Warehouse ManagementWarehouse Management

Opening and Organizing a WarehouseOpening and Organizing a Warehouse

•• Different possibilities to get WarehousesDifferent possibilities to get Warehouses–– Provided by National AuthoritiesProvided by National Authorities–– Provided by a UN agencyProvided by a UN agency–– Renting space in Private Commercial Renting space in Private Commercial

WarehouseWarehouse–– Rented WarehouseRented Warehouse

Warehouse provided by AuthoritiesWarehouse provided by Authorities•• Actions to be taken by Logistics Officer (LO)Actions to be taken by Logistics Officer (LO)

–– Inventory of the furnitureInventory of the furniture’’s availability such s availability such as shelves, racks, pallets ,tablesas shelves, racks, pallets ,tables……))

–– Assess the staffing requirements and if Assess the staffing requirements and if necessary coordinate with the Admin Officer necessary coordinate with the Admin Officer (AO) for temporary additional staff(AO) for temporary additional staff

–– Organize the space into clear and distinct Organize the space into clear and distinct storage areas and transit zones storage areas and transit zones

•• Receiving and sending zones Receiving and sending zones

Warehouse provided by Authorities (cont)Warehouse provided by Authorities (cont)

•• A closed and secure area for controlled A closed and secure area for controlled substances could be necessarysubstances could be necessary

•• Secure the PAHO/WHO designated space and Secure the PAHO/WHO designated space and organize the management of the keys (buy new organize the management of the keys (buy new lockers !!!)lockers !!!)

•• If required train staff on specific PAHO/WHO If required train staff on specific PAHO/WHO medical stock management and documentation medical stock management and documentation requirements (airrequirements (air--waybills, stockwaybills, stock--cards, )cards, )

•• Organize with AO daily workers hiring, Organize with AO daily workers hiring, schedule.schedule.

Warehouse provided by UN AgencyWarehouse provided by UN Agency•• Frequently in response to an emergency the Frequently in response to an emergency the

WFP installs preWFP installs pre--fabricated buildings (Rubfabricated buildings (Rub-- halls) and provide UN agencies with free space halls) and provide UN agencies with free space of storageof storage

•• These buildings are not suitable for items These buildings are not suitable for items requiring cold chain!requiring cold chain!

•• Need of a MOU (Memorandum of Need of a MOU (Memorandum of Understanding) with the UN agency for the Understanding) with the UN agency for the specific warehouse operating proceduresspecific warehouse operating procedures

Warehouse provided by UN Agency (cont)Warehouse provided by UN Agency (cont)•• The specific operating procedures should The specific operating procedures should

specify the following :specify the following :–– Maximum area/volume required / availableMaximum area/volume required / available–– List of items accepted in the warehouseList of items accepted in the warehouse–– Who does whatWho does what

•• Loading, offloading trucksLoading, offloading trucks•• Quality & quantity control reportQuality & quantity control report•• Stock reportsStock reports

Warehouse provided by UN Agency (cont)Warehouse provided by UN Agency (cont)

–– The time limit for (if WFP is managing)The time limit for (if WFP is managing)•• Transmitting a preTransmitting a pre--shipment adviseshipment advise•• Establishing and transmitting the reports Establishing and transmitting the reports

–– Eventual costs recoveries for special servicesEventual costs recoveries for special services–– Duration of the MOUDuration of the MOU

–– The LO should have a close supervision on The LO should have a close supervision on all all warehouse activitieswarehouse activities

Renting a Private Commercial Warehouse Renting a Private Commercial Warehouse

•• Generally 2 options possibleGenerally 2 options possible–– Option 1. renting a determinate storage areaOption 1. renting a determinate storage area

•• Secure and easy to superviseSecure and easy to supervise•• The LO needs to know precisely the area/volume The LO needs to know precisely the area/volume

neededneeded

–– Option 2. Option 2. renting storage space on daily basisrenting storage space on daily basis•• Cheaper more cost realistic but more difficult to Cheaper more cost realistic but more difficult to

control and supervisecontrol and supervise•• PAHO/WHO supplies could be mixed with other PAHO/WHO supplies could be mixed with other

supplies and physical stock check difficultsupplies and physical stock check difficult

