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Jett Kuntz

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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… - PowerPoint PPT Presentation

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Jett KuntzNational Director

NAPA Integrated Business Solutions(IBS)

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Innovative Parts Solutions

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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

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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

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Innovative Parts Solutions

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Innovative Parts SolutionsTypical Fleet/Shop Inventory

30%30%

Stockroom InventoryStockroom Inventorywith Demandwith Demand

60%60%

Surplus andSurplus andDuplicatedDuplicated

Obsolete10%

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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

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Innovative Parts Solutions

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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

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Innovative Parts SolutionsFLEET SOFTWARE INTEGRATION

• Fleet Management Systems Supported– AssetWorks – FA/ Maximus M/M5– CCG/Faster– Dossier– RTA

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Innovative Parts Solutions

Jett Kuntz

National Director - NAPA IBS

Email: [email protected]

Phone: 770-612-2065

Cell: 770-855-2221

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David HeadFleet Director

Sonoma County, CA

Rick CallOwner/Partner

Santa RosaNAPA Auto Parts

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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

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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

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KEY EVALUATION POINTS• Competitive Pricing

• Assume and Manage Inventory

• Delivery to primary maintenance facilities

• Delivery to Field Service Technicians

• OEM Parts

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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

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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

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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

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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.

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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

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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

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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

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QUESTIONS