-Aung Kyaw Moe / Task 3 Warehouse and Inventory

Memo To: From: Date: RE: Francois Damba Aung Kyaw Moe
28 May 2013

TASK 3 WAREHOUSE AND INVENTORY

The flow of product through the warehouse and ensuring better control of deliveries coming into the new warehouse
After we have designed the warehouse and thought about how it will operate we need to consider issues around managing operations. In order to ensure the better control of deliveries coming into our new warehouse, we need to do the following steps and components of warehouse receiving and delivery management. (1) Planning the workload Although we cannot see the future, planning of incoming and outgoing supplies in the warehouse is so important. In this case, we have to refer to our past experiences of the flow of supplies. In an emergency situation, the flow of goods and supplies are unpredictable and fluid so planning is more challenging for that sort of situation. Planning of the workloads should be on a day-to-day basis to enable the correct allocation of resources to be identified and allocated to the required tasks. Planning activities includes the following aspects of identifying workload and quantity of the goods. Identify the inbound workload We have to plan ahead the volumes to be received, by individual item, based on a day-by-day basis so that the incoming workload can be planned. Some information about these inbound workload can be received before the actual cargo coming in, but sometimes the cargo can come with only a short notice because of urgent needs or lack of proper communication. Some goods are urgently needed by the program and we have to separate these goods, not put into the normal bulk of storage and make them to be available for immediate dispatch. Identify the storage requirement Fundamentally speaking, the warehouse management is the space management. We have to identify the requirements for stock location before the stock arrives, in which case preallocated space is available for them. If we have information about the type, size of packing and other necessary instructions, we can choose the appropriate handling equipment and allocations of warehouse space. Based on the identified product handling groups, we can put the goods into the respective storage areas. In this regards, the supplies which are intended for fast moving may be grouped together and they need to have allocated space close to the dispatch area to speed up stock retrieval. If the particular supplies need to be stored within the range of specific temperature, we need to prepare the cold storage for these items.

Identify the outbound workload Sometimes, we may face the problem of urgent requirement and indents from the field and we have to response these needs very fast. In this regard, we have to plan the picking and packing operations to ensure that consignments are available for issue in time to meet the transport delivery requirements. Identify the Picking Quantities In order to have the correct allocation of resources to the task we have to identify the exact quantities to be picked. After one picking method has been defined, the quantities to be picked by each picking method need to be determined and accordingly the appropriate resources can be allocated to the task. Identify the Bulk Picking Quantities We can use Bulk Picking Method if the items that are not be required breakdown but be picked in quantities and transported in bulk quantities. We can consolidate the consignments into bulk quantities for picking and moving to the pick area before detailed picking by individual items. The information about The total volumes of bulk pick items is also important. Identify the Packing Quantities Packing follows Picking and there may be a need to pack individual items that make up a consignment to create a single transportable container. In that case, the quantities for each method of packing need to be identified, so that we can allocate the proper resources to do the task. Picking and Packing Schedule We have to schedules of what is to be picked and packed, at what time, and in which order are created to facilitate efficient operations since Picking and packing are frequently the most time consuming and labor intensive operations in a warehouse. The order and timing of the pick and pack schedules is linked with the transport loading schedule. Allocating resources Determination of the resource requirements We can use the past records of the work loads in the key warehouse activity areas to calculate the resource requirements in the future. The key activity area for our new warehouse are as below: Goods receipt units unloaded & received per hour. Put away units moved to bulk storage per hour. Picking units picked per hour. Goods dispatch units loaded and dispatched per hour. We can calculate the resource requirements by dividing the amount of work to be done in the required time by the work rate for the relevant work cycle. Allocation of the resource requirements Although our warehouse has permanent staff and own handling equipment, in the emergency time we may need to hire temporary staff and hired equipment to handle the goods and supplies that have a large variability in the volume. Temporary staff tend be used for manual operations. The type of equipment most often hired is handling equipment e.g. fork lift trucks. Allocation of our own resources When the resource requirements have been calculated, the next step we have to do is to allocate the specific people and equipment to the individual tasks.