Renting a Private Comm. Warehouse (cont) Renting a Private Comm. Warehouse (cont) •• In collaboration with AO, LO should carry out In collaboration with AO, LO should carry out

field assessment of available commercial field assessment of available commercial storage facilities and include:storage facilities and include:–– Estimation of the storage area/volume Estimation of the storage area/volume

needed of anticipated shipmentsneeded of anticipated shipments–– Check if other UN agencies are using Check if other UN agencies are using

commercial storage facilitiescommercial storage facilities–– Ask for field assessment of private Ask for field assessment of private

warehousing and or storage contractwarehousing and or storage contract–– Check if customs clearing agent has storage Check if customs clearing agent has storage

facilitiesfacilities

Renting a Private Comm. Warehouse (cont)Renting a Private Comm. Warehouse (cont)•• Consider the location of each facilityConsider the location of each facility

–– Security, ask advice with UNDSS/RSS officerSecurity, ask advice with UNDSS/RSS officer–– Distance from port of entries, officeDistance from port of entries, office……–– Prices and type of insurancesPrices and type of insurances–– Truck accessibility, parking facilitiesTruck accessibility, parking facilities–– Availability of internet, telephone landlines,Availability of internet, telephone landlines,–– Availability of performance of a stock Availability of performance of a stock

management software (LSS)management software (LSS)–– Hygiene, ventilation, temperaturesHygiene, ventilation, temperatures–– Determine warehouse working hoursDetermine warehouse working hours

Rented WarehouseRented Warehouse•• Should be the last option!Should be the last option!•• Expensive and complexExpensive and complex•• Requires experience, knowledge and skilled staffRequires experience, knowledge and skilled staff•• Should be considered for operations expected to last for Should be considered for operations expected to last for

minimum 6 months and with anticipation of large minimum 6 months and with anticipation of large shipments of suppliesshipments of supplies

•• Once the decision to open and operate a PAHO/WHO Once the decision to open and operate a PAHO/WHO warehouse is confirmed and the funds are available the warehouse is confirmed and the funds are available the staff recruitment process shall beginstaff recruitment process shall begin

•• Interviews and selection jointly AO & LO Interviews and selection jointly AO & LO

Rented warehouse (cont)Rented warehouse (cont)•• In close collaboration with AO and Security, In close collaboration with AO and Security,

LO should carry out a field assessment by LO should carry out a field assessment by considering the following concerns:considering the following concerns:–– Warehouse location, distance from port of Warehouse location, distance from port of

entries, from officeentries, from office–– Condition of the warehouse facilitiesCondition of the warehouse facilities–– Large vehicles accessibilityLarge vehicles accessibility–– Hygiene, ventilation, temperature Hygiene, ventilation, temperature

Rented warehouse (cont)Rented warehouse (cont)–– Special attention of rodents and/or Special attention of rodents and/or

proliferation of insects which could proliferation of insects which could damage productsdamage products

–– Physical arrangements within the Physical arrangements within the facility and availability of equipment facility and availability of equipment andand furniturefurniture

–– Availability of telephone landlines and Availability of telephone landlines and internet connectivityinternet connectivity

–– Parking facilitiesParking facilities

Rented warehouse (cont)Rented warehouse (cont)•• Once facility has been agreed upon and a Once facility has been agreed upon and a

contract negotiated LO should take actions in contract negotiated LO should take actions in order to comply with following requirementsorder to comply with following requirements–– Requirements for improving/repairing the Requirements for improving/repairing the

buildingbuilding–– Prepare inventory of existing material and Prepare inventory of existing material and

equipmentequipment–– Special attention for procurement of pallets Special attention for procurement of pallets

for warehouse and transport for warehouse and transport

Rented warehouse (cont)Rented warehouse (cont)

–– Cost estimate to install and secure office equipment Cost estimate to install and secure office equipment such as computers, voltage regulators, UPS, such as computers, voltage regulators, UPS, ……))

