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Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom.

Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom. Number Dollars Ending Inventory Balance 12/31/10 663,000 Issues for CY10 38,558 1,908,000

emma-hinton
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Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom.

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  1. Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom. NumberDollars Ending Inventory Balance 12/31/10 663,000 Issues for CY10 38,558 1,908,000 Receipts for CY10 6,461 1,894,000 Returns for CY10 723 GRAND TOTAL: 45,742 Gas Cylinders Handled for CY10 7,673 Inventory Turns for CY10 2.88 Purchase Orders / Releases Approved in CY10 2,200 Total Number of SKU’s 4,750 • We utilize location control and the faster moving items are located closer to our counter operations.

  2. Systems That We Use In Our Stockroom Operation • Oracle Public Sector Financials Fully Integrated System - Inventory Module - Purchasing which includes Requisitioning Process & Receiving Process - Accounts Payable - General Ledger - Project Accounting • Oracle Discoverer Tool Used to Create Queries Against Oracle Databases

  3. How We Order / Restock the Shelves

  4. Blanket Purchases The Stockroom has established Blanket Purchase Agreements • Swagelok Gas Fittings • Parker Hannifan Fittings • Plumbing Supplies • Tools • Fasteners • Office Supplies • Cylinders/Dewars • 5 Gallon Water Bottles

  5. Blanket Purchases (con’t) Spreadsheets were created for these commodities & sent to 4 or 5 local suppliers. Information provided to suppliers included: • Previous 2 year usage • Current on-hand availability • Open-orders • Back-orders • Potential yearly order Most of these contracts were set up as a 5-year contract with yearly fixed pricing.

  6. Pay Upon Receipt (PUR) Option within Oracle to set up specific vendor site as payment occurs upon receipt How does this work? • Create Blanket Purchase Order and choose PUR vendor site. This is set up with PUR terms. • Create release against Blanket PO. • Vendor sends us the material. • Run a job in Oracle that creates an Invoice. • Run “Check-Register” and “Invoice Register” (2 times each week). • Vendor is sent “Invoice Register” and “Check Register”. Invoice has detailed information about the release, line #, our part # and quantity received.

  7. Pro’s/Con’s to Setting Up Blankets/PUR Contracts Pro’s • Inventory supervisor creates the releases instead of requisition(s) being sent to Procurement, getting assigned to a buyer and placed on an order. • Do not have to get pricing from vendor. Fixed pricing for 12 month period. • For Pay Upon Receipt (PUR) contracts, the vendor does not have to send and invoice – payment is automatically created after receipt occurs. • Savings for the vendor and Fermilab Accounts Payable group. Con’s • For PUR contracts, difficult to back out invoices.

  8. Stockroom Cylinder/Dewar Process Our Process Before July 2008 • Customer calls in an order for specific cylinder/dewar that is under ISS control – approximately 30 different SKU’s are common use. • Customer informs us of: Deliver To Location, Project & Task to charge and if there are any empty cylinders/dewars to be picked up. • Lead Storekeeper accumulates worksheets and prepares one paper requisition that is faxed to vendor. • Vendor delivers full cylinders to BSS ISS Gas Shed Operation and picks up any empty cylinders/dewars. • BSS Transportation Services picks up cylinders/dewars for on-site delivery and obtains delivery ticket information from ISS Lead Storkeeper.

  9. Stockroom Cylinder/Dewar Process (con’t) Why Did We Make the Change After July 2008? • Transportation Services (TS) Management was approached by our Dispatch Operation (Drivers) about some safety concerns about the Lab’s cylinder delivery truck. • Was this going to be cost beneficial for the Laboratory? • TS Management did analysis of what the total cost was for delivering cylinders/dewars. • Included in this total cost – Driver Labor Cost, Stockroom Labor Cost and Fuel Cost & Maintenance of the cylinder truck.

  10. Stockroom Cylinder/Dewar Process (con’t) Driver Labor Information MONTUESWEDTHUFRIHOURSAVG.RATECOST/DAY • Date 25-Feb 26-Feb 27-Feb 28-Feb 29-Feb Hours 8 4 4 4 8 28 5.6 28 $156.80 • Date 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar Hours 4 5.5 4 5.5 4 23 4.6 28 $128.80 • Date 24-Mar 25-Mar 26-Mar 27-Mar 28-Mar Hours 5 5 4 6 4 24 4.8 28 $134.40 • Date 31-Mar 1-Apr 2-Apr 3-Apr 4-Apr Hours 4 5.5 4 5.5 4 35.5 7.1 28 $198.80 • Date 7-Apr 8-Apr 9-Apr 10-Apr 11-Apr Hours 8 7 7 8 6 36 7.2 28 $201.60 • Date 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr Hours 6 8 8 8 6 36 7.2 28 $201.60 • Date 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr Hours 4 5.5 7 7 6 29.5 5.9 28 $165.20 • Date 28-Apr 29-Apr 30-Apr 1-May 2-May Hours 8 8 6 6 6 34 6.8 28 $194.40 • Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov Hours 4 8 8 6 8 34 6.8 28 $194.40 • Date 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov Hours 8 6 8 8 8 38 7.6 28 $212.80 • Date 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov Hours 3 8 4 3 3 21 4.2 28 $117.60 • Date 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct Hours 4 8 8 6 8 21 4.2 28 $117.60 • Date 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct Hours 3 6 2 4 6 21 4.2 28 $117.60 • Date 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct Hours 6 4 4 5 3 22 4.4 28 $123.20 • Date 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct Hours 6 5 5 4 2 22 4.4 28 $123.20 425 85 28 $ 2,380.00 26.5625 5.3125 $ 158.70 Avg. Cost/Day/Driver $ 3,332.00 Monthly average

