Inventory Management

1. Inventory Management - CS1(SS) Foster

2. Learning Objectives • Explore the inventory requirements and processes • Discuss associated forms with issues to the GM, inventory and food orders • Discuss tools and practices for the effective management of the inventory

3. Inventory • The inventory is the balance of subsistence items currently on hand (COHB) • This is reflected in two ways: • By the physical inventory in FSM • By the number of units actually in the storage spaces • If you’re thinking, “they should be the same…”, you are correct! However, no one is perfect. This concept is called Inventory Validity

4. Inventory Validity • Inventory Validity is generally reflected by a percentage, and the acceptable range is anything above 95% • The Inventory Validity is determined by the number of discrepancies from inventory against the number of total line items carried • The validity is maintained by accurately accounting for all subsistence items during receipt, processing of receipts, issue, return, processing of daily 1282s, inventories and surveys/LWOS.

5. Types of Inventories • Full Physical Inventory – “Wall to Wall” • Inventory of all Subsistence Items carried • Conducted upon releif of FSO, JOD, when integrity of inventory is suspect (theft, negligence) or every 90 days • Spot Inventory • Conducted at least 2x/month, 5% of items carried, concentrated on fast moving items • Storeroom Inventory • Inventory of a complete space – i.e., the dry storeroom • Breakout Inventory (optional) • After issuing an item, JOD records the remaining balance in the On Hand column at far right of 1282 • Records Keeper compares to 335 after posting 1282

6. Forms • Inventories are conducted on an FSM generated Inventory Worksheet (automated) or the Master Food Code List (NAVSUP Form 1059) for manual. • It’s important to ensure you record items only once under the correct Food Item Code (FIC) • Count by proper unit of issue (U/I) and save the math for when you sit down and second check your worksheet • Run through the space you will be counting and check open cases for # of units, then label the open case or remove them from the broken case (if practical). • When possible, count in 2 person teams to prevent errors (1 counts, 1 checks and records)

7. Inventory Worksheet/NAVSUP 1059

8. NAVSUP Form 1282 • The Food Item Request/Issue Document (NAVSUP Form 1282) is one of the most important forms in inventory management • It is the ledger that the GWC requisitions food on, the JODs issue/return (and record breakout inventories on if done), then the records keeper posts to FSM. • It records the flow of food post receipt, all the way to consumption. • It is absolutely CRITICAL that this form is filled out carefully and correctly at all times.

9. NAVSUP Form 1282

10. NAVSUP Form 1282 • The GWC requisitions food then submits for LCS approval • The form is then forwarded to the JODs • They then issue the requested food in the ISSUE column by the applicable U/I (breakout inv. done here) • Any supplemental breakouts are done during the day of consumption and added to the 1282 • Finally, returns are completed the day following consumption • When the JODs are done with the form, it is forwarded to the Record’s Keeper for posting to FSM

11. NAVSUP Form 1282 First column, you see the Food Item Code (FIC) and the NSN (Nat. Stock Number). The Nomenclature column identifies the item and then you see the U/I. There are many abbreviations such as CN= can, BG= bag, CO= container, CS= case, BT= bottle, GL= gallon, HD= hundred, MX= thousand, EA= ea, LB= pound, DZ= dozen. The Quantity Requested column is the area where the GWC records his desired quantity, by either circling the FSM generated quantity or lining it out and writing in the desired quantity.

12. NAVSUP Form 1282 At this point, the JODs record the Quantity Issued by the applicable U/I in the issued column. The day following consumption, the JODs will return unused breakouts in the Quantity Returned column and record a Total Quantity (issue – returned). You will see an FSM generated last receipt price which will be extended out on the smooth 1282 after the Record’s Keeper posts and fill in the Value column. Finally, as noted earlier, the Quantity On-hand column is used for Breakout Inventories, where after Issuing the JOD records the number of units left on the shelf.

13. NAVSUP Form 1282 There are 6 different signature blocks on the 1282. The top of each page holds a “Requisitioned By” block that is signed by the GWC. The “Approved By” block is signed by the LCS after the GWC completes requisitions. The end of each section contains 4 blocks, the first is “Issued By”, signed by the JOD on date of issue. The “Received By” block is signed by the GWC on the date of consumption, and the “Returned By” on the following day. Finally, the last “Received By” is signed by the JOD when they take the stores back for returns.

14. Good Practices • To effectively manage an inventory and maintain a superior validity, pro-activity is the key. • There are many supplements to bare minimum procedural compliance that can ensure minimal human error. • Many begin upon receipt and carry all the way through to consumption and returns. • Also, have a good working relationship with your Record’s Keeper is vital.

15. Storeroom Practices • Arranging storage spaces in FIC order can facilitate inventories and speed up stowage of deliveries • FIC display cards can simplify breakouts, stowage and inventories as well as eliminate human error. Include 1282 nomenclature, FIC, U/I, and units per case • Keep spaces extremely clean and very well organized, and breaking down open cases when practical also helps • One of the most important…MAINTAIN COMPLETE INTEGRITY OF ACCOUNTABLE SPACES! No exscuses. Accountable storeroom spaces are not lounges.

16. Food Ordering/Receipt Practices • When ordering, maintain strict HI/LO limits and maintain only the necessary stores on hand. Less inventory to track is less man hours spent tracking it. • When receiving, check your receipts! Circle, sign, date. Verify the quantities on the pallet reflect the number of units on the invoice. This includes the quantity and type of unit! • Inspect for quality, reject unacceptable stores. • When processing receipt paperwork, double check that units are correct, that nothing extra is on the invoice and that you have not obscured any quantities with your work (circling quantities). • Maintain copies of invoices for about 3 months when possible, for reference during inventory

17. Issue/Return Practices • When JODs issue food, have someone second check that what is in the breakout area matches the numbers on the 1282 issue column • Ensure FICs requisitioned are correct (for RK) and the U/I requisitioned and issued match the actual U/I • When food is returned, double check previous work (FICs, U/Is) and have someone check returns when complete (before putting back on shelf) • Also, when at all possible, practice breakout inventories and work with the RK to monitor the validity of these

18. Posting 1282 • Work with the RK to ensure 1282s are accurately posted. When possible, sit down and review the numbers posted against the rough 1282 before RK smooths • Ensure breakout inventories match 335 when smooth. Also, RK can compare a pre-issue breakout inventory while they post the 1282, before smoothing. Another option. • Provide all tools possible to RK to provide yet another check of FICs, U/Is, etc. while posting rough 1282s

19. Inventory Practices • Take the time to prepare your spaces for counting. • Count broken cases and label them with the contents with a sharpie • Organize all shelving to ensure each line item is all where it is supposed to be • USE A PENCIL! And take the time to ensure you are counting proper U/I, and units per case (FIC Cards!) • Don’t try to do math in your head! Write it down. I.E., 6 cn x 12 cs. on the worksheet. Go back through at the end with a calculator. • Count in 2 man teams. One counts, the second double checks and records. Eliminates A LOT of human error.

20. Questions?

21. Review • What types of inventories are there? • Full, Spot, Storeroom, Breakout • What form are they recorded on? • NAVSUP Form 1059, Master Food Code List or FSM generated Inventory Worksheet • What is the NAVSUP 1282 called? • Food Item Request/Issue Document • Who signs the “Requisitioned By” block? • GWC

22. Review • The “Issued By”? • JOD • “Returned By”? • GWC • Where is a Breakout Inventory recorded? • On-hand column at far right of 1282 • How many people should count during an inventory? • 2 person teams

23. Questions?