The following Resources allocations are main functions to be included: Mechanical handling equipment (such as forklift trucks, hand pallet transporters and picking trucks), packing and palletizing equipment, operatives for manning the equipment, operatives for manual tasks and the warehouse space for tasks that do not have a pre-allocated space, for example the break down of pallets and re-palletization. Arranging Hire/Contracted Labor Although we may have own staff and equipment, we need to hire the additional people during peak workload periods. These labor forces can be utilized for the additional tasks other than the normal routine works in the warehouse. Since we cannot fully expect all our staff to be healthy and working for all time, we need to arrange additional personnel when absence through sickness is above the planned estimated levels. Without providing sufficient staff in all levels, we will not be able to run the warehouse properly and efficiently. As a necessity, we may need to get a body of hired labors when our permanent staff is not enough to operate the warehouse functions. These hired labors may not have proper training and specific knowledge of the warehouse operation, so we need to do a short induction into the tasks and operation will be required so that they can be effective. There are both advantages ad disadvantages of using hired labors. We may face more difficulty to control the hired labor and we may also need to establish the trustworthiness of the intermediary. Sometimes, we have to spend more for the middle men who can organize the hired labor. But it is easier to manage the hired labor and faster to acquire such kind of labor. Receiving goods Warehouse operations are started with the receiving of the incoming supplies. We have to plan ahead what will come to our warehouse and how we are going to receive them and check them. To avoid any kind of mistake, we have to check details of delivery before we start to unload the vehicles. We have to check the following important points: The correctness of the location of delivery Appropriate/ pre-determined Time of delivery The correctness of the relevant paper works The outturn situation of the delivery (Check the status of packing) The requirements for repacking and palletization after unloading. During the emergency time, there may be unexpected and unscheduled cargo come, therefore we must prepare a process in place for handling both scheduled and unscheduled receipts. In this regards, we need to identify the reasons for the occurrence and make a record and a decision made on how to handle the receipt. Only when the receipt has been checked and agreed, the vehicle is called forward for unloading. Unloading of vehicles After checking all these relevant documents and procedures showing that the arriving cargo has no problem and no discrepancies, we should start to unload the trucks without delays. By receiving rapidly and efficiently, we can avoid the Congestion in the receipts area that can cause difficulties in the efficient flow through the warehouse. If the goods are received in loose form, it must be decided whether they need to be palletized. In an emergency situation, there might be urgent needs of supplies from the field offices and we have to send them as soon as possible skipping the storage time and procedures. In that case, we have to do an activity called cross-docking. In order to maintain the correct recording of stock, we need to set up an appropriate management system that can handle the cross-docking process.

Moving stock to receipt area

Usually the suppliers send packed goods that are ready for storage which do not need any quality control test. That kind of cargo can be directly stored to their designated locations. But we need an area called receipt area in which we can receive unpacked and loose supplies. Storing goods One of the most important issues in the warehouse management is the rapid and accurate movement of goods into their allocated storage locations because unmoved Stock can cause congestion in a high throughput facility. Stock misplaced into the wrong location can result in it being unavailable when required. IDENTIFY REQUIRED STOCK LOCATION The warehouse management system can be used to allocate the proper location of stock, or manually. The product handling group will usually identify the area of the warehouse into which a particular item is to be placed. The following factors must be considered for finding the specific location in warehouse: Space available. Distance to the empty locations. Number of goods to be stored. Frequency of demand. Picking methods that will be used to retrieve the goods. When the correct locations are properly identified, it is easy for maintaining a good flow through the warehouse operation. We have to decide to split the warehouse into zones. Different zones contain goods with different characteristics, such as medicines and kitchen sets. They might also contain goods stored in different sized locations. The zones are then split into locations. MOVE STOCK TO LOCATION After locations have been allocated, we have to manage to move the stock into them quickly, to prevent backlogs causing delays to the system. To prevent them being "lost" in the system, it is so important to place goods into the correct locations. To this end, it is advisable to confirm the actual location used by adding this information to the stock record system. NOTIFY INVENTORY/STOCK CONTROL The inventory management or stock control department need to be informed of the final putto-stock situation after the stock has been put into location, and the location confirmed. This recording of stock data may be part of a computer system, or could be through the creation of manual documents. Stock should not be available for allocation to consignments until notification has been given that the stock is in location. Assembling consignments In order to dispatch the consignments, we have to start with the picking of consignments. Picking needs to be accurate and swift if the lead times stated by the organisation are to be met. If the items are not stored in a condition that allows them to be moved without damage we need to do a proper Packing of these consignments. Sometimes it is possible that a consignment consists of more than one item that needs to be delivered together. In that case, Packing may also be necessary. Key steps of assembling consignments are as follows: (1) Receive pick lists There are two forms of receiving Pick lists either through a computer order processing system, or manually. Computer generated lists will usually be consolidated by beneficiaries, locations or part numbers, depending on the techniques used for the picking process. Manual lists may simply consist of a copy of the authorized list of items to be picked.

