Managing Storage Facilities, Value Analysis and Storage Management

Procedures

Biso, Rica Grace B. Blanquisco, Ramin C.

Briones, Nica D. Mallari, Nicole Lois

Serapio, Freshy Joy I. Viernes, J-chel Fhae G.

INS PUR: HMGE1105 | TF 1:30-3:00 P.M.

By GROUP 4

• A set of procedures used to ensure stored merchandise that is managed effectively and that losses due to spoilage, theft, and pilferage are minimized.

What is Management Storage Facilities?

It can be simply defined as:

Inventories are classified and organized in a manner that satisfies the local legal requirements.

Must be determined for all inventories. Storeroom managers must keep track of the usage patterns so that they can revise and help improve ordering procedures and par stock levels. In addition, this information can help determine the optimal reorder point.

Inventory classification and organization

Usage Rates

Managing Storage Facilities

Must occasionally make an emergency order or travel to thesupplier’s location to pick up extra items, particularly if a stock-outthreatens. The storeroom manager may also need to pick up anorder right away rather than wait for the scheduled delivery. This issometimes necessary when a supplier must alter the normaldelivery schedule.

Emergency Orders

Managing Storage Facilities (cont..)

Surpluses, Stock disposal and Stock transfers is usually must complete a Transfer Slip (which is similar to an invoice) so that the stock is controlled and accounted for properly.

Surpluses, Stock disposal and Stock Transfers

Managing Storage Facilities (cont..)

The kind of inventory uses a log book, computer, and etc that makes the counting of inventories easier or valuing of all of the items in storage and, in some cases, of all of the items in the in-process inventory.

Perpetual Inventory

Physical Inventory

Managing Storage Facilities (cont..)

Another type of inventory which you have to be physically present in the said area doing the inventory and counting the items manually. It can be very time-consuming, especially when every item, including the inventory of goods in production, is counted.

(PCC) - is determining a specific establishments / companies’ total cost in a span of time. Whether they gain profit, loss or even break even from their expenses. Through that product cost calculations they can determine whether to continue the business and set new goals or shut it down.

Product cost calculations

Managing Storage Facilities (cont..)

Only personnel of the establishment and other “allowed” personnel are permitted to enter the restricted area.

Stock requisitions

Restricted access to storage facilities

Managing Storage Facilities (cont..)

It uses requisition forms to lists the items needed by the establishment / company.

MANAGING STORAGE FACILITIES (CONT.)

• Inventory Shortcuts

Count everything in the warehouse, add predetermined percentage for amount in process

Count only full-case equivalents

Combine ordering with inventory taking

Use a tape recorder to recite counts; transcribe the information

Use a handheld computer device to encode inventories

MANAGING STORAGE FACILITIES (CONT.)

• Exercising control over the stockAllow only a few persons to withdraw items

Maintain small stock so pilferage is more noticeable

Use small working storerooms and keep large storerooms locked

Use stock requisition system

Issue stock only at certain times during the day

Issue exact amounts of ingredients for one day or one shift

• It can simply defined as a tool to define what are the items lost and gained.

• Proper storage management has never been a hallmark of the hospitality industry. This has resulted in unnecessary merchandise loss.

• Nevertheless, we can sympathize withmanagers faced with potentially large storage management costs.

• It costs a great deal of money, time, and effort to adequately manage inventories

Storage Value Analysis can be defined as?

Classified into two groups:

•Storage Value Analysis

Small OperationsLarge Properties

SMALL OPERATIONS

• Use one-stop shopping owner-manager or assistance receives and inspects all incoming merchandise.

• Send Expensive items to main storage are and less expensive items to production.

• Owner-manager issues par stocks of expensive items at shift beginnings.

• Lock main Storage facilities

• Large operations have more to gain by employing a full-time receiver-storeroommanager. They can usually afford more personnel, and that 2 percent savings translatesinto many dollars for them.

LARGE OPERATIONS

Storage Value Analysis (cont..)

SMALL OPERATIONS

• Owner-manager retrieves expensive items as needed.

• Owner-manager restocks unused expensive items.

• Conduct critical-item inventory.

• They can easily find out what they have lost and what they have earned / gained through their hired receiver-storeroommanager employee rather than in a small operations.

LARGE OPERATIONS

Storage Value Analysis (cont…)

• Storage Management Procedures are various sets of steps that can help the management or the establishment limit their lost items and increase their profit.

• Steps are shown in the next slide

Do you know what’s Storage Management Procedure is?

Adequate Temperature and Humidity

Adequate Equipment

Proximity of Storage Area to Receiving and Production Areas

Access to Proper Maintenance Is Essential

Storage Management Procedures (SMP) steps:

Proper Security Is a Must

Competent Personnel Are Needed to Supervise and Manage the Storage Function

Sufficient Time to Perform the Necessary Duties Is Almost Always Missing

Storeroom Regulations Are an Absolute Must, for Both Control and Predictability

Storage Management Procedures (SMP) steps: (cont…)

Adequate Temperature and Humidity

Adequate Equipment

A proper storage area requires at least three major types ofequipment: shelving/racks, trucks, and covered containers.

A hospitality operation that houses one or more foodservicefacilities will need to follow its local health district temperaturerequirements and space requirements.In general, the health district mandates that all potentiallyhazardous food—such as meats, seafood, and poultry—must bestored at 41°F, or below, or at 135°F, or above.

Proximity of Storage Area to Receiving and Production Areas

Access to Proper Maintenance Is Essential

Depending on the size of the operation, thousands, tens ofthousands, even hundreds of thousands of dollars worth ofinventory can be on hand at any one time.

To the extent possible, you should install the storage facilitiesclose to the receiving dock and to the production departments.In addition, it is desirable to place the receiving, storage, &production areas on the same floor level. This saves time &ensures that products are not out of their storage environmentsfor excessive periods.

Competent Personnel Are Needed to Supervise and Manage the Storage Function

Proper Security Is a Must

In some operations, one person receives, stores, and issues items to production departments.It is even more common for one person to buy, receive, store, and eventually use the items in production.

Following articles contains a discussion of relevant security considerations, not only for storage, but also for other aspects of the selection and procurement function.

Sufficient Time to Perform the Necessary Duties Is Almost Always Missing

Adequate time is just as important as employee talent. Receiving,storing, and issuing involve more than just weighing food andputting it into storage. Hospitality operations have many othertasks, such as monitoring the necessary control procedures,maintaining sanitation, rotating the stock, keeping track of usagepatterns, and so on.

Storeroom Regulations Are an Absolute Must, for Both Control and Predictability

Regulations dictate who is allowed to enter storage areas andwho is allowed to obtain items from storage. Also specified isthe required procedure to use to obtain these items. In somecases, the senior management determines these guidelines. Butlarge firms that set broad guidelines often expect the storeroommanager to work out the day-to-day details necessary for asmooth-running operation.