Storage Procedures en 2005

7/28/2019 Storage Procedures en 2005

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StorageStorageProceduresProcedures

May 2005


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Logistic DepartmentAction contre la Faim


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Document revision history:

Revisiondate

Author Summary of changes

25/15/2004 LogisticDepartment

Initial release

01/05/2005 LogisticDepartment

Correction various mistakes

Notes:

Table of contents:

1 - Introduction.............................................................................................5

2 - Product codifications...............................................................................52.1 The financial code...............................................................................52.2 The project code.................................................................................62.3 Item code ACF.....................................................................................62.4 UN reference.......................................................................................7

3 - In and out procedures.............................................................................83.1 Deliveries IN........................................................................................83.2 Deliveries OUT....................................................................................9

4 - Respect of the financial allocation of products.....................................105 - Inventory counting and administrative stock audit...............................126 - OD and stock management..................................................................12

7 - Essential documents for stock management........................................137.1 Stock card.........................................................................................137.2 Release Order (RO)...........................................................................147.3 Delivery Note (DN)............................................................................147.4 Stock report......................................................................................157.5 The inspection form .........................................................................16

8 - Additional documents for stock management......................................168.1 Distribution forms.............................................................................168.2 The Loss Report ...............................................................................178.3 Detail of deliveries............................................................................17

9 - Archiving of stock documents...............................................................189.1 Filing at the warehouse.....................................................................189.2 Filing at the logistic department ......................................................19

Action contre la Faim - Kit Log V 2.0 Page 3 / 19V 2.0 English/ 03 storage procedures 01/05/2005


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10 - Standard forms within the Kit Log V 2.0.............................................19



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1 - Introduction

Action contre la Faim has a supply chain based on stock: most of the

supplies for the programmes transit through a warehouse. To deliver anitem from a stock is the quickest answer to a need.

The items in stock have several financial origins:- Purchase on a donors grant (budget) for a specific program- Gift from an IO/NGO, usually earmarked- Purchase on ACF funds- Left over from previous activities, thus items purchased on previous

budgets

Definition:A product is a same article (same trademark, same packaging,same expiry date) purchased on a unique budget line.

Each product in stock has a funding and a predefined assignment. Actioncontre la Faim must respect and be able to justify the utilisation of theseproducts. Therefore an efficient recording system of all stock movementsis needed:

- For IN movements, the records shall allow to identify the origin of theproducts

- For OUT movements, the records shall allow to trace the destination anduse of the products

2 - Product codifications

2.1 The financial code

The purpose of the financial code is to identify the funding origin of aproduct.

The format for financial code is:

CC / DD / B / LLLLCC 2 letters for the country codeDD 2 letters for the code of the donor

B 1 letter for the budgetLLLL 4 characters for the line



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Example:The North-Caucasus mission (country code CS) purchases porridge onECHO budget M, line AA 10.

The financial code will be: CS / A1 / M / AA10

The financial code should be mentioned on the purchasing documents(Purchase Order, External Order Form or contract) or on the Delivery Note.

2.2 The project code

The project code identifies what should be the project of destination of theproducts. The project code can be useful for stock management when abudget line is funding two or more different project. By using the project

code the logistician can pre allocate and follow the quantity left in stockfor each project.

The project codes are defined by the Administrator, the format is:

BB P NNBB 2 letters for the baseP 1 letter for the programmeN: Nutrition, H: Hydro (Watsan) F: Food security, M: medical,C: CoordinationNN 2 figures to the project

2.3 Item code ACF

When the stock activity is important, with numerous movements andvarious products an item codification for key items is advantageous.

Experience shows that data entry mistakes are common on thedesignation of products. In addition, by sorting a Stock reportby item

code, the Logistics Coordinator knows the quantity of one item in stockregardless the donor, the project and the expiry date.

The item is classified regarding its nature and not regarding itsdestination.

Example: Cement will always have the same item code, even if boughtfor rehabilitation, Watsan or a food security project.

