Author: Joshua Gwozdz

By incorporating new, electric heavy trucks into their fleets, older diesel-powered trucks will be gradually phased out. Those that cannot be retrofitted or upgraded at a reasonable cost will be sold to smaller industries still reliant on traditional trucks or even recyclers if they’re attentive enough.

This surge in the supply of diesel-powered trucks will be a boon to the truck recycling industry, where otherwise common parts such as Freightliner CPCs (Common Powertrain Controllers) have been difficult to find. With a group like Freightliner producing their e-Cascadia electric trucks consistently, they will be moving away from having as many traditional trucks in their fleet, creating an opportunity for recyclers to get their hands on top-quality trucks and parts.

That’s not where it ends either. With OEMs (Original Equipment Manufacturers) moving to more electric and sustainable products, they’ll manufacture fewer parts for their previous diesel-powered counterparts. That means instead of people looking for parts going to the original manufacturer, they’ll go to the recyclers and aftermarket dealers to get their hands on the parts that Freightliner no longer makes.

Therein lies the opportunity for recyclers and salvage yards. If these parts and trucks are currently available from OEMs and dealerships, why not shell out a little extra cash to get a good-condition truck that you can then fix up, polish and sell? Or, as an alternative, take out all the key components like the engine and transmission, and replace them with recycled or remanufactured components.

A function like TPI’s Gravy Parts will help yards maximize their profit off these newer items as well. The main components of a truck we mentioned earlier, like engines, transmissions and such, are usually the money makers for recyclers. But all the extra parts attached to that truck, like cross members, wheel hubs and wiring harnesses, still have value. That’s why we call them the “gravy” parts because they’re not the “beef and potatoes” of the truck.

Those gravy parts still have value that is attributed to the truck you got them from. By using TPI, you’ll have an excellent idea of how much money your trucks will get you, and by extension, a clearer idea of the value of each of your trucks. Of course, by having a list of the most profitable trucks, you also have a list of salvage to stay away from. Why spend money purchasing salvage that won’t make you money and just sits in your yard like an anchor?

Imagine you can’t find a part for your 2000 Freightliner Cascadia. Now imagine that you go to the first logical place to get a replacement – the manufacturer or dealer. Only, they tell you that they don’t have any of the parts in stock because they don’t make them anymore, or whatever excuse they peddle. Now imagine you find the part you need from a recycler who has an old Cascadia. The quality of the parts will be almost identical (save for some cosmetic work), cheaper and easier to find. Not to mention, you won’t be contributing to pollution because they won’t need to manufacture a new part for you – The benefit of recycling.

Regarding heavy EMVs, the void they create with their introduction will need to be filled by the recycling industry. More dependence on electric technologies in trucking will inevitably push the smaller carriers that can’t afford to go electric to the recyclers who still carry the parts they need for their vehicles. That’s not to mention the price-gouging that usually accompanies parts from the distributor or manufacturer.

Most of the larger groups are only concerned with making a profit, and they are usually large enough to do so at the expense of the consumer with minimal effects on the rest of the business. This is even more so now that many larger groups have invested so much money into electrification. The investment is and will continue to be costly, and they want to recoup their losses.

For instance, we had a customer who had ordered a 2012 ECM (Engine Control Module) for their Cummins engine. Usually, those sell for around $1000, give or take. However, the manufacturer wanted to charge upwards of $1400 for it simply because it was new. We directed this customer to one of our sellers who could offer the part in great condition for significantly less than the OEM wanted (about $600 less, to be specific).

Our seller was able to provide the customer with an ECM for less because recyclers work to help the industry, not just to make a profit. When the recyclers get their equipment for substantially less than what an OEM would ask for, they’re able to offer that equipment to customers in need, improve our industry, and do this all at an affordable rate.

This is the opportunity that recyclers and salvage yards have to start cutting down on these parts shortages. The heavy-duty recycling industry needs to jump at the chance to acquire these high-demand parts and use them to elevate our entire industry.

The more people rely on the OEMs for their parts, the more money they lose. And, the less people recycle.

Click here to learn more about Truck Parts Inventory (TPI).

This article was first shown in autorecyclingworld.com. To read the original magazine version click here.

With the annual HDAW festivities over, thousands of folks return from Grapevine, Texas with knowledge about the heavy truck parts industry and how to put it to use. Over the course of 4 days, much was discussed about the current state of the world and what effects it might have on the heavy-duty parts industry. In particular, the current supply chain issues drew much discussion. So we’ve created a quick summary guide on how you can improve supply chain issues as a seller using TPI.

