Equipment

City of Sacramento Expects $2M Savings with New 5-Year NAPA Contract

December 11, 2009

SACRAMENTO, CA - The City of Sacramento has awarded a $21,050 five-year contract to Genuine Parts Company / National Auto Parts Association (NAPA) for Fleet Parts and Inventory Program Services.

The City expects to save an estimated $2 million dollars over the five-year contract term with NAPA by reducing the cost of inventory procurement, shrinkage, obsolescence, management, and accounts payable.

During fiscal year 2009, over 285,000 parts were purchased from over 100 vendors and charged out to over 33,000 work orders.

According to Keith Leech, fleet manager for the City of Sacramento, "Awarding the Fleet Parts and Inventory Program to NAPA will benefit the City by providing just in time sourcing for fleet parts and inventory necessary to maintain and repair the City's over 2,600 vehicles and equipment."

The contract eliminates the need for a substantial up-front investment by the City to purchase a large parts inventory and will also increase fleet management staff productivity by reducing the need to dedicate mechanics to inventory management, according to a city statement.

NAPA staff will monitor the NAPA-owned parts inventory remotely from the Sacramento NAPA distribution center and perform the delivery and restocking of parts inventory of NAPA designed shelves.

 

Comments

  1. 1. Gary Brown [ March 08, 2011 @ 06:28PM ]

    Did they take into account that Napa purchases parts from the same suppliers the city once used and adds 15% profit to the parts they cannot source themselves? Where is the savings and what about specialty equipment that requires the expertise of the original supplier? Lots of Napa filters are not compatible with municipal equipment and have actually caused damage and voided warranty - this is fact.

  2. 2. city of seattle [ July 29, 2013 @ 07:11PM ]

    Gary, this is very true. The city of seattle is in the process of switching to Napa and has displaced 11 workers with 150 years collective experience. The bottom line is there will be no savings. If there was no money in it, Napa wouldnt be in the business. Napa should ashamed of themselves. They dont even pay a livable wage!

 

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