You have a big investment in your tools – time; money; even your reputation, because without proper, working tools your company can’t complete the job as promised and on deadline.
Of course, a robust tool management system like ToolHound helps you protect your investment in tools and equipment. But do you know how much your investment in tool management can actually pay off in time and money?
Let’s look at some average numbers…
Time Saved by Tradesman:
Let’s assume an average issue or return transaction takes 1 minute. If you process 50,000 transactions a year, and your tradesmen are paid $22/hour, then the amount of money saved = $9,167 per year.
Of course, if workers are getting their tools 50% faster, it means that tool crib personnel are taking 50% less time issuing the equipment, resulting in an additional savings of more than $8,000 per year.
Annual Physical Count
Because ToolHound streamlines inventory tracking, this typically time-intensive task can be cut in half. Assuming that you complete a physical count 3 times a year conducted by staff paid $20/hour, and it used to require 300 hours to do, you can now complete the task in half the time and save an average of $3,000 per year.
If you are currently spending 400 hours a year (or 1.5 hours per day) looking for your tools, ToolHound cuts this time by at least 50%, for an average saving of $3,000 per year.
Reduction of Tool Loss
Inventory levels are dropping because tools have been misplaced. Assuming your annual tool budget is $50,000 and 10% of this budget is spent replacing lost tools, reliable tool tracking and management could translate into an additional $5,000 saved annually.
Likewise, if the problem is tool hoarding, the same rule of thumb applies. The missing tools still have to be replaced. The benefit of accountability with the ToolHound system means you know who has the tools and they can be retrieved, instead of replaced, for another $5,000 saved per year.
Obsolete And Excessive Inventory
Without an accurate picture of your inventory, it’s easy to keep obsolete or duplicate tools that are not needed. Identifying assets that can be sold or removed from inventory frees up budget for new, up-to-date tools and equipment. If your equipment inventory is valued at $500,000 and you can realize a 5% reduction by shedding excess inventory, you could save up to $25,000 in the first year that you are using ToolHound.
Taking any or all of these scenarios into consideration, we can see just how quickly you will recoup maximum return on your investment in tool tracking and management.