Guidelines for Warehousing - World Health Organization

1 Guidelines for Warehousing Health Commodities The authors' views expressed in this publication do not necessarily reflect the views of the Agency for International Development or the United States Government. USAID | DELIVER PROJECT. The USAID | DELIVER PROJECT, Task Order 4, is funded by the Agency for International Development (USAID). under contract number GPO-I-00-06-00007-00, order number AID-OAA-TO-10-00064, beginning September 30, 2010. Task Order 4 is implemented by John Snow, Inc., in collaboration with PATH; Crown Agents Consultancy, Inc.; Eastern and Southern African Management Institute; FHI360; Futures Institute for Development, LLC; LLamasoft, Inc; The Manoff Group, Inc.; Pharmaceutical Healthcare Distributers (PHD); PRISMA; and VillageReach. The project improves essential Health commodity supply chains by strengthening logistics management information systems, streamlining distribution systems, identifying financial resources for procurement and supply chain operation, and enhancing forecasting and procurement planning.

2 The project encourages policymakers and donors to support logistics as a critical factor in the overall success of their healthcare mandates. Recommended Citation USAID | DELIVER PROJECT,Task Order 4. 2014. Guidelines for Warehousing Health Commodities. Arlington, Va.: USAID | DELIVER PROJECT, Task Order 4. Second edition (First edition 2005). Abstract These Guidelines were written for anyone trying to meet and solve the challenges of operating a warehouse today. They are an important reference tool for managers and staff, whether they are constructing a new warehouse, implementing a new warehouse system, or redesigning their current system. Guidelines for Warehousing Health Commodities is for use by supply chain managers, logistics advisors, and warehouse managers who want to improve and increase efficiency in their current Health commodity warehouse. It is designed to be interactive, with each specific topic accessible as-needed.

3 The remaining sections of the guide discuss each of the topics of Warehousing contained in the self-assessment; they offer more detail on ideal warehouse attributes, practical advice on how to improve warehouse operations, and specific information on available warehouse equipment and technology. Case studies are also provided in the guide giving real-life examples that illustrate the importance of improving warehouse operations. Guidelines for Warehousing Health Commodities provides up-to-date information on all aspects of Warehousing . USAID | DELIVER PROJECT. John Snow, Inc. 1616 Fort Myer Drive, 16th Floor Arlington, VA 22209 USA. Phone: 703-528-7474. Fax: 703-528-7480. Email: Internet: Contents Getting Started: Assessing Your Warehouse Section A: Warehouse Infrastructure Section B: Layout Planning and Operations Section C: Warehouse Section D: Special Storage Section E: Inventory Section F: Security and Section G: Human Additional Tools for Warehouse Case Examples of Layout and Organization Improvement, Examples of Layout and Organization Improvement, Example of Warehouse Equipment Example of Automated Data Appendix 1: Warehouse Self-Assessment Appendix 2: Pallet Stacking, Shelving, and Pallet Appendix 3: Material Handling Appendix 4: Warehouse Performance Metrics.

4 61. Figures 1. Typical Layout for Receiving/Shipping 2. Sample Layout Using Selective Pallet Racks and Bin 3. Sample Layout Using Pallet Stacking and Bin 4. Bin 5. Inventory Control 6. Stores 7. Suggested Management/Supervisory Structure for Warehouse G U I D E L I N E S F O R W A R E H O U S I N G H E A LT H C O M M O D I T I E S | v 8. Standard Wood Pallet ( by meters)..53. 9. Tipping Pallet Due to Un-level 10. Bonded Stacking vs. Unbonded 11. Example of Crushed Boxes Due to High 12. Properly Stacked 13. Shelving 14. One Row of Connecting Racks (Two Bays) with Three 15. Common Rack Beam Sections (Rolled-formed Left, Structural Right)..55. 16. Common Rack Column 17. Right-Angle Turning Radii ..58. 18. Manual Low-Lift Pallet Jack ..58. 19. Electric Low-Lift 20. Walkie Straddle 21. Walkie Reach 22. Counterbalance Lift 23. Narrow-Aisle Reach 24. Warehouse Rolling Tables 1.

5 Sample Worksheet for Estimating Shipment Receiving and Staging Space Requirements: Complete Data 2. Sample Worksheet for Estimating Shipment Receiving and Staging Space Requirements: Complete Data 3. Estimation of Staging Space 4. Storage Methods by Commodity 5. Sample Worksheet for Estimating Bulk Storage Space Requirements Based on Complete 6. To Estimate Space 7. Warehouse Management System 8. Sample Time Requirements for the Receiving 9. Lifting Height & Aisle 10. Trucks Types and Their vi | G U I D E L I N E S F O R W A R E H O U S I N G H E A LT H C O M M O D I T I E S. Acronyms 1D one-dimensional 2D two-dimensional ADC automated data collection CCD charged-coupled device CO2 carbon dioxide PPE personal protective equipment SDP service delivery point SKU stock keeping unit RF radio frequency RFID radio frequency identification UPC Universal Product Code UPS United Parcel Service United States WMS warehouse management system AC RO N Y M S | vii viii Introduction T.

6 He warehouse is a key compo- and the training of staff within the The remaining sections of the guide nent of the supply chain for warehouse, as well as considering discuss each of the topics of ware- Health commodities. This is the implementation of a broader housing contained in the self-assess- especially true in resource poor en- information system, including a ment; they offer more detail on ideal vironments where they act as buffers warehouse management system that warehouse attributes, practical advice against uncertainties and breakdowns can link information to other points on how to improve warehouse opera- within the supply chain. When in the supply chain. In addition, tions, and specific information on properly managed and appropriately establishing a system of meaningful available warehouse equipment and stocked, the warehouse provides a and measurable metrics can enhance technology.

7 You can read the chapters consistent supply of products as they performance. in any order; they provide informa- are needed. tion in an accessible format to help It is important for public Health you make informed Warehousing For many years, the private sector has warehouse management to have an decisions. You may not need all the taken a professional, systematic approach overall plan for professional, reliable tools and information, but we recom- to Warehousing ; recognizing its commodity handling and storage. mend that you review all the topics. importance to overall cost, customer They need to take a holistic view of their satisfaction, and performance of the facilities, incorporating technologies The case studies in the guide are business. In turn, organizations where needed, and when appropriate. real-life examples that illustrate the involved in public Health in the Not every technology, however, is importance of improving warehouse developing World have started to focus appropriate or cost effective for specific operations.

8 More attention on commodity local conditions. This guide will Warehousing , realizing its role as a critical help you meet these challenges and resource for improving public Health . requirements. The professional and systematic The Guidelines for Warehousing Health approach used by the private sector is Commodities is for use by supply chain directly applicable to the challenges managers, logistics advisors, and public Health Warehousing face in warehouse managers who want to countries around the World . Challenges, improve and increase efficiency in such as the increase in variety of their current Health commodity ware- products in the public Health system, house. It is designed to be interactive, or stockkeeping units (SKUs), and with each specific topic accessible the demand for reduced processing as-needed. time, can be addressed by improving inventory management; and, in some The guide begins with a warehouse cases, using technologies, such as self-assessment, which will help you automated data collection tools.

9 Understand the essential elements of The demand for increased customer warehouse structure and operations, and service requirements cost and the present condition of the existing value and the call for improved warehouse. Complete this assessment first, product and information flows can and then use the guide to focus on areas be addressed by focusing management where improvements are most needed. I N T RO D U C T I O N | 1. 2 | G U I D E L I N E S F O R W A R E H O U S I N G H E A LT H C O M M O D I T I E S. Getting Started: Assessing Your Warehouse A. Health commodities ware- The warehouse self-assessment tool house is much more than a covers seven categories: building that provides a space You will improve for storage. It must be designed to receive, store, and organize products A. Infrastructure the efficiency of efficiently and must provide effective B. Layout & Operations Capacity the warehouse distribution for life-saving commodi- ties.

10 This requires adequate shipping/ C. Warehouse Equipment and lower receiving docks, storage in appropri- ate conditions for the commodities, D. Special Storage overall operating and adequate work space to access and compile onward shipments for E. Inventory Management expenses if you products going to regional or district warehouses or service delivery points F. Security & Safety carefully plan (SDPs). You will improve the ef- for the needed ficiency of the warehouse and lower G. Human Resources overall operating expenses if you care- conditions . fully plan for the needed conditions The tool questions several aspects of for all of these functions. each category and assigns a score. This enables the user to establish To begin, go to appendix 1 and take an overall score for each category in the Warehouse Self-Assessment; you order to help set priorities for further will be able to identify any exist- review and action.