Many fleet owners will agree that fleet management is a very complex, demanding task. It spans many processes, it monitors an array of metrics, and it is prone to error. What’s more, mistakes can indeed cost dearly, from losing customers to simply underperforming. A core aspect of fleet management is inventory management, which too can present challenges on its own. Fortunately, there are many ways to start improving inventory management for your fleet. Let us explore 6 tips to help you do just that.
Inventory management for your fleet: technology, collaboration, and organization
For the above reasons and many others, fleet management is rightfully known as the heart of your business. Among its many benefits, it enhances the fundamental pillars of fleet operations:
- Cost-efficiency
- Employee and vehicle safety
- Employee and customer satisfaction and retention
In turn, inventory management for your fleet ensures streamlined operations. It builds on the benefits of fleet management and solidifies them, minimizing the room for error and ensuring optimal workflow.
However, inventory management takes holistic approaches, continuous effort, and due diligence. In broad terms, we’d divide all tips into 3 main concepts; technology, collaboration, and organization. But to be more specific, let us delve into 6 specific tips among all 3.
#1 Use technology
First and foremost, technology is an invaluable asset – and inventory management is no exception. From the surge of mobile phones into the industry to hyper-focused business software, technology delivers. Among its many offers, consider the following.
Fleet Management Systems (FMS)
The prime example of fleet management software, as the name implies, FMSs offer crucial fleet metrics. These include:
- Asset tracking and management
- Vehicle maintenance and fuel management
- Driver profiles and behavior
- Route management
Of course, not all fleets will require an FMS. Your industry, fleet size, and many other factors will determine this need. However, few solutions offer such thorough management assets across a fleet’s entire lifecycle.
Telematics
Telematics is, in essence, the combination of telecommunication and informatics, as the name implies. As with FMSs, telematics also offers data-gathering capabilities to assist with both fleet management and inventory management. However, the two are not the same, and the choice between the two will also depend on your business.
Climate-controlled storage
Finally, technology has provided unprecedented conveniences in terms of storage, including 24/7 climate control. Depending on your inventory, storage with the optimal temperature may be exactly what you need to prevent damages.
#2 Use Vehicle Maintenance Reporting Standards (VMRS) codes
Next, VMRS codes offer an invaluable asset to inventory management. Developed by the American Trucking Association in the 1970s, this standard provides a “universal language” that can streamline part identification.
Code 33 is likely the best-known example of VMRS in practice. This 9-digit code offers three 3-digit identifiers, each describing a part’s vital information:
- 1: System description
- 2: Assembly description
- 3: Component description
With such insights into each part in hand, fleet managers can ensure better inventory management. What’s more, many software solutions offer similar labeling options for maximum efficiency.
#3 Track and organize expenditures
Another crucial practice is to track and organize expenditures. This may seem like an obvious tip, but inventory management hinges on such organization. Software like FMS may allow you to do so, letting you both monitor and label expenditures.
Consider, for example, categorizing inventory expenditures as such:
- Direct customer sale
- Inventory reorder
- Service order
This kind of organization alone can help you monitor your inventory-related finances more effectively. Thankfully, this kind of organization is relatively easy to implement.
#4 Continue to monitor consumables
On the subject of expenditures, there are frequent oversights in terms of monitoring consumables. That may be due to their size, cost, or use, but consumable management is essential nonetheless.
Initially, you should ensure you always have ample stock of common, wide-use consumables, including:
- Grease and other lubricants
- Antifreeze and coolants
- Cleaners and safety materials
Naturally, that’s because such consumables are essential to proper fleet maintenance. However, they may also inflate costs if mismanaged. Work orders can’t often have quantities of such consumables attached, so their cumulated costs can be considerable.
Thus, you should cultivate a culture of proper use among your employees. Enforce accountability to avoid mismanagement, and monitor them without fail.
#5 Encourage innovation and refinements
Speaking of internal culture, it is equally crucial to cultivate a broader culture of collaboration. This can have a plethora of benefits, from employee retention to better onboarding. But most notably, in the context of this subject, it can also improve your fleet’s inventory management.
The most fundamental way to do so is to maintain open channels of communication between managers and staff. Employees can frequently offer insights on underperforming practices, disorganization, and other aspects of your operations. They may propose new, innovative software, or better and more cost-efficient vendors. Finally, these practical benefits aside, such a culture can also enhance productivity and keep your staff content.
#6 Pursue collaboration with your suppliers
Finally, internal assets and culture aside, relying on your suppliers can also help improve inventory management for your fleet. They will, of course, need to earn your trust through credentials and successful collaboration, but good business partners are invaluable.
Parts suppliers frequently keep their own consolidated databases. With historical purchase data, their predictive models can inform your purchasing decisions. After all, a key aspect of inventory management is stocking levels, which your suppliers can offer advice on.
Similarly, seasoned suppliers will have experience with multiple fleets. They may thus be able to recommend maintenance programs, allowing you to take proactive measures against unforeseen future costs.
Finally, many vendors now offer integration options with prominent FMS solutions. This kind of collaboration can help tremendously with organizing your operations and handling emergency orders.
Conclusion
To summarize, inventory management is certainly a challenging aspect of business. However, there are multiple small steps and practices that can address them, starting with using the best assets technology offers. These aside, enhancing organization, tracking expenditures, monitoring consumables, and cultivating a culture of collaboration can all assist further. Finally, relying on your suppliers and experienced professionals can guarantee that your inventory management is nothing short of excellent.
About the author:
Lindsay Miller is a digital marketing consultant and copywriter based in Phoenix, AZ. Due to her close family’s occupations, she has a keen interest in the relocation and trucking industries, both of which she has covered for years. In her time off, she enjoys long walks with her two dogs.