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The operating situation is relatively stable and management attention is focused on the efficient and cost effective running of the warehouse operation. Numerous organizations have centralized pre-positioning units strategically located globally.
Some of these offer extended services to other humanitarian organizations on a cost plus operating charges basis. The initial staff may be a casual workforce that has never worked in a warehouse before and the inventory system is more likely to be paper based.
Often the situation is initially chaotic, sometimes dangerous andA coupled with a humanitarian need which may be very urgent.
The management style must therefore be practical and action oriented with a focus on making the humanitarian goods available as quickly and efficiently as possible, while being accountable at the same time.Policies and ProceduresPoliciesThe policies contain hard and fast rules and regulations that define the general conduct of the warehouse operation.
Procedures should be considered as streamlining the business processes and providing checks and balances. They provide guidance to warehouse managers and must have some level of flexibility to caterA to unique situations. For example:Medical supplies and drug shipments can contain a large number of small, highly-valued and, often, restricted items, many with a limited shelf-life. Inventory management techniques need to be implemented to prevent wasteful surpluses and to ensure proper stock rotation to avoid costly losses due to expired goods. This is made up of the cost of the inventory itself, plus the cost of transporting the goods, cost of managing the goods (labor, fumigation, repackaging, etc) and keeping the goods in warehouses.


The inventory manager's job is to make inventory available at the lowest possible cost.In order to achieve this, the inventory manager must ensure a balance between supply and demand by establishing minimum holding stocks to cover lead-times. To achieve this, the inventory manager must constantly liaise with the programs to keep abreast of changing needs and priorities. Note that economic order quantity (EOQ) in practice only works in a fairly stable environment where demand variability and replenishment lead-time are reasonably stable and predictable. All equipment should be properly stored when not in use and a regular maintenance schedule posted.
Warehouse staff should be trained in standard daily maintenance practices and the correct use of equipment.
Often health and safety legislation will impose on management an obligation for safe systems of work.
In this situation, there is often a shortage of suitable buildings or locations for warehouse space and this can often cause the costs to increase significantly. Therefore, it is often necessary to utilise temporary warehouse space for as short a time a possible.Care must be taken with the drawing up of the lease agreement (See Warehouse Rental Contract sample) with the owner.



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