The format for item code is:

CCC / NNNCCC CategoryNNN Reference inside a category



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CATEGORIES

Code Designation Example

AGR AGRICULTURE Hoes, seeds, fertilizers

BUI BUILDING Cement, bricks, tools

COO COOKING Plates, cups

EDU EDUCATION Flip chart, board

FOO FOOD All food items

FUE FUEL Diesel, petrol, kerosene

FUR FURNITURES Tables, chairs, desks

HYG HYGIEN Towels, soap, brush, HTH

LOG LOGISTICSEquipments and blankets,sheeting

NUT NUTRITION F100, F75, Resomal

OFF OFFICE Lamp, fans, calculators

STA STATIONERY Pen, paper A4, cartridges

VEH VEHICLE All spare parts, tools

VIS VISIBILITY Stickers, tee shirts

WAT WATSAN Pipes, taps, drilling bits

If needed, the Logistics Coordinator of the mission will define thecodification system for the references inside a category.

2.4 UN reference

Most of United Nations humanitarian agencies have their internal systemof reference for the articles they supply to their partners. References areindicated on the waybills or gift certificate.

Action contre la Faim needs to follow these references to be able toproduce reports for theses agencies.

When existing, the UN reference will be mentioned on the various stockdocuments, otherwise the cells will be left blank.



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3 - In and out procedures

The storekeeper is responsible for the correct physical and administrativestock management.The storekeeper must respect the following procedures and obey to theinstructions received from the logistician for deliveries IN and delivery OUTof the stock.

3.1 Deliveries IN

All incoming products must have a Delivery Note or an equivalentdocumentation when delivered to a warehouse. If the storekeeper has

doubts on the quality or faces a documentation problem he/she can refusethe items and call immediately the logistician.

3.1.1 ACF Internal delivery (Other base or internationalprocurement)

The storekeeper has to:- Inspect the delivery: documentation, quantity and quality- Mention, if any, the observations or remarks before signing the

Delivery Note- Archive the second sheet of the Delivery Note- Update or create the Stock cards (and Bin cards if needed)- Ask to the Logistics Coordinator the financial code if not

mentioned on the transport documents- Store the products

3.1.2 ACF local purchase (The logistician or the purchaserdelivers items recently purchased)

The storekeeper has to:- Inspect the delivery: documentation, quantity and quality- Sign the appropriate cell in the Purchase Order- Archive the first sheet of the Purchase Order- Update or create the Stock cards (Bin cards if needed)- Store the products

When delivering articles to the warehouse without the presence of thelogistician or the purchaser, a supplier must have an External Order Form.

The storekeeper will sign the waybill or debit note of the supplier and keepthe 4th sheet of the EOF.



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The storekeeper has to call immediately the logistician if a supplier has nodocumentation.

3.1.3 Delivery from other IO / NGO

The storekeeper has to:- Inspect the delivery: documentation, quantity and quality- Mention if any the observations or remarks before signing the

waybill- Archive the waybill (format depending on the organisation)- Ask to the Logistics Coordinator the financial code for this IO or

NGO- Update or create the Stock cards (and Bin cards if needed)- Store the products

3.1.4 Return of products sent to a project

The team supervisor has to prepare a Delivery Note from the projectto the warehouse

The storekeeper has to:- Inspect the delivery: documentation, quantity and quality

-Mention if any the observations or remarks before signing theDelivery Note

- Update or create the Stock cards (and Bin cards if needed)Negative OUT entry

- Store the products

3.2 Deliveries OUT

The Logistician-Administrator or the Capital Logistician are entitled toauthorised stock releases. They can delegate this responsibility to anassistant. In their absence, they have to clarify the responsibilities and atemporary replacement has to be named.According to the base organisation, the replacement can be the directassistant or the administrator assistant.

The only document valid to allow a delivery is the Release Order.

Without Release Order, the storekeeper has no authority to release anitem.

When receiving a Release Order the storekeeper has to:- Prepare the Delivery Note



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- Respect the financial code of the products- Prepare the delivery (departure zone) or load the vehicle.- Update the Stock card (without forgetting to mention the reference

of the DN)- Update and indicate possible comments on the Release Order

The storekeeper keeps the pending Delivery Note with the second sheet ofthe Release Orderattached on it.

