Warehousing & Storage Checklist

Control Features (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) To ensure that sufficient storage space is available and the layout of storage facilities is suitable to meet the operational requirements of the organization. To ensure that goods are effectively stored in order to provide an efficient service to customers and internal users. To ensure that materials, goods and products are adequately and securely stored in order to facilitate their prompt identification and dispatch. To ensure that the optimum warehouse locations are utilised to maximise the efficiency of distribution to customers, etc. To ensure that all goods are adequately protected from damage, deterioration and loss, in order that they remain in optimum condition for use. To ensure that all stock movements are valid, authorised and properly executed. To ensure that goods are stored safely. To ensure that staff are appropriately trained in the handling of goods in order to avoid damage to the goods and injury to staff. To provide adequate and serviceable materials handling devices as an aid to efficiency and cost effectiveness. To ensure that hazardous items are safely stored. To ensure that all relevant regulations and legislation are complied with. To ensure that stocks are used in rotation. To ensure that adequate and relevant insurance cover is provided for both the stocks and storage facilities.

Risk & Control Issues 1 Key Issues 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 How are management aware of the current and future storage capacity requirements, and what is the evidence of effective planning to the meet the identified demands? How does management decide where to locate warehouses, and is adequate account taken of the relevant logistical, transport and customer service considerations? Are the storage locations (i.e. bins or bays) adequately identified to enable the prompt location of stock units? Are storage facilities adequate to protect goods from damage or deterioration? How can management be assured that all stocks are adequately protected from theft and pilferage? What measures are in place to prevent unauthorised access to the storage areas? How can management be certain that all movements of stock are valid, authorised and correctly executed? Are goods (especially hazardous materials) stored safely and in accordance with established regulations and good practice, and how can management be assured that this is the case? Are staff adequately trained in the various materials handling techniques, and how can management confirm this?

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Is the efficiency of the storage facility enhanced with the use of appropriate handling devices (trolleys, pallets, forklift trucks, cranes, etc.) and how can management be assured that all such devices are serviceable and contributing the overall cost effectiveness of the operation? How can management be sure that all the relevant regulations and legislation are being complied with? What mechanisms ensure that adequate, up-to-date and relevant insurance cover is in place for both the stocks and the storage facilities?

2 Detailed Issues 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 Is space allocated in order to cope with peak loads rather than normal or minimum requirements? Have management provided some spare storage capacity as a contingency to cater for expansion, etc. (and how was this accurately determined)? Is space usage monitored and action taken to avoid wasted or excess space? Are raw materials, goods and finished goods appropriately segregated? How does management avoid excess storage space and aim to contain the costs of providing storage facilities? Are fast moving items accurately identified and conveniently located for efficient handling? Are items adequately trailed to all the relevant storage locations? Are stocks used in rotation (as appropriate) in order to avoid the build up of older or outdated items? Is there sufficient space between storage locations to enable effective and safe access, the use of handling equipment, and the safe evacuation of the building in case of emergency? How can management be assured that production and sales requirements are promptly and accurately advised to the warehouse? Have specific responsibilities for the warehouse operation been allocated (and does this include maintaining an awareness of current materials handling trends and relevant regulations)? How can management be assured that packaging, storage and handling techniques are adequate to protect the goods from damage and deterioration? Are damaged items promptly identified and appropriate action taken (and how is this evidenced)? Are the appropriate environmental conditions (i.e. air conditioning, humidity, and temperature) provided and maintained at the required level? Are storage areas well lit for safely and security purposes? What physical and other security measures are in place to protect goods and personnel, and are they regularly tested for effectiveness? Are adequate and operational intruder alarms systems installed and regularly tested? Are adequate and operational fire prevention, protection, and containment facilities provided, and are they regularly tested and maintained? Would the fire containment systems (i.e.. sprinklers, foam inlets, etc.) cause significant damage to stocks? What measures prevent staff pilferage of stock items? Are adequate staff provided to meet the operational demands of the organisation, and how does management determine and maintain the staffing requirements? Are staff aware of the required and safe handling techniques and how is this

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confirmed? Have management provided adequate and suitable protective equipment and clothing for staff, and how is its use confirmed? How can management be sure that goods are stacked and stored safely? Are sufficient and adequate facilities provided for moving heavy items, and are staff aware of the correct use of such facilities? Are delicate items adequately protected during storage and when being moved? How is the accuracy of data input from other systems (i.e. Stock control or Sales order processing) confirmed? How is data output to other systems (i.e. Distribution) confirmed?