LSME: L. Flora 1 Detailed Activities Key Activities Role Description To identify expendable and consumable supply needs and requisition, receive, and issue (or store for future reissue) for agency.. Issuing Supplies Receiving Supplies Requisition of Items Physical Counts of Inventory Requisition of Items Decide the most economical time to order supplies Stock- seasonal/ quantity/ lag time, etc. Maintain and evaluate safety stock level Manual Requisition of Items Review Replenishment Report Approve new order items from replenishment report Physical Counts of Inventory Freeze Inventory/ Run Inventory Cards Count inventory Enter count of inventory into the system Review discrepancy reports Update inventory list based on count, if desired Prepare reports for management review Issuing Supplies Issue over-the-counter supplies Stock requisition Run the Pick and Issue process in MARS Fill out the Confirmation Issue document in MARS Receiving Supplies Update inventory as received Adjust average cost of item Manual Inventory Adjustment Initiate adjustment actions when delivery is short or over Business Area: Inventory MARS Roadmap: Inventory “To Be” Redesigned Role Consumable Inventory Management (warehouses & storage facilities) Notes: Bold, italic text indicates activities supported and/or facilitated to a significant degree by MARS. “*” Indicates activity for which significant reductions in time and/or effort to complete are expected due to automation and/or streamlined processes. “(F)”Indicates activities that are dependent upon agency structure and/or agency willingness to “push” accountability to the field.

LSME: L. Flora 2 Current to New Role Comparison for Consumable Inventory Management Changed Activities Activities That Remain the Same Activities No Longer Performed Definition of Terms Training and Skill Needs TimingTiming Manual tracking process for requisition of items Manual preparation of order forms Manual generation of management reports Develop costing methodologies Maintain office inventory records Develop and maintain agency tracking system Coordinate reporting of inventory balances Inventory= Items contained in warehouses and storage facilities. Issue over-the-counter supply= An individual requests a supply, and the merchandise is delivered and charged to an account at that time. In the future, all accounting transactions will be done by MARS. Stock requisition= Ordering stock which is received at a later date. Under MARS, a stock requisition encumbers money, which is unencumbered when a Confirmation Issue Report is run. Pick and Issue Report= Report that is issued for warehouse indicating items that have been requisitioned. Confirmation Issue Report= Report that completes the accounting transaction; it confirms that an item has been received and charges account. At this point, money is unencumbered. Manual Inventory Adjustment Stock- seasonal/ quantity/ lag time, etc. Safety stock level Manual Requisition of Items Count inventory Issue over-the-counter supplies Stock requisition Run the Pick and Issue Report Fill out the Confirmation Issue Report Update inventory as received Adjust average cost of item Review Replenishment Report Decide the most economical time to order supplies Approve new order items from replenishment report Needs to be in place July 1, 1999 MARS Consumable Inventory Module Prerequisites: MARS Computer Based Training MARS Computer Literacy Training Freeze Inventory/ Run Inventory Cards Enter count of inventory into the system Review discrepancy reports Update inventory list based on count, if desired

LSME: L. Flora 3 Current to New Role Comparison for Consumable Inventory Management Additional Notes Additional Notes In some agencies, there is a sharp distinction between the persons who functions in more of a supervisory role (individuals who act in more of an analytical capacity, determining what needs to be ordered and actually making the orders) and more of a staff person (who is concerned more with physical stocking tasks, etc.). Agencies may want to consider this distinction when addressing their unique situations. MARS will help with deciding the most economical time to order supplies. MARS will also help develop the warehouse plan for the future by factoring such items as order time, safety stock level, and an item’s seasonal or critical use. MARS will update the lag time for supplies, create a Replenishment Report, and automatically reorder supplies upon approval (approval creates a requisition). The Replenishment Report will replace the manual tracking process for ordering supplies. If the replenishment system generated an “issue for inventory” (must be marked as inventory), then MARS will automatically update the inventory as received and adjust the average cost of the item. If the inventory replenishment is not system generated, receiving supplies is still a manual process, accomplished through inventory adjustment. In some agencies (such as prisons, mental health facilities, etc.), “reissues” as well as “over the counter” issuance of supplies occur. All agencies must do at least one physical count per year (statutory requirement), though agencies will need to make individual decisions about which manual receipts, if any, to keep (as the system will retain them). Other agency conventions (such as keeping 3X5 notecards with inventory information) will no longer be necessary. Template Key Activities that will be completed via MARS have been highlighted through the use of italic, bold font. Activities that are dependent upon agency structure and/or agency willingness to “push” accountability out to the field are identified with an “(F)”. Activities for which significant reductions in time and/or effort required are expected to result from automation and/or process streamlining are indicated with an “*”. Detail activities are grouped according to the key activity (underlined) they support. MARS documents are cross-referenced (by number) to the document(s) they replace. For more information on the process flow for activities regarding this area, please consult the MARS Roadmap document cited. Roadmaps may be found at For more training guidance, please consult the MARS Training Curriculum, which will be posted to the MARS page of the Simplified Administrative Services Web site at Documents Relevant to Role MARS Documents Documents Formerly Used Pick and Issue (PI) Stock Issue Confirmation (CI) Over the Counter (OC) Stock Return (SN) Physical Inventory Adjustment (IA) Stock Transfer Issue (TI) Stock Transfer Receipt (TR) Stock Requisition Because agency processes in this area varied widely prior to MARS, there are few “standard” documents to be referenced here. Agencies will no longer need to complete the manual CAFR reports, however, as they can be done via the system.