The third sheet of the Release Orderwill go back to the logistician toupdate the order follow up.

4 - Respect of the financial allocation of

products

When preparing the Release Orderthe logistician has to respect theearmarking of the products.

Example: Cement bought for watsan activities by a donor cant be usedfor TFC rehabilitation funded by another donor.

If a product is in stock but not funded by the appropriate donor a loan ispossible between stocks. If the logistician foresees that the reimbursement

will not be possible a special request has to be made to the donor.

Procedure for a loan / Example

ECHO is funding a therapeutic programme in Bubanza base(Burundi)

OFDA is funding a therapeutic programme in Kayanza base (Burundi)

F100 stock funded by OFDA is 0, while stock purchased on ECHO is250 boxes.

An order for 300 boxes of F100 funded by OFDA is under process.

Kayanza orders to the capital 150 boxes of therapeutic milk F100

1 - The logistician will issue a Release Orderto loan 150 boxes from ECHOto OFDA stockThe storekeeper will indicate the loan on the Stock cards (Out 150 forECHO, In 150 for OFDA)

2 - The logistician will issue a normal Release Orderto supply Kayanza

with 150 cartons from the new OFDA stock. The storekeeper will deliver normally the 150 cartons to Kayanza



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When receiving the order funded by OFDA, the storekeeper will enter300 boxes on OFDA stock

3 - Then the logistician will issue a Release Orderfrom OFDA stock to

ECHO stock to reimburse ECHO stock with the exact amount borrowed:150 boxes. The storekeeper will supply 150 boxes from ECHO stock to OFDA stockand update the Stock cards.

Remark: In this case the change of the financial code of a product isauthorized.



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5 - Inventory counting andadministrative stock audit

The inventory counting is the counting of the products present in thewarehouse. If relevant, it may include the weighting of all the articles or ofa representative portion.

The administrative stock audit is the verification of the coherence of INand OUT documents with the information mentioned on the Stock card.

When preparing a Stock reportthe storekeeper has to perform aninventory counting to guarantee the reliability of the report..

Every month and in the presence of the storekeeper, the logisticianin charge of the stock has to perform an administrative stock auditand inventory counting on 5% (at least) of the products.

Every 3 months and in the presence of the storekeeper, thelogistician in charge of the stock has to conduct a completeinventory counting of the products.

The result of the inventory counting or administrative stock audit has to bementioned on the Stock card.

If any, the difference is entered in OUT or IN and the balance corrected. INVENTORY is written in the column Remarks. The person conductingthe inventory must countersign the Stock card with the storekeeper.

6 - OD and stock management

The OD is a French accounting term that means Opration Diverse(miscellaneous operation). An OD is a retroactive change in theaccountancy of a mission.

Action contre la Faim mainly uses OD to correct accounting mistakes orto change the budgetary allocation of expenditures.

The ODs interfere with the work of the Logistics Coordinator and the oneof the storekeeper when the Administrator changes the budgetaryallocation of a product in stock.

The Administrator may decide to change the budgetary allocation of:- One or several products

-The left over stock from a donor contract

- A product used for a project different from its initial allocation andthat will not be reimbursed



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After an OD, the storekeeper has to change the financial code of theproducts, and move them (if relevant) to the area of the new donor in thewarehouse.

Important note: When the product is no longer in stock and was alreadyused for the initial project the OD to another institutional donor is notpossible. In this case the OD wouldnt respect the accounting principle ofreality.

To keep a trace of the OD but to avoid the multiplication ofdocuments the Logistics Coordinator will issue a Release Ordermentioning the new financial code as destination to confirm thechange of financial allocation to the storekeeper.

Note: Theres no need for the storekeeper to issue a DeliveryNote in the case of an OD.

7 - Essential documents for stockmanagement

Refer to the utilisation note of each form for detailed explanations.

7.1 Stock card

The Stock card is the main and primary tool for stock management.For each product, the Stock card records the technical data and the detailof each movement.

