Supply Chain – Developing a Strategy for the Future.

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Presentation transcript:

Supply Chain – Developing a Strategy for the Future.

Agenda History of Supply Services at BC Transit Key Statistics Why are we looking at Supply Chain now? Roundtable Discussion #1 – Objectives + Risks Roundtable Discussion #2 – Nanaimo Conference Ideas. Roundtable Discussion #3 – Key Strategies Recap

Supply Services History Victoria providing rebuilt and emergency items to RTS only. No TEDs. 1 stores location. Open Stockroom. May Inventory value $1.56M, monthly shipments + issues $400, – BC Transit divided, CMBC created, LTC opened. 51 Darts arrive – Add 75 Darts. Victoria becomes a parts distribution hub Fleet Realignment. Stranded Inventory Pilot Project: potential savings of $200K annually. Today – Inventory value $8.2M, monthly shipments + issues $1.4M plus $900K in fuel. Inventory in 16 locations across province.

Key Statistics Inventory Value $8.4M, annual expenditure $24M. Inventory Turns – 3.1, 1.9 w/o Fuel. 2,000 Shipment lines per month going to 50 different operators annually. Averaging 22 items on back order to operators ($6,000.) at any given time. Over 21,000 different inventory items (SKUs) across all BC Transit branches. Utilization over 18,000 different inventory items (by branch location) in last 2 years.

Why look at Supply Chain now? Nanaimo Conference findings Pilot projects New ERP – JD Edwards  E-Billing Operator Contract Renewals On-Line Communications EII

Roundtable #1 – Objectives + Risks With respect to the provision of supply chain services throughout BC Transit’s systems, what are the three key objectives and what are the key risks to accomplishing those objectives? 15 minutes. Each table will present.

Roundtable #2 – Key initiatives from 2012 Workshop The following are the three most important findings from the 2012 Nanaimo conference: Are these initiatives aligned with the strategies and risks identified in the first discussion? Are there modifications or additional points? If so, what are the strategies to accomplish these initiatives? 1) Establish a website to search for parts and pricing, with a list of locations (operators + vendors) that stock our parts, leverage supply chain through other locations and supplier inventory management. 2) More accurate and longer projections to BC Transit purchasing and vendor commitments. 3) Setting up BC Transit owned or operated or contracted parts warehouses utilizing existing contractors, facilities or local gov’t.

Roundtable #3 – Fleet + Facility Considerations From a Fleet and Facilities perspective, what key strategies and plans are imperative to meeting the Supply Chain strategies identified? 15 minutes, each table will present.

Recap – Next Steps - Looking Forward BC Transit will refine and finalize a new Supply Services Strategy. We will develop a business case focusing on efficiency gain and additional costs required to implement the strategy. Strategy adoption and implementation. Thank you for your participation.