Supply Chain – Developing a Strategy for the Future

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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• 1990 - Victoria providing rebuilt and emergency items to RTS only. No

TEDs. 1 stores location. Open Stockroom.• May 1990 - Inventory value $1.56M, monthly shipments + issues

$400,000• 1999 – BC Transit divided, CMBC created, LTC opened. 51 Darts arrive.• 2000-2 – Add 75 Darts. Victoria becomes a parts distribution hub.• 2009-10 Fleet Realignment. Stranded Inventory. • 2012-13 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.