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Neopart parts consolidation pilot project honored

Posted on September 4, 2012

Neopart, provider of supply chain management and Vendor Managed Inventory (VMI) Services, announced that the initial participants in an initiative that involves multiple transit authorities consolidating their parts procurement through a single North American supplier have won the Peter J. Marshall Innovation Award. 

The Town of Oakville, Ontario, along with the Regions of Waterloo and York, and the cities of Brampton, Burlington, Hamilton and London, Ontario, received the award, recognizing the Transit Inventory Management Services (TIMS) project.

According to the participating transits, the TIMS's "VMI model reduces administration costs, uses economies of scale to save participating municipalities money, increases efficiency, and reduces the supply chain's carbon footprint. This new model allows for a more stable and streamlined supply chain, where fluctuations in inventory space and financing are absorbed by the supplier rather than the transit system."

Charles Whitlock, director, procurement and supply services at the region of Waterloo and chair of the TIMS project, observed that "this project is a result of supply chain specialists and senior transit staff working together for two years to create a process that works."

The TIMS program, delivered from Neopart's Ontario-based VMI services facility, is the largest transit bus VMI program in North America. TIMS initially supports 1,500 transit buses in their delivery of over 100 million passenger trips per year. While the award was received by the initial TIMS participants, all municipalities and transit agencies throughout Ontario are eligible to participate in the TIMS program.

The Peter J. Marshall Innovation Award recognizes municipal governments that have demonstrated excellence in the use of innovative approaches to improve capital and/or operating efficiency, and to generate effectiveness through alternative service delivery initiatives and partnerships.
 
RELATED ARTICLES:   Read our three-part series on the Vendor Managed Inventory program and how it benefited the Ontario-based transit systems.

Part 1: Inventory Management: How Stock-Out Risks Drive Inefficient Transit Parts Programs

Part 2: Inventory Management: Building a Transit Supply Chain Network

Part 3: Vendor Managed Inventory: Benefits of a Transit Supply Chain Network Realized

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