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Jett KuntzJett KuntzNational Director
NAPA Integrated Business Solutions(IBS)
NAPA Integrated Business Solutions(IBS)
Innovative Parts SolutionsInnovative Parts Solutions
Innovative Parts SolutionsInnovative Parts Solutions
How did NAPA/Genuine Parts Company get
started with IBS concept over 19 years ago?
Our customers came to us and asked what we could do to help them to…
• Manage their inventory• Reduce overall transaction costs/budget• Improve productivity
Innovative Parts SolutionsInnovative Parts Solutions
On-Site Inventory Management Program
• Customized to Fit Your Needs– One location/multiple locations…– On-site parts/supplies store…– Inventory responsibility moves to us..– You are our only customer…– One parts bill end of each month…
NAPA IBSNAPA IBS
Innovative Parts SolutionsInnovative Parts Solutions
Innovative Parts SolutionsInnovative Parts SolutionsTypical Fleet/Shop Inventory
30%30%
Stockroom InventoryStockroom Inventorywith Demandwith Demand
60%60%
Surplus andSurplus andDuplicatedDuplicated
Obsolete
10%
Innovative Parts SolutionsInnovative Parts Solutions
OUR RESPONSIBILITIESOUR RESPONSIBILITIES
• NAPA IBS Supplies All Parts/Supplies• Both NAPA and OE
• Also supply other needed items•Tires, bulk fluids, services, safety office supplies, etc…
• Dedicated Parts Professionals•The hours/days you need us
• Sourcing of Non-Stocked Products•National Inventory Database
• Pickup, Delivery, Freight• Coordinate All Paperwork/Input
Innovative Parts SolutionsInnovative Parts Solutions
Innovative Parts SolutionsInnovative Parts Solutions
Other NAPA IBS System Benefits
• 240+ VMI sites available for visits/reference• TAMS – Parts/Inventory Management• Dedicated product representation• Training – On-Site and On-Line• Dozens of sample RFPs• Software/Data Integration Available
Innovative Parts SolutionsInnovative Parts Solutions
FLEET SOFTWARE INTEGRATION
• Fleet Management Systems Supported– AssetWorks – FA/ Maximus M/M5– CCG/Faster– Dossier– RTA
Innovative Parts SolutionsInnovative Parts Solutions
Jett Kuntz
National Director - NAPA IBS
Email: [email protected]
Phone: 770-612-2065
Cell: 770-855-2221
David HeadDavid Head
Fleet Director
Sonoma County, CA
Sonoma County, CA
Rick CallRick CallOwner/Partner
Santa RosaNAPA Auto Parts
Santa RosaNAPA Auto Parts
Parts ChallengesParts Challenges
• Declining Fleet Size – Reduced Parts Sales Volume• Newer vehicles require higher technical skills• Older heavy equipment require broader knowledge• Salaries and Benefits Cost• Parts mark-up no longer competitive• Dead stock – Too much inventory• Mandatory budget cuts
COMPETITIVE ANALYSISCOMPETITIVE ANALYSIS
• Evaluate competitiveness of Parts Operations• Request for Proposal (RFP)
– Cost
– Ability to Perform
– Inventory removal and restocking plan
– Expertise – References
– Acceptance of Contract Terms
– Other Factors
• 30 RFPs sent out• 3 responses
KEY EVALUATION POINTSKEY EVALUATION POINTS• Competitive Pricing
• Assume and Manage Inventory
• Delivery to primary maintenance facilities
• Delivery to Field Service Technicians
• OEM Parts
EXPECTATIONSEXPECTATIONS
• Parts would cost 3.3% more than current price
• Staffing and Support reduction of $220,000
• Vendor Overhead $126,000 for the first year, $114,000 in subsequent years
• Estimated First Year Savings $100,000
Actual SavingsActual Savings• Parts Cost average is 6.7% less than pre-contract
Pricing – 10% less than bid prices
– Filters – cost reduced by 32.4%
– Brake Parts - cost reduced by 23.9%
– Oils and Lubricants – cost reduced by 11.1%
– Cost of parts reduced by $64,000
• Staffing and Support Reduction– Staffing cost reduced by $220,000
• Parts Markup Reduced– From 31.2% to 11.6%
• Total Projected Savings - $240,000
Daily Benefits to the CountyDaily Benefits to the County
• Better pricing than reflected in the RFP• Business partnership between County and SRAP• No bidding for special parts• Immediate processing of parts• Parts on demand, delivered as needed • Reduced employee supervision• Reduced administrative and clerical time• Reduced Parts Markup (31.2% to 11.6%) • One Invoice per month
Higher Level BenefitsHigher Level Benefits
• Better inventory control – no dead inventory– SRAP is managing Inventory and parts ordering
• Immediate adds and deletes from inventory• Inventory obsolescence is eliminated• Availability to $2M in parts within 30 minutes• Overnight availability to $15M in parts from
Sacramento Distribution Center• Vendor can negotiate prices from OEMs and other
suppliers.
Higher Level BenefitsHigher Level Benefits
• More resources for tracking and ordering parts– Several key people assigned to support the account
– Auto Parts/Truck Parts/Equipment Parts, Aftermarket and OEM
• Better follow-up on parts orders• Parts delivery to shop or job site• TAMS Computer system in both shops
– County staff can check inventory at all vendor stores
– Invoicing at point of sale to the County
• No core charges
Advantages to the SupplierAdvantages to the Supplier
• Stable customer with regular annual parts volume• Opened up new product lines
– Law enforcement vehicle up-fitting parts
– Oil and lubricants
– Tires
• Opened up possible new markets– Other cities or agencies
Lessons LearnedLessons Learned
• Start-up Time is critical, Leave yourself plenty• Close the parts rooms during transition period• Test Bar-coding before you start• Once you start, all your procedures will need to be
re-evaluated• Keep your Technicians involved in the planning
and processes• Communicate, Communicate, Communicate
QUESTIONS