–– Power supply back Power supply back ––up (generator)up (generator)–– Prepare inventory to identify material and record Prepare inventory to identify material and record

in LSS asset tracking systemin LSS asset tracking system–– Develop staff training and supervisionDevelop staff training and supervision

•• Store keeperStore keeper•• WorkersWorkers•• Security guards Security guards

Warehouse ManagementWarehouse Management•• Security guards 24h/7daysSecurity guards 24h/7days•• Space organizationSpace organization

–– Ideally 2 accessesIdeally 2 accesses•• Entry with Entry with ““offloading and control areaoffloading and control area””•• Exit with ready to ship areaExit with ready to ship area

–– These areas need truck accessibilityThese areas need truck accessibility•• Storage areas have to be divided in different Storage areas have to be divided in different

zones according to the type of goods zones according to the type of goods •• In emergencies PAHO would deal with :In emergencies PAHO would deal with :

Warehouse Management (cont)Warehouse Management (cont)

•• PharmaceuticalsPharmaceuticals•• Psychotropic drugs have to be stored in a Psychotropic drugs have to be stored in a

secured and locked areasecured and locked area•• Medical equipment and material Medical equipment and material (If Kits don(If Kits don’’t t

dismantle them)dismantle them)•• Non food itemsNon food items•• Food itemsFood items•• Fuel and cooking gasFuel and cooking gas

Warehouse Management (cont)Warehouse Management (cont)•• Pharmaceuticals require special storage Pharmaceuticals require special storage

temperaturestemperatures–– Room temperature 15Room temperature 15--3030°°C (59C (59--8686°°F)F)–– Fresh temperature 8Fresh temperature 8--1515°°C (46C (46--5959°°F)F)–– Positive Cold room 2Positive Cold room 2--88°°C (35C (35--4646°°F)F)–– Negative cold room below 0Negative cold room below 0°°C (32C (32°°F)F)

•• Some installation equipment should be installed Some installation equipment should be installed and foreseen in the cost estimate and the work plan and foreseen in the cost estimate and the work plan such as:such as:–– Fans, airFans, air--conditioners, fridges or cold rooms conditioners, fridges or cold rooms

(NEED OF POWER BACK UP!!! Generator) (NEED OF POWER BACK UP!!! Generator)

Warehouse Management (cont)Warehouse Management (cont)•• IF further emergencies are predictedIF further emergencies are predicted

–– Earthquake aftershocksEarthquake aftershocks–– Second hurricaneSecond hurricane–– Extension of a conflictExtension of a conflict–– Necessity to foresee an additional area for Necessity to foresee an additional area for

the EMERGENCY PREPARDNESSthe EMERGENCY PREPARDNESS•• This would allow the store manager to manage This would allow the store manager to manage

the warehouse according to the following 3 the warehouse according to the following 3 different stock categories (Strategic Stock, different stock categories (Strategic Stock, Security Stock, Emergency Stock)Security Stock, Emergency Stock)

Warehouse management (cont)Warehouse management (cont)

•• Strategic Stock Strategic Stock : quantities of items needed for : quantities of items needed for ongoing relief operationsongoing relief operations

•• Security StockSecurity Stock : minimum quantities of items : minimum quantities of items needed for ongoing relief operationsneeded for ongoing relief operations

•• In a Different area controlled by different LSS In a Different area controlled by different LSS we should have: we should have:

•• Emergency Stock Emergency Stock : minimum quantities of : minimum quantities of items needed for an additional predicted event items needed for an additional predicted event

Warehouse management (cont)Warehouse management (cont)•• Additional issues to take into consideration:Additional issues to take into consideration:

–– Need of secure office space inside warehouse Need of secure office space inside warehouse structurestructure

–– Communication means (VHF, Internet, Communication means (VHF, Internet, ……))–– Fire Extinguishers should be available in Fire Extinguishers should be available in

every rooms and clearly marked and easy to every rooms and clearly marked and easy to accessaccess

–– In the fuel store need buckets with sandIn the fuel store need buckets with sand

THANK YOUTHANK YOU