1. UFS User Group January 17, 2017 Our call will begin shortly
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Hello Everyone.

2. Welcome (Jill Helms)
Monthly Inventory (Marc Kronthaler and Umberto DAlessandro)
AP Dashboard: Invoice Status Lookup (Bridget Jozwiak - Demo)
UFS Touchpoints (Jill Helms)
Final Questions

3. UFS User Group Monthly Inventory Initiative
January 17, 2016

4. Marc Kronthaler Sr Project Manager, SAP Initiatives
Presenters
Marc Kronthaler Sr Project Manager, SAP Initiatives
Umberto D’Alessandro Director, OPTI

5. The Inventory Rationalization Initiative
The Opportunity
Cost centers spend approximately 1.8 to 3.7 hours per week counting and reporting inventory.
Over 90% of SDX cost centers do this every week.
The Inventory Rationalization team and OPTI have designed new approaches whereby cost centers reduce the frequency of inventory counting and align the process with their billing schedules.
What we have learned
Pilot cost centers have tried these new approaches with great success and satisfaction.
Why are we presenting this to you now?
We are looking for subject matter experts to partner with and advise us as we roll out this solution to NorAm in March 2017.
The “What” and the “Why”

6. How exactly does this work?
The solution helps cost centers to align inventory processes with their billing schedules, which for many is monthly.
Specifically, inventory is reported during the last four days of the month.
For periods 6 & 12, inventory must be taken on the last day of the month.
What replaces the weekly inventory process?
Review stock rooms frequently during the week and visually inspect what is on- hand. Estimate without counting every box.
Review purchase data if any investigation is needed.
Pilot cost centers tell us that this results in less net time spent reviewing inventory.
Managers have told us that inventories are consistent and predictable and that it is possible to look them over and know where things stand, that writing down metrics is not always needed.

7. What drove the need?
Cost Centers are asking for improvements to their day-to- day work lives.
They are asking for help to reduce administrative responsibilities through process improvements in order to make life easier and reduce non-value added work.
Sodexo North America is moving from a to a Monthly Calendar close in FY2018.
One way to improve efficiencies with inventory is to align the process with the upcoming changes of the Monthly Close project.

8. What will we see as a result of this change?
Other reported benefits:
More frequent walk-throughs have resulted in improved utilization of food on hand.
Theft has not be negatively impacted; missing items can be more frequently caught.
Managers and Chefs invest more time in other activities like
Food Purchasing
Team engagement
Financial reviews
If weekly inventory results in overtime or other labor expenses, counting and reporting inventory once per month could result in potential labor savings.

9. Why is Senior Leadership supportive of this effort?
In FY16 after the end of Q3, we conducted an analysis of the inventories that were reported for periods 7, 8 and 9.
This is what we found:
If all cost centers had reported their inventories only once per month, this is what we would have found:
Total Cost Centers
Total Inventories
Est. Labor Expenses
3,809
45,382
$2.46 M
Total Cost Centers
Total Inventories
Est. Labor Expenses
3,809
11,427
$630 K

10. If you volunteer to help us…
We will share the learnings and best practices we currently have, and you will…
Train your team…
Start the process in February (one month before the official rollout)…
Provide your input on what works and what does not…
Commit to joining occasional calls with us to compare results and help us make adjustments to our implementation plan.
We will probably you at various times asking for thoughts and insights to specific questions and issues that come up.
You have to agree to reply to us as soon as you can.

11. We will do the work, but you will agree to…
Provide input into our communications (eBulletins, web pages, broadcast s, podcasts).
Provide testimonials in the future which we can use for future communications.

12. Monthly Inventory At-a-Glance
Why Monthly Inventory?
New Standard for Tracking of Inventory
Benefits
To help provide Quality of Life for operators by lessening the frequency of inventory counting in order to reduce non-value added work
To align inventory process with monthly financial close (Sodexo US is moving from a calendar to a monthly calendar close in FY18)
Conduct inventory once per period (during the last four days of the period) instead of weekly
PD 6 & 12 must be taken on the last day of the period in FY 17and the last of the month starting FY18
Visually survey stock rooms regularly during the period and estimate what you have on hand instead of counting each item weekly
Time savings
Reduction in overtime
More time with clients & customers
Key Notes…
Pilot Group Testimonials
March 2017
The WOR and FAR will pre-populate the prior week’s numbers (no need to re-enter inventory each week)
AF Manual Topics will be updated to reflect the monthly inventory standard
“We saw no negative change in food costs, we provided a more accurate period close inventory and we eliminated unit clerk overtime.” - General Manager
“Managing inventory monthly in place of weekly still allows us to have a control and focus on our purchasing and usage, yet give us more flexibility to focus on our customers.” - Retail Manager
Begin Monthly Inventory!
Questions?
Training and Resources
Operations Process Transformation Initiative (OPTI) at
Inventory course in Ingenium (coming soon)
Inventory Sodexo Net page:
FAQs
Inventory Tips
Live Q&A Schedule (join us!)
Inventory Overview video

13. UFS Touchpoints
UFS Newsletter Distribution – Is no longer ed. Each new edition is posted to UFS Launch Site Communication tab and the e-Bulletin Wednesday.
UFS Outage Alerts – Upcoming alerts will be posted on the UFS Launch Site and a NOC alert will be sent.
Schools Services Units: Commodities Module – Verify commodity GL is not being used in Inventory by Account or Inventory by Item for any commodities. All commodity data should be entered in the commodity module.
Future UFS Enhancements – No planned enhancements at this time. Monthly calendar initiative will carry us to 4th quarter.

14. Questions

15. Application Feedback
Group Open Forum What is MOST important Service Request / Defect item to you and your users?
Key function of this group. Open discussion with IT support. Prioritize open items
page 15

16. Defects/Bugs and Fixes
Unit Financial System User Group
Provide & Gather
Feedback
Training
Defects/Bugs and Fixes
Future Enhancements
Continue to review the homepage for valuable resources and updated communications.
RECRUIT, ENGAGE, DRIVE TRAINING, AND SHAPE THE FUTURE!!!
UFS User Group, established 2010