Butler Transport reduced its parts inventory by more than $100,000 by using Kenworth’s PremierCare Connect Plus to give managers visibility on parts usage and automatic re-ordering features. Shown above: Butler Transport shop manager Paul Arnold (standing), with technician Barry Rhymes and Daniel Salas, who works in the parts department.
John Boggus manages maintenance on 105 trucks, but he doesn’t spend much time managing his parts inventory. His company, Napa, Calif.-based Biagi Bros., receives automatic replenishment of its parts inventory. A barcode system alerts the carrier’s parts supplier once parts usage dips into a predetermined reserve level.
Various types of parts management systems and online programs help fleets squeeze down costs by reducing the inventory and purchase of overstock or unnecessary parts. Perhaps more importantly, these systems help prevent shortages of critical parts, which can help you avoid downtime and service failures. Most maintenance software packages include some type of parts management system, but to make the move to just-in-time (JIT) inventory, fleets must track more than the parts they have in stock.
Biagi Bros. is one of many carriers that uses barcode technology to accurately track the flow of parts into and out of inventory. Its software system uses the data to generate reports on parts usage and inventory “turns” – important benchmarks for Boggus, maintenance director for Biagi Bros.’ Southern California zone, to adjust his inventory levels to keep minimum supplies on hand. For JIT replenishment of parts, Biagi Bros. and many other fleets connect with suppliers’ systems online to automate the process of ordering parts as parts are pulled from the shelf.
Waste not, want not
While most carriers use computers to improve their operations, small carriers often still use manual systems to manage parts inventories. Fleets that move from a manual system to a computerized parts management system typically find that a third of their inventory consists of nonusable or outdated parts, says Charles Arsenault, president of maintenance software provider Arsenault Associates.
The first step in implementing a computerized parts management system is to benchmark usage. That process can take up to one year, says Arsenault. Parts management systems begin to produce some reliable statistics after three to six months. After a year, managers have a “look and feel of what is real” in terms of data on parts usage, he says. Then they can establish effective minimum inventory levels and re-order points.
Boggus has used Peterbilt’s TruckCare Connect Plus for about one year to manage parts inventory and maintenance scheduling. He says that it took three months of using the system to identify trends in parts usage for fast-moving items and “a little longer” for the slower moving items.