The Stock card must be updated after each movement.

There is one Stock cardper product.

When theres no more space on stock card, the last balance has to bereported on a new Stock card. The old Stock card is kept attached to thenew one.

Non-active Stock cards: when the balance reaches 0 are kept in the samefolder.

Stock valorisation



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Action contre la Faim valorises the products in stock with the price of thelast purchase in the currency of purchase.

The initial purchase price is mentioned on the header of the Stock card. Incase of stock replenishment the storekeeper indicates the new price in the

Remarks column of the Stock card.

Returns Products

When a project is supplied directly from a logistic warehouse, without aproject stock it may happen that part of the goods requested are not used(Security margin not needed or beneficiaries absent). The products notused will return to the sending warehouse.

In order to not overestimate the IN and OUT of a product when preparing astock report the returns of products are registered as a negative OUT inthe stock card

7.2 Release Order (RO)

The Release Orderis the authorisation for any delivery or stock exit; thisincludes products sent to destruction.

To simplify the filling, the Release Orders are prepared according to thedestination of the products.

Action contre la Faim uses a Release Orderwith three sheets:

- The original or first sheet stays with the logistician(The second and third sheets are given to the storekeeper to prepare

the delivery)- The second is kept by the storekeeper and archived with the 1st sheet

of the Delivery Note- The third sheet is sent back with delivery information to the logistician

who files it by stapling it with the first sheet

7.3 Delivery Note (DN)

The Delivery Note is a transportation document.From a storekeeper point of view the Delivery Note is the proof of theresponsibility transfer.



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By signing the Delivery Note, the driver takes the responsibility of theproducts listed. The driver will keep this responsibility until the consigneesigns the Delivery Note.

The storekeeper has to be very cautious when preparing a Delivery Note,

all the fields are important.

Action contre la Faim uses a three sheet Delivery Note format:

- The fist sheet is kept by the sender, who is generally thestorekeeper. He/she fills it and countersigns it with the carrier. Thestorekeeper gives the second and third sheets to the driver; thesesheets will accompany the products.

- The second page is used for the delivery of the products.The consignee will check the delivery according to the informationmentioned on the Delivery Note.

The consignee will indicate remarks if any and sign the DeliveryNote, by signing he/she takes the responsibility of the products.

The consignee keeps the second page of the Delivery Note.

- The third sheet is returned to the sender. The delivery is overonly with the return of the last page of the Delivery Note. Thestorekeeper will attached the third sheet with the first and theRelease Orderand will archive this consignment.

The driver or carrier is usually paid upon the return of the third sheet

of the Delivery Note. Potential deductions for losses due to thenegligence of the driver are based on this document.

7.4 Stock report

The Stock reportprovides per product and for the reporting period:- The quantity received, IN- The quantity delivered, OUT- The balance

Additional and useful information, such as expiry date, doubts concerningthe quality are also mentioned.

With an accurate stock report the logistician knows the stock level perproduct, he/she knows approximately how long the stock can supply theprojects.

For any logistic stock in the Capital or on the bases, the

storekeepers must prepare a Stock report. The longest periodicityof a Stock reportis one month. The reporting period is from the1st day of the month until the last day included.



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The Stock reporthas to be submitted to the logistician before the3rd of the next month.

According to the necessity, the logistician may ask for a shorter reporting

period for a specific item category: weekly, twice a month.

To simplify the management theres one Stock reportfile for:Food itemsNon-Food itemsWatsan itemsFood SecurityFuelVehicles spare-parts

7.5 The inspection form

The Inspection form is used for a systematic examination of deliveries.

The storekeeper will record the result of a quantity and quality controls.These controls are performed during the delivery.

The control method is based on a simplified methodology of samplingaccording to the number parcels of product received.

-Delivery from1 to 10 parcels: control done on all the parcels

- 10 to 100 parcels: control done on 10 parcels taken randomly- More than 100 parcels: control done on N bags, N being the whole

number equal or immediately higher than the square root of the totalnumber of parcels delivered.

