jett kuntz
DESCRIPTION
Jett Kuntz. National Director. NAPA Integrated Business Solutions (IBS). Innovative Parts Solutions. Innovative 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… - PowerPoint PPT PresentationTRANSCRIPT
Jett KuntzNational Director
NAPA Integrated Business Solutions(IBS)
Innovative Parts Solutions
Innovative Parts SolutionsHow 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 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 IBS
Innovative Parts Solutions
Innovative Parts SolutionsTypical Fleet/Shop Inventory
30%30%
Stockroom InventoryStockroom Inventorywith Demandwith Demand
60%60%
Surplus andSurplus andDuplicatedDuplicated
Obsolete10%
Innovative Parts SolutionsOUR 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 Solutions
Innovative 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 SolutionsFLEET SOFTWARE INTEGRATION
• Fleet Management Systems Supported– AssetWorks – FA/ Maximus M/M5– CCG/Faster– Dossier– RTA
Innovative Parts Solutions
Jett Kuntz
National Director - NAPA IBS
Email: [email protected]
Phone: 770-612-2065
Cell: 770-855-2221
David HeadFleet Director
Sonoma County, CA
Rick CallOwner/Partner
Santa RosaNAPA Auto Parts
Parts 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 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 POINTS• Competitive Pricing
• Assume and Manage Inventory
• Delivery to primary maintenance facilities
• Delivery to Field Service Technicians
• OEM Parts
EXPECTATIONS
• 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 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 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 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 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 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 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