A distributor, supplier and remanufacturer weighed in to discuss how aftermarket distributors can improve supply chain shortage issues during SOLD. Their insight? Over-prepare. You can never have too much inventory these days.

For starters, plan ahead. That might sound difficult given the circumstances, but operating on a fixed trajectory will help in the long run. Overbuying might sound undesirable, but having excess inventory is a lot easier to manage than not having enough. By ordering excess product to keep your stores, depots and yards supplied for a set period of time, you’ll avert the crisis of running out of things to provide to your clients.

To help accomplish this goal of staying ahead, many sellers are forming ad hoc committees with their managers to coordinate supply efforts, thus ensuring at least some inventory is available for customers. By over-purchasing, sellers can offset any impacts to their supply chain, and ensure that they have some breathing room to coordinate future supply efforts.

Another useful tip is to utilize the full capabilities you have as a remanufacturer. Joe Kripli, president of Auto Parts Remanufacturing Association (APRA) and the Heavy Duty Reman Group, says, “There’s this huge demand [for parts] and I really feel remanufacturing is a great solution because you as distributors, shops and fleets can use that to your advantage…You control supply [in that way].”

Kripli is referring to the usefulness of remanufacturing, and having the ability to salvage and reuse parts such as turbos, which are casted. Kripli estimates that close to 90 percent of turbines, housing and compressors have solid resale value.

In case you couldn’t make it to HDAW, below are suggestions from the session on how distributors can improve their supply chain issues. These tips will also help you as a seller on TPI:

1. Add more human resources and increase your internal and external communications with your team members and suppliers to ensure your procurement ordering process is as expeditious as possible.
2. Do not cancel backorders. Increase supplier communication to ensure you are getting truthful and honest feedback. Ordering extra parts from a secondary supplier will allow the buffer room you may need.
3. Adjust your minimum and maximum inventory numbers upward to allow for increased inventory. Also adjust your lead times as some suppliers’ lead times are 12 weeks or more.
4. Identify and develop second, third and fourth supply chain partners.
5. Increase your top movers to a six-month supply.
6. Increase your shop supplies to six months, maybe a year. This includes all required PPE.
7. Look into reman partnerships and develop larger core banks that can be remanufactured when needed.

Source: Truck Parts Services

United Truck Parts in Gooding, Idaho has been a part of the TPI family since August of 2017.  It was started by Scott Burnett and Curtis Merrill in order to provide the local community with another option for heavy-duty truck parts.  Scott is the owner of a truck repair facility and this experience, together with his lifelong passion for trucks, gives him the insight and practical knowledge necessary for the successful launch of a yard.  Curtis is the owner of a meat-packing plant in Southern Idaho, and his skills in running a business have helped to ensure a strong start in a very competitive industry for this young company.

In August of 2017, when United formally began, there were two employees in addition to the owners.  Today, one year later, Scott and Curtis are able to employ 5 full-time employees and 4 part-time.  What factor can explain this expansion in such a short period of time?  In a word, relationships:  in various ways, United has put an emphasis on relationships as a core value in its business, and this focus seems to be paying off.  They want every experience with United to be a good one, and they are grateful to come into work to do something they love, and deal with people that make their day better.

At United, the customer is paramount, and understanding who the customer is and what they might need is a priority.  At the moment, farmers in Idaho are experiencing a recession, and so United is pleased to be able to offer them lower-price alternatives for their machinery in the form of used parts, at a time when they need to cut costs.  By helping farmers, the company is also giving back to an essential service, and helping out people who dedicate their lives to ensuring there is food on the table.

Jeff Mortenson, the General Manager at United, also recognizes the close bond that exists between a trucker and their truck.  As Mortensen observes, changes to a truck become an emotional transaction, as the truck has generally been with the driver “for millions of miles, or in some cases, passed down for generations.  Trucks are personalized, each one is different, and they all have the same pieces but different character, it seems.”  Understanding a trucker’s point of view in this way leads to customer service that is more thorough, accurate and complete.

A challenge that United has experienced has been connecting with businesses like their own, but Mortensen says that using TPI has helped with this, as “TPI and the users meeting programs [Sellers Groups] have made that so much easier.”  He also says that using TPI has helped them find new customers in areas beyond their own, and he can’t emphasize enough how much the TPI staff have done for United, noting “what a world of difference it was when we began to fully utilize what TPI had to offer.”