(2) Pick items The aim of picking is to select items from stock and collate them together according to the consignment requirements. The general principle used in picking is to minimize the time taken in traveling by the order picker. (3) Pack consignments Consignments may require packing in order to allow convenient handling and to protect them during transit until they reach beneficiaries. The appropriate type of protective packaging to use depends on the products themselves and the method by which they are being moved. The following points should be considered in packing consignments: The nature of the goods, e.g. sensitivity to heat, light, moisture and vibration/shocks. The transport mode to be used and the handling methods. The environment that the goods will be exposed to, e.g. temperature, moisture, dust. The size and weight of the package to allow easy handling e.g. no more than 50kg per unit. The extent to which the package will be dropped or thrown during handling. Packages should be clearly marked or labeled with the following information: Reference number of the consignment. A list of the contents and quantities. Destination. Weight. Any special handling requirements e.g. fragile or this way up. Dangerous goods markings, if applicable. Dispatching consignments All Consignments that need to be dispatched in a sequence must be in accord with the transport load plan. Consignments should be available when they are required, if they can cause a logjam in the warehouse flow. Consolidating consignments The transport load plan will specify the consignments that are to be loaded onto the same vehicle. The plan will also specify the sequence of loading and the time requirements. Consignments, which have been picked, should be consolidated to form vehicle loads in accordance with the plan. Locating consignments for loading Vehicles sitting waiting (whilst consignments are being picked) are an inefficient way of managing the loading of consignments. It is common for consignments to be consolidated into loads in an identified area of the warehouse. Each load is given a specified area and consignments for that load are placed there. When the load is complete, and the vehicle ready, the consignments are loaded onto the vehicle in the sequence determined by the transport load plan. Disposal of Goods In order to prevent stocks expiring, becoming obsolete or being damaged in the warehouse we need to practice careful handling of goods in stock and proactive stock rotation. Information on stocks with expiry dates must be closely monitored. If the expiry date is short this information should be shared within the organisation and even outside, so that: Items in stock can be transferred to another operation. Items can be loaned or donated (with adherence to organisation procedures). Items can be sold (with adherence to organisation procedures).

Sometimes, if we find unusable/expired goods, it will be necessary to dispose of stock. We have to arrange the disposal of the goods as soon as possible. Spoiled or damaged goods have to be separated from usable supplies to avoid further damage. The disposal of goods requires: Strict compliance with organisation procedures. Discrete conducting of the disposal process. Recording of the destruction actions. Disposal of Medical Products If we have to dispose of Medical products, we have to arrange to take place in compliance with the national legislation and in a manner that does not risk public health. The best way to dispose of expired drugs is using High temperature incineration. It is particularly important to dispose safely of used syringes and needles so that they are not reused or found by children. Contaminated needles can transmit infections such as hepatitis and HIV. Disposal of Foodstuff The expired foodstuffs which are not fit anymore for human consumption, it may be recycled into animal food. If they cannot edible even to animals, the best way to dispose of food is to bury it in the ground ensuring that neither people nor animals will dig it up. This destruction should take place in accordance with the prevailing regulations of local authorities. Disposal of Other Products Items such as blankets, tarpaulins, damaged pallets are the easiest items to recycle. So, before destroying such products, look at the possibility of recycling. If destruction is the only solution, the best way is to burn them. opyright 2006 Fritz Institute. All Rights Reserved.

How to Modify Planned Activity at short notice to cope with Contingencies and their causes
Emergency situations are extremely fluid conditions and we cannot be sure about our planned activities. Anything can happen and a certain unexpected problem can come into being suddenly. There might be so many major causes that can generate contingencies and need radical modifications of our initial plans. Please lets see the following scenarios in which we can not foresee the contingencies Unexpected Chartered planes coming simultaneously and we need to arrange the transportation of cargo and spaces for storage A disease outbreak suddenly happens in the refugee camps and we need urgent medical supplies and hospital equipment to send to the field Aftermath of cyclone, there is another small-scale storm coming to hit the land and we need to send the urgent humanitarian relief supplies

We have not enough time to prepare to manage our warehouse operations because of the short notice of these thing happenings. Defining control requirements Even though we are in the emergency situation, the warehouse operations should be planned and managed in such a way as to maintain control of the flow of goods and materials from the point of receipt to the point of dispatch. We need to set up a system of documentations (including such documents as stock card, bin card, store receipt voucher, dispatch request/release order, Delivery waybill, etc..) to be linked up with the operational controls which facilitate the control and act as a record of the activities and the flow of goods through the operation. Since it is IT age now, we can utilize computer generated Information system but sometimes paper based documentation also reliable and useful.

