Proper parts management, usage, and warranty can save thousands of dollars annually and help organizations stay competitive. Parts management can also save a lot of administrative work. Most companies confuse parts management with parts inventory and this is where everything could go wrong.
In this article, we will show you how to do things right and save time and money by properly maintaining a parts management system.
1- Easy To Track and Record New Parts
By maintaining a proper parts management system you can easily keep track of new parts. This is generally done through purchase orders and fleet order maintenance page. In this way, you don’t have to flip between different screens or pages just to add a part.
2- Parts Warranty Reminder
It has been estimated that more than 1% of parts costing under $150 are never claimed for warranty. This is because the owners tend to ignore the warranty due to the negligible amount involved. However, if you add all the amount required to replace a part under warranty, this could be something in thousands of dollars. Through parts management system, each part is recorded when it is brought along with the details of its warranty period. The remaining warranty period is calculated automatically. Some software can even send an alert to stop overpaying for parts that are under warranty period.
3- Inventory Tracking
By properly doing parts management, you can also keep an eye on the inventory. If you forget to record something in the inventory, the chances are you will spot it in the parts management system. This means lesser administrative work and fewer chances of recording error.
4- Makes Your Fleet More Secure
Most of the accidents that take place on roads are due to some faulty parts. As we have discussed above, the parts management system can help you keep track of parts that need replacement or repair. This can help in keeping the vehicles in top shape, which in turn will automatically reduce chances of accidents.
5- Vendor Management
Parts management system records and keeps everything in one place. It can help you identify good and not so good vendors based on the performance of their parts and warranty claims. Through parts management, you can start building good relationships with good vendors and filter out the bad ones.
6- Reduced Overhead
Once you establish a good parts management system, the administrative expenses and time utilization will also be positively affected. From small to a mid-sized fleet management company, 1 – 2 people in the admin office can do the job effectively. As everything will be automated, you will need fewer people and less time to keep a record of parts.
Conclusion:
Parts management system can be done manually on registers and log books or on excel sheets. Many companies are now offering specialized computer software that can record everything with a few mouse clicks and entries. These software are usually expensive but for mid-size fleet management companies, it is worth it!