The San Francisco Municipal Transportation Agency (SFMTA) in the US has extended its Vendor Managed Inventory (VMI) services contract with Alstom.

The €50m extension follows the original contract signed in 2013 and two exercised options.

Alstom will continue to manage and supply parts for the SFMTA rail fleet for an additional three years. The terms of the VMI services contract also includes two exercisable two-year options.

Besides supplying rail parts, Alstom will be responsible for inventory planning and automated part replenishment through an integrated IT system and obsolescence management.

It will also provide technical and engineering services to SFMTA, as required.

Alstom North America senior vice-president Jerome Wallut said: “We take immense pride in supporting San Francisco and their focus on transporting passengers safely, efficiently and reliably, and we thank San Francisco Municipal Transportation Agency for the continued trust they have placed in us and this partnership.”

“It has increased daily average car availability by 20% and mean distance between failures by 74%.”

SFMTA rail fleet includes 149 light rail vehicles, 39 historic streetcars and 31 cable cars. Alstom is responsible for more than 1,100 new parts for SFMTA’s maintenance operations.

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VMI process streamlines the procurement process for the rail operator, enabling it to focus on regular operations and passenger satisfaction.

It has enabled SFMTA to carry out predictive maintenance of the vehicles and avoid any disruptions in services.

VMI is said to have transformed into 99% material availability and reduce inventory management costs for SFMTA.

Additionally, it has increased daily average car availability by 20% and mean distance between failures by 74%.

Recently, Alstom opened a production line of Intercity Next Generation (ICNG) trains at Katowice, Poland. The line will deliver Coradia Stream trains for Nederlandse Spoorwegen (NS), the national railway operator in the Netherlands.