THOUGHT LEADER
Recommended Best Practices for School Bus Parts Inventory Management
Written by Robert T. Pudlewski E
ven the smallest school transportation depart- ment that maintains its own vehicles as well as school district or company-owned equip- ment in-house must go through a considerable
amount of operating cost to inventory the parts, lubri- cants and supplies necessary to keep the fleet in the safest operating condition. In fact, a survey conducted by STN magazine a few
years ago showed that annual expenditures for school bus fleet parts and shop supplies represent approxi- mately half of the total vehicle maintenance costs for the average fleet. To ensure that school bus technicians always have the items they need on hand and that main- tenance budgets are well spent, it’s critical to monitor and re-stock inventory of parts and supplies mindfully by analyzing maintenance parts and supplies inventory best practices. By effectively managing inventory, transportation
leaders can have the right products in the right quantity on hand and avoid products being out of stock and operating funds being tied up in excess stock. Inventory is cash on the shelf and should be kept at a level not to exceed 10 per- cent of the annual maintenance parts cost, ideally keeping parts fresh by turning over inventory 10 times a year. Inventory management is an operational part of the school bus maintenance facility that aims to always have the right product in the right quantity and at the right time. When done effectively, fleet operators reduce the costs of carrying excess inventory while maximizing vehicle uptime. Good inventory management can help track inventory in real time to streamline this process. By analyzing how the organization has historically used maintenance-related items, leaders can identify patterns that can update purchasing strategies moving forward. For instance, if you observe that your fleet installs bat- teries at an increased rate during the winter, get ahead of that need by stocking replacement batteries when the weather is still warm. Purchasing parts in anticipa- tion of future needs is proactive maintenance inventory management. Reliably having a well-stocked supply of parts, tires,
oil and lubes on hand is an essential part of perform- ing in-house maintenance. By following best practices and keeping a close eye on specific systems of mea-
24 School Transportation News • AUGUST 2024
surement, fleets can optimize how their inventories are managed and restocked. If you are looking to enhance the way your district/ company manages inventory, try the following:
• Leverage your vehicle maintenance recording system to add inventory management software to track stock levels automatically and to record part information for improved organization. Develop standardized storage procedures and reinforce those methods when training personnel.
• Periodically review your inventory levels to en- sure maintenance needs are being met to reduce downtime.
• Review historical part utilization to stock high-de- mand parts and minimize overspending on rarely needed parts.
• Log or record parts under warranty. This can be accomplished with paper documents, spread- sheets or inventory management software. Whenever a part fails, fleet personnel can check their records to see if that part has an active war- ranty or not. Of course, this approach only works if warranty details are accurate and up to date, so whether you’re working with an inventory log or specialized software, make sure to audit your records on occasion to ensure data quality.
• Use the FIFO approach (first in, first out). Parts and supplies should be used for repairs in the same chronological order as they were purchased or cre- ated. This is especially important for batteries, tires and lubes. The best way to apply FIFO in a parts and supply storeroom is to add new items from the back so the older products are at the front.
•
Identify low-turn stock. If you have stock that hasn’t been used at all in the last six to 12 months, it’s prob- ably time to stop stocking that item. You might also consider different strategies for getting rid of that stock—like a special discount or a dealer/distributor “buy-back” promotion—since excess stock wastes both your space and money.
•
Establish relationships with preferred part vendors that offer inventory obsolescence buy-back/credit programs.
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