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Kanban (a pull system used at a stock point in which a supply batch is ordered only when a previous batch is withdrawn) for all operation supplies.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