Backroom Systems is a visual inventory control system for operational supplies.
With the addition of a food service program the amount and cost of our operation supplies more than doubled. Not included in our POS (point of sale) inventory items we went through cycles of either running out or over ordering. Not wanting to waste time or the extra expense to expedite out of stocks, find over stocks, we established Kanban (a pull system used at a stock point in which a supply batch is ordered only when a previous batch is withdrawn) for all operation supplies.
We started with establishing a specific location (preferably near where it is used) and space for each operational supply. Space was determined by order quantity package size, lead time and usage. Once space was determined we labeled the space with supplier name, item description/number, re-order quantity (when to order) and order quantity (how much to order).
We then developed an order guide spreadsheet with supplier name, description/item number, unit cost and total cost for three order cycles. Our order guide can be sorted by location and supplier to save time and not to overlook any item. An operational supply weekly budget was also established to control usage and cost.
With the ability to see what was needed when it was needed eliminated out of stocks and over stocks. Seeing order history and cost allowed us to control weekly supply usage and alert us to any losses, eliminating end of the month surprises. By assigning an employee responsible for all operational supplies and an operational supply budget in 2005 we saved $4,600 in operational supply cost compared to 2004 (does not include labor savings).
Operational Suppliy Storage Shelf with ID Tag
Backroom Systems Implimentation Process
Backroom Systems implementation process, approximately 10 hours.
- Review operational supply order invoices and create operational supplies list
Team One determines locations for specific storage areas
Team One creates and attaches all labels in all storage areas
Team One sorts invoices to determine quantity need and develops order guide
Team One develops weekly order budget
Team One writes operational supply order procedure specific to location
Team One will assign the responsibility and train employee until fully operational
Materials You Will Receive:
All labeling supplies, attached to customer storage spaces by Team
1CD containing complete operational supply order guide, (sorted by location & supplier) or order guide book
Written operational procedure
Backroom Systems Success Story
Eliminated "I can't find it" questions or "I couldn't do this because I couldn't find it" responses
Re-order quantity's and specific supply item locations eliminated reorder guess work and the time it takes to order
Eliminated over stocks and out of stocks which saved time expediting and lowered inventory cost
Using an order spreadsheet with unit costs gave a dollar amount to operational supply orders which eliminated end of the month cost surprises
Seeing operational supply order history alerted us to any losses
Saved over $2,000 in operational supply cost compared to the previous year.