Business Services Section Head –
David Carlson
Business Services Section Deputy Head –
Jeff Irvin
Property & Inventory Control Manager –
Jack Kelly
Assistant Property & Inventory Control
Manager Gary Golinski
Property Management Supervisor –
Dale Wilderspin
Inventory Control Supervisor –
Shelby Jones
Two (2) Material Services Forman –
Dave Seifert
Scott Borton
Two (2) Material Specialists –
Dave Bundy
Todd Wagner
Lead Store Keeper –
Bert Zamora
Three (3) Store Keepers –
Jeff Clark
Dan Ewen
Kevin Coppert
Seven (7) Property Clerks –
Ann Arnold
Wayne Braun
Alex Hernandez
Chris Hirner
Tom Miller
Louvie Dan Nelson
Brian Slatton
1
Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom.
Number
Ending Inventory Balance 12/31/10
Issues for CY10
Receipts for CY10
Returns for CY10
GRAND TOTAL:
38,558
6,461
723
Dollars
663,000
1,908,000
1,894,000
45,742
Gas Cylinders Handled for CY10
Inventory Turns for CY10
Purchase Orders / Releases Approved in CY10
7,673
2.88
2,200
Total Number of SKU’s
4,750
• We utilize location control and the faster moving items are located closer to our counter
operations.
2
Systems That We Use In Our Stockroom Operation
 Oracle Public Sector Financials
Fully Integrated System
- Inventory Module
- Purchasing which includes Requisitioning Process &
Receiving Process
- Accounts Payable
- General Ledger
- Project Accounting
 Oracle Discoverer
Tool Used to Create Queries Against Oracle Databases
3
How We Order / Restock the Shelves
Verify the Minimum &
Maximum Quantities are
Appropriate by using the
Latest Usage Report. Update
These Quantities if
Necessary.
Create Requisitions from the
Min-Max Report
Run the Min–Max Report
Material is Received from the
Vendor. Receiving Report
Generated. This Provides
Last Location of where
Material was Issued from.
Place Purchase Orders –
Most of the Items are
Procured from the Same
Vendors
4
Blanket Purchases
The Stockroom has established Blanket Purchase Agreements








Swagelok Gas Fittings
Parker Hannifan Fittings
Plumbing Supplies
Tools
Fasteners
Office Supplies
Cylinders/Dewars
5 Gallon Water Bottles
5
Blanket Purchases (con’t)
Spreadsheets were created for these commodities & sent to 4 or 5 local suppliers.
Information provided to suppliers included:
 Previous 2 year usage
 Current on-hand availability
 Open-orders
 Back-orders
 Potential yearly order
Most of these contracts were set up as a 5-year contract with yearly fixed pricing.
6
Pay Upon Receipt (PUR)
Option within Oracle to set up specific vendor site as payment occurs upon receipt
How does this work?
 Create Blanket Purchase Order and choose PUR vendor site. This is set up with PUR terms.
 Create release against Blanket PO.
 Vendor sends us the material.
 Run a job in Oracle that creates an Invoice.
 Run “Check-Register” and “Invoice Register” (2 times each week).
 Vendor is sent “Invoice Register” and “Check Register”. Invoice has detailed information
about the release, line #, our part # and quantity received.
7
Pro’s/Con’s to Setting Up Blankets/PUR Contracts
Pro’s
 Inventory supervisor creates the releases instead of requisition(s) being sent to Procurement,
getting assigned to a buyer and placed on an order.
 Do not have to get pricing from vendor. Fixed pricing for 12 month period.
 For Pay Upon Receipt (PUR) contracts, the vendor does not have to send and invoice –
payment is automatically created after receipt occurs.
 Savings for the vendor and Fermilab Accounts Payable group.
Con’s
•
For PUR contracts, difficult to back out invoices.
8
Stockroom Cylinder/Dewar Process
Our Process Before July 2008
 Customer calls in an order for specific cylinder/dewar that is under ISS control –
approximately 30 different SKU’s are common use.
