2. NAPA Integrated Business Solutions
Jett Kuntz
National Director
NAPA Integrated Business Solutions
(IBS)

3. Innovative Parts Solutions

4. 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…
Manage their inventory
Reduce overall transaction costs/budget
Improve productivity 4

5. 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… 5

6. Innovative Parts Solutions6

7. Innovative Parts Solutions
Typical Fleet/Shop Inventory
30%
Stockroom Inventory
with Demand
60%
Surplus and
Duplicated
Obsolete
10% 7

8. 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 8

9. Innovative Parts Solutions
IBS - CUSTOMER BENEFITS
Inventory Relief
Transaction Cost Reduction
Productivity Improvement
Hundreds of Vendors - One Bill 9

10. 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 10

11. Innovative Parts Solutions
FLEET SOFTWARE INTEGRATION
Fleet Management Systems Supported
AssetWorks – FA/ Maximus M/M5
CCG/Faster
Dossier
RTA 11

12. Innovative Parts Solutions
Jett Kuntz
National Director - NAPA IBS
Phone:
Cell: 12

13. David Head Rick Call Sonoma County, CA Santa Rosa NAPA Auto Parts
Owner/Partner
Fleet Director
Sonoma County, CA
Santa Rosa
NAPA Auto Parts 13

14. 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

15. 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

16. KEY EVALUATION POINTS Competitive Pricing Assume and Manage Inventory
Delivery to primary maintenance facilities
Delivery to Field Service Technicians
OEM Parts

17. 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

18. 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

20. 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

21. 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.

22. 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

23. 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

24. 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

25. QUESTIONS