Inventory Operations Goals

Inventory Operations (IOPS) Goals

1.  Achieve a 95% aggregate inventory accuracy level across all cycle / rack counts for fiscal year 2020.

2. Reduce Inventory Operations overtime hours by 2% as compared to fiscal year 2019.

3. Achieve a favorable Inventory Operations department expense budget variance for fiscal year 2020.

4. Improve the efficiency of Storeroom operations by 2% in terms of transactional volume per full time equivalent (FTE) as compared to fiscal year 2019.

5. Complete the High Pile Storage Warehouse racking permit process by June 30, 2020.

6. Establish a new Inventory Operations KPI measuring Good Receipts and Issues Backlog to improve operational performance. This KPI will be fully developed by December 31, 2019 and will measure the full fiscal year's performance on a monthly basis.

7. Achieve zero injury lost time hours for the Inventory Operations Department for fiscal year 2020.

Inventory Planning & Analytics

1. Maintain "Request to Stock" average processing time at 3 business days for fiscal year 2020.

2. Reduce Gross Stock Value by 3% from the 2019 closing balance (excluding capital equipment and safety stock).

3. Improve the stock turn of each storeroom by 5% as compared to fiscal year 2019 (excluding capital equipment and safety stock).

4. Evaluate the cost effectiveness and quality of the VMI contracts with NFI and Siemens: Inventory turn will improve by 10% in fiscal year 2020 as compared to the previous fiscal year. Inventory rejection for parts under these VMI contract will not exceed 3% of total receipts (total goods rejected / total goods received).