The Real Cost of Truck Inventory
Average truck inventory value for plumbing contractors
Annual shrinkage rate due to theft and damage
Hidden annual cost per truck from heavy inventory
Typical on-demand delivery time in Denver metro
Most plumbing contractors think of truck inventory as a necessary cost of business. However, industry research from PHCC and trade publications reveals the hidden costs that add up to thousands per vehicle annually.
Hidden Costs of Heavy Truck Inventory
| Cost Component | Annual Impact |
|---|---|
| Cash tied up in inventory ($15K avg) | $15,000 |
| Theft and shrinkage (5-10% annually) | $750-1,500 |
| Damaged and obsolete parts | $500-1,000 |
| Extra fuel cost (vehicle weight) | $400-800 |
| Opportunity cost of tied-up capital | $1,200+ |
| Total hidden cost per truck | $2,850-4,500+ |
Benefits of Lean Inventory + On-Demand Delivery
Reduced Capital Requirements
Free up $10,000+ in working capital currently sitting on each truck
Lower Theft Risk
Less inventory on trucks means less exposure to theft and break-ins
No Obsolete Stock
Stop losing money on parts that expire, get discontinued, or sit unused
Lighter Vehicles
Better fuel economy and reduced wear on suspension and brakes
How to Implement Lean Inventory
Identify Your True Top 20 Parts
Review your last 6 months of jobs. According to the 80/20 rule, roughly 20% of SKUs account for 80% of usage. Stock only these high-frequency items and use delivery for everything else.
Use Delivery for Heavy Items
Water heaters, cast iron pipe, and other heavy items add significant weight to your truck. Have these delivered to the job site to save fuel and reduce vehicle wear.
Order During Initial Assessment
When you identify what parts are needed, place the delivery order immediately. Continue with prep work while the delivery is in transit.
Maintain Multiple Supplier Accounts
Different distributors carry different brands and specialty items. Having accounts at Ferguson, HD Supply, and local suppliers ensures SpeedyMEP can always source what you need.
Ready to Reduce Your Truck Inventory?
SpeedyMEP makes lean inventory possible by delivering parts from any Denver-area plumbing supplier directly to your job site. Keep your techs productive while we handle the parts runs.