 Customer informs us of: Deliver To Location, Project & Task to charge and if there are any
empty cylinders/dewars to be picked up.
 Lead Storekeeper accumulates worksheets and prepares one paper requisition that is faxed to
vendor.
 Vendor delivers full cylinders to BSS ISS Gas Shed Operation and picks up any empty
cylinders/dewars.
 BSS Transportation Services picks up cylinders/dewars for on-site delivery and obtains
delivery ticket information from ISS Lead Storkeeper.
9
Stockroom Cylinder/Dewar Process (con’t)
Why Did We Make the Change After July 2008?
 Transportation Services (TS) Management was approached by our Dispatch Operation
(Drivers) about some safety concerns about the Lab’s cylinder delivery truck.
 Was this going to be cost beneficial for the Laboratory?
 TS Management did analysis of what the total cost was for delivering cylinders/dewars.
 Included in this total cost – Driver Labor Cost, Stockroom Labor Cost and Fuel Cost &
Maintenance of the cylinder truck.
10
Stockroom Cylinder/Dewar Process (con’t)
Driver Labor Information
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
Date
Hours
MON
25-Feb
8
17-Mar
4
24-Mar
5
31-Mar
4
7-Apr
8
14-Apr
6
21-Apr
4
28-Apr
8
1-Nov
4
8-Nov
8
15-Nov
3
1-Oct
4
8-Oct
3
15-Oct
6
22-Oct
6
TUES
26-Feb
4
18-Mar
5.5
25-Mar
5
1-Apr
5.5
8-Apr
7
15-Apr
8
22-Apr
5.5
29-Apr
8
2-Nov
8
9-Nov
6
16-Nov
8
2-Oct
8
9-Oct
6
16-Oct
4
23-Oct
5
WED
27-Feb
4
19-Mar
4
26-Mar
4
2-Apr
4
9-Apr
7
16-Apr
8
23-Apr
7
30-Apr
6
5-Nov
8
12-Nov
8
19-Nov
4
3-Oct
8
10-Oct
2
17-Oct
4
24-Oct
5
THU
28-Feb
4
20-Mar
5.5
27-Mar
6
3-Apr
5.5
10-Apr
8
17-Apr
8
24-Apr
7
1-May
6
6-Nov
6
13-Nov
8
20-Nov
3
4-Oct
6
11-Oct
4
18-Oct
5
25-Oct
4
FRI
29-Feb
8
21-Mar
4
28-Mar
4
4-Apr
4
11-Apr
6
18-Apr
6
25-Apr
6
2-May
6
7-Nov
8
14-Nov
8
21-Nov
3
5-Oct
8
12-Oct
6
19-Oct
3
26-Oct
2
HOURS
AVG.
RATE
COST/DAY
28
5.6
28
$156.80
23
4.6
28
$128.80
24
4.8
28
$134.40
35.5
7.1
28
$198.80
36
7.2
28
$201.60
36
7.2
28
$201.60
29.5
5.9
28
$165.20
34
6.8
28
$194.40
34
6.8
28
$194.40
38
7.6
28
$212.80
21
4.2
28
$117.60
21
4.2
28
$117.60
21
4.2
28
$117.60
22
4.4
28
$123.20
22
4.4
28
425
26.5625
85
5.3125
28
$123.20
$ 2,380.00
$ 158.70 Avg. Cost/Day/Driver
$ 3,332.00 Monthly average
11
Stockroom Cylinder/Dewar Process (con’t)
Stockroom Labor Information
Hours
3
Average
3
Rate
28
Cost Per Day
$
84.00 Average cost per day per stock clerk
$ 1,764.00 Monthly average
12
Stockroom Cylinder/Dewar Process (con’t)
Cylinder Truck Gasoline (Diesel) Consumption
Vehicle
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E48070
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
E47775
Transaction Card
0490 00270
0719 00270
1060 00270
1357 00270
7821 00270
8145 00270
8462 00270
8701 00270
8908 00270
9271 00270
9561 00270
9835 00270
0340
0601
0666
0978
1029
1274
7116
7524
8154
8187
8373
8827
8828
9356
9357
9946
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
00360
Hose
2
2
2
2
2
2
2
2
2
2
2
2
Date
03122008
03202008
04032008
04162008
12032007
12132007
12272007
01072008
01152008
01282008
02062008
02152008
Gallons
48.5
60.7
62.0
57.0
40.0
58.3
50.0
39.7
49.2
58.3
47.6
45.5
Average diesel cost Oct. ‘07 thru Apr. ’08
$3.32
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
03052008
03172008
03192008
03312008
04022008
04142008
11022007
11192007
12132007
12142007
12212007
01112008
01112008
01302008
01302008
02202008
23.6
29.0
19.5
31.0
36.7
40.3
46.9
50.1
26.9
19.4
41.7
27.7
26.2
35.2
24.2
36.0
568.90 Total gallons of diesel
94.80 Avg. gallons of diesel / month
$314.79 Avg. cost/month of diesel used in tractors for cylinder delivery
$ 14.99 Avg. / day
13
Stockroom Cylinder/Dewar Process (con’t)
One Year Maintenance Costs – E47968
Date
Maintenance
03/14/07
07/02/07
09/04/07
10/19/07
10/26/07
11/01/07
11/15/07
12/11/07
01/29/08
02/04/08
02/14/08
Repair lift-gate
Repair switch
Rewire Switch
Inspect brakes
Brake repair
Inspect & Repair
Gate slow
Gate repair
Hydraulic oil
Repair gate hose
Replace oil cap
Cylinder Trailer PO
552812
Cylinder Trailer Cost
$30,000.00
Cost
$ 216.00
$ 108.00
$ 144.00
$ 76.00
$1,766.00
$ 164.00
$ 57.00
$ 232.00
$1,401.00
$ 38.00
$ 56.00
$4,258.00 Total repairs
$ 354.80 Monthly average cost to maintain cylinder trailer
$ 16.90 Daily average cost to maintain cylinder trailer
10-Year Annual Cost
$3,000.00
$ 250.00 Monthly depreciation of cylinder trailer
$ 11.90 Daily depreciation of cylinder trailer
$ 604.80 Monthly total cost
$ 28.80 Daily total cost
14
Stockroom Cylinder/Dewar Process (con’t)
Cylinder Operation Costs
Daily Cylinder Operation Costs
Monthly Cylinder Operation Costs
Labor Cost
(Distribution & Stockroom)
$242.70
Labor Cost
(Distribution & Stockroom)
$5,096.00
Fuel Cost
$ 14.99
Fuel Cost
$ 314.79
Maintenance cost
(including depreciation) $ 28.80
Maintenance cost
(including depreciation)
$ 604.80
Total Daily Cost $286.49
Total Monthly Cost
$6,015.59
15
Stockroom Cylinder/Dewar Process (con’t)
What Other Information Did the Vendor Need to Provide Us with?
 Monthly delivery charge?
 How many delivery stops does the Lab have?
 What is the average number of stops per day?
This included special gas cylinders.
 Vendor quoted $1,250.00 per month to deliver cylinders/dewars on-site and pick up any
empties.
WIN – WIN for Both the Vendor and Fermilab!
16
Stockroom Cylinder/Dewar Process (con’t)
How Do We Handle the Process Today?
 No change for placing orders with the vendor.
 Vendor stops in the morning at our ISS Stockroom Operation to obtain delivery tickets.
 Vendor delivers cylinders/dewars on-site and picks up empites.
 Vendor returns to stockroom so that cylinders/dewars can be surveyed.
 The Lab still has the cylinder truck so that if we have to move a cylinder/dewar from one
location to another, our Dispatch Operation can handle this.
17