  11. Stockroom Cylinder/Dewar Process (con’t) Stockroom Labor Information HoursAverageRateCost Per Day 3 3 28 $ 84.00 Average cost per day per stock clerk $ 1,764.00 Monthly average

  12. Stockroom Cylinder/Dewar Process (con’t) Cylinder Truck Gasoline (Diesel) Consumption VehicleTransaction CardHoseDateGallons Average diesel cost Oct. ‘07 thru Apr. ’08 $3.32 E48070 0490 00270 2 03122008 48.5 E48070 0719 00270 2 03202008 60.7 E48070 1060 00270 2 04032008 62.0 E48070 1357 00270 2 04162008 57.0 E48070 7821 00270 2 12032007 40.0 E48070 8145 00270 2 12132007 58.3 E48070 8462 00270 2 12272007 50.0 E48070 8701 00270 2 01072008 39.7 E48070 8908 00270 2 01152008 49.2 E48070 9271 00270 2 01282008 58.3 E48070 9561 00270 2 02062008 47.6 E48070 9835 00270 2 02152008 45.5 E47775 0340 00360 2 03052008 23.6 E47775 0601 00360 2 03172008 29.0 E47775 0666 00360 2 03192008 19.5 E47775 0978 00360 2 03312008 31.0 E47775 1029 00360 2 04022008 36.7 E47775 1274 00360 2 04142008 40.3 E47775 7116 00360 2 11022007 46.9 E47775 7524 00360 2 11192007 50.1 E47775 8154 00360 2 12132007 26.9 E47775 8187 00360 2 12142007 19.4 E47775 8373 00360 2 12212007 41.7 E47775 8827 00360 2 01112008 27.7 E47775 8828 00360 2 01112008 26.2 E47775 9356 00360 2 01302008 35.2 E47775 9357 00360 2 01302008 24.2 E47775 9946 00360 2 02202008 36.0 568.90 Total gallons of diesel 94.80 Avg. gallons of diesel / month $314.79 Avg. cost/month of diesel used in tractors for cylinder delivery $ 14.99 Avg. / day

  13. Stockroom Cylinder/Dewar Process (con’t) One Year Maintenance Costs – E47968 DateMaintenanceCost 03/14/07 Repair lift-gate $ 216.00 07/02/07 Repair switch $ 108.00 09/04/07 Rewire Switch $ 144.00 10/19/07 Inspect brakes $ 76.00 10/26/07 Brake repair $1,766.00 11/01/07 Inspect & Repair $ 164.00 11/15/07 Gate slow $ 57.00 12/11/07 Gate repair $ 232.00 01/29/08 Hydraulic oil $1,401.00 02/04/08 Repair gate hose $ 38.00 02/14/08 Replace oil cap $ 56.00 $4,258.00 Total repairs $ 354.80 Monthly average cost to maintain cylinder trailer $ 16.90 Daily average cost to maintain cylinder trailer Cylinder Trailer POCylinder Trailer Cost10-Year Annual Cost 552812 $30,000.00 $3,000.00 $ 250.00 Monthly depreciation of cylinder trailer $ 11.90 Daily depreciation of cylinder trailer $ 604.80 Monthly total cost $ 28.80 Daily total cost

  14. Stockroom Cylinder/Dewar Process (con’t) Cylinder Operation Costs Daily Cylinder Operation Costs Monthly Cylinder Operation Costs Labor Cost Labor Cost (Distribution & Stockroom) $242.70 (Distribution & Stockroom) $5,096.00 Fuel Cost $ 14.99 Fuel Cost $ 314.79 Maintenance cost Maintenance cost (including depreciation) $ 28.80 (including depreciation) $ 604.80 Total Daily Cost $286.49Total Monthly Cost $6,015.59

  15. Stockroom Cylinder/Dewar Process (con’t) What Other Information Did the Vendor Need to Provide Us with? • Monthly delivery charge? • How many delivery stops does the Lab have? • What is the average number of stops per day? This included special gas cylinders. • Vendor quoted $1,250.00 per month to deliver cylinders/dewars on-site and pick up any empties. WIN – WIN for Both the Vendor and Fermilab!

  16. Stockroom Cylinder/Dewar Process (con’t) How Do We Handle the Process Today? • No change for placing orders with the vendor. • Vendor stops in the morning at our ISS Stockroom Operation to obtain delivery tickets. • Vendor delivers cylinders/dewars on-site and picks up empites. • Vendor returns to stockroom so that cylinders/dewars can be surveyed. • The Lab still has the cylinder truck so that if we have to move a cylinder/dewar from one location to another, our Dispatch Operation can handle this.

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