Metrolinx awards VMI contract to Neopart

Deal will provide for largest vendor managed inventory services contract in North America

December 28, 2011
by Purchasing b2b staff

HONEY BROOK, PA: Metrolinx has awarded a multi-year contract to supply chain management and vendor managed inventory (VMI) services provider Neopart to provide advanced supply chain management services in support of the bus operations of a consortium of transit agencies in Southern Ontario.

The services will be the largest bus transit VMI services program in North America, said Neopart, providing service to transit agencies in Brampton, Burlington, Hamilton, London, Oakville, Waterloo and York Region, as well as GO Transit, a division of Metrolinx. Neopart’s VMI services will leverage Southern Ontario’s transit operations through a centrally managed supply chain, delivering improved part availability, reduced costs and a diminished carbon footprint for part distribution.

“Metrolinx and its partner transit agencies have taken transit VMI services to a distinctly new level,” said Ray Melleady, Neopart’s vice-president of parts management services. “The approach of leveraging the purchasing scale of transits throughout Ontario with a model that addresses the unique needs of individual agencies is visionary and will facilitate the delivery of better service at a lower cost to Ontario residents.”

Transit agencies participating in the Metrolinx program can choose the supply chain management service model that best meets their needs: from next-day delivery to on-site Neopart stockroom management. Other elements and options include guaranteed parts availability, liquidated damages for buses being down due to lack of parts, part kit design and development, inventory analysis and planning services to support of a wide range of transit asset management system integration options.

Metrolinx has also provided joint procurement services to 24 transit entities in Ontario. While eight entities are initially participating in the Neopart VMI program, all transit agencies throughout Ontario are eligible to participate.

“The Metrolinx Transit Inventory Management Services program is 100-percent aligned with our strategy to revolutionize the purchasing, warehousing and distribution of parts in the North American transit industry through scalable supply chain and vendor managed inventory services,” said Michael Johnson, chairman of Neopart and president of Neopart Canada, Inc. “Our intent is to enable our transit customers to make substantial improvements in operational effectiveness and cost efficiency and to facilitate the ability of our supplier partners, including bus manufacturers and original bus part and material producers, to deliver the lowest possible total life cycle cost to their end customers.”