesses struggle to manage growth in such a service-based business due to a lack of understanding of work in progress management and its impact on working capital smooth cash flow and working capital.
We have seen business owners who had massive growth in their business but as they grow they face severe cash flow problems. This is because many times they haven’t allocated for “extra costs”. As the business grows, so do jobs. Which requires extra costs to be allocated. If you haven’t allowed for these extra costs or extra funding to cover them until payment is received, then cash-flow issues will be the result.
The smart way to track work in progress and not have cash flow issues due to WIP is by using a work in the progress management system.
In-dept: Strong Work in progress management maximizes cash flow for retail and warranty work
As the business grows, it is vital to have such a system. A good system provides a control for management. If you are trying to manage jobs in your head, then business growth is going to provide massive headaches track work in progress to stay on top of things a lot easier.
Customers may get quickly annoyed when jobs aren’t completed properly in a service-oriented business, and this has an impact, not only on work in progress management but on payment collection days, which further adds to cash-flow issues.
Here are ways to overcome these obstacles:-
1) Implement smarter inventory practice to track work in progress
Many retailers have their cash tied up in inventory, which is why the first thing that you can do to improve cash flow is to ensure that you’re stocking the right products and selling them at a healthy profit. If you do end up with excess stock, take immediate steps to liquidate.
This can be achieved by spreading out your purchase over a period of time. To ensure that you don’t run out of stock or overstock at any given point. Live data help you in this decision making. It helps you segregate and understand the spread over the required period of time.
Automating this process will lead to quick and effective decisions. As data will be provided at all levels it will be easy for businesses to understand the period of demand and how to meet that by efficient supply.
2) Improve the value of your inventory
It is important for businesses to firstly value their inventory correctly and accurately. They should depreciate the value of their automobiles correctly and evaluate the appropriate market price to know the actual value of the asset.
Various methods can be used to increase the value of the asset. These methods should be considered. Inventories cannot be overstated or understated. These methods should be standardized and must be very accurate.
Standardization can be enhanced by the elimination of manual inventory count or valuation of inventory. This data can be automated to get the most accurate value of the inventory. The decision-making process becomes very easy when useful and important information is presented.
3) Liquidate excessive inventories
After you have evaluated the inventories and marked their values. Check for any excessive inventories which will not be needed in the coming near future. These inventories have to be liquidated. Ways of liquidations:-
a) Put them on sale
The most straightforward route to moving excess inventory is to put them on sale. Bring out the slow-moving items from your stock room, mark them down, and put them on the sales floor. Doing so will minimize profits, but it will at least help you free up space and cash.
b) Bundle them with other products
Use live data to understand if the slow-moving products which can complement your other products such as the car accessories, bundle these together. It can add value to the sale and help you unload excess inventory.
Conclusion: Automated metrics can help your business in tracking its work in progress to maximize your cash flow
Work in progress can account for a huge part of the annual inventory carrying costs. It is also a very vital part of the inventory and usually the most difficult to manage. A strong work in progress management maximizes cash flow for retail and warranty work.
Automated Metrics is here to help you and your business ease the process by using live data at all steps of the work in progress management. This helps you in evaluating and making important decisions. As the data is automated it can be relied upon and can be considered to be free of any error.
To know more about Automated metrics and to understand how it can help you and your business schedule a call right away!
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