A key part of the MOI Inventory is the practice of asset
tracking. This includes all assets: inventory, supplies, tools, equipment and
even employees and customers. Each is an essential asset of your business.
Although we often view assets as hard goods, even Canada Revenue Agency and IRS
consider that there is a business value to personal services and goodwill – the
reputation that is accrued during business evolution. A degradation or loss of
any of the soft or hard assets impacts on business profitability, making the
need to track those items and services critical to business success.
As an illustration, imagine that your key customer relations
employee has a bad day and, in dealing with one of your new clients, acts in a
manner that leads that customer to decide that he will no longer deal with your
firm. Given that it is much easier to keep a customer than find one, your
business suffers a long-term loss. Perhaps a new product that you have
introduced experiences a series of failures. Even if you are not the
manufacturer, but merely a retailer, your reputation and your relationship with
that customer is jeopardized, unless you have a consistent warranty and/or
service policy. Maybe an employee in the field demonstrates inferior skills.
Unless you have a consistent practice of training, follow-up and retraining,
you will place your company’s reputation at risk. These examples of soft goods
and service issues show the need to implement a system of monitoring that
allows you to respond to and pre-empt problems that may arise.
The SAP system used by many larger corporations attempts to
integrate all aspects of the business operation. The MOI Inventory, on the other hand, serves the purpose of
identifying issues, allowing the small business operator to respond as budget,
time and preferences allow. Tracking, though, is the vital first step. Once
concerns are identified, you may choose your individual response.
Tracking enables you to evaluate consumption patterns across
the entire business spectrum. Need to know whether your employees are operating
efficiently and effectively, or whether your labour costs are not properly
recovered in your end price charged to your customers? Track performance, pay,
down time and so on, using a tailored spreadsheet or simple personnel software.
Need to know if supplies are being used in the proper manner, or if supply cost
is too high? Track consumption and yield per supply item. Want to know and
control product performance? Implement a Mini/Max system and conduct regular
counts. Need to know if your tools are finding their way into your employees’
garages? Track and control each item and develop a system of accountability. Is equipment used appropriately? Your
preventive maintenance schedule will reveal issues. How about customer loyalty? A variety of
programs can be devised to monitor, either passively or overtly, your clients.
Tracking is the integral element in each solution.
Rental and leasing operations often are vulnerable to loss,
most frequently because of lessee default. By keeping accurate records of your rental
clients and their business or personal history, you will be in a better
position to recover those assets. More importantly, obtaining the best
information prior to renting or leasing serves to make clients aware of your
diligence and thus decrease the likelihood of default or conversion. Similarly,
any time your assets are allowed offsite, you expose yourself to greater risk
which, in turn, demands greater pre-emptive vigilance.
The process of tracking may seem tedious and not worth the
effort, but a good tracking program, integrated into your general operation,
can be both inexpensive and efficient.
Using the MOI Inventory, many businesses report an increase of
profitability ranging from .75% to over 4%, while costs of implementation and
maintenance generally fall below .25%. This simple cost versus benefit
statistic reveals a significant reality: using tracking systems does not cost.
It is an investment.
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