Frontline Solutions Magazine

The U.S. Postal Service is implementing an automated service parts management solution as part of its new Enhanced Spare Parts Initiative. USPS has selected software from Servigistics to reduce inventory and improve service levels.

The Servigistics Planning software will help manage the Postal Service's $350 million service parts inventory in 500 field stocking locations around the country. USPS stocks parts for its mail processing equipment, and hopes to increase inventory turns, lower cost and improve visibility across the network.

Mail processing equipment uptime is extremely important to the Postal Service. "We have relied on technology to increase our productivity each year," said Myrna Murphy, manager of capital equipment material management at the USPS.

According to Murphy, there are 25,000 line items in the spare parts inventory, managed out of 273 distribution centers and two central locations in Topeka and Indianapolis. Among them are everything from belts and motors to circuit boards for mail sorting machines and other equipment.

The Servigistics system will interface with the Postal Service's electronic maintenance activity reporting system (EMARS), the new centralized, Web-based maintenance management system installed 18 months ago.

"The inventory planners in Topeka will see the Servigistics recommendations right in EMARS," Murphy said.

Using the Servigistics system, Murphy said the USPS expects to save $20.2 million in three years by improving turns, optimizing inventories and reducing capital expenditures.

The Postal Service issued a request for proposal (RFP) in January of this year, and evaluated several service parts management solutions to replace its existing technology. Servigistics won the contract in April, and the project should be completed in November.

"The USPS is one of the most visible service companies in the world, touching the lives of millions of households and businesses every day," said Eric Hinkle, Servigistics CEO. "[T]o say we are thrilled the USPS has selected Servigistics as their partner for eSPIN is an understatement. We are confident in our ability to help them achieve their service-related goals, and look forward to a deep, lasting relationship."