Why your truck parts room should operate like a supermarket

Why your truck parts room should operate like a supermarket

The evolution of truck parts management and what you need to understand.

The parts department is the most important part of fleet management and vehicle cost control. I have written numerous stories about the real-life importance of the parts department. While the times have changed and the same principles still apply, there are rumblings in the industry that non-experienced fleet managers, owners or committees seem to want to handcuff parts management that would impact vehicle utilization.

Before we know where parts management trends are going, we have to understand where they’ve been. Way back when, the parts rooms were dirty, nasty and truly out of control. The shop manager or lead mechanic bought tons of parts, needed or not. The parts salesman seemed to have had a blank order pad that he needed filled. Incentives from the salesmen were given to shop managers to buy more parts. There were even free parts for their own personal consumption.

How do I know this?

I ran shops and experienced these aggressive salespeople, and when I owned a truck parts distributorship, I was asked many times for free parts. When we did not offer that, we lost all the sales from that fleet. Maybe even some of the fleets that are reading this story.

As time passed, finance departments started to become more involved to control costs. After all, lending institutions want to use that as collateral, and when there was an audit beyond paper the reality of a site visit left the company embarrassed. Suddenly there was pressure for parts room organization. Having parts to fix trucks was becoming more important because of utilization and rising shop labor costs. Suddenly, parts management cost control became important.

Along came the software people selling theories that computer solutions would lower costs, and you could manage the parts room more efficiently. It was a fairly true statement (except it was a ton of work to get people to use the software to get results). We cleaned up the parts room and labeled and organized the components to control costs.

Yet, there was still a perceived need to control parts costs further.

The next answer was to not stock as many parts. “Let the dealer or parts house stock all the parts. Make them deliver the parts,” they said. That meant sending the mechanic or shift supervisor on a road trip to get the part, in many cases.

Remember the aggressive parts salespeople? Well, now you had aggressive dealers who wanted to sell you their parts and their parts management software to control your parts purchasing even further. In some cases they’d even put their own guy in the fleet. (Warning: There’s a fox in the hen house.) And then we all fell for consignment … in an unorganized parts room. When the audit happened, we all waved bye-bye to purchase control.

That brings us back to today. New, fresh-faced people entering our industry who have read the basic principles of “just in time” delivery, inventory turns, percentage of revenue, parts dollars per vehicle, etc. In the end, it was all about managing money, not parts.

Of course, money management is needed–shops shouldn’t spend money for parts just because they think they need a part. Today’s parts usage reports tell the tale: Many parts we stock are never used. Most shop managers have no idea on how to manage parts or the money they spend for those parts.

Here’s a tip: The truck parts room needs to be managed like a supermarket. There is a shelf life for vehicle parts. It takes constant review, control and management with little emotion. Shop managers need to make good business decisions–blend the data that parts software spits out with your own common sense. Think about the hidden costs in chasing parts. Maintenance people will want to fix trucks and will do so one way or another, even with hidden part retrieval costs. Given the difficulty of finding parts today, and dealers cutting their own inventory, this could be a double-edged sword. Don’t let parts cost control have you falling on your own sword.

You May Also Like

Stemco announces new president

Stemco announced the promotion of Charles “Chip” Stuhr to the role of president, effective immediately. The official announcement was made at a recent company town hall meeting. This is the latest and most notable promotion for Stuhr in his 19-year career at Stemco. He joined the company in 2004 as a district sales manager, and

Stemco-president

Stemco announced the promotion of Charles “Chip” Stuhr to the role of president, effective immediately. The official announcement was made at a recent company town hall meeting.

This is the latest and most notable promotion for Stuhr in his 19-year career at Stemco. He joined the company in 2004 as a district sales manager, and over the course of two decades has had roles including regional manager, director of marketing, director of wheel end products, VP of sales and marketing, and was most recently named vice president and general manager in early 2021.

Together For Safer Roads announces safety standards initiative

TSR recently launched a Truck of the Future pilot program with vehicles from New York City that identifies and tests solutions to eliminate collisions.

together-for safer-roads-initiative
Talbert Manufacturing announces 2022 Dealer Award winners

Talbert Manufacturing names Hale Trailer Brake & Wheel as top dealer for 2022, 15th consecutive year.

Talbert-Manufacturing-dealer-award-winners
Carrier Transicold announces North America, Latin America Dealers of the Year

Carrier Transicold recognized 52 of its more than 200 dealerships throughout the Americas.

Carrier-Transicold-North-America-Dealer-of-the-Year-1400
Double Coin announces new regional vice president of sales

Gino Tagliaferri will be responsible for overseeing sales operations and driving business in the western US.

Gino-Tagliaferri-Double-Coin

Other Posts

PC-12: Looking to the future of heavy-duty engine oils

By doing this work in advance, you can maximize the benefits that PC-12 lubricants will offer to your fleet.

Five truck trend takeaways from May

Your fleet’s role in facilitating the smooth and efficient movement of people and goods becomes paramount during this bustling period.

may-takeaway
Daimler Truck CEO on decarbonization developments, infrastructure investment and the reason for Rizon

With sustainable trucking options on the road, more challenges are ahead … as well as opportunity.

PACCAR Parts celebrates 50 years of business

The dealership networks expanded from approximately 180 locations in 1973 to more than 2,300 locations today.