XVII.9.3.4 Warehouse and Stock Management

 

​​

General

10           The provisions in this policy refer mainly to the definition of the storage strategy, the establishment of storage facilities to support an emergency operation and the management of stocks in the emergency supply chain. During an emergency response, it is the responsibility of the Operations Support and Logistics (OSL) team to ensure that all stocks held in storage facilities at all levels (WHO Country Offices (WCO), Regional Office (RO), and global) are managed per OSL and Business Operations (BOS) inventory management guidelines and standard operating procedures (SOPs).

20           While the focus of the supply chain should be to deploy emergency supplies to the point of need in a rapid and cost-effective manner, storage capacity may be required. Warehouses must provide proper and secure storage to preserve the quantity and quality of relief supplies for as long as the operation lasts. Of equal importance to the physical characteristics of the warehouse is the management system used to manage the stock held within the facility.

30           In addition, WHO prides itself on playing a leading role in Good Storage and Distribution Practices (GDP), which covers all the professional practices in stock management, transport and distribution of goods from the factory to the users. The warehouse and stock management should always operate under Good Storage and Distribution Practices principles, especially for handling pharmaceuticals and medical devices.

40           There are three distinct responsibilities and activities related to stock management:

• Stock planning and strategy is defined as the stockpile and warehouse requirements identified for a given emergency response or preparedness measures at the three levels of the organization.
• Stock (inventory) management refers to the management system to plan, record, account, and report on stock inventory movements.
• Warehouse management includes all the activities related to site selection, layout, maintenance, and management of warehousing facilities.

50           Distinction will be made in this policy between storage planning/strategy, inventory management and warehouse management. Specific points related to those activities will be addressed in this policy.

Roles and responsibilities

60           During the preparedness and emergency response phases, the OSL team acts as the Stock Manager, and the technical unit acts as Stock Owner. It is essential that the OSL team and Stock Owner staff work in a coordinated manner.

70           As Stock Manager, the OSL team is responsible for defining a stock strategy. The OSL role is to:

• conduct stock needs assessment along with technical units;
• define, plan, and implement a stock strategy with the key stakeholders; and
• monitor storage strategy implementation and adjust the storage system according to evolving needs and requirements.

80           As Stock Manager, the OSL team is responsible for managing inventory storage and movements. The OSL role is to

• establish the proper mechanisms of inventory control and regulatory processes;
• register the movement of stock – including recording receipt of goods and dispatch in compliance with International Public Service Accounting Standards (IPSAS) standards;
• pick and pack goods, as per Stock Owner requests;
• ensure that cargo is prepared and packed according to corresponding international safety rules and transport regulations;
• perform regular stock counts;
• maintain accurate reports with stock level and movements;
• alert the Stock Owner to items at risk of expiry and slow-moving items, shortages and overstocks; and
• adequately manage expired goods.

90           As Stock Manager, the OSL team is responsible for managing the warehouse facilities. The OSL role is to

• define, plan, and implement the storage strategy with all stakeholders;
• establish storage facilities, including temporary solutions during an emergency response, such as tents and shipping containers;
• ensure that storage facilities meet the required storage conditions of goods (e.g., temperature-controlled for medicines, cold chain for vaccines, secured storage for dangerous goods);
• ensure that the necessary means for handling and moving goods are in place – for example, pallet movers and forklift trucks;
• ensure the implementation of the safety and security rules (such as Minimum Operating Security Standards (MOSS) compliance) in the storage facility, including for goods and warehouse staff; and
• ensure that pest control measures are implemented.

100         As Stock Owner, the technical unit and/or subject matter expert (SME) will

• define items and quantities to be stored;
• validate stock requests to authorize the release of goods from stock;
• analyse stock reports and consumption to prevent overstock or shortage;
• make decisions on donations to anticipate and avoid expiration of items and sleeping stocks; and
• place order requests to replenish the stock according to forecasted needs.

110         In addition, the WHO HQ & Regional Offices have the responsibility to

• provide technical assistance to country offices on warehouse IPSAS compliance, audit preparation and capacity development.

Stock planning and strategy

120         The overall storage requirements are specific to the needs of the response activities and the broad objectives of WHO itself. In addition to the anticipated volumes of goods, criteria such as storage location, the stock management system and specialized storage conditions will also dictate storage requirements to define a storage strategy. Market scarcity and lead time from suppliers should also be considered when defining your stockpile. Storage management should be based on a defined and approved stock strategy that covers the types of warehouse layout and location, the stock held, the quantities held of individual commodity types, and the policy for replenishment of these stocks. The stock strategy should be developed with SMEs, technical units, and the incident manager (IM).

Initial stock assessment

130         As soon as an emergency operation is initiated, the OSL team should define existing stocks available at the three levels (WCO, RO, global) to incorporate them into the supply planning process. The Stock Owners, the OSL team and IM need to ascertain how many contingency stocks are being held and determine what additional stock is required to address the immediate needs of the initial response. Much of this information from the contingency plan contributes to the operational plan, which examines the total stock volume, including what is in the pipeline and the risks connected to the supply (e.g., lead times, customs clearance, and warehousing capacity).       

Contingency stockpiles

140         As part of WHO SOPs for emergencies, contingency stockpiles should be in place as a preparedness measure to ensure a rapid response to disasters by prepositioning goods in warehouses at global, regional, and national levels. This makes the response team less dependent on procurement and transportation constraints.

150         OSL maintains global and regional stockpiles that can serve as sources of supply during emergency responses. International stockpiles represent a key preparedness tool because they cover several countries and can be a stopgap if local capacity is insufficient.

160         In addition, in the frame of the emergency preparedness plan, the WCO may establish a national stockpile. In this case, commodities for the contingency stockpile should be purchased and stored separately, and a system for rotating those supplies through the routine supply chain should be developed while regularly replenishing contingency stocks to prevent expiry.

As the purpose of the contingency stockpile is to enable an emergency response to have immediate access to dedicated supplies, it is not intended to be used when the routine supply chain is stocked out.

Stock monitoring should occur at regular intervals to avoid product expiry and the misappropriation of commodities. The best practice would be to preposition stocks at strategic storage locations based on the geographic likelihood of key threats.

170         In addition, the OSL team will own a stock of items needed for the logistics activities but will also act as custodian of the stock defined by the technical unit for their programmes.

Categories of stocks

180         Stocks can be defined by various types: response and contingency, central and decentralized, earmarked and unearmarked, and main and buffer, amongst others.

Response and contingency stocks

• Response stock: Stocks are built up to be able to respond to an ongoing medical emergency/ programme and are under the responsibility of the budget holder/Stock Owner. The definition of these stocks is based on the expected needs required to respond to the emergency.
• Contingency stock: Stocks are built up in preparedness to be able to respond to future likely medical emergencies, and this is the responsibility of the WHO Health Emergencies Programme (WHE) officer at the country level (under WHO representative (WR) guidance), the Regional Emergencies Director (RED) for RO and the Executive Director for Emergency Response (EXD) for HQ. The definition of these stocks is based on the predicted need to respond to the initial phase of an emergency. In this situation, speed of response is a priority and does not allow time for stocks to be purchased. This stock category is ring-fenced for contingencies, and should items need to be replenished, this should happen immediately.

Central and decentralized stocks

• Central stock: Often located in a capital city or at strategic regional locations and can hold stock for medium-term planning and distribution or as a contingency. Concentrating supplies in centrally located warehouses is suitable in small countries with good transport networks and low risks of insecurity. Centralized warehouse operations facilitate control and management of the supplies, requiring fewer dedicated staff.
• Decentralized/field stock: They are usually located close to the final beneficiaries requiring rapid distribution and contain emergency and regular programme supplies. Decentralizing supplies between multiple field warehouses is more suitable in countries with larger geographical areas, poor transport networks and insecurity that impact access. Decentralized stocks mitigate risks and facilitate faster response timings in emergencies, but they also weaken central control and require higher staffing, operating costs, coordination, and information transfer.

Earmarked and unearmarked stocks

• Earmarked stock: Earmarked stocks are purchased with earmarked funds and are allocated to a specific project. They are associated with a specific PTAEO and are only used for implementing a given project. As the inventory owner, the technical unit in charge of the project is responsible for using these goods only to implement the given project.
• Unearmarked (or unrestricted) stock is purchased through funding not earmarked by a donor for a specific activity, country, or operation, giving WHO flexibility in how the money is used. The SME, IM and OSL teams make a coordinated decision on using these products.

Main and buffer stocks

• Main (or working) stock: The main stock is used to supply regular projects without using the contingency and buffer stock.
• Buffer stock: This is the stock kept for covering unexpected needs, such as a delay in a replenishment shipment or a peak in demand; it helps prevent stock outs.

Other types of stocks

• Break-bulk and consolidation stocks: Temporary storage to break bulk deliveries into smaller units for easy distribution or to consolidate multiple items so that onward delivery can be undertaken with key supplies arriving as a single package to a given destination.
• Temporary stock: Use of temporary stocks in cases of insecurity or access difficulties or that allow temporary safe storage until delivery is enabled.

Replenishment policy

190         Replenishing stock on an ad hoc basis is wasteful and risks stock depletion at a critical time. Therefore, all Stock Managers should have a replenishment policy that maintains critical stock at operational levels through regular replenishment and coordinated turnover with other issuing warehouses. It is a good practice that the replenishment policy also includes details on the mechanism through which costs for items are issued in support of an operation and against which specific PTAEOs are recovered. By doing so, warehouses can ensure stock replenishment is set against a specified cost centre, thereby avoiding stock depletion.

200         Based on calculations from monthly consumption, distribution or any historical data, the replenishment process is initiated based on a reorder point (ROP), the stock level that triggers a replenishment action for that inventory stock. It is usually calculated as the forecast usage during the replenishment lead time and the buffer stock (stock held to cover the replenishment period). The ROP is a technique to determine when to order; it does not address how much to order.

210         Items with a fast turnover, in terms of consumption, need good planning. Variations such as monthly consumption, delivery lead time (time between accepting an order and the actual delivery of that order), expiry date (if applicable) and destination (what is going where) need to be monitored closely.

Inventory control system and reporting

220         Good Storage and Distribution Practices are adopted and implemented by WHO to ensure that medical products are appropriately procured, stored, distributed and delivered (in compliance with legislation) to the appropriate recipients. This is also to ensure that the quality of medical products is maintained throughout their shelf-life in the supply chain.

Stock management system

230         GIMS/BMS/offline tool: The primary WHO online tool for stock inventory reporting is the Global Inventory Management System (GIMS) or Business Management System (BMS) stock management modules. It should be used for all inventory reporting. In certain circumstances (remoteness, connectivity, staff capacity and capability), the use of standard WHO stock accounting and reporting tools (GIMS/BMS) may not be feasible for daily stock management; in this case, an offline stock management tool needs to be utilized to ensure on-demand visibility of inventory holdings, accountability for stock movements and overall ongoing