Item - 2012.AU9.10
Tracking Status
- City Council adopted this item on November 27, 2012 without amendments and without debate.
- This item was considered by the Audit Committee on October 25, 2012 and adopted without amendment. It will be considered by City Council on November 27, 2012.
AU9.10 - City Stores: Maximize Operating Capacity to Be More Efficient
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on November 27, 28 and 29, 2012, adopted the following:
1. City Council request the City Manager to examine opportunities to further rationalize operations in both City and divisional stores in order to achieve corporate operating efficiencies.
2. City Council request the City Manager to direct divisions to use City stores as much as possible for common materials regularly in stock at City stores.
3. City Council request the City Manager, through the Shared Services review, to explore ways to maximize purchasing power and rationalize materials handling for items commonly purchased by the City, its Agencies and Corporations.
4. City Council request the Director, Purchasing and Materials Management, in consultation with the Chief Information Officer, to develop and implement an online system for ordering goods from City and Divisional stores.
5. City Council request the Director, Purchasing and Materials Management, in consultation with the Chief Information Officer, to review the costs and benefits associated with integrating scanning technology into existing City and Divisional store operations.
6. City Council request the Director, Purchasing and Materials Management to improve the drop shipment business process and leverage additional opportunities for direct delivery by vendors to end users.
7. City Council request the Director, Purchasing and Materials Management to exclude drop shipments from the calculation of inventory turnover rate.
8. City Council request the Deputy City Manager and Chief Financial Officer to report to City Council on the status and completion schedule for the Yards Consolidation Study, including a reconsideration of the Bering Yard.
9. City Council request the Director, Purchasing and Materials Management to take the appropriate action to correct the 1999 inventory input error in the financial information system for the Ellesmere store location.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50918.pdf
Appendix 1 - Auditor General's Office - City Stores: Maximize Operating Capacity to Be More Efficient
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50919.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50920.pdf
AU9.10 - City Stores: Maximize Operating Capacity to Be More Efficient
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the City Manager to examine opportunities to further rationalize operations in both City and divisional stores in order to achieve corporate operating efficiencies.
2. City Council request the City Manager to direct divisions to use City stores as much as possible for common materials regularly in stock at City stores.
3. City Council request the City Manager, through the Shared Services review, to explore ways to maximize purchasing power and rationalize materials handling for items commonly purchased by the City, its Agencies and Corporations.
4. City Council request the Director, Purchasing and Materials Management, in consultation with the Chief Information Officer, to develop and implement an online system for ordering goods from City and Divisional stores.
5. City Council request the Director, Purchasing and Materials Management, in consultation with the Chief Information Officer, to review the costs and benefits associated with integrating scanning technology into existing City and Divisional store operations.
6. City Council request the Director, Purchasing and Materials Management to improve the drop shipment business process and leverage additional opportunities for direct delivery by vendors to end users.
7. City Council request the Director, Purchasing and Materials Management to exclude drop shipments from the calculation of inventory turnover rate.
8. City Council request the Deputy City Manager and Chief Financial Officer to report to City Council on the status and completion schedule for the Yards Consolidation Study, including a reconsideration of the Bering Yard.
9. City Council request the Director, Purchasing and Materials Management to take the appropriate action to correct the 1999 inventory input error in the financial information system for the Ellesmere store location.
Origin
Summary
The Auditor General’s Audit Work Plan included a review of storage warehouses. The objective of this review was to determine if City stores run by the Materials Management Stores and Distribution Unit in Purchasing and Materials Management Division are being fully utilized and providing cost-effective services. The findings are relevant for all store operations in the City.
This report contains nine recommendations along with a management response to each of the recommendations. The implementation of these recommendations will improve the overall operating efficiencies by maximizing the capacity of City store operations to supply materials to all City business units, including agencies and corporations. Integrating technology into the City store operations will also help to achieve optimum performance.
This report also recommends a status report be provided to Council on the Yards Consolidation Study.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50918.pdf
Appendix 1 - Auditor General's Office - City Stores: Maximize Operating Capacity to Be More Efficient
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50919.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-50920.pdf