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ADDENDUM <br />-� <br />VShamrock <br />Companies <br />SHAMROCK�U SPPLY CO. <br />HAROwARE •TOOLS SAFETY <br />SHAMROCK+�SUPPLY CO. <br />DE MEKICO <br />TERRETERIA HERMMIENTAS SEOURIDAD <br />::.The <br />SGLE®POINT <br />IN <br />VENDOR -MANAGED INVENTORY (VMI) PROGRAM <br />CITY OF SANTA ANA CENTRAL STORES <br />Program Overview/Scope of Services <br />The purpose of the VMI program is to establish a mutually -beneficial framework for <br />management of facilities maintenance -related consumable materials and enhancement of <br />inventory management and requisition for the City of Santa Ana Central Stores, enabling <br />sourcing partners to focus upon their respective core competencies and to successfully <br />leverage the power of their joint operations to increase operational efficiency by optimizing <br />consumable material delivery at point -of -use and reducing total cost as it pertains to indirect <br />materials management. <br />To accomplish these goals, Shamrock proposes to provide 'micro logistics' services for the City <br />of Santa Ana on an on -going basis, including vendor -managed inventory for Central Stores and <br />departmental -specific satellite inventory locations, as applicable, comprising approximately <br />650+ consumable SKU's. Due to storage space considerations, it is anticipated that reduced <br />Central Stores inventories will be maintained on -site with backstock maintained off -site at <br />Shamrock's main Distribution Center (Anaheim, CA) for inventory replenishment. <br />Inventory replenishment services will be provided on -site at a minimum of 1X/week (or as <br />requested by the City of Santa Ana) by program- and account -specific Shamrock personnel, <br />utilizing electronic material tagging (i.e., bar coding) and data capture technologies to facilitate <br />client -defined material usage reporting and inventory management. (It is anticipated that <br />additional inventory management time on -site will be required in the early weeks of program <br />implementation to complete configuration/set-up of inventory locations, including significantly <br />those associated with implementation of the OptiCribTM frictionless storeroom management pilot <br />and to minimize any material flow impacts.) <br />Inventory accessibility at point -of -use through Shamrock-managed/replenished inventory stores <br />is anticipated to fulfill primary program goals as described above. Material requisition of <br />emergent and/or unplanned materials (including additional quantities of point -of -use materials) <br />can be made to Shamrock via telephone/FAX and/or preferably through a customized on-line <br />web -based product catalogue/MR process with worksite-/requisitioner-specific delivery, as <br />required. <br />Further process enhancement is anticipated due to reduced requirements for supply chain <br />activities for the City of Santa Ana personnel in the areas of procurement, receiving/put-away, <br />accounting, IS, etc. <br />Program Advantages <br />25D-37 <br />