Maintenance

NAPA Deal to Reduce Ohio City's Parts Costs

November 15, 2013

The City of Dublin contracted out its parts room to NAPA IBS in May. Photo courtesy of City of Dublin.
The City of Dublin contracted out its parts room to NAPA IBS in May. Photo courtesy of City of Dublin.

The City of Dublin, Ohio, began contracting with NAPA Genuine Auto Parts and Integrated Business Solutions (IBS) in May to operate an automotive supplies store within the city's fleet management building. Since May, the city has reduced its parts costs and technician time required to obtain parts.

"After only four months of experience with the in-house parts store, the City is already realizing cost savings and gains in efficiency," said Darryl Syler, fleet manager, in a release. "As of September, we have seen cost savings on auto parts of $7,200 and are expecting more than $25,000 in savings by next May."

Prior to pursuing a contract with NAPA, city staff determined that contracting out parts management could allow for more efficient uses of time by fleet technicians. While the city had a parts room with about $100,000 in inventory, it didn't employ any parts personnel, relying instead on the fleet administrator and technicians.

"The savings we're going to see over the course of the next year is going to come from the technicians not going to run for parts," Syler said.

The city's fleet management software tracks the amount of time that technicians spend working on each vehicle, and it has recorded a 2% reduction in vehicle downtime since the program began. 

Since May, the city has reduced its parts inventory to about $60,000. Many parts are available on consignment through NAPA. Syler said as the fleet goes through its parts, NAPA will replace it with its own parts, slowly reducing the city's inventory. Syler's ultimate goal is to eliminate inventory except for tires and fuel.

Another benefit of the contract is that NAPA will work with the city's current parts vendors. The company will renegotiate contracts with vendors, allowing them to continue to provide parts to the city fleet, Syler said.

As the program moves forward, there are additional opportunities for citywide savings. According to Syler, "other divisions, including Engineering, Facilities Management, and Parks and Open Space have plans to purchase supplies through the NAPA store. The savings that the city is seeing in supply purchases allows us to use tax dollars more efficiently, which is great for the city and for taxpayers."

Dublin's fleet management division operates the City's fuel site that currently includes unleaded and diesel fuel and the second largest public-private compressed natural gas (CNG) fueling facility in central Ohio. The City of Dublin fleet consists of 281 vehicles, and includes 52 CNG vehicles. Fleet Management is an ASE Blue Seal Shop with six ASE Master Certificated Technicians.

Comments

  1. 1. Chris [ November 18, 2013 @ 04:48PM ]

    For smaller parts, ie., tune up parts, NAPA branded brake parts, yes, you will probably save some money. That being said, when it comes to larger parts, or something proprietary like parts for a fire truck, is where you are going to pay more. In alot of cases, an IBS cannot buy at the costs that the city does, they pay more because NAPA is seen as a competitor, not a city entity.

  2. 2. Scott [ February 06, 2014 @ 12:14PM ]

    Chris you make an interesting point in your statement but also you must consider that IBS/NAPA is doing this for multiple cities/municipalities so they are getting the same price if not better because they are buying in volume, NAPA can't been seen as a competitor if they cannot get it through their channel of distribution.

  3. 3. Robert [ March 24, 2015 @ 08:05AM ]

    As a federal employee I can see the added value of an IBS. Most notably, the guess work is taken out of purchasing parts based on last FY purchases. Our inventory is 85% replenished at the beginning of th year due to initial congressional budgets being passed. Spend the money now or lose it mentality. Consignment would create an environment where JIT logistics can work for the government.

 

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