Inventory Management and Requirements

Best Practices in Inventory
DPI Refresher Course for Directors and
March 31-April 1 2014
Randolph Community College
Inventory Management
Inventory is a major portion of any maintenance facility annual
budget and should be managed in a way that will not prevent
required events from being achieved. The only way to manage an
inventory is by making it a priority and by spending time daily to
order, receive, issue and manage the stock. Inventory that is truly
managed will make the daily operation of your facility run smoother
by simply making parts available when needed so bus maintenance
can be carried out. The accurate account of inventory also make the
TD-1 annual report more easily filled in. If the total in BSIP and the
inventory count differs by 1% a written explanation is required and
can result in monetary issues.
Ordering Techniques
Vendor List for specific parts such as brakes,oil,tires,batteries
Contact person's at each vendor should be established.
Price list from each vendor is recommended.
Order Sheets - Example: TD21 formerly (ME21N)
Ordering schedule should be determined, daily, weekly,
biweekly helps lower quantities stocked.
Return policy for each vendor should be determined to eliminate
obsolescence for non moving parts.
Vendor invoice file for easy reference on each vendor. Boxed at
end of year for future reference or possible warranty claims.
Request invoice when ordering : Original or Fax copy
acceptable. Most vendors can supply if requested at time of
order. Ask for shipping rates or discounts for qty. or dollar
amount purchases such as on state contract purchases.
Warranty the vendor offers, get in writing.
Warranty Clerk at Vendor, get contact information.
Inventory Receipt
Proper form to list parts, example: TD21 form
and vendor invoice will make accurate
receipt of inventory easier.
Include all taxes and shipping at time of
receipt unless your LEA requires it differently.
Proper BSIP transaction to receive parts
ME21N and MIGO
Double check all entries to insure accuracy at
the time of receipt, this seems to be area
many mistakes are made.
Stock Room Control &
Control stock room activity and limit to persons responsible for the
order, receipt and issuance of parts.
Setup stock room in manner to be user friendly for daily activity and
during scheduled inventory. Bin Location, isle location, cabinet location
is very important to assist in proper management.
Record the Bin location information in BSIP and this will save much
time in locating parts and in the inventory process. ZMM02Z to change
or add Bin location.
Setup an obsolescence program to eliminate obsolete parts and allow
for inventory on newer buses to be stocked, and in many cases without
increased inventory values.
Daily checks in stockroom of fast moving parts will greatly help in the
accuracy of your inventory. It is much easier to find a missing part and
charge to the correct bus if spot checks are done at least weekly. This
will be similar to the checks done by your field consultants on their
Service Truck Inventory
Consider transferring inventory carried on service
trucks from main storage location to service truck
location to assist in controlling your inventory and in
taking your annual inventory. MB1B is the BSIP
Transaction for this procedure.
Stockroom location for service trucks is available on
the School Bus Safety Website for all service vehicles
in your fleet if you are not currently using this
function. Look under
BSIP/Resources/Handouts/Setup Data. and the
locations are listed by LEA. If additional locations are
needed due to growth request these from the BSIP
help desk.
Purchase & Contract
Contracts for parts are still available on the website for
Purchase and Contract and the support and protection they
have always had is in place.
Vendor Complaint Forms are listed on their website also for any
problems with vendors that might arise.
State Contracts do offer money savings in most instances if they
are considered before local purchases are made, and in many
instances support if something goes wrong that causes liability
DOT # & VRMS Search
Transaction MM03 can be used for the DOT#
search procedure as one of the most
DOT # request form located on BSIP
resources sight needs to be filled out with
correct information or the form will be
returned for the corrections to be made.
Please search using MM03 before sending the
form to save time due to many numbers we
are checking already existing in the system.
Transaction ZPMVMRS is used for VRMS #
search or use new 8 page VRMS cheat sheet
located in the BSIP resource section.
Annual Physical Inventory
Step by Step instructions for taking annual inventory are
available on the BSIP link located on the School Bus Safety
Website. Take time to read and understand these procedures
prior to taking inventory.
Planning for annual inventory is a must.
Set a start date for taking inventory.
Take inventory by groups 180,181,EEA,ECT not the entire
inventory at one time this will make any problems easier to
solve. There will be issues so make this process work for you
not against you.
The annual inventory is taken for the physical year running from
July 1 to June 30 each year so timing is important to complete
the inventory so the totals can be collected on July 1 before the
new year starts.
The totals collected on July 1 are reported on the annual report
that is due in August so please be accurate on the data totals
Physical Inventory and Budget Impact
(Shortages)DPI Message # 688
Physical inventory of materials on hand is an important measurement of accountability in the use of
state funds.
Physical inventory of all materials must be completed before the end of the fiscal year June 30th.
All inventory results are reported on the TD-1 (due August 1st)
Documentation on how to progress through the SAP transactions involved in taking inventory is
available at:
Funding implications for 2014-2015 when shortages exceed 1% of stock use.
Fiscal implications will be included as an adjustment to the 2014-2015 transportation allotment.
LEAs will be given the opportunity to explain any shortages, if it can be determined why the stock is
Bus garages should plan to take a very good inventory this year to clear up all issues. Enough time
should be allotted to investigate discrepancies before posting inventory counts in BSIP.
Physical Inventory and Budget Impact
(Shortages)DPI Message # 688
There are a number of possible causes of stock shortages
Stock might have been stolen during the year.
Stock purchased with PRC 056 funds could have been placed on local
vehicles and not reimbursed, which would be an illegal use of state
Parts were not correctly charged to vehicles.
And there are additional implications.
Vehicles will have incorrect maintenance and cost records. DPI relies on
this information to provide an accurate picture of vehicle costs to the
legislature. LEAs rely on this information in the event of an accident or
in case of ongoing problems with a vehicle.
Stock shortages alter refund rates which must reflect the actual cost
per mile / student.
Contact Links
NC Bus Safety Website
Division of Purchase & Contract
Craig warren
[email protected]
Kevin Harrison
[email protected]
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