Stock Parts vs. By-Order vs. Consumables: Know Your Inventory Essentials

Keeping your truck repair shop running smoothly depends on having the right parts on hand at the right time. But not all parts are created equal. Understanding the nuances of stock parts, by-order items, and consumables is essential for maximizing efficiency and keeping your shop profitable.

Stock Parts: The Backbone of Your Inventory

Common parts that are kept on hand due to frequent usage, such as oil filters for popular engine models, brake pads for common truck classes, belts of various sizes, and other items that frequently need replacing across the types of vehicles your shop regularly services.

  • Benefits:
    • Faster turnarounds: Minimize delays waiting for parts to arrive, maximizing your bay utilization.
    • Reduced downtime: Keep your customers' trucks on the road, earning money, which equals happier customers.
    • Improved customer satisfaction: Deliver the prompt, reliable service that builds loyalty and positive word-of-mouth.
  • Challenges:
    • Requires upfront investment: Tying up money in parts you may not use immediately is a careful consideration for cash flow.
    • Storage space: Finding room for these readily available items can be a challenge, especially in smaller shops.
    • Potential obsolescence: If part specifications change, you may be stuck with unusable old stock, turning inventory into a sunk cost.

By-Order Parts: Balancing Need vs. Space

Specialized or less frequently used parts ordered as needed for specific jobs. This could include major engine components, specific body panels, custom exhaust systems, hard-to-find drivetrain components, or even specialized diagnostic equipment.

  • Benefits:
    • Frees up capital: No need to spend money on parts until they are required for a paying job.
    • Reduces storage needs: Maximize space for high-use items while still having what you need accessible.
    • Less risk of obsolescence: Ordering the exact part needed reduces the chance of being left with outdated or unusable inventory.
  • Challenges:
    • Potential delays: Order lead times can impact job completion. Plan accordingly and communicate openly with customers about potential timelines.
    • Rush shipping costs: If a part is needed urgently, additional shipping expenses may cut into your profit margins.
    • Supplier reliability: When using by-order parts, your success is linked to the reliability of your suppliers.

Consumables: The Overlooked Essentials

Items used up during the repair process, like shop towels, lubricants, fasteners, and cleaning supplies. While individually inexpensive, running out of any of these can disrupt workflow and frustrate technicians.

  • Benefits:
    • Necessary expense: These items are vital to getting jobs done right and maintaining shop standards.
    • Often tax-deductible: Consult with your accountant for specifics on how these impact your bottom line.
  • Challenges:
    • Easily overlooked: Running out leads to frustrating delays and trips to the supply store.
    • Cost adds up: While individually inexpensive, the cumulative cost of consumables can be surprisingly significant.

How Easy Truck Shop Helps You Master Your Inventory

Easy Truck Shop's inventory management features are designed to conquer these challenges:

  • Accurate tracking: Know exactly what you have on hand, right down to the last shop towel, reducing surprises mid-job.
  • Reorder alerts: Set reminders to restock essentials before they run out, for both stock items and consumables.
  • Vendor integration: Order by-order parts directly within the software, streamlining the process.
  • Job costing insights: Track the true cost of each repair, including parts and consumables, for better financial decisions.

Ready to simplify your inventory and boost your shop's efficiency? Contact us today to discover how Easy Truck Shop's powerful inventory management tools streamline your operations and take the stress out of parts management.

Additional Tips

  • Analyze your repair history: Look at past jobs to identify which parts are used most frequently for different vehicle types and service categories. This data will help you determine which parts should be kept in stock and at what quantities.
  • Forecast demand: Consider seasonality (more brake work in winter?) and your customer base's trends. Do they primarily operate heavy duty trucks or have a mix of vehicles? This will influence the parts you're most likely to need on hand.
  • Develop strong vendor relationships: Reliable suppliers with competitive pricing, fast turnaround times, and minimum order quantities that align with your needs are critical for by-order success.

Don't neglect consumables: Implement a system for tracking and reordering these essentials to ensure a smooth workflow. Consider setting reorder points based on usage rates to avoid stockouts. Many consumables, like shop towels and degreaser, are available in bulk at lower costs, but be mindful of storage space limitations.

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At Easy Truck Shop, we understand the challenges that heavy duty truck repair shops face. That's why we created a user-friendly online application that helps you manage your business workflow efficiently.