Detroit, Michigan based Fleet Cost & Care is pleased to share their new blog post on six strategies for effective fleet inventory management. Since the company was founded in 1993, Fleet Cost & Care has been serving the heavy equipment industry across the globe, North America, Australia, New Zealand, Africa, the Middle East and the Caribbean.
Jeff Curran from Fleet Cost & Care says, “In the crane and rigging industry, ensuring that you are staying on top of inventory management can sometimes feel like a headache. Without a reliable and organized system, keeping track of the thousands of parts you are purchasing from a hundred different manufacturers is just impossible. If, somehow, you are managing, it will inevitably lead to unaccounted assets that will ultimately cut into your bottom line. While fleet management platforms can be used to manage your parts inventory, organization, real-time visibility of parts on hand and more, there is a lot that you can do to improve inventory management for fleets of all sizes.”
In the blog post, the first tip the company shares is to decide on a physical organizational structure. Fleet Cost & Care says that logical and intuitive frameworks are best. One way to do so is to start with major manufacturers like Grove, Manitowoc, Liebherr and so on and then categorize them into sub-groups (such as electrical, hydraulic, pneumatic, hardware and more. The company also recommends having an established alpha-numeric order for all parts with clearly labeled bins.
To ensure that parts are received properly, it can also help to have a company-wide entry procedure for parts. Following the recommended procedure by the fleet management system will ensure that there is uniformity with all of the parts records. On top of that, part number, description, manufacturer, unit of measure (UoM), part type, vendor, quantity on hand and barcode information should always be entered to avoid confusion regarding details of a specific part.
The third strategy is to determine valid reorder points as this can help manage quantities on hand while reducing cost. Establishing minimum and maximum barriers to the parts records of routinely used items can help avoid overstocking or having essentials run out. On top of this, everyone should also ensure that they are tracking quantity on hand through management software and automated processes when possible.
The blog post also shares that companies should be tracking all expenditures through a fleet management software system. Purchases should be justified in a particular order, and organizations should develop usage information unique to their fleet and their particular needs to aid in reducing their service department’s operating costs.
The fifth strategy shared by Fleet Cost & Care is to closely monitor consumables. Ensuring that there is enough stock on hand for items like grease, aerosols, cleaners, safety materials and so on that are used across multiple units and service activities is very important. This means that it is important to manage these items efficiently. Staff should be aware that all items, no matter their price or size, should be carefully monitored and accounted for.
Finally, Fleet Cost & Care says that it is important to encourage procedural refinement and new ideas. Maintaining a healthy dialogue between management and staff to determine what practices are working and what are not — as well as ways to improve organization — can contribute a lot to the long term success of a company. It can also help to evaluate costs by researching new vendors or inquiring about further discounts and determine the true necessity of items and quantities being ordered.
Curran says, “While inventory management is difficult, the truth is that it doesn’t have to be. Having a good fleet management software and expert consultants can serve you greatly. If you are interested in learning more about how you can manage your company’s inventory more efficiently, feel free to get in touch with our team today, and we would be glad to help.”
Those who want to learn more about Fleet Cost & Care and the various services they provide or have been looking for reliable fleet management software can find more information on the company’s website. Additionally, the company encourages interested parties to get in touch with Jeff Curran directly via email or phone. In addition to their website, Fleet Cost & Care can be reached through their various social media platforms.
SOURCE: Press Advantage [Link]
Fleet Cost & Care offers the most comprehensive fleet management software & mobile app on the market. Serving customers worldwide since 1993, we help heavy equipment rental companies simplify and systemize their day-to-day operations.
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