Submitted by Strandware, Inc.

For Dell Construction, a multi-million dollar commercial construction company based in Eau Claire, Wisconsin, accurate job costing and inventory control are crucial to success. With a tooling inventory valued at $1 million, the company must be able to track inventory on a job-by-job basis in an accurate and timely fashion. Management knew that a bar code-based asset tracking program would help the company maintain its leadership position in a very competitive industry.

Dell’s blueprint for building such a tracking system came in the form of PC-based software that integrates label design capabilities with a tracking database, enabling users to easily generate bar code labels and accurately track inventory movement and usage.

Prior to the implementation of tracking software, the company used a tedious and often inaccurate manual system to track inventory. Employees typically kept a handwritten log noting which tools, equipment or materials they took to a job. To enter the information into the company’s job costing system, an office employee had to decipher the hand-written notes and key in the data. The process was time consuming, error prone and unproductive for Dell’s business.

"Employees did not always keep notes. Even when they did, it was difficult because we couldn’t decipher their handwriting. We weren’t as productive as we could have been because we’d have to take time out to go back to the employee and ask for clarification," said Dave Rodgers, an asset control specialist at Dell Construction. To complicate the problem, tools were frequently lost, broken or taken from one job to another without the status being reported.

System Provides Increased Profits, Productivity and Accurate Inventory Control

To achieve inventory accuracy and accountability, Dell built a customized system to track equipment location, maintenance requirements and repair records with precision. The system, which combines StrandWare’s BackTrack software, Symbol Technologies’ portable data terminal (PDT) 3100 and Hewlett Packard’s LaserJet printer, allows the company to forecast equipment requirements to accurately allocate inventory and keep work on schedule.

Migration to the system virtually eliminated data entry errors and dramatically simplified the data entry process. Dell promptly eradicated the problem by using BackTrack to create bar coded asset tags and track inventory. Now employees scan the asset tags when inventory is allocated to a job. By automating its inventory control system, Dell eliminated the time lag, costs and errors associated with manual data entry.

"We've replaced our manual job costing system which allows us to better track and maintain our tools and equipment. Prior to automating our asset tracking, it was virtually impossible for us to manage these crucial elements," said Rodgers. "Today if we need a specific tool or piece of equipment for a job, we can easily find out how many we have in working condition and pinpoint the location."

Dell required a solution that offers the capability to print asset tags on demand. This feature is critical, since assets turn over frequently in the commercial construction business.

"We chose a tracking solution because we needed a reliable and cost effective way to tag all of our assets. Now we print customized tags as they are needed," said Rodgers.

In addition to bar code design and print capabilities, the asset tracking system enables Dell to have almost unlimited reporting capabilities. This feature enables the company to generate cost reports by job number.

Additionally, BackTrack allows Dell Construction, a mobile company, to take advantage of remote data collection functionality while on the job at a remote location. "Using a PDT, we can download data from a scanner used by shop employees to automatically update our database and job cost records. This capability saves us from unnecessary manual data entry and prevents potentially costly mistakes," said Rodgers.

Dell aimed to benefit from bar coding in several ways. Most importantly, the company wanted to improve its inventory control system. Management required a system that enabled personnel to locate tools in inventory, track equipment on a job-by-job basis and maintain up-to-date records regarding each tool’s condition, maintenance requirements and repair history. Now, users can quickly check an on-line database to determine tool availability, allocation by job and repair requirements.

The system delivers numerous other quantifiable benefits. The company tracks the usage of tools and materials on a per-job basis to provide management with an accurate record of actual job costs. This enables Dell to deduct equipment costs from taxable income, which increases the company’s bottom line.

By implementing a bar coding system, Dell has increased both profitability and productivity while improving inventory control.

"The tracking system allows us to pass along savings to our customers by reducing our in-house costs," said Rodgers. "We have found that one of the keys to running a successful and efficient business has to do with accuracy and productivity and StrandWare has helped us reach this objective."