NAPA Integrated Business Solutions (IBS) Innovative Parts

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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…
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Manage their inventory
Reduce overall transaction costs/budget
Improve productivity
Innovative Parts Solutions
NAPA IBS
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…
Innovative Parts Solutions
Innovative Parts Solutions
Typical Fleet/Shop Inventory
Obsolete
10%
Surplus and
Duplicated
30%
Stockroom Inventory
with Demand
60%
Innovative Parts Solutions
OUR 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
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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 Solutions
FLEET 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: Jett_Kuntz@genpt.com
Phone: 770-612-2065
Cell: 770-855-2221
David Head
Rick Call
Fleet Director
Owner/Partner
Sonoma
County, CA
Santa Rosa
NAPA Auto Parts
Parts Challenges
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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)
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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
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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
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From 31.2% to 11.6%
• Total Projected Savings - $240,000
Daily Benefits to the County
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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
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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
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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
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