1. What to have in inventory. Everything you need at a minimum level, along with those parts that a truck dealer doesn’t stock. This will help technicians stay busy and prevent the delay of a vehicle repair/service because a $5 part couldn’t be obtained after hours.
Only those special items that are specific to your operation and deemed operationally required should be considered for stock.
2. What not to have in inventory. “Emotional parts,” rebuilt transmissions, engines, rear ends and an abundance of used parts.
3. Returns. Parts need to be returned on a timely and frequent basis.
- Do usage stock reports monthly. Six months of no usage, get rid of the parts.
- Return unused stock for credit.
- Any parts older than three months with no usage should be evaluated.
4. Minimums and maximums. These should be figured every day or so on the fast moving items. The more accurate you keep this information, the easier it is to order parts with intelligence.
5. What to do with old inventory. This is always a challenge. Selling old parts is difficult and usually the return may not be worth the investment in time.
Ask your will vendors if they will take back old inventory. As an incentive, offer to replace equal to the returns if they will buy back old inventory.
6. “Stock lift.” When, or if, you choose to change suppliers or update to new inventory, certain manufacturers/vendors may provide a “stock lift” and replace the old inventory with new or give a credit.
