The two main factors impacting on-site wastage
Wastage is a problem that has consistently plagued carpenters and keeping a lid on it can be tricky. In fact, if you’re working on a large project with 250 people, it can be very tricky.
Here’s a stat for you. As per our sales data for Q1 and 2 for 2023, 33% of a carpenter’s fixings spend on average is on nails.
Whether it’s Paslode or Fischer, a third of your fixing spending will be on nails to get the job done. However, nails are also one of the biggest reasons for on-site wastage.
This happens when half-full boxes are left in the rain, or strips of nails are just left on the floor. Knowing you have to spend more than planned to replace those products can be infuriating.
As such, we have spoken to you about the problems faced in the field and have compiled an article outlining the two biggest examples of waste.
While we may not have the perfect solution ourselves to fix these examples, we’ll offer helpful advice to cut your wastage percentage down.
We may also have a few possible solutions ourselves. As and when we feel appropriate, we will suggest something that we offer that we feel could help.
Problem one – nails
As mentioned above, nails are a huge potential contributing factor to waste on site. To help you visualise this, we’ll use the example of boxes being left out in the rain or seeing strips spread over the floor.
If half a box is left lying on the floor or out in the rain, assuming a full box has a list price between £72-80, that’ll cost you around £35-40. Now, to some, that might make you go, “oh that’s not too bad. Just a round at the pub, I can deal with that.”
Now apply that scenario to every box, where half of it is unusable for various different reasons. And picture that the overall fixings cost of the project was £100k.
Out of that £100k, £33k would’ve been spent on nails, as per our data. If half of that has been wasted, you’ve essentially launched £16,500 into a bonfire. Not such a small sum now, is it?
It’s worth noting that nail wastage is much easier to control on smaller sites and smaller projects, where there are fewer of you. The accountability level is much higher, as there are fewer people to manage.
With a bigger project, however, it can be very difficult to keep track. Unsurprisingly then, this is when you’re most likely to see nail wastage.
Solutions
There are a few solutions, but sadly they are rather vague. Suggesting things like ‘only order what you need’ falls flat in the event someone misplaces a box of nails and you have to order a replacement anyway.
That being said, it would allow a layer of accountability – even on a bigger project – as you’d likely know exactly who has the box.
One possible idea is to have a QR code on everything and scan each item in and out with your phone. Some apps, such as PlanRadar or QR Tiger, could be a solution for you.
The caveat to that is that it’s another cost and it would take some time to put a QR code on every product. However, if the pricing options cost less than what you’re frequently losing, it could be worth the time and outlay.
Problem two – inventory shrinkage
It’s a hugely difficult topic to discuss, but unfortunately, one that does happen with some regularity. Much like nail wastage, this is much more pertinent on bigger projects, but it remains a big issue.
Generally speaking, out of a spend for a project, 95% will go towards labour. If you’re managing 10 people, the opportunity for shrinkage is naturally a lot lower, as there’s more accountability.
However, as mentioned, the issues arise on bigger projects, when there are say, 250 people. These people aren’t necessarily loyal to your company, so some won’t have many issues taking items home and using them for other jobs.
Naturally, this comes at a financial cost to you. Not only will you have to order things again, which can include very expensive products, but you likely won’t have any idea who has taken them.
As such, shrinkage is a huge issue and one that can be especially detrimental to your budget.
Solution
Unlike nail wastage, there is more that can be done to limit shrinkage. The QR code option is also a possibility, but there are also other methods that can prevent things from being stolen.
One possible solution is our customer portal. With the portal, we have a number of options that can limit the possibility of shrinkage.
For a start, requisition orders can be policed or controlled by someone in the office. This then allows the Senior Manager to sign off, rather than letting site workers just order what they want on your card.
You can also edit requisition requests, which prevents over-ordering and allows you to spot those who could be doing it.
The portal also has a start and end date for your project, so you can mentally know how much should be spent around that sort of time.
We can also provide you with detailed, monthly reporting on your spending. This allows you to see what’s being spent to the penny, so if there is anything odd, you can spot it and act accordingly.
All of this contributes towards shrinkage as it gives you more control over what is being spent. With that, you can then hold your team to account more if something goes missing.
Dealing with on-site wastage
Managing these two problems can be very difficult. Even when putting in the most stringent of countermeasures, they can still happen.
We know site managers fine those who contribute to wastage and fire those who contribute towards shrinkage, but it’s difficult.
While we don’t have all the answers, we do believe that the portal can help you keep a firmer grip to prevent both.
To find out more about the portal and what it can offer, you can read this article. Equally, if you would like to speak to one of our expert team to talk through the portal in more depth, you can do so here.