The main points of control requirements for the main operating areas can be listed as follows: (1) Goods receipt Receiving goods is the entry point of warehouse operation management and we need to be careful about too much getting messy at that part. In this regard, the most important issue is getting pre-advice information about the incoming supplies. The suppliers must book/inform the delivery of their supplies to the warehouse management team in order to have schedule for goods receipt. The schedule information will include arrival time, items and quantities and the type of load (i.e. palletized or needing palletizing). From our warehouse side, we need to be ready to issue warehouse receipt vouchers to interface with the purchase orders and inventory system. All items and quantity mentioned on purchase order, waybills, and packing list should be matched precisely. Getting pre-advice of volume and weight of cargo can help warehouse management to find appropriate space and estimated requirement of the labor hours for unloading the supplies from the vehicles and putting them into storage. Based on the past knowledge of incoming supplies, we can manage very attentively about the schedule that can manage well for peaks and troughs of the flow of supplies. (2) Bulk storage In an emergency situation, the international community tries to push humanitarian relief supplies into the affected area urgently, mainly utilizes airfreights, and the flow of cargo is so fast at that time. The greatest challenge for a humanitarian organization is to give warehouse space for storage of the urgently incoming supplies. In this regards we have to facilitate prompt put away of incoming stock and identify opportunities to move product direct to the picking locations or using cross-docking method to send the arriving cargo directly to the field. Linked up with the other logistics staffs that are taking care of receiving cargos at airports and seaports, we have to arrange labors, machinery and storage space. Since incoming cargos are various and complex in nature we need to establish a system to find the stock when it is needed for pick face replenishment or dispatch and this inventory system must assist in the detection, tracing and reconciliation of errors, which might occur. Sometimes, products are stored in mixture, so the system should hold product and unit load information to enable to avoid the supplies crushing through block stacking. Some supplies are very heavy so we need to select carefully about the correct slot heights to optimize space utilization and follow the quality control requirements. If there are some items which are temperature sensitive (like vaccines and medical test kits) and flammable, we have to do proper arrangement to store these special items. Data entry and management software like MS Access should be utilized for allocation of warehouse space and give accessibility at the time of retrieving the supplies. (3) Picking and load assembly Managing picking and loading is the essential part of warehouse system in which we must include picking locations as well as the bulk storage locations and should control transfers between locations very carefully. Emergency situations sometimes creates messy about incoming supplies and out-going cargos at the same time but well-established warehouse management system can cope with consignment requirements and translate the information into pick lists. In order to minimize travel time and at the same time maximize the volume of supplies to be picked on each picking run the pick lists should be sequenced conveniently to proceed. Getting information on the volume of orders to be picked with pre-notices can help the warehouse management to arrange the required labor and mechanical equipment. (4) Goods dispatch

The final part of our warehouse management process is the part of Goods dispatching. In an emergency situation, we need to fix Load Planning Schedules in order to define the number, size and type of vehicle we are going to rent for the transportation of consignments to the field. One of the difficult parts of the process is to arrange loading supplies on the trucks within the shortest period of time in order to ensure vehicles to leave at planned time to meet the requirements demanded by the programs. If we can manage the schedule, it can harmonize peaks and troughs in the goods dispatch operation. Ensuring better control of deliveries coming into the new warehouse In emergency situations like cyclone or earthquake, it is difficult to control on the deliveries at the moment which affects all our warehouse operations. In this regard, we have to be well prepared with a contingency plan to change our schedule. All these potential problems and difficulties can be overcome if we address the key players and establish a good relationship and a mutual understanding with them. We have to coordinate with and get help with other international humanitarian organizations and UN bodies in terms of sharing suppliers and transporter information. The next most people involved with are the suppliers both local and international. We cannot receive and distribute without their timely deliveries. Because of low capacity in technical knowledge and management skill, shortage of raw material and /or general security conditions of the country, these suppliers may fail or delay to deliver the acquired cargos. Best Regards, Aung Kyaw Moe Logistics Officer Sub-Office (SCILaid Betaland)