Poor Asset Management
To Increase the Value of Your Business Focus on All of Your Assets
Distributors are often laser focused on increasing sales. But proper management of your assets is an important part of increasing the value of your business. When it comes to asset management, many distributors concentrate on accurate physical counts, reorder points and order quantities. As a gas distributor you also must think about your inventory of cylinders. JBL’s CylTech software helps you manage both types of assets.
Cylinders: Your Biggest Asset
When it comes to cylinders, to maximize the value of your business you need to do two things. First, you need to know how many cylinders you have. Second, you need to keep them turning.
Many compressed gas distributors track their checkbooks to the penny but resort to guessing or estimating when asked how many cylinders they have. At JBL we understand cylinders are probably your biggest asset. We also understand that every cylinder purchased should add value to your business. But since cylinders rarely stop moving, adding more cylinders often adds more headaches. Cylinders move from your dock to the customer back to your dock to the fill plant and back to your dock and back to the next customer. This makes it difficult to keep an accurate count of one of your largest assets. And an inaccurate count of your cylinder assets will negatively impact the value of your business.
This is where JBL Solutions can really help. The cylinder specialists at JBL Solutions have decades of experience working with compressed gas distributors. This real-world experience will help you increase the value of your business by teaching you the best ways to track your cylinders based on your unique needs.
The following questions (and many more) will help your trainers customize a cylinder tracking plan unique to your business:
Are you a startup or have you been in business for a long time?
What kind of gases do you sell? Acetylene? Medical Oxygen? Food Grade CO2?
Do your customers pick up their cylinders, do you deliver the cylinders to them or is it a combination of both?
What type of businesses make up your primary markets? Construction companies? Hospitals? Universities? Manufacturing?
Second, you need to keep them turning. If they are at a customer site, idle cylinders generate rental income. But cylinders that are turning generate more income. The more times you turn your cylinders, the more revenue you can generate with the same number of cylinders.
JBL’s unique cylinder management plan for your business will help you increase the accuracy of your cylinder counts, increase your cylinder revenue, speed up cash flow, minimize mistakes, improve customer service, and most importantly, increase the value of your business.
How Does Inventory Impact the Value of your Business?
You probably have not thought about it, but the age of your inventory dramatically impacts the value of your business. Every day that an inventory item does not sell, it loses value. With inventory, age is your enemy. That is why it is important to keep your inventory moving. Inventory that is not moving lowers the value of your business, ties up your capital and takes up valuable warehouse space.
So how can JBL Solutions help avoid inventory problems that negatively impact your business? JBL’s inventory management experts suggest three simple steps you can take to make sure you are stocking the right items and the right quantities.
Use the JBL Purchasing System
You stock hundreds, maybe thousands of items. To place an order for the right items, you must be aware of how many you sold, how long it takes to get more of the product in and how many are available for sale. The more items you stock the more difficult the ordering process becomes.
But JBL Solutions’ purchasing system handles all of that for you. The purchasing system will guide you through the process by analyzing your data, taking the guess work out and letting you know when you should (and when you should not) order more products. The JBL Solutions purchasing system will not only save you time, but it will also guide you toward the right mixture of products to stock. The right mixture of items will make sure you have the best items available for sale and the worst selling items will be gradually weeded out of your inventory.
Stop Ordering Too Much
One of the most common mistakes a distributor makes is ordering too much stock. Excess inventory negatively impacts the value of your business by unnecessarily tying up capital. And worse, excess inventory depreciates. When businesses are valued, excess inventory has significantly less value. The JBL purchasing system will help you free up capital and reduce excess inventory by advising you to not purchase an item if you already have plenty on hand.
Get Rid of Dead Inventory
Excess inventory is bad, but dead inventory is worse. You can sometimes justify to yourself excess inventory because you are selling it. But dead inventory is just gathering dust and depreciating. The JBL system helps you identify items that are not selling and will warn you to not buy any more.
Identification of dead inventory is step one. Disposition of dead inventory is step two. The inventory specialists at JBL can guide you through the process of identifying and disposing of dead or slow-moving inventory.
The JBL Solutions purchasing system will help increase the value of your business by helping you stock the right items and in the right quantities.
Some Final Thoughts
The software you choose to run your compressed gas business is very important. Non-industry specific software packages can sometimes lower the value of your business by not offering proper controls on those areas unique and important to your business. JBL Solutions software is designed specifically for the compressed gas industry with a unique combination of software solutions and controls that will help build value in your business.
JBL Solutions training provides much more than a tutorial on which buttons to push to make the programs work. The skilled professionals at JBL Solutions bring 40 years of experience in inventory and cylinder management to the relationship. Our specialists know what works and what does not work.
Finally, your goal as an owner is to increase the value of your business. JBL Solutions has the products and the expertise to help you achieve your goals.
For more information on how JBL Solutions (DataWeld) can help you increase the value of your business call 800-334-1987 or email to sales@jbl-solutions.com.
