MoneySaving Innovation in Public Housing Purchasing

1
Money-Saving Innovation inPublic Housing
Purchasing

• Samuel B. Little, Ph.D., President
• National Alliance of Resident Services in
  Affordable and Assisted Housing
• Adam J. Shaw National Manager for
• Corporate-Government Partnerships
• Interline Brands

2
National Alliance for Resident Services in
Affordable and Assisted Housing (NAR-SAAH)

• NAR-SAAH is an industry group with 501 (c) (3)
  status as determined by the Internal Revenue
  Service. It was organized in 2002 at the Housing
  Authority of Baltimore City for the purpose of
  assisting resident services employees and public
  housing residents by shaping national housing
  policy, expanding partnerships with community
  institutions, tapping funding streams to support
  resident programs, and speaking on matters
  impacted by changing economic conditions and
  shifting political priorities. The organization
  is based in Reisterstown, Maryland and has
  members representing 21 states and 74 public
  housing authorities nationwide. The first
  international chapter was started in Managua,
  Nicaragua in 2007.

3
What NAR-SAAH Does for PHAs

• Prepares Grant Applications
• Sponsors Resident Conferences
• Forges Partnerships with Businesses and Other
  Groups
• Implements National Self-Help Programs
• Introduces Unique Community Service Models
• Organizes Resident Speakers Bureau
• Conducts Research on Housing Issues
• Trains and Certifies PHA Staff and Resident
  Leaders
• Organizes Faith-Based Partnerships
• Promotes Objective Public Housing Policy

4
INTERLINE Our Commitment to Excellence

• Our mission is to provide our commercial and
• institutional markets with the highest
  quality single
• source for Maintenance and Repair Products.
• To offer the most comprehensive valued package
  of
• procurement benefits, including competitive
  prices
• and timely delivery.
• To provide an unparalleled level of personal
  service and
• technological convenience to our customers.

5
Product Offerings
6
Product Offering

• Deep product offering with over 95,000 items

7
Supply Chain Basics
Traditional focus on price negotiation
Supply Chain focus and process improvements
Use large, wholesale suppliers and implement
product standardization
8
Supply Chain ManagementThe Supplier and
Customer Working Together

• Reducing Operating Costs
• Supplier and customer both desire to achieve
  greater procurement efficiency.
• Understand Each Others Business
• Supplier and customer are willing to share and
  understand each others costs, needs and goals.

• Encourage and Manage Change
• High level of commitment from both the
  supplier and the customer to change behavior.
• Embrace Available Technology
• The supplier and customer desire to achieve
  electronic collaboration.

9
The Challenges of Managing Inventory

• Shrinkage 15-30
• Storeroom management
• Product standardization
• Dead inventory
• Accurate replenishment forecasting
• Managing multiple vendors reducing soft costs
• Making the most of your buying power

10
Before and After
11
Closed Loop Replenishment Process
Each truck is a trackable profit center
Truck Stock Management
12
Introduction to Vendor Managed Inventory (VMI)

• Vendor Managed Inventory
• Maintenance USA Manages Inventory Programs
• Goals
• Reduction/elimination of customer owned
  inventory
• Product standardization
• Process control
• Reallocation of storeroom/procurement labor
• Adaptability
• VMI program is tailored to fit specific customer
  needs

13
VMI Core Elements

• PHA provides adequate warehouse space for
  Maintenance USA
• Maintenance USA racks the PHA warehouse,
  organizes and manages their inventory using its
  inventory management systems
• PHA installs a T-1, phone, and fax line
• Maintenance USA employees manage the warehouse or
  PHA residents are hired for this role
• Replenishment process is customized jointly by
  PHA and Maintenance USA
• Utilizes Truck Stock Management model with PHA

14
Current VMI Facility Racked
15
Current VMI Facility Online
16
Interline Wants Your Business!

• Next Steps
• Establish your PHAs Interline account
• Develop list of supplies
• Construct a detailed final project plan
• Recruits and train VMI labor force
• Establish timeline to bring VMI facilities online