How to manage parts inventory and truck stock

The phases

1. Phase 1

   Audit current inventory and identify high-velocity items

   Week 1-2

   Physical count of all truck stock and shop inventory. Categorize: high-velocity (moves weekly), medium-velocity (moves monthly), low-velocity (moves quarterly or less), dead inventory (hasn't moved in 6+ months).

   For each truck, calculate which items appear in 80%+ of jobs of common types. Those are essential truck stock items. Items appearing rarely should be in shop stock with truck pickup before relevant job.

   Dead inventory is sunk cost — write off and remove from active inventory tracking. Continuing to count and re-count dead inventory wastes time without delivering value.

   Checkpoints

   • Physical inventory count complete
   • High-velocity items identified per truck
   • Dead inventory written off

2. Phase 2

   Set par levels and reorder points

   Week 2-4

   Par level = the quantity that should always be on hand. Reorder point = the quantity that triggers a reorder. Reorder quantity = enough to bring inventory back to par.

   For each item, calculate par level based on weekly usage rate × time-to-restock + safety stock. Example: if you use 4 of an item per week and restock takes 1 week, your par level should be at least 4 + safety stock of 2 = 6 units. Reorder when inventory hits 4 units.

   Truck stock par levels typically lower than shop stock (limited truck space). Items needing truck stock are those used in 80%+ of common job types.

   Document par levels and reorder points per item per location (each truck, shop). FSM platforms or simple spreadsheets work for tracking.

   Checkpoints

   • Par levels set for all active inventory
   • Reorder points documented
   • Truck stock vs shop stock allocation defined

3. Phase 3

   Weekly inventory discipline

   Ongoing

   Weekly inventory check: Friday afternoon ritual — each tech reports truck stock counts, office staff verifies against par levels, reorders triggered. Takes 15-30 minutes per truck per week.

   Reordering process: standardized supplier accounts, weekly reorder cycle, expedited shipping reserved for genuine emergencies (which should be rare with good par levels).

   Quarterly inventory review: par levels adjusted based on actual usage data. Items added or removed from active stock based on velocity changes.

   Ongoing tracking: which items frequently stock out (par may be too low), which items consistently sit (par may be too high), which items are increasingly obsolete (consider phase-out).

   Checkpoints

   • Weekly inventory check operational
   • Quarterly par level review
   • Stock-out incidents tracked and addressed