Emergency Capacity Building Project. Logistics. Logistics. Sub title. Logistics – Definition – The 5 ‘Rs’. Movement of Items, people and Information: To the RIGHT PLACE At the RIGHT TIME At the RIGHT COST In the RIGHT CONDITION / QUALITY / APPROPRIATENESS In the RIGHT QUANTITY.
The primary objective of all procurement is to obtain the goods and services in the optimum and most economical fashion, taking into account:
1 Quality - the desired specification & durability
2 Price - reasonable price for the quality required
3 Reliability of sources/suppliers - performances
4 Programme needs – Timing, appropriateness, continuity of supply etc.
1. Need identification
What is really needed? Specifying requirement
Who is in need ?- Partners/beneficiary/programme staff etc
When it is needed ? timing etc
2. Selection of supply source
Where should we buy it - best supplier selection
Good understanding of the supply market (+CULTURE)
Getting information on potential suppliers.
Assessing ability of potential suppliers – technical & financial capabilities as well as previous performance record
3. Processing the procurement –ordering & monitoring of processes
Contracting & follow up
Availability– is the item required available, where? If locally, Is there continuity of supply? (e.g. Hygiene kits)
Cost effectiveness - what is the added value/advantage of buying it locally, ordering from HQ or importing it from Abroad (high profile versus what is impact on local economy?)
Timing– when it is needed. Is it urgently needed? Should we go for local purchase? If we import it what is the lead time etc
Distance issue – Suppliers location. if we import it how far are the suppliers as well as the entry ports etc
Important Procurement Steps:
Properly sealed quotations are required from at least three different suppliers.
These quotations have to be opened by the purchasing committee.
In such a process, Sole Suppliers could exceptionally be considered for their specific brand items.
There are circumstances where requirements over tender level might best be dealt with by Request for quotation method. Usually during emergencies for immediate distribution to beneficieries. However, it must be clearly justified in writing and signed off at the correct level.
Suppliers must usually be given approx one week notice to submit their quotations.
Need to carefully document and justify reasons for NOT following procedure !!!
Is the item available
in District Store
Send Request to
Is the item in stock?
Issue the item
Is the item sole-supplier
Is this a quote or tender Level
Restricted Tender ?
Consider Potential Suppliers
Full tender process
Consider potential suppliers
Issue letters for Quotations
Issue call for tender
Prepare full Contract
Cross Referencing Of Documents
1. Store Keeping
Items received from the supplier or agencies, must be accompanied by a Way Bill/Delivery note or an invoice,
All incoming goods must also be recorded on the Goods receiving Note (GRN) by the Store Keeper.
The goods must be checked on arrival by the Store keeper and notify the senders immediately of any discrepancies (Shortage, over supply, and wrong items) .
Items missing or in bad condition must also be noted on the Carrier’s copy of the Way Bill or delivery note, and should be returned to the dispatcher immediately.
All incoming items must pass through the store at all times, in order to record their arrival.
The Store keeper must check the quantity of the goods delivered and their condition; and make a comparison of goods received with the purchase Order or way Bills form).
Whenever items are received, the Bin Cards and Stock Cards must be automatically updated, and the balances worked out.
Goods Receiving procedure
Update the Bin card &
Check specification is in line with PO
Check the items are included on the PO
Check the items are in a good condition
Is there suppliers
delivery note or WB?
Check arrived items
against PO or WB
Are there bin
& stock cards
for this item?
Notify Log Officer
Open new bin card
& Stock card
Any Items issued with in districts offices should be done through the Stock Release Form (SRF) as well as Way Bills
No item should be released from store to any person with out proper documentation.
Whenever items are issued, the Bin Cards and Stock Cards must be automatically updated, and the balances worked out
Is there SRF?
(Stock release form)
-Check approval & Sig.
Prepare way bill
& issue the item
(Bin & Stock cards
Reject it –ask for SRF
Reject it-ask for approval
Update Computer Inventory
4. STOCK CARDS & BIN CARDS
The following table contains standard storage volumes for one metric tonne (1 MT) of some common relief items (volume = height x length x width)
(MT = Metric Tonne; m³ = cubic metre; m² = square metres)
How much warehouse space is required ?
A. Calculate the volume of goods: Stacking height used
50 MT Oil 2 metres (height)
100 MT Grain 2 metres (height)
200 MT Pressed blankets 3 metres (height)
40 MT Tents 3 metres (height)
Total area needed for goods ?
What else do you need to consider?
(MT = Metric Tonne; m³ = cubic metre; m² = square metres)
A. Calculate the volume of goods: Stacking height used = 2 or 3 metres
50 MT Oil 50 x 2 m³ = 100 m³ / 2 metres (height) = 50.0 m²
100 MT Grain 100 x 2 m³ = 200 m³ / 2 metres (height) = 100.0 m²
200 MT Pressed blankets 200 x 4 m³ = 800 m³ / 3 metres (height) = 266.6 m²
40 MT Tents 40 x 5 m³ = 200 m³ / 3 metres (height) = 66.6 m²
Total area needed for goods 483.0 m²
B. Add access/aisle space:
Assuming a small warehouse (i.e. with usable storage space of 75%):
= Total goods areas / 75%
483 m² / 75 x 100 = 644 m²
Shape of the items and compatibility to the items
A file is to be maintained for each vehicle in the fleet. The file must contain the following:
Monthly Monitoring of the fleet
It is a responsibility of the Logistics Unit to prepare a monthly performance analysis of vehicles and motorcycles from the logbook entries. This includes:
Planning of vehicle utilization
% Availability = (Days in use + Days idle) ÷ Working Days x 100
% Availability = (20 + 3) ÷ 31 x 100
% Availability = 23 100 = 74
% Utilisation = Days in use ÷ (Working days – days in workshop) x 100
% Utilisation = 20 ÷ (31 – 8) x 100
% Utilisation = 20 x 100 = 87