Warehouse Management

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1 Warehouse Management

2 Opening and Organizing a Warehouse Different possibilities to get Warehouses Provided by National Authorities Provided by a UN agency Renting space in Private Commercial Warehouse Rented Warehouse

3 Warehouse provided by Authorities Actions to be taken by Logistics Officer (LO) Inventory of the furniture s s availability such as shelves, racks, pallets,tables ) Assess the staffing requirements and if necessary coordinate with the Admin Officer (AO) for temporary additional staff Organize the space into clear and distinct storage areas and transit zones Receiving and sending zones

4 Warehouse provided by Authorities (cont) A closed and secure area for controlled substances could be necessary Secure the PAHO/WHO designated space and organize the management of the keys (buy new lockers!!!) If required train staff on specific PAHO/WHO medical stock management and documentation requirements (air-waybills, stock-cards, cards, ) Organize with AO daily workers hiring, schedule.

5 Warehouse provided by UN Agency Frequently in response to an emergency the WFP installs pre-fabricated buildings (Rub- halls) and provide UN agencies with free space of storage These buildings are not suitable for items requiring cold chain! Need of a MOU (Memorandum of Understanding) with the UN agency for the specific warehouse operating procedures

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8 Warehouse provided by UN Agency (cont) The specific operating procedures should specify the following : Maximum area/volume required / available List of items accepted in the warehouse Who does what Loading, offloading trucks Quality & quantity control report Stock reports

9 Warehouse provided by UN Agency (cont) The time limit for (if WFP is managing) Transmitting a pre-shipment advise Establishing and transmitting the reports Eventual costs recoveries for special services Duration of the MOU The LO should have a close supervision on all warehouse activities

10 Renting a Private Commercial Warehouse Generally 2 options possible Option 1. renting a determinate storage area Secure and easy to supervise The LO needs to know precisely the area/volume needed Option 2. renting storage space on daily basis Cheaper more cost realistic but more difficult to control and supervise PAHO/WHO supplies could be mixed with other supplies and physical stock check difficult

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12 Renting a Private Comm. Warehouse (cont) In collaboration with AO, LO should carry out field assessment of available commercial storage facilities and include: Estimation of the storage area/volume needed of anticipated shipments Check if other UN agencies are using commercial storage facilities Ask for field assessment of private warehousing and or storage contract Check if customs clearing agent has storage facilities

13 Renting a Private Comm. Warehouse (cont) Consider the location of each facility Security, ask advice with UNDSS/RSS officer Distance from port of entries, office Prices and type of insurances Truck accessibility, parking facilities Availability of internet, telephone landlines, Availability of performance of a stock management software (LSS) Hygiene, ventilation, temperatures Determine warehouse working hours

14 Rented Warehouse Should be the last option! Expensive and complex Requires experience, knowledge and skilled staff Should be considered for operations expected to last for minimum 6 months and with anticipation of large shipments of supplies Once the decision to open and operate a PAHO/WHO warehouse is confirmed and the funds are available the staff recruitment process shall begin Interviews and selection jointly AO & LO

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16 Rented warehouse (cont) In close collaboration with AO and Security, LO should carry out a field assessment by considering the following concerns: Warehouse location, distance from port of entries, from office Condition of the warehouse facilities Large vehicles accessibility Hygiene, ventilation, temperature

17 Rented warehouse (cont) Special attention of rodents and/or proliferation of insects which could damage products Physical arrangements within the facility and availability of equipment and furniture Availability of telephone landlines and internet connectivity Parking facilities

18 Rented warehouse (cont) Once facility has been agreed upon and a contract negotiated LO should take actions in order to comply with following requirements Requirements for improving/repairing the building Prepare inventory of existing material and equipment Special attention for procurement of pallets for warehouse and transport

19 Rented warehouse (cont) Cost estimate to install and secure office equipment such as computers, voltage regulators, UPS, ) Power supply back up (generator) Prepare inventory to identify material and record in LSS asset tracking system Develop staff training and supervision Store keeper Workers Security guards

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27 Warehouse Management Security guards 24h/7days Space organization Ideally 2 accesses Entry with offloading and control area Exit with ready to ship area These areas need truck accessibility Storage areas have to be divided in different zones according to the type of goods In emergencies PAHO would deal with :

28 Warehouse Management (cont) Pharmaceuticals Psychotropic drugs have to be stored in a secured and locked area Medical equipment and material (If Kits don t dismantle them) Non food items Food items Fuel and cooking gas

29 Warehouse Management (cont) Pharmaceuticals require special storage temperatures Room temperature C C ( F) Fresh temperature C C ( F) Positive Cold room 2-8 C 2 C ( F) Negative cold room below 0 C 0 C (32 F) Some installation equipment should be installed and foreseen in the cost estimate and the work plan such as: Fans, air-conditioners, fridges or cold rooms (NEED OF POWER BACK UP!!! Generator)

30 Warehouse Management (cont) IF further emergencies are predicted Earthquake aftershocks Second hurricane Extension of a conflict Necessity to foresee an additional area for the EMERGENCY PREPARDNESS This would allow the store manager to manage the warehouse according to the following 3 different stock categories (Strategic Stock, Security Stock, Emergency Stock)

31 Warehouse management (cont) Strategic Stock : quantities of items needed for ongoing relief operations Security Stock : minimum quantities of items needed for ongoing relief operations In a Different area controlled by different LSS we should have: Emergency Stock : minimum quantities of items needed for an additional predicted event

32 Warehouse management (cont) Additional issues to take into consideration: Need of secure office space inside warehouse structure Communication means (VHF, Internet, ) Fire Extinguishers should be available in every rooms and clearly marked and easy to access In the fuel store need buckets with sand

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36 THANK YOU

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