When asked what advice he could give to someone starting up a yard today, Mortensen emphasized, you guessed it, relationship: “Network.  Get to know people.  Know your customer.  Know who they are, and what they need.  Know how to take care of them.  At the end of the day, the customer is why we are in business, and why we all get to take care of our families.”

Happy first anniversary, United, and here’s to many more years of building a strong network with deep roots.

by Martin Mercer-Deadman, Customer Care Guru

Charging for Cores is a standard procedure in salvage yards, and TPI’s invoicing system is set up for it. What do you do, however, when a customer returns a core? How do you credit them back in the system? Here are the steps to follow:

Bring up the original invoice with the relevant core charge. Go to More Options on the right-hand side and click on Credit Transaction.  Click on the left drop-down menu next to the Engine (see screenshot below; in this example, we have used an invoice from an engine).  In the window that opens, click on the Remove button.

The engine will be removed.  Click on +Credit Core Exchange and from the new window select Core.  Click on +Add.

The core will be added to the credit note.  Check credit to see if all the details are correct, you will also have to fill the in the field for Reason for Credit, then click Credit.

If you then go to Connect, Sales Overview, you will see the credit.

Related Post:  http://insider.truckpartsinventory.com/what-exactly-are-cores-and-why-is-there-a-charge-for-them/

Miami, Florida is one busy place. With a steadily increasing population and a solid reputation as an international business center, the city is constantly in motion. As a trading hub, Miami is crucial for its proximity to Latin America and the Caribbean, and its port and airport are the busiest in the country in terms of cargo handling. With all of these shipments coming and going, Miami’s distribution infrastructure is dense, and trucking is a part of this network. Of course, where there are truckers, there are services that cater to them, and that includes salvage yards.

The entrepreneurial spirit encouraged by Miami’s growth and development has allowed for the creation of many new yards over the past 15 years, and one of them is One Stop Truck and Parts. But in a highly competitive market such as Miami’s, how does a company stay afloat and continue to progress? For One Stop, we discovered that family values are the motor for its success.

In 2003, Andry Gonzalez started One Stop as a family business, bringing a decade’s worth of industry experience with him. Now, 15 years later, he is joined on a regular basis by his son, Andre, who is actively involved in the running of the business when he is not attending high school or playing for his football team. Andry’s emphasis on the importance of such things as respect and trust has allowed him to develop a loyal customer base that appreciates the effort and commitment he puts into supplying them with the best possible parts, every single time. For Andry, the customer is everything, and his dedication to meeting their needs is second to none.

One Stop’s employees are friendly and knowledgeable, and they practice Andry’s customer-centered business philosophy every day when they are helping people find the part that is best for them. Andry has ensured that his facility is clean, organized, and up-to-date, making the yard easy to navigate and the parts quickly found. His commitment to supplying only the best parts, together with the way he runs his shop, has had an impact on Miami’s used parts’ industry, and One Stop’s level of quality has become a standard.

The company has also been able to embrace changes that enhance its commitment to its customers. At the initiative of Andre, One Stop recently began selling its goods online, its quality and selection now available at any time, and to a much wider audience. With this digital expansion, Andry hopes that, much like a family, One Stop will continue to grow and just get better.

At One Stop, customers know that they are the focus, and that they can trust the company to do what is best for them, each and every time. So, while new salvage yards might be popping up regularly in Miami because of the city’s continued growth, it would seem that older things, like the family values of respect, commitment, dedication, and focus, are the solid foundations upon which to base an enduring success.

By Scott Tetz, Owner of TruckPartSolutions.com

There’s a big shift in the way people look for parts. You used to be able to put a small ad in the Yellow Pages and the phone would ring. I recently had a customer ask me if he should advertise in the Yellow Pages. I thought he was joking but he wasn’t. I told him I haven’t seen a Yellow Pages book in 10 years.

People are using the internet more and more to find what they are looking for. Our traffic continues to grow year after year. The customers we add to TruckPartsInventory.com (TPI) say, “This is like a light switch for sales.”

