Trucking Toolbox: Parts Inventory – Rightsizing and Reordering

During our visits to various shops, we have observed a common issue – many do not fully utilize their software systems for parts reordering. Instead of relying on the powerful tools at their disposal, shop personnel often depend on outdated and inconsistent methods such as remembering part installations, visually checking bins for low stock, or waiting for technicians to report consumed parts. These manual approaches are fraught with risks, as they can easily lead to unnoticed stock depletion, resulting in critical parts being unavailable when urgently needed for repairs.

To mitigate these risks and improve efficiency, it’s crucial to transition to an automated parts ordering system. This involves establishing accurate minimum (Min) and maximum (Max) inventory levels for each part, which your maintenance software can track.

Setting clear expectations with your parts personnel that these parameters are used for reordering can ensure a consistent supply of necessary parts while minimizing the chances of stockouts. This practice not only streamlines operations but also reduces the likelihood of costly downtime due to unavailable parts, ultimately enhancing the overall effectiveness of your shop’s inventory management.

Place Your Parts Ordering on Automatic

Establish accurate Min’s and Max’s for your inventory and establish expectations that your parts personnel use these parameters for re-ordering parts.

Maximizing Software for Min/Max Inventory Management

Nearly all maintenance software offer tools for setting Min/Max levels (sometimes labeled differently, like safety or target points). Utilizing these tools for automatic reordering is the most efficient and cost-effective approach to inventory management. It eliminates guesswork and ensures consistent stock levels.

Best Practices for Min/Max Inventory Management

• Establish Accurate Min/Max Levels: Set precise levels based on historical data to avoid overstocking.
• Utilize Maintenance Software: Track inventory automatically and receive notifications when stock reaches the minimum threshold.
• Automate Reordering: Set the system to reorder parts at the minimum level to reduce manual tracking and stockouts.
• Consider Reorder Quantities: Optimize reorder quantities by considering discounts and expected usage rates.
• Implement ABC Analysis: Categorize inventory by value and turnover, with tighter controls on high-value items.
• Use Safety Stock: Maintain safety stock for critical parts to handle demand spikes or supply chain disruptions.
• Demand Forecasting: Adjust Min/Max levels based on anticipated demand changes.
• Conduct Regular Audits and Cycle Counting: Regularly check inventory accuracy and make adjustments as needed.
• Collaborate With Suppliers: Work with suppliers to optimize lead times and order quantities.
• Optimize Lead Times: Shorter lead times mean lower Min levels and reduced stockout risk.
• Use Economic Order Quantity (EOQ): Calculate EOQ to minimize inventory costs.
• Set Up Inventory Alerts: Configure alerts for timely reordering and to prevent overstocking.
• Integrate With Demand Planning: Align inventory levels with actual and forecasted demand for optimal efficiency.

Optimize Stock With Strategy

Automating your inventory management process through the strategic use of Min/Max levels and software tools is essential for maintaining optimal stock levels, reducing costs, and enhancing efficiency. Carefully considering reorder quantities, taking advantage of bulk discounts, and utilizing advanced techniques such as ABC analysis and demand forecasting can ensure that your shop is always prepared with the necessary parts. Regular audits, supplier collaboration, and inventory alerts further solidify this approach, minimizing the risk of stockouts and overstocking. Implementing these best practices will streamline inventory management and contribute to overall operational success.

To learn more or discuss any of the ideas shared above, please contact a KSMTA advisor or complete this form.