Irvine, California -- January 20, 2014 -- uParts has announced it has trademarked the term â€œProcurement Efficiencyâ€ and developed an index called Procurement Efficiency Index (PEI).
With PEI, uParts says it's possible to evaluate all aspects of parts transactions to produce a single score from one to ten that measures supplier performance. Repair shops use PEI to evaluate and manage their suppliers.
â€œWe are pleased to introduce a simple and objective measurement to help our collision repair partners gain visibility into their suppliersâ€™ performance. We are proud the US Patent Office has recognized our approach as unique and granted our trademark,â€ says Alex Adegan, founder and CEO of uParts. â€œFrom the beginning our focus has been on efficiency in the parts procurement process. As a result of our tireless collaboration with many leading collision repairers and suppliers, we now have the first major new Key Performance Indicator (KPI) for our industry in over a decade. Parts have gradually grown to represent almost half of the repair cost, and yet no one has been able to measure their impact on the repair process until now. PEI complements Cycle-time and CSI by objectively measuring supplier performance on each and every part transaction.â€
uParts is designed to capture and timestamp every one of the dozens of transactions and interactions between shops and their suppliers that make up a collision repair order. In addition to timestamps, other details are available so one can drill-down to review individual performances for each function. This data is utilized in the calculation of PEI to measure suppliers on criteria such as their responsiveness, depth of inventory, delivery time, return rates, part quality and others. The component scores are then combined to yield a single PEI score for each supplier, enabling repairers to objectively evaluate and compare them.
â€œDo you know your suppliersâ€™ PEI Scores? You should,â€ says Michael Quinn, president of uParts. â€œYour low scoring suppliers are likely causing major delays in your repair cycle time. With this new measurement repairers are improving efficiency by adopting the uParts solution.â€
uParts has been embraced by leading repair organizations because it reduces repair time, saves money and improves supplier performance. The company says that with the introduction of PEI, repairers now have a new way to measure and further improve their operations.
For more information about uParts Inc., please visit them online at uParts.com.