A regional transit authority sought to unlock savings in a part of the organization invisible to the riding public—Materials and Supplies, or the supply chain. But you can’t manage what you can’t see. Multiple reporting systems stood as impediments to an accurate view of where inventory had tied up capital and understanding the scale of spare-parts write-offs. Complicating matters further was a large vendor network comprising approximately 700 separate vendors responsible for keeping tens of thousands of spare parts on-hand.
In order to reach their goals, the transit authority’s leadership would have to bring clarity and order to core, mission-critical activities. They set out to create a centralized and newly visible supply chain function and organizational structure, bringing value as a strategic partner to the business.
KPMG helps this regional transit authority keep doing what it does best—moving people—with a new, centralized supply chain function. Specific benefits include:
KPMG helped transform the supply chain function, addressing processes, technology, and organizational design. The KPMG team:
This regional transit authority is in the business of moving people, not managing inventory. Initiatives like establishing a VMI program for spare parts let its professionals focus attention on what it does best.
A centralized supply chain function, VMI, and integrated business planning have unlocked substantial operating savings that help this transit authority meet mandated budget targets.
Multiple reporting systems stood as impediments to an accurate understanding of where inventory had tied up capital and the scale of spare-parts write-offs. Standardized master data and consolidated reporting gives leadership line of sight to support action.