Case Studies (examples of web material)
05/07/2008

Study No. 3 [See the Stores On-line demonstration pages]

Background: An internal stores system exists which serves approx. 400 users (via counter service) and has an annual turnover of around £0.5m per annum. The administration is based on the standard card index system with internal recharging within the organisation being arranged via invoice generation and account transfers. The stores is staffed by 4 storemen plus 1 administrator. Usage of the facility has risen over recent years and staffing levels are no longer sufficient to meet demand, in addition the administrator is soon to retire.

Option 1:
Retain present system but increase staff levels to accommodate forthcoming loss and increasing demand.
Advantages: No real changes for existing staff to deal with. Disadvantages:
Recruitment / selection required, long-term increase in staff costs, training implications to be dealt with, continuing duplication of effort within the charging recovery mechanism. Inputting / issue errors arise from manual data input. Load at issue counter not easy to predict - queues sometimes arise.

Option 2: Introduce computerised stock system which is integrated with internal accounting system, hardcopy issue requisitions retained (along with counter service) from the existing system. General storemen to handle / input issue data into computer.
Advantages:
Staff numbers can be reviewed and costs reduced as administrator no longer required. Recharging of internal accounts done at the point of issue (validation of budgets now therefore possible before goods are issued). Instant updating of account records. More career development possible for appropriate staff within the stores as skills base will increase.
Disadvantages:
Costs associated with upgrade of software to accommodate barcode data input. Training implications to be dealt with. Loss of personal contact between stores staff and users. Costs associated with distribution of issues to point of request.

Option 3: Introduce computerised stock system which is integrated with internal accounting system. Use barcode system to scan in issue data and have on-line requisition system available with delivery to point of request.
Advantages:
Accounting advantages as above, inputting / issue errors reduced with barcode scanned data entry, picking of stock speedier without counter service. Limited counter service means that staff work loads can be more easily managed. Reduced administration costs as no hardcopy requisitions required. Less time spent by users in requisitioning goods since no attendance at a counter is necessary.
Disadvantages:
Costs associated with upgrade of software to accommodate barcode data input. Training implications to be dealt with. Loss of personal contact between stores staff and users. Costs associated with distribution of issues to point of request.

[See the Stores On-line demonstration pages]

Outcome:
Option 2 selected in the short-term with a view to introducing option 3 when suitability of new computerised system had been assessed. Efficiency has been improved and considerable cost savings demonstrated long-term. A move to a bar-coded / on-line requisition system will continue these improvements and overall savings. Additional facilities for stores news etc. could also be made available on-line as further enhancement of the system.

 

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