Equipment Type

Oregon Utility Outsources Parts Room to Reduce Costs

Outsource service is within budget and lowers overall costs

February 29, 2016

The Eugene Water & Electric Board (EWEB) in Oregon is saving money, giving technicians more time to work on vehicles, and complying with internal controls by outsourcing its parts room.

The utility chose NAPA Integrated Business Solutions (IBS), a vendor-managed parts room inventory system that is customized to any sized fleet's requirements. The IBS system seamlessly integrates into a company's current fleet management operations, allowing the fleet manager to consolidate various parts room activities to one database. Purchasing becomes easier, reports are done on time, and inventory in tracked.

According to Work Truck Magazine, the EWEB fleet had self-managed its parts room without a dedicated parts supervisor due to the fleets smaller size.

The utility company needed to comply with the agency’s internal controls and reconfigure procurement procedures that involved too much time and paperwork.

Gary Lentsch, CAFM, fleet manager for EWEB, expects to save around 6 percent his fleets maintenance and operation budget. To reach the same goals using in-house staff, Lentsch said it would require hiring two more staff. Outsourcing EWED fleet's parts management has cut parts acquisition procedures from an hour to about 15 minutes per day, and dramatically streamlined the accounting time required to procure a part. The IBS program consolidates all of the parts and inventory data into one invoice per month. With an organized tracking system, the EWEB should be able to take advantage of warranties and core credits.

Each NAPA IBS program is tailored to the client and in this case NAPA purchased 70 percent of the fleet’s existing parts inventory. Lentsch said only about 40 percent of parts actually come from NAPA, the rest being purchased from local businesses.

Source: worktruckonline.com

 

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