Managing equipment maintenance is a challenge for most contractors, and bringing this task inhouse challenges companies with issues such as developing an equipment inventory and deciding how extensive it should be.
THE DEALER DILEMMA. Most contractors recognize that having dealers service equipment is often more convenient, but it is not always feasible.
“Our suppliers for mowers and most power equipment are about one hour away,” noted Joe Munie, president, Munie Outdoor Services, Belleville, Ill.
Other contractors believe they’re more efficient handling maintenance inhouse, regard-less of where a dealer is at.
“If a problem occurs that we can’t send a service technician to repair, we could have to wait for the dealer to open or to get the part we need,” commented Tom O’Donnell, fleet and safety manager, Scott Byron & Company, Lake Bluff, Ill. “That could cost the company real dollars.”
SET A STANDARD. Contractors who handle equipment maintenance and repairs internally point to standardizing the equipment they use as a key to the program’s success.
“Companies with different brands of mowers have to have a wider technical knowledge to be able to repair them,” noted Ned Brooks, president, Relm’s Landscaping, Annapolis, Md.
“It’s easier to inventory parts that can be used for any machine in a fleet because you know you’ll turn them over more quickly,” added Munie.
Building a fleet of equipment with a minimum number of brands also lets mechanics become more familiar with the most common maintenance needs of that equipment. “Each manufacturer’s equipment has its own idiosyncrasies,” Brooks observed. “A big part of stocking inventory is knowing what parts on a machine will break or wear out pretty regularly in order to buy in bulk.”
DOWN FOR THE COUNT. Developing the correct inventory that enables a company to meet all of its expected and unexpected maintenance needs without incurring unnecessary overhead costs is an inexact science that takes time and experience to master.
“We probably carry about $100,000 worth of inventory for about 700 pieces of equipment,” noted Munie. “It comes down to weighing the costs vs. the benefits. How much will it cost the company if you have to wait to order a part and have it shipped overnight?”
Munie said the company often feels forced to carry certain parts because of the delay involved with getting replacements. “We have some specialized equipment, such as a slope mower, that is difficult to get parts for,” he said. “Parts that we can get overnight aren’t always as important to stock.”
O’Donnell added that he purchases some parts through a consignment program where the inventory is checked regularly and restocked by a dealer, and the company is only charged for parts it uses. “The downside is that consignments can lock you into purchasing a certain quantity and it’s hard to know how much to purchase if you’re just building an inventory,” he recognized.
For the bulk of the company’s inventory, O’Donnell generally stocks half of the number of parts he could need for his 3,000-piece lineup. “It’s also important to stagger the preventive maintenance needs and do a monthly reconciliation where you check all of the odometers and chronometers to make sure everything is on schedule,” he recommended.
When to purchase parts is also worth noting. “We stock up a lot heavier in the spring than in the fall so we’re not sitting on a lot of inventory dollars in the fall that we’ll have to carry over the winter,” noted Munie.
Of course, it’s also important to note how and when equipment is used and the effect that could have on repairs. “We carry a pretty large inventory on snow plowing equipment because a lot of times that breaks down during the night when it’s impossible to get parts,” Munie added.
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