The global warehousing concept has gained popularity over the last decade as stock pre-positioning becomes one of the strategies for ensuring a timely response to emergencies. They are usually purpose built or purpose designed facilities operated by permanent staff that has been trained in all the skills necessary to run an efficient facility or utilising 3PL staff and facilities. For such operations, organisations use, information systems that are computer based, with sophisticated software to help in the planning and management of the warehouse. The operating situation is relatively stable and management attention is focused on the efficient and cost effective running of the warehouse operation. Numerous organizations have centralized pre-positioning units strategically located globally. Some of these offer extended services to other humanitarian organizations on a cost plus operating charges basis. The United Nations Humanitarian Response Depot (UNHRD) Network.
They are usually temporary in nature. They may be housed in a building which was not designed to be used as a warehouse or in a temporary building/structure, in mobile units such as rub halls, Wiikhalls and sometimes are little more than a tent in a field. The initial staff may be a casual workforce that has never worked in a warehouse before and the inventory system is more likely to be paper based. Often the situation is initially chaotic, sometimes dangerous coupled with a humanitarian need which may be very urgent. The management style must therefore be practical and action oriented with a focus on making the humanitarian goods available as quickly and efficiently as possible, but yet at the same time accountable.
The policies contain hard and fast rules and regulations that define the general conduct of the warehouse operation. Examples of the types of policies that organisations will define are as follows:
- organisational specific warehouse management policy and procedures guideline outline
- health and safety
- human resources management
- pest control
- warehouse maintenance and cleaning
- quality control
- record keeping and reporting
- reverse logistics – Return of goods and exit strategy in the event of downscaling or shutting down operations
- disposal of obsolete and damaged goods.
- receiving and issuing of supplies;
- quality control or verification;
- storage of goods;
- how to control stock movement (stock control);
- documentation flow;
- how to detect and deal with stock losses;
- how rejected material will be managed; and
- how to deal with unwanted material, obsolete and scrap, disposal.
See also a Warehouse Rental Contract sample.
Types of Warehouse Space
- Commercial: in rented building used for business.
- Government or state: such as at the ports or harbours. This is common in emergency situations.
- Transit: for temporary storage of goods destined for different locations and need storage for a very short time.
- Bonded warehouses: for storage of goods whose duty is unpaid and especially where the goods are destined to another country. Pre-positioned stock is often held in bonded warehouses so that export is quick and can be stored for long periods sometime.
- Open storage: not ideal for perishable products but in emergencies, sometimes the only alternative.
- Space that is owned and managed by the organisation.
- Pre-fabricated warehouses where there are no permanent structures available. This is common practice in emergencies.
- Planning inbound receipt procedures.
- Storage formalities e.g:
- location management
- inventory control
- occupational health and safety
- Outbound delivery procedures.
How to Select and Set-Up a Warehouse
- allocate space for each type of product and locating number;
- allow sufficient space for easy access to the stacks for inspecting, loading and unloading. Stacks should be one meter from the walls and another meter between stacks;
- sizing the goods receipt and despatch area;
- allow space for storage of cleaning materials and supplies;
- allocate areas for damaged items by consignment number;
- allow sufficient space to repackage damaged items and place it in separate stacks;
- sufficient free space is needed to operate a warehouse effectively. When planning the size of a warehouse consider:
- planning on having about 70-80% utilisation of available space, whilst considering:
- throughput rate
- number of sku’s
- handling characteristics of items, etc.
- See Stacking guide in the Annexes.
Special storage needs
Some relief items require special attention in terms of the type and security of the storage area. For example:
- Medical supplies and drug shipments can contain a large number of small, highly-valued and, often, restricted items, many with a limited shelf-life. Thus, a secure area is required, as well as judicious attention to expiry dates.
- Hazardous products such as fuels, compressed gases, insecticides, alcohol, ether and other flammable, toxic or corrosive substances must be stored separately, preferably in a cool, secure shed in the compound but outside the main warehouse.
- Antibiotics and vaccines may require temperature-controlled cold storage arrangements, with sufficient capacity and a reliable, as well as a back-up, power source.
- With combustible items, such as alcohol and ether, specific attention is required when storing and handling. Inventory management techniques need to be implemented to prevent wasteful surpluses and to ensure proper stock rotation to avoid costly losses due to expired goods. Procedures for controlling, preserving and releasing medical supplies and drugs should be established in consultation with the medical experts.
Space utilisation and handling
Diagram 1: Space utilisation
- planning the workload
- allocating resources
- space utilization & handling, (see the diagram above):
- receiving goods;
- storing goods.
- assembling consignments
- despatching consignments
- disposal of goods
- pest control
- inventory management
- handling and stacking techniques
- occupational health and safety
- establish levels of operating stocks based on consumption/rate of usage. The stock levels shall be reviewed from time to time depending on current needs. (See “Inventory control above);
- ensure that weekly and monthly stock balances reports of each stock item and the total value are prepared;
- maintain monthly stock usage report of each item kept in the store and the overall in the usage trend in last six months;
- review and report on six monthly basis slow moving items indicating the last movement date the unit value and total value and liaise with user department;
- establish quantity, lead -time and availability of each item supplied on the market;
- keep a record of all non- stock items received from suppliers, returned to suppliers and issued out to users.
Monitoring Goods in Transit
To facilitate and account for movement of stocks the following documents could be used:
- delivery notes or waybill samples 1 and 2 or packing list samples 1 and 2;
- goods received notes, see several samples 1, 2, 3, and 4;
- stock card;
- bin card; and
- consignment notes.
See in the Annexes the warehouse flow chart.
Stock Records - Documentation
- stock identification
- stack cards, see samples 1 and 2
- bin cards
- stock Checks: see inventory section for different samples or in the Annexes
- stock loss reporting
- reporting of stock levels.