Aung Kyaw Moe / Task 8 Warehouse and Inventory

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

TASK 8 WAREHOUSE AND INVENTORY

Information Required for Pull Inventory Policy In an emergency situation to respond there are two different inventory policies. (1) Push Policy-that at the beginning of any emergency, we cannot have the happening of the emergency in details and we do not have any clue about what the required by the victims of emergency. At that time since humanitarian cost is too high, we have to push the possible supplies into the area by all means to make instant relief. But when we know more about the situation and have information of detail requirements, we move to (2) Pull Policy-that presupposed the detail information of required supplies (where they needed, when they should be delivered in how much quantity, etc.). In order to move toward Pull Inventory Policy we should work very closely with our Programme colleagues who have th first hand knowledge and data about the requirements in the field. We should encourage our programme colleagues to make a supply plan based on the actual requirement in the field and draw a distribution plan to implement the purchasing and transportation of these supplies. In addition, our supply staff must participate in the related programmatic meetings and involved in the process of drawing supply plan and identifying the potential suppliers both local and international. Give advice to our programme staff to choose the appropriate type of supplies to order in conformity with the requirements at the beneficiary camps. At the same time, we have to check with our regular suppliers, both local and overseas and other UN agencies and INGOs in order to acquire the necessary supplies. Make a tentative agreement with the suppliers about the shortest possible lead-time for sending supplies when ordered and inform them ahead the tentative amount of supplies we need to order. Logistcs section must pre-arrange the appropriate mode of transportation and at the same time inform the warehouse to prepare the storage space for incoming supplies. Check with warehouse manager to keep the safety stock level in conformity with the local/overseas suppliers performance of sending supplied in time.

Forecasting Hurricanes Effects on Supply Chain We have learnt that a Hurricane name Bharat is on the way to Betaland and that will hit some important areas as Mugla warehouse. According to the current situation of our humanitarian relief activities initiated by influx of incoming refugees from Alphaland, we are managing to distribute monthly 1000 MT of food supplies to the 60000 no. of refugees at 3 camps at the border area. When this hurricane hit the land, the following things can be happened and we have to make prepared for the scenario; Hurricane will destroy houses and building severely so such NF items as roofing sheets, Tarpaulin, Family Kits, and essential drugs will be much in need. There might be accompanying flood and all drinkable water sources will be contaminated with salty water. So ORS, water purification tablets, and jerry cans and other sanitation materials must be required. The local population of Betaland will be also affected by this hurricane and we must calculate how much it will effect upon the local populace and how to help them to cope with the emergency Coordinate with other UN/INGO agencies to have a better organized response to the crisis by means of sharing information and supplies. Keeping at least 600 MT of food ration for safety stocks

Requirements of Safety Stock As a necessary part of the warehouse management, we need to consider about keeping safety stock for emergency situation. In Betaland, the climatic condition and changes are quite regular and they can be predicted in advance meteorologically. Some programme staff want to cut the budget for having safety stock in order to reduce the extra operation/overhead cost but there are certain advantages of having them. At the time of emergency, all humanitarian agencies should acquire the supplies competitively so the prices will be going up so high. If we have stocked the safety stock ahead, we can avoid the purchasing of supplies at unnecessarily high prices and we can response very fast to the requirement of the emergency situation and it will considerably reduce the humanitarian cost. It is true that we may need more space to accommodate the extra supply for safety stock and we need more expenditure on the operational costs to manage them. But we can utilize the existing space to accommodate and we can negotiate with our local suppliers to keep certain emergency on-call delivery at their own warehouses. We can use these supplies in FIFO way and replenish the emergency supplies used for the regular programmes by the funding from the regular programmes.

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