The above being said, you need to be able to ship parts to accommodate orders. For those companies who don’t ship parts, this is for you. Here’s a step by step guide to get you up and running fast:

1. Get in the habit of weighing and measuring the part when you add it to TPI. Its a bit more work up front but saves you time when you get the order.
2. Buy shipping supplies, like boxes, packing tape, and/or pallets. This doesn’t cost a lot but will save you a ton of time hunting for shipping materials.
3. Figure out who you will use to ship. See the sales rep, talk about pricing. Try a few shipments.
4. Our customers add shipping to the prices they charge. Some even mark up the shipping a few percent to make up for packaging the product. On larger items they charge for pallets and other prep for the parts.
5. Its best to stay away from shipping to other countries until you get the basics down. When you ship to other countries its better to ship smaller parts and use DHL or UPS. They do the customs clearing for you although there may be more forms to fill out.

Remember you may get a few shipments back. Use these as a learning source to ask better questions on orders you ship. After you get the basics down, train someone else to manage shipping. This allow you to move to another area of the business.

In May of 2016, the then-startup Otto had a self-driving semi-truck travel 120 miles on a Colorado freeway to deliver 2 000 cases of beer. Uber bought Otto in August of that year, and, together with Volvo, has been working on technology for self-driving vehicles since then. In late 2017, Uber quietly started running its small fleet of self-driving semis on Arizona highways and, in early March of this year, it officially inaugurated Uber Freight, its service using these trucks.

Then, on March 18, an autonomous Uber test car killed a pedestrian at a crosswalk in Arizona. Uber immediately cancelled all of its testing in various cities, and on March 26, Arizona banned Uber vehicles from its roads. According to Arizona’s governor, Uber had not put citizen safety as a priority and would no longer have the right to test in the state.

Tragically enough, there had been a “safety driver” in the car at the time who was supposed to oversee what was happening and take over in case of an emergency. Uber’s self-driving trucks also have a licensed truck driver on board for the same reasons. In this instance, the artificial intelligence that powered the vehicles was not advanced enough to operate with complete autonomy, and so a human presence is still required. We are still a ways off then from entirely self-sufficient vehicles operated by artificial intelligence, but not that far. Human fatalities cannot be a part of the testing process, but while we wait for the technology to be improved and regulations to be considered, we do need to ask ourselves what we are getting into. What exactly is artificial intelligence, and what will its impact be?

Artificial intelligence (or AI) is a term that describes the concept of machines, in particular computer systems, displaying intellectual characteristics typical of humans. Reasoning, voice recognition, decision making, and learning from past experience are all examples of abilities which have been developed in AI.

AI has reached a certain level of sophistication that is making a broader integration of its technology into our daily lives more of a reality and less science fiction. However, what we don’t always realize is that we are already living with certain applications of the technology and some of it for quite some time. Let’s take a look at a few examples here:

Autopilot: In 1903, the Wright brothers had their first sustained flight of just under a minute. Commercial flying took some time to really take off (pun intended) but auto pilot did not. In 1914, Lawrence Sperry demonstrated the first device that would allow a plane to fly on its own, and since then the principles of the system have been the basis for most autopilots in use. It is estimated that in most longer-haul commercial flights, a pilot is “hands on” for approximately seven minutes only, which is roughly the time needed for take off and landing. The rest of the flight is conducted through autopilot.

Google Maps: the suggested routes of Google Maps are based on an instantaneous analysis of location data from smartphones as well as user-reported traffic incidents such as construction and accidents.

Siri: when you ask Siri a question and she answers back, a highly sophisticated system of voice recognition and speech analysis is it work. Your speech enters the computer and is compared against a statistical model to estimate which letters you may have used in order to determine roughly which ones were vowels or consonants. Based on this, your speech is run through a language model that will estimate the words spoken, and the computer (through Siri) will then give you a list of possible interpretations. Once you say which interpretation is correct, Siri will respond with an answer.

In these examples, a computer has been programmed to analyze all sorts of different data sets and then choose an action (auto pilot), make a decision (best possible route on Google Maps), or understand and respond to a spoken query, giving a list of choices (Siri, who also happens to be very polite). All of these responses to a problem require reasoning, consideration, and analysis, and it is all done instantaneously.

Very soon, the once-futuristic seeming idea of a self driving car will become reality. There is already AI that is able to perform certain kinds of legal analysis at an intermediate level. It has entered into the financial realm, plowing through data and offering up different strategies based on stated goals. AI has clearly reached a point of advanced comprehensive ability with a knowledge base deep enough to use as reference. The depth of its capabilities is astonishing, and its presence in different aspects of our daily lives will only continue to grow.