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Aung Kyaw Moe / Task 6 Warehouse and Inventory

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

TASK 6 WAREHOUSE AND INVENTORY

We found that the warehouse management system in Chagong warehouse needs some major improvement and the meetings with Regional Logistics Officer as well as The Logistics Coordinator highlighted that issue very succinctly. We have to establish a good and regular reporting system in place for stocks and transportation. To meet the urgent deadline, we have to reconsider about the workloads and methods need to be redefined in a proper way. Handover report indicates that all areas of warehouse management, good receiving, storage, picking and dispatch have to be modified significantly. Receiving Goods According to the handover note and the transport schedule the dispatches from the main warehouse are carried out almost every second day. The receiving volumes vary from day to day. We receive 40 MT per day for Day 1, Day 3 and Day 5, but on Day 8, Day 10 and Day 12 the inbound goods increase to 140 MT per day. In that case, we have to manage to offload the cargo in a timely manner and utilization of trucks between Mugla and Chagong by calculating that a round trip from Mugla to Chagong takes about two days. Since we have decided to rely upon the manual labour, we have to ensure that enough level of labour strength is available as per the transportation schedule. We have to discuss with our labour contractor and share our information about date/time and volume of incoming cargo. I order to do this, we have to have good communication link with the Mugla Warehouse about the information about the incoming cargo. If there are some discrepancies between information and actual receiving, we must inform and report to Mugla warehouse manager. Information needed for Goods receipt Booking and information about cargo delivery from Mugla The arrival time, items and quantities and the type of load (i.e. palletized or needing palletizing). Delivery Notes, waybills, invoice and purchase order to cross-check with goods Records of cargo movement and bulk storage Estimation of the labor hours to be calculated in order to determine the resource required to unload and put away to storage. Times of peaks and troughs in the goods receipt operation

Storage If we double the 15 days transport schedule, we expect to receive approximately 1080 MT per month coming from Mugla Warehouse. Since Chagong warehouse is only a temporary one, we do not store food for longer duration just kept temporarily before it is transported for distribution in the camps at the Betaland border. The major information we need for the good management of storage are as follows: Information needed for storage Type and volume of cargo to quickly put away of incoming stock. Getting information about distribution plan for cross-docking and direct distribution Find the stock when it is needed for pick face replenishment or dispatch. Information and records about the aging of stock in order to correctly rotate stock. The avoidance of crushing through block stacking. Information about some cargo that have quality control requirements. The identification of goods requiring special storage arrangements, e.g. flammables, temperature-sensitive products etc. Records of allotted space in order to maximize utilization of storage space and to provide for rapid and efficient retrieval. Managing activity in the bulk storage area so as to minimize travel time for labour and equipment. Utilize Volume data and resource hours and calculate performance of resources. Picking Before sending to the camps we have to consolidate food baskets that include wheat flour, vegetable oil, sugar and salt. In order to do that, all kinds of food items have to be segregated into bulks that need to be packed in food baskets by consolidating the ingredient items. The picking area designated for this purpose will be used for packing on regular basis to meet the target of our dispatch schedule to each camp without delay. It is the duty of warehouse assistant to make a list of items to pick up and manage packing according to the order. Since Chagong warehouse uses a simple manual management system, all the ingredients of our food baskets must be painted on board and hanged on the wall to be seen by the packers. Packing time required for each packing must be closely monitor and the warehouse assistant should supervise the workers for not making any mistakes in packing. We have to put a sheet of paper mentioned the ingredient name and weight and the name of the destination camps. The packing for each camp should be stacked in the separate location in accordance with the distribution plan. Information needed for Picking and load assembly The exact location of items in the warehouse shown by the stock location system The detail list of each consignment requirements and translate the information into pick lists. Sequence of items to be packed in order to minimize travel time whilst maximizing the volume picked on each picking run. The type of goods to differentiate and control differing types of picking method, i.e. consignment, line and zone picking.

Information on the volume of orders to be picked for planning of manual labours and required tools of packing Volume data and resource hours are required to allow utilization and performance of Consolidation of orders into loads should be controlled. The dispatch schedules to coordinate with the goods dispatch to ensure correct loading.

Dispatching Goods According to the transport schedule, we have two 15 days shifts of transportation between Mugla, Chagong and camps, 540 MT from Mugla to Chagong, 110 MT to Bagor, 120 MT to Nator and 330 MT to Parna for every 15 days. We dispatch either 80 MT or 100 MT per day from Chagong to the camps. Based on the dispatch request sent from the camps duly signed by program officers there, we have to send the required amount to these camps. The important things are to arrange the required labour force and equipment to pick and load the supplies within the stipulated time frame. Information needed for Goods dispatch Pre-alert information about outbound supplies in order to define the number, size and type of vehicles required to deliver the consignments. Stipulation of loading times and sequence load assembly in order to ensure vehicles leave at the right time to meet customer delivery windows. Estimated calculations of the resource required to carry out the loading activity. Regular time of peaks and troughs in the goods dispatch operation Monitoring and Evaluating Warehouse Performance Defining control requirements In our new Chagong warehouse, all 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. The operational controls should be linked to a system of documents which facilitate the control and act as a record of the activities and the flow of goods through the operation. Since our warehouse is only a temporary transit warehouse, we will utilize the paper base record keeping system rather than sophisticated computerized control systems. Operational performance measurements In our Operational management of Chagong warehouse, we need feedback in the form of operational performance measurements in order to determine the effectiveness of management actions done by our warehouse staff. We need to take into account the following two kinds of measurement that is important in a humanitarian warehouse operation: (1) Service level measurements The principle measurement of the supply chain performance in a humanitarian situation and Warehouse operation service is to make humanitarian goods available for delivery to beneficiaries, so we need measurements that indicate the efficiency of the operation in this respect.

Examples of this kind of measurement are as follows: % of consignments loaded on time is measured as On-time consignments. % of goods present in consignments compared to requirements/orders is measured as the fill rate of the consignments % of items picked according to the picking list is measured as picking accuracy. (2) Utilization of resources Since warehouse management is a part of humanitarian supply chains, we need to emphasis the cost efficiency (Money for good results) of the humanitarian supply chain. In terms of a warehouse operation, the following are examples of utilization measurement: Productivity of resources measures the output of the operation divided by the input e.g. items handled per person day, items picked per person day. The normal approach is to establish a productivity standard and to compare individual performance with this standard. % of warehouse space used compared with the space available is to be measured as Utilization of resources in which the ideal state is the utilization reaches 100% at times of peak demand. We may need a smaller Warehouse If the utilization is consistently far below 100%. % of items lost due to damage, theft or out of date is to be measured as Goods wastage) in which minimum wastage is most desirable.

We should decide to use the most appropriate measurements based on the situation of the warehouse operation and the objective of the program activities. Based on the measurement results, it is enable to make improvement. The overall efficiency in warehouse management can be monitored by the following aspects: Increased productivity of resources. Accuracy of 'paperwork' and task instructions. Better quality of management information (Paper based and computerized). Reliable stock information ( for location, rotation, quality assurance and stocktaking)

Best Regards, Aung Kyaw Moe Logistics Officer Sub-Office (SCILaid Betaland)