For the quantity controlled, the storekeeper will weight, count or measurethe volume of the parcel.

For the quality control, the storekeeper will perform a general visual,olfactory and tactile control. The storekeeper may also measure themoisture of the product and perform quick tests analysis.

8 - Additional documents for stockmanagement

8.1 Distribution forms

The main specificities of distributions are:



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- Restricted number of items- Management of products returning to stock- Massive volume

Forms for distribution, site reports and procedures are in the chapter15

food aid of the Kit Log.

8.2 The Loss Report

The Loss reportis used to record the loss(es).

The losses are all the exits other than the deliveries, distributions orreturns of goods.

They are thus the pilfering, thievery, damaged or expired products.

The person who notices the loss prepares the Loss reportin two copies.One copy of the Loss reportis sent to the logistician in charge of thewarehouse and the other one stay with the reporter.

The Losses reportcan thus be done from the warehouses, especially towrite the losses observed during the returns of third sheet of the DeliveryNotes, or from the distribution point projects sites.

The format used by Action contre la Faim can register losses for 3products.

A loss shall be registered with the date, the quantity, the reason for loss(+ the explanations) and the possible remarks. If there are several losseswith various reasons, one line per reason has to be used. The total for theproduct will be mentioned in the appropriate cell.

In case of damage products, the storekeeper has to wait for theauthorisation before the destruction of the products.

8.3 Detail of deliveries

This report gives the detail of all deliveries for a product within a period oftime.

The detail of deliveries is an annex to the stock report

The Logistics Coordinator defines per stock and per base the level ofdetails he/she requires by adding columns to the format. The minimalprecision is to have a detail per base and programs.

Its a control tool to compare the OUT of a warehouse with the IN of

another warehouse or project site.



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This report is not a consumption report. The products delivered to anotherbase may be stored for a long time in stock or may have been transferredto another warehouse.

9 - Archiving of stock documents

All stock documents have to be kept and archived at least 4 years.

9.1 Filing at the warehouse

Stock card files: Archived per budget and per category of item (NFI, FI,

etc) or more precise if needed. The non-active Stockcards (when the balance for an item reached 0) are keptin the same file. At least one file per budget

Delivery files: The logistician decides the number of file to openaccording to the number of programs and bases. Atleast, therere always two files: Delivery IN and deliveryOUT (with the release order).

Delivery IN: Delivery Note, Purchase Orderor External Order Form,and then chronologically

Delivery OUT: Delivery Notes (1st sheet and 3rd sheet) with thecorresponding Release Orderper destination and thenchronologically

Specific files are needed for UN agencies. These organisations provideAction Contre la Faim with in kind donations and Action contre la Faim

has to submit them regular reports. To archive their waybills in a separatefile makes this work easier.

Stock report file: Copies of the Stock reports given to the logistician

Delivery register: Its an optional and internal tool for thestorekeeper, to register all the shipments organised orreceived.

For each delivery IN or OUT the storekeeper writes:Date, hour, vehicle information, sender or consignee andDN ref.



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If the volume is significant the storekeeper have files for lossesreport/destruction and one file for products return from distribution.

9.2 Filing at the logistic department

Mission Stocks: Stock reports from the various warehouses on themission

The Logistic Coordinator keeps this file.

Stock report file: All the stock reports from the various stocks on the baseare archived in this (these) file(s).

Gift& loan file: Gift certificate / temporary loans to other agencies+ request from the agencies

Release Order file: All the Release Order(1st and 3rd sheet) per base/program and per date.

10 - Standard forms within the Kit Log V

2.0

Delivery Note En Fr 2005.xlsDelivery note utilisation En 2005.doc

Inspection form En Fr 2005.xlsInspection form utilisation En 2005.doc

Release Order En 2005.xlsRelease Order utilisation En 2005.doc

Stock card En 2005.xlsStock card utilisation En 2005.doc

Stock report En 2005.xlsStock report utilisation En 2005.doc

Action contre la Faim - Kit Log V 2.0 Page 19 / 19

Documents

Storage Procedures en 2005