This audio is generated automatically. Please let us know if you have any comments.
Gary Phillips, president of Premier Service Co., an electrical, heating, air conditioning, plumbing and security contractor based in Tuscaloosa, Alabama, used warehouse management software to track materials and save money.
The company has worked on a variety of projects for the University of Alabama, with an average project size of $1-2 million. Premier has two warehouses, each covering approximately 20,000 square feet. Before using software that accounted for all materials in Phillips’ warehouses, the company struggled to keep track of its inventory.
“We definitely had a problem with our warehouse and we tried to keep the materials in good condition and have transparency on the ground,” Phillips told Construction Dive.
Those who have experience know this: following tips for a job is like following a needle in a haystack. When materials are needed, supervisors have a plethora of places to check – are they in the warehouse? Maybe the second warehouse? Has anyone brought them to the site? Are they lost?
That changed when he started using a platform from San Francisco-based software company Kojo. formerly Agora, for inventory management. It helps Premier keep track of all materials the company has in warehouses, saving money on ordering duplicates and replacements. For Phillips, the effect was palpable, given the calamity caused by supply chain grunts since the pandemic.
“I know just walking through the warehouse and seeing the organization that it has saved us tens of thousands of dollars in material purchases alone, especially since material prices have gone up” , said Phillips.
Other entrepreneurs are also taking advantage of software and technology offerings to improve their business performance.
North Reading, Mass.-based contractor Columbia, for example, used Avvir software system to help lay 60,000 feet of pipe in a short period of time. The contractor claimed that supervisors save three days a week on site visits and reporting, which frees them up for other important tasks.
Cost-cutting measures are likely to become increasingly important for entrepreneurs in a faltering economy. Although Fitch Ratings predicts a recession in 2023, these prospects have not put a big damper on the contech sector. Kojo, for example, just completed a $39 million Series C funding round, the the company announced on Wednesday.
Kojo’s software connects all project personnel, from office to warehouse, field and back to supplier, on a single platform, the company claims. Stakeholders can see what’s in the warehouse and what’s missing, according to Kojo, and use its procurement tool to acquire whatever they need.
Kojo also offers a Materials Sourcing Tool, which contractors can use to purchase what they need on the jobsite. Phillips said using the two services in tandem has boosted organization and efficiency..
“These materials are coming back to the warehouse and we are able to put them in place,” Phillips said. “We can see what we’re putting back in the warehouse and the guys can order from that.”