Parts Management Services

Transit systems across the country are facing unprecedented financial challenges. Now more than ever systems must look for innovative solutions to perennial problems, and this is why inventory management practices are receiving some much needed attention. There is no better return on investment than repairing a broken inventory management system.

The value tied up in inventory and eventual “write-downs” of obsolete parts are obvious problems. Less obvious are the costs associated with overpayment and poor availability of parts needed to maintain your capital investment.  These costs are more indirect but just as significant.  The cost to your organization and our industry of having additional fleet spares just to cover for out-of-stock parts is staggering. On any given day there are several billions of dollars worth of buses idled by parts not in stock.

Other inefficiencies – such as trained mechanics searching/waiting for parts, purchasing professionals following repetitive and obsolete procurement practices, or the warranty process not fully recovering proceeds from vendors – add to the wasted costs.

Neopart is currently engaged with a number of transit properties that are evaluating, implementing or already reaping the benefits of comprehensive parts management solutions (sometimes referred to as Vendor Managed Inventory programs).  Since the 2007 acquisition of Neopart by an investor group with deep supply chain expertise, Neopart has experienced double-digit annual growth and established itself as the leader in providing parts management solutions for the transit industry.   Having over 30 years of experience in the transit industry has enabled us to tailor solutions to the unique needs of our transit customers.

Neopart’s parts management programs take many forms, with each tailored to the transit’s systems needs.  In one case, we run the entire parts facility with our employees and own the inventory.  At another transit we provide extensive inventory level monitoring and daily stocking.  The common goal with every parts management program is to deliver these benefits:

• Lower inventory investment
• Eliminate obsolete inventory
• Reduce parts prices
• Increase buses available for service (and enable our customer to have a smaller reserve fleet)
• Improve staff productivity
• Recover warranty more fully.

With extensive supply chain management expertise coupled with over 30 years of transit experience, Neopart provides unparalleled capabilities to improve any transit’s inventory management.  Please contact us to learn more about how we can help:

Ray Melleady
VP, Parts Management Services
Ray@neopart.com
484-467-6107 cell
800-827-9287 ext. 350