august2021 - 26

than all your parts in one location. Reducing the
number of steps each technician takes in a day
will increase efficiency. "
Deliver value through
supplier partnerships
A fleet parts manager should be responsible for
not only finding cost-effective sourcing solutions,
but in finding a partner that delivers strong overall
value, related PACCAR Parts' Scheel. " Even
when a fleet maintains their own inventory, a
local dealership may offer customized solutions
to manage their parts needs, " he said.
" Another way fleets can ensure they get quality
parts in a cost-effective manner is by enrolling
in a national program from an OEM supplier, "
Scheel added. " Fleets should be able to order parts
across the country via a convenient, easy-to use
ecommerce platform, and pay all parts invoices
through one centralized system to streamline
their payables process.
" Without those types of partnerships, " Scheel
continued, " maintenance operations may pay
a higher price for parts, which increases costs.
Conversely, if they are focused solely on cost, then
the fleet may not have a reliable parts distribution
partner that carries a wide breadth and depth of
all makes parts inventory, [which] can expedite
parts and help keep trucks on the road. "
Fleets should consider partnering with a supplier,
noted FleetPride's Wilstead. " Providers build
their operations with this in mind, including
delivering access to a large inventory of parts,
strategically located service centers, and experts
whose aim is to help their customers get their vehicles
running as quickly and as cost effectively as
possible, " he said.
" Fleets like using suppliers that can consistently
offer them everything they need, so we offer original
equipment parts and aftermarket equivalents
on many lines, " said Buy Wise Auto Parts' Calabro.
" Our main goal, regardless, is to make sure that
the quality is always the best. "
He added that online ordering platforms are
important to provide accessibility and transparency
to inventory availability throughout the network.
" Don't abdicate the management of your parts
department; even if you use a vendor-managed
inventory service, you must be responsible, " said
Irvine. " Create a system that starts with ordering
the part and ends with the part being installed on a
truck or trailer. Don't leave anything to chance and
continuously strive for improvement. Make sound
business decisions about what parts you purchase. "
Focus on total cost of operation
" Don't focus on purchase price but rather on the
impact a part has on your total cost of operation, "
Irvine stated. " While it is often enticing to cherry
pick promotions from multiple suppliers or pit one
supplier against another in a price war, this doesn't
work in the long run.
" If you only focus on price, suppliers will sell
you low-quality parts, " Irvine continued. " But
the good feeling you have when you buy a part
for the lowest price you've ever paid will quickly
26 Fleet Maintenance | August 2021
» Try stocking commonly used parts beside
technicians rather than all parts in one location.
499649534 | Lorado | Getty Images
disappear when it fails prematurely and you have
a towing bill, additional driver expenses, added
repair costs, and lost revenue. "
Irvine also advised fleets to continually test
parts and measure whether they ensure that
they offer the lowest cost. " Technology is changing
parts performance, so just because a part
worked well before doesn't mean it is still the best
solution, " he said. " Trucks are also changing, and
depending on your vocation, different specs may
require different parts. "
" Sometimes it makes sense to put the most
inexpensive part on a truck, " said Diesel Laptops'
Robertson. He cited equipment that may be
retired soon as an example. " But the cheapest
parts are often not the best parts for a fleet, " he
noted. " It usually makes more sense to put higher
quality parts on your vehicles and to look at total
cost of ownership. "
Once those decisions are made, which brand
to use is often asked next, Robertson said. " This
process gets more complicated, but it can have a
dramatic impact on a fleet's bottom line, " he said.
" For example, in an inventory analysis for a
large fleet with multiple shop locations, we found
they were buying two different brands of wheel
seals, " Robertson explained. " Both were from
OEM-level manufacturers, and both carried the
same warranty, but with the price variance across
their organization, one wheel seal was significantly
cheaper. However, when you also looked at the
quantity of wheel seals they were going through,
the fleet could be spending over $13,000 more by
purchasing the lower-cost item, and that was just
one part number.
" Another example from a fleet was that they
were not aware of aftermarket alternatives, "
Robertson continued. " In this case, they were
purchasing an OEM coolant level sensor. A
high-quality aftermarket manufacturer offered
an alternative, which was 70% less expensive
and also carried the same warranty. Switching
this one part number on a low volume item saved
the company $1,670 per year. "
Manage parts to
maximize uptime
" It's essential for suppliers to help fleets manage
their parts needs, " stated Buy Wise Auto Parts'
Calabro. " At the same time, it is very important to
manage inventory for vehicles, especially if they
are decommissioned so the parts can be removed
and new updated parts are put in place. The goal
is always to maintain a balance of inventory for
vehicles in the fleet. "
Not having parts available when equipment
is scheduled for service can lead to even higher
costs. " If a part that is supposed to be on the shelf
is missing from inventory, it could cause a unit
to be in the shop for an entire extra day and that
has a direct impact on revenue and total cost of
operation, " Irvine noted.
" Additionally, if a fleet has multiple repair locations
and the parts are not managed correctly, you
can easily end up with different quality parts
being installed at one location from another, " he
continued. " That impacts purchase price, cost-permile,
and warranty eligibility. "
Irvine also pointed out that different parts
sourcing strategies are needed dependent upon
whether a fleet is a local, regional, or national operation
and the number of repair locations.
" For a single location, you need a strong relationship
with truck and trailer dealers and a local
aftermarket supplier who can help you source
high-quality parts, " he said. " Multiple location
fleets need the same relationships with suppliers,
but they need to be able to service you nationally,
which can change the companies you choose to do
business with to meet your parts needs. "
Measure the impact of
effective parts programs
While cost considerations are important, Irvine
suggested the most effective parts programs first
prioritize product quality, cost-per-mile impact,
supplier service, and availability.
" Additional labor and downtime will erode any
cost savings that were achieved by purchasing
august2021

Table of Contents for the Digital Edition of august2021
