Well of course you should, but ONLY if you want:
I’m thinking that, by now, you kind of get the idea. Investing in a spare parts inventory is not only costly, it can be a big headache.
So, what happens with VMI…how does it work?
Vendor Managed inventory can take many forms to fit your needs and preferences. It’s really a departure from the way buyers and sellers of truck and bus parts have related in the past. In the past, you probably wouldn’t have dreamed of telling a parts sales person the details of who you bought from, in what quantities, at what cost and under what terms. That was private information. You may have used that mystery to have bargained for a better price or better terms or something better. Your job was to gain the upper hand on your supplier. You and your supplier were almost adversaries.
With VMI, that’s all changed. Your supplier is now on your team. In return for all of the benefits your supplier gets, you get everything you want (refer to the list above). You now get to do what you do best as you take good care of your fleet and your parts supplier gets to do what he does best in supplying and managing an inventory of parts.
And what does your parts supplier get out of this symbiotic relationship? He becomes your primary source for all of your parts needs while he’s solving a lot of your headaches. He gets to earn your business and sell you more parts. It’s a beautiful thing! It really works and it really is a Win/Win.
There are several VMI strategies from which to choose allowing you to find one that is suitable solution to both the supplier and customer.
Whichever option is used, the end results will be beneficial to both customer and supplier.
FleetSoft will be exhibiting at the upcoming Transporting Students with Disabilities and Preschoolers (TSD) Conference and
Tradeshow in Dallas and Frisco, Texas this March. Stop by Booth #821 to get a one on one demonstration of our fleet maintenance and
inventory management solution and see how easy it is to organize your fleet and manage costs using our software.
It's time to clean house! The New Year is a good time to go through your Parts Room and tidy up. As you comb through your Parts Inventory, you will find:
Parts you did not realize were in stock simply because they were placed in the wrong location
Parts you haven't used in a long time and are obsolete because the vehicles that required these parts are no longer in your fleet
Overstocked parts on hand that can be returned to vendor
By eliminating obsolete and over supplied parts from your stock, you will not only save on total dollar investment in on hand parts, but also reorganize and streamline the stock room. Many obsolete and overstocked parts can be returned to the supplier for a credit, saving you more money. An organized Parts Room makes it easier for the parts to be located for current on hand counts, as well as locating the parts for check in and check out procedures improving productivity and efficiency of the shop.
Now that you know why you should clean house it is a matter of getting started. It may seem like a huge task to undertake, but with FleetSoft's Fleet Maintenance and Inventory Management Software as a tool this task has become much easier. FleetSoft contains a Parts Inventory Management Module that has a Physical Inventory component. This Physical Inventory component will guide you through the entire process step by step. Upon completion of conducting a Physical Inventory for your Parts Room, you will have all of the parts in their proper bins and labeled correctly, have accurate on hand counts, and be able to determine which parts you have an excessive quantity on hand and can return to vendor. FleetSoft's Fleet Maintenance and Inventory Management Software also contains an 'Overstocked Parts' and 'Obsolete Parts' reports providing you with lists of what parts can be returned to the suppliers for credit. These are useful tools as well in trimming your on hand parts stock.
Begin the New Year with a clean house! Eliminate surplus from your parts inventory and reorganize your stock room making it a more profitable year.
The beginning of a New Year is a great time to make changes for the better! Evaluating your current fleet operation practices to determine what changes need to be made to improve the health of your fleet is a good start.
A healthy fleet will result in:
The bottom line with ensuring a healthy fleet is lower costs and increased revenue. So why not make the changes necessary to boost your fleet's health?
The first steps to take in improving the health of your fleet is too establish a system where:
The Tire Pressure and Vehicle Inspections should be performed at least once a day prior to beginning the scheduled trips. Inspections at the end of the day by the drivers or technicians would not hurt either. By monitoring the tire pressure and inspecting the vehicles, you are ensuring they are safe to operate, decreasing the possibility of emergency repairs, downtime, interrupted service to customers and liability claims.
Engine Tune-Ups, Oil Changes and Preventive Maintenance should be scheduled on a routine basis suggested by the Manufacturer. Implementing a software system, such as Truck Tracker, where schedules are built for routine maintenance, automatic notifications of maintenance due is reported and a history of maintenance performed are all valuable tools in managing and staying on top of the maintenance schedule. Performing routine maintenance keeps your fleet up and running efficiently. Any potential problems can be caught beforehand decreasing the downtime and emergency road repairs. These actions result in a smoother running fleet, less outside repair costs at a higher rate and limited disruption in servicing your customers.
Recording routine services performed, emergency repairs, labor costs and parts usage provides enough data to pull Analytical Reports related to:
All of this information can be pulled to determine:
There are more useful information that can be gathered to help you make decisions and take action to improve the health of your fleet lowering costs, improving customer service and fleet safety.
All of the above suggestions are easy changes that can be made in order to have a healthier fleet in the New Year!