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Metrolinx Awards Largest North American Public Transit Vendor Managed Inventory Services Contract to Neopart


Adoption of Cost Saving VMI Practices Accelerates as Number Deploying VMI Grows to Thirteen Transits

HONEY BROOK, PA--Dec. 23, 2011:  Neopart LLC, the leading provider of Supply Chain Management and Vendor Managed Inventory (VMI) Services to North American bus transit authorities, announced today that it has been awarded a multi-year contract by Metrolinx to provide advanced supply chain management services in support of the bus operations of a consortium of transit agencies in the Southern Ontario region.  When fully implemented, it will be the largest bus transit VMI services program in North America, providing service to the transit agencies in the municipalities of Brampton, Burlington, Hamilton, London, Oakville, Waterloo and York Region, as well as GO Transit, a division of Metrolinx.  Neopart's VMI services will leverage the significant scale of 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 in the region.

Ray Melleady, Neopart's Vice President of Parts Management Services, stated, "Metrolinx and its partner transit agencies have taken transit VMI services to a distinctly new level.  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.  We are enthusiastic about Neopart's central role in making this vision a reality and are eager to begin serving Metrolinx, its partner transit agencies and the citizens of Ontario."  

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

In addition, Neopart is establishing a state-of-the-art VMI services facility in the region.  This facility will create a significant number of new local jobs and generate supply, service and support opportunities for local manufacturers and other Ontario-based businesses. 

In support of its provincial charter, Metrolinx has 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.

Michael Johnson, Chairman of Neopart and President of Neopart Canada, Inc., stated, "The Metrolinx Transit Inventory Management Services program is 100% 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.  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."  Mr. Johnson added, "With the Metrolinx consortium, Neopart's North American supply chain services network has grown to twelve (12) transit authorities operating more than 4000 transit buses, a combined fleet that is second only to the New York MTA's in size."

About Neopart LLC

Neopart provides Supply Chain Management Solutions, including Vendor Managed Inventory (VMI) services, and aftermarket parts, materials and supplies to public and private transit and coach fleets.  During its nearly three decade history, Neopart has served over 95% of North America's public transit agencies.  In 2007, Neopart was acquired from its parent transit bus manufacturer by an investor team with logistics, service and supply chain management and technology expertise, emerging with a new focus on progressive supply chain and inventory management strategies.  The combination of Neopart's aftermarket parts knowledge, access to the global network of original bus part manufacturers and advanced supply chain management skills and systems has enabled Neopart to become the leading North American provider of VMI services, which drive operational improvement and cost reduction through service-oriented partnerships with public transit agencies and their maintenance and procurement operations.  In addition to the Metrolinx consortium, Neopart holds VMI services contracts with Southeastern Pennsylvania Transit Authority (SEPTA), Rochester Genesee Regional Transit Authority (RGRTA), MV Transit's Fairfax Connector operation and the Greater Richmond Transit Company (GRTC), collectively supporting the successful daily operation of over 4000 North American transit buses.   Further information is available at Neopart.  

About Metrolinx

Metrolinx, an agency of the Government of Ontario, Canada under the  Metrolinx Act, 2006 , was created to improve the coordination and integration of all modes of transportation in the Greater Toronto and Hamilton Area. The organization's mission is to champion, develop and implement an integrated transportation system for the region that enhances prosperity, sustainability and quality of life.  Further information is available at Metrolinx.