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.