Report for Purchasing Class.

1. Managing Storage Facilities, Value
Analysis and Storage Management
Procedures
Biso, Rica Grace B. Blanquisco, Ramin C.
Briones, Nica D. Mallari, Nicole Lois
Serapio, Freshy Joy I. Viernes, J-chel Fhae G.
INS PUR: HMGE1105 | TF 1:30-3:00 P.M.
By GROUP 4

2. • A set of procedures used to
ensure stored merchandise that
is managed effectively and that
losses due to spoilage, theft,
and pilferage are minimized.
What is Management Storage Facilities?
It can be simply defined as:

3. Inventories are classified and organized in a
manner that satisfies the local legal requirements.
Must be determined for all inventories. Storeroom managers must
keep track of the usage patterns so that they can revise and help
improve ordering procedures and par stock levels. In addition, this
information can help determine the optimal reorder point.
Inventory classification and
organization
Usage Rates
Managing Storage Facilities

4. Must occasionally make an emergency order or travel to the
supplier’s location to pick up extra items, particularly if a stock-out
threatens. The storeroom manager may also need to pick up an
order right away rather than wait for the scheduled delivery. This is
sometimes necessary when a supplier must alter the normal
delivery schedule.
Emergency Orders
Managing Storage Facilities (cont..)

5. Surpluses, Stock disposal and Stock transfers is usually
must complete a Transfer Slip (which is similar to an
invoice) so that the stock is controlled and accounted
for properly.
Surpluses, Stock disposal
and Stock Transfers
Managing Storage Facilities (cont..)

6. The kind of inventory uses a log book, computer, and etc
that makes the counting of inventories easier or valuing of
all of the items in storage and, in some cases, of all of the
items in the in-process inventory.
Perpetual Inventory
Physical Inventory
Managing Storage Facilities (cont..)
Another type of inventory which you have to be physically
present in the said area doing the inventory and counting the
items manually. It can be very time-consuming, especially
when every item, including the inventory of goods in
production, is counted.

7. (PCC) - is determining a specific establishments /
companies’ total cost in a span of time. Whether they
gain profit, loss or even break even from their
expenses. Through that product cost calculations they
can determine whether to continue the business and
set new goals or shut it down.
Product cost calculations
Managing Storage Facilities (cont..)

8. Only personnel of the establishment and other “allowed”
personnel are permitted to enter the restricted area.
Stock requisitions
Restricted access to storage
facilities
Managing Storage Facilities (cont..)
It uses requisition forms to lists the items needed
by the establishment / company.

9. MANAGING STORAGE FACILITIES
(CONT.)
• Inventory Shortcuts
Count everything in the warehouse, add predetermined
percentage for amount in process
Count only full-case equivalents
Combine ordering with inventory taking
Use a tape recorder to recite counts; transcribe the
information
Use a handheld computer device to encode inventories

10. MANAGING STORAGE FACILITIES
(CONT.)
• Exercising control over the stock
Allow only a few persons to withdraw items
Maintain small stock so pilferage is more noticeable
Use small working storerooms and keep large storerooms
locked
Use stock requisition system
Issue stock only at certain times during the day
Issue exact amounts of ingredients for one day or one
shift

11. • It can simply defined as a tool to define
what are the items lost and gained.
• Proper storage management has never
been a hallmark of the hospitality
industry. This has resulted in unnecessary
merchandise loss.
• Nevertheless, we can sympathize with
managers faced with potentially large
storage management costs.
• It costs a great deal of money, time, and
effort to adequately manage inventories
Storage Value Analysis can be defined as?

12. Classified into two groups:
•Storage Value Analysis
Small OperationsLarge Properties

13. SMALL OPERATIONS
• Use one-stop shopping owner-
manager or assistance receives
and inspects all incoming
merchandise.
• Send Expensive items to main
storage are and less expensive
items to production.
• Owner-manager issues par
stocks of expensive items at
shift beginnings.
• Lock main Storage facilities
• Large operations have more to
gain by employing a full-time
receiver-storeroom
manager. They can usually afford
more personnel, and that 2
percent savings translates
into many dollars for them.
LARGE OPERATIONS
Storage Value Analysis (cont..)

14. SMALL OPERATIONS
• Owner-manager retrieves
expensive items as needed.
• Owner-manager restocks
unused expensive items.
• Conduct critical-item inventory.
• They can easily find out what they
have lost and what they have
earned / gained through their
hired receiver-storeroom
manager employee rather than in
a small operations.
LARGE OPERATIONS
Storage Value Analysis (cont…)

15. • Storage Management Procedures
are various sets of steps that can
help the management or the
establishment limit their lost
items and increase their profit.
• Steps are shown in the next
slide
Do you know what’s Storage Management
Procedure is?

16. Adequate Temperature and Humidity
Adequate Equipment
Proximity of Storage Area to Receiving and
Production Areas
Access to Proper Maintenance Is
Essential
Storage Management Procedures (SMP)
steps:

17. Proper Security Is a Must
Competent Personnel Are Needed to
Supervise and Manage the Storage Function
Sufficient Time to Perform the Necessary
Duties Is Almost Always Missing
Storeroom Regulations Are an Absolute
Must, for Both Control and Predictability
Storage Management Procedures (SMP)
steps: (cont…)

18. Adequate Temperature and Humidity
Adequate Equipment
A proper storage area requires at least three major types of
equipment: shelving/racks, trucks, and covered containers.
A hospitality operation that houses one or more foodservice
facilities will need to follow its local health district temperature
requirements and space requirements.
In general, the health district mandates that all potentially
hazardous food—such as meats, seafood, and poultry—must be
stored at 41°F, or below, or at 135°F, or above.

19. Proximity of Storage Area to Receiving
and Production Areas
Access to Proper Maintenance Is
Essential
Depending on the size of the operation, thousands, tens of
thousands, even hundreds of thousands of dollars worth of
inventory can be on hand at any one time.
To the extent possible, you should install the storage facilities
close to the receiving dock and to the production departments.
In addition, it is desirable to place the receiving, storage, &
production areas on the same floor level. This saves time &
ensures that products are not out of their storage environments
for excessive periods.

20. Competent Personnel Are Needed to Supervise and
Manage the Storage Function
Proper Security Is a Must
In some operations, one person receives, stores, and issues
items to production departments.
It is even more common for one person to buy, receive, store,
and eventually use the items in production.
Following articles contains a discussion of relevant security
considerations, not only for storage, but also for other aspects
of the selection and procurement function.

21. Sufficient Time to Perform the Necessary Duties Is
Almost Always Missing
Adequate time is just as important as employee talent. Receiving,
storing, and issuing involve more than just weighing food and
putting it into storage. Hospitality operations have many other
tasks, such as monitoring the necessary control procedures,
maintaining sanitation, rotating the stock, keeping track of usage
patterns, and so on.

22. Storeroom Regulations Are an Absolute Must, for
Both Control and Predictability
Regulations dictate who is allowed to enter storage areas and
who is allowed to obtain items from storage. Also specified is
the required procedure to use to obtain these items. In some
cases, the senior management determines these guidelines. But
large firms that set broad guidelines often expect the storeroom
manager to work out the day-to-day details necessary for a
smooth-running operation.