Every moment counts for truck drivers. But in an industry dominated by just-in-time (JIT) inventory strategies, truck drivers often experience long waits at distribution points for repair parts. While JIT has helped streamline operations effectively under ideal conditions, its vulnerabilities became apparent during the pandemic, rendering it less effective. JIT’s failings also highlight the need for fleets to remain flexible and regularly evaluate their parts-sourcing strategies and seek out new technologies. This will help minimize delays and keep your fleet moving.
First, let’s explore the current environment.
What Causes Delays at Distribution Points?
Delays at distribution centers can be caused by the following factors.
There’s an ongoing shortage of vehicle technicians across the country. Fewer people are pursuing vocational degrees in diesel mechanics, which can lead to longer waiting times. The industry witnessed this during the pandemic, but the shortage has continued and shows no signs of slowing.
TechForce CEO Jennifer Maher echoed the same sentiment. “Despite the strong demand, with 642,000 auto/diesel/collision techs required between 2020 and 2024, the shortage persists,” she explained.
According to the latest TechForce Supply and Demand Report, in 2024, the diesel sector added 9,600 new positions and filled 24,300 replacement positions. A total of nearly 47,000 unfilled diesel tech jobs were carried over form previous years.
According to Maher, the government is making solutions to bridge the gap, and the company is launching campaigns to inspire the next generation of technicians.
During the pandemic, truck and parts shortages put the industry in a rough patch, stressing the supply chain. Tires, batteries, windshield wipers and other components have been affected.
The volatility of steel and rubber costs has affected the availability and lead times of tires and clocks, affecting multiple industries like aerospace. Rolls-Royce was forced to reuse spare parts, while one of its competitors could not fly due to its inability to maintain regular maintenance. In trucking, fleets were forced to cannibalize old trucks to maintain some semblance of uptime.
The limitations of JIT inventory strategy
Pre-pandemic, the JIT approach was the gold standard in supply chain management, minimizing inventory by timing supply deliveries before they were necessary. Then, the pandemic came, forcing transportation delays and factory shutdowns, revealing the vulnerabilities of this model. This prompted a significant shift in supply chain management.
Strategies for reducing wait times
To adjust to the challenges, many distribution centers invested in technology to cope with the supply chain delays. Consider the following strategies to reduce wait times and improve overall efficiency effectively.
1. Create Strong Supplier Relationships
A strong relationship with suppliers goes beyond transactional interactions. If they trust you enough, they could offer better rates and are more likely to deliver higher-quality products and services, helping reduce the risk of supply chain disruptions.
You can achieve this through a vendor-managed inventory (VMI) program, where suppliers manage inventory levels at distribution points, reducing the burden on truckers. With VMI, you share data with suppliers to improve the supply chain and match actual demand. Another way is through collaborative planning — work closely with suppliers about forecasts, expectations, and goals to ensure everyone is on the same page.
Effective communication is key to reducing delays. Digital platforms can help boost responsiveness among involved individuals and help automate tasks to reduce lengthy paperwork processes and administrative hang-ups.
JIT is still valuable in today’s world, given that it’s implemented strategically. It’s mostly effective for frequently used, readily available parts with short lead times.
As truck fleets look to remain in-time and operational, original equipment manufacturers could maintain a broader inventory of essential components like tires and brake pads to accommodate unexpected spikes in demand. That way, they can ensure truckers can access vital parts without causing delays.
4. Utilize predictive maintenance
Predictive maintenance uses data analytics to anticipate potential part shortages, allowing for the proactive stocking of critical pieces. According to Deloitte, this can result in a 5%-15% reduction in facility downtime and a 5%-20% increase in labor productivity.
This approach can provide more resilience compared to JIT, especially in uncertain times. Businesses also use AI to forecast optimal stock levels.
Discover the hottest trends to target inventory challenges and waiting times.
Demand forecasting entails examining historical sales information and usage patterns of repair parts to anticipate future demand. For instance, if brake parts are commonly required during the winter season, suppliers can proactively increase the number of these items in preparation. By anticipating demand spikes, they can accommodate truckers immediately, minimizing wait times and delays.
Companies can use Internet of Things (IoT) sensors on trucks to get real-time information on critical components as a proactive maintenance solution. IoT devices can also be deployed in distribution centers to monitor inventory levels in real time.
Blockchain is commonly confused with Bitcoin. This method helps enhance visibility by offering a transparent ledger of transactions, reducing the risk of delays caused by misinformation. It can also promote faster transactions and ensure all parties are fulfilling their duties on time, decreasing wait times.
Minimize wait times, maximize efficiency
The fast-paced logistics environment demands operational efficiency. Implementing predictive inventory management, boosting supplier relationships and improving communication channels can create a more responsive supply chain. This also benefits truck drivers by maximizing their productivity and boosting their morale.
