With any inventory management plan, the objective is not just to meet a standard, but to also identify gaps and refine processes over time.
By Charles Mintz
In the waste industry, uptime is everything. A truck down situation can quickly escalate from an inconvenience to a loss of service鈥攁nd, ultimately, increased costs and lost revenue. Keeping spare parts on hand is not just a maintenance strategy, it is also a critical component of operational efficiency and customer satisfaction.
Based on years of working closely with distributors, private, and public waste haulers, and municipal sanitation departments, here are some best practices for parts inventory management that support continuity, productivity, and long-term success.
Forecasting, Data Segmentation, and Automation
Basing inventory decisions on historical usage data helps show trends to determine appropriate stocking levels for all equipment in a fleet. Prioritizing manufacturer-recommended spare parts and aligning with preventative maintenance schedules can help dial-in forecasting, along with considering parts with long lead times and parts commonly needed in emergency situations. Work with OEM parts manufacturers and suppliers, when possible, to create inventory plans tailored to a fleet鈥檚 specific needs
There are numerous parts inventory management systems that track data and offer reporting dashboards, and that can automate and optimize inventory management processes. Automation eliminates guesswork and improves stocking efficiency over time, especially for multi-location distributors and haulers.
Most ERP platforms can also track usage by customer, region, or parts categories. ERP systems with integrated inventory management tools can streamline restocking by setting min/max thresholds and generating reorder alerts. Tracking usage by geography or customer profile also improves accuracy and responsiveness.
Even operations without advanced systems can start with available data. Classify inventory as critical, essential, or non-critical. Prioritize critical parts, such as hydraulic pumps and essential electrical components, that are key to maintaining uptime. Non-critical or slow-moving items can be ordered as needed. This tiered approach can help reduce investment in low-priority stock and build inventory continuity.
Identification Tools and Inventory Auditing
Accurate parts identification prevents delays, reduces returns, and supports efficient repairs. Visual guides, exploded diagrams, and parts kit schematics, for example, can help prevent accidental orders or ordering the wrong parts, as well as reducing miscommunication between teams.
Barcoding and RFID systems improve inventory tracking, reduce manual errors, and speed up receiving and picking processes. These tools, when integrated with inventory management software or ERP systems, also generate more accurate usage data for forecasting and KPI tracking.
Even before implementing technology like RFID or barcoding systems, routine cycle counts and spot checks are essential to maintaining inventory accuracy. Shrinkage, misplaced parts, and outdated information can lead to stockouts or overstocking. Aim to cycle through inventory at least annually. Apply the ABC analysis method to categorize inventory items, focusing more attention on the 鈥淎鈥� items with the highest value and most frequently requested items.
Communication, Planning, and Performance
Using information from your internal experts augments your data and supports effective parts inventory management. Technicians often recognize recurring issues before you may look for them in a report. Establish regular communication between inventory and service teams to identify patterns, improve forecasting, and support training or documentation needs. Insights from the field can shape stocking plans, improve installation guides, and reduce repeat failures.
Regular communication with your technicians can also help guide emergency stock planning to prepare for truck down situations, extreme weather, or parts shortages. Maintaining a buffer of critical components is essential for high-demand periods and geographic regions with logistical constraints, and consistent communication with parts manufacturers and suppliers is key to staying up-to-date with any potential supply chain disruptions that may affect inventory levels.
While emergency readiness is important, preventive maintenance can reduce emergency needs and supports overall fleet reliability. While every fleet manages service differently, consistency is key. Offer checklists and training materials that encourage adherence to established schedules.
Regularly monitor other manufacturer updates to ensure alignment with current parts specifications and actively retire obsolete inventory鈥攅specially if equipment models are upgraded.
Using industry benchmarks on fill rates and inventory turnover and monitoring stockout frequency will provide further insights to influence inventory management plans. When industry-specific benchmarks are unavailable, use adjacent sectors such as automotive for comparative insight.
Keep Your Trucks Running
With any inventory management plan, the objective is not just to meet a standard, it is to identify gaps and refine processes over time. Work in close collaboration with your OEMs and suppliers to anticipate needs, support rebuild programs, and develop stocking strategies that improve uptime and efficiency. Stocking parts is not the end goal. It is about giving teams the confidence to keep trucks running and communities clean. | WA
Avoid Common Mistakes:
鈥� Understocking critical parts鈥擱elying on next-day air shipments is costly and often avoidable. Frequent expedited orders suggest stocking plans need revision.
鈥� Treating all parts equally鈥擯rioritize stocking based on operational impact and avoid overstocking rarely used items.
鈥� Not using available tools鈥擡RP systems, visual aids, and manufacturer resources are underused in many operations.
鈥� Working in silos鈥擟ommunication breakdowns between service and inventory teams hinder efficiency and problem-solving.
鈥� Letting obsolete parts linger鈥擯arts not compatible with existing equipment models should be returned or retired promptly.
Charles Mintz is Director of OEM Parts and Aftermarket for New Way Trucks. He has more than 30 years of experience in manufacturing, supply chain, warehousing, distribution and transportation鈥攎ost recently with Goodyear and Cooper Tire & Rubber Company鈥攂efore joining New Way. Charles can be reached at (330) 224-6596 or e-mail [email protected].