7/28/2019 Aung Kyaw Moe-Task (8)-Unit (2) Warehouse and Inventory

Aung Kyaw Moe / Task 8 – Warehouse and Inventory

Memo

To: Francois Damba

From:  Aung Kyaw Moe
Date: 29 May 2013

RE: 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 supplier’s performance of sending supplied in time.

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Forecasting Hurricane’s 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)

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