How the City of Woodbury Accurately Accounts for its Inventory All Year Long
Woodbury, MN, uses collectiveFleet to avoid year-end inventory pain
Woodbury, located in Washington County, Minnesota, is part of the Minneapolis–Saint Paul metropolitan area and is one of Minnesota’s fastest growing cities. Eight years ago, the city purchased collectiveFleet to manage their fleet and related parts inventory. Woodbury, was initially hesitant to switch fleet information management systems. However, they had been using a competitor product and experienced limitations with reporting which reduced the program’s effectiveness. Representatives from various City departments including fleet, police and finance, weighed in on the decision to purchase Collective Data for its reporting capabilities and ease of use.
While many organizations are gearing up for (and dreading) the year-end inventory process, Woodbury leverages collectiveFleet to conduct monthly inventory counts and reconciliation to save the year-end headache and provide an accurate reconciled account that can be used to better manage their inventory and budget in real-time, all year long. Keep reading to learn how Woodbury uses collectiveFleet to avoid the painful year-end inventory process.
According to Mike Zilka, City of Woodbury Fleet Specialist, Woodbury’s year-end is no different than month end. “We do a full inventory count and reconciliation each month to balance out to zero. We pull reports on parts received, parts used and what is in inventory or inventory valuation. I really like the Inventory Valuation report—it shows the valuation of inventory last month vs. this month so that I can compare and make any corrections that are needed.” Woodbury has maximized efficiency by integrating bar codes into its inventory management as well as establishing minimum and maximum levels for each part inventoried. Note: Complete end of month inventory count and reconciliation takes on average 8-man hours per month.
Woodbury’s Fleet Services Division is responsible for more than $100K in parts inventory at any given time and prior to implementing Collective Data, struggled with accurate billing, even when using a competitive fleet management software. “Our finance department wants parts to be billed back to the appropriate departments. With our old system, we struggled to close that loop and were typically $50K to $80K in the hole at year end and scrambling to allocate those charges. With Collective Data, we don’t have that issue. Our inventory and billing allocation associated is up to date, allowing us to accurately account for each part.”
Additionally, Woodbury uses collectiveFleet to optimize the parts room by determining the level of stock for each part and whether there are excess or obsolete parts that should be sold or disposed of. “We have what we’ve used in a month, in six months. We can put in any date range and pull information. We can also get a snapshot of the whole year. If a part doesn’t move more than six turns a year, we can phase it out of inventory. On the other hand, we determine how long it takes to get a particular part to make sure we have enough on hand if needed. Thus, downtime of expensive equipment due to waiting on parts is mitigated.”
A comprehensive fleet information management system also provides reports that identify parts that have only been used by vehicles no longer active in the fleet, and can be removed from inventory. This level of information can be challenging to track in a large shop environment, but with a comprehensive fleet information management system, like collectiveFleet, running a report to identify these parts is easy.
The City likes that CollectiveFleet’s reports enable Woodbury to see what was actually spent versus what was budgeted over a defined period of time, making it easy to accurately forecast next year’s budget. This has resulted in another year-end task simplified by having accurate, real-time data.
Managing inventory throughout the year improved the Fleet Division’s inventory and budget control. With collectiveFleet, Woodbury optimized inventory levels, increased parts availability and ensured regulatory compliance for inventory management.
Woodbury’s fleet information management system (collectiveFleet) is managed and maintained by their Fleet Specialist: Mike Zilka.
City of Woodbury
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