3 TAKEAWAYS FROM THE CURRENT PARTS SHORTAGE

THE 2021 PARTS SHORTAGE IS REAL

It has been an extreme year for the trucking industry, and one of the biggest challenges now facing trucking companies is simply getting the parts they need to keep their fleets on the road. 

As new vehicles sit on the production line awaiting new components and older vehicles wait in service bays across the country for parts nobody can get ahold of, even the most seasoned trucking experts are watching and taking notes.

1. A NIGHTMARE FOR VENDORS

Whether you’re supplying truck parts or buying them, no one is exempt from feeling the strain of the parts shortage. No matter what side you’re on, everyone is going outside of their normal channels to find parts right now, and that includes vendors. With demand high and availability low, vendors are having to double as detectives to source parts and are being forced to diversify their supplier bases.

To make matters worse, the known semiconductor shortage that’s currently hindering commercial vehicle production is predicted to extend through the year and into 2022. Mack, Volvo, Daimler, and other major truck brands expect major production disruptions, and vendors’ hands are tied as far as being able to supply those trucks and parts that rely on that one critical component.

2. INCREASED WAIT TIMES FOR BUYERS

When you buy truck parts, it’s common to experience an item that’s on backorder. But typically when that situation happens, buyers and vendors are able to communicate accurate lead times and continue doing business in the meantime. But at a time when the parts shortage means a game of hide-and-seek for vendors, it also means longer stretches of wait time for buyers – or no estimated lead time at all.

Fulfillment rates of 80% or lower that used to frustrate buyers have now gone by the wayside with many truck companies reporting satisfaction with as little as 30% fulfillment.

3. THE IMPORTANCE OF “SAFETY STOCK”

As new alliances form between buyers and vendors to keep parts on the shelves, many trucking companies also report that the importance of their inventory and having the right safety stock on hand have been major takeaways during the parts shortage. Having to quickly adapt and improve parts forecasting – sometimes focusing on the top 50-60 SKUs instead of just the top 10, for example – has also been a learning experience for many, and still others have learned that they enjoy watching competing vendors vie for their business during a time that’s challenging for everyone.

Whatever your experience has been during the parts shortage, we're here to help make sure you get the parts you need, where you need them, and when you need them to keep your vehicles up and doing business. Not sure how or where to find what you’re looking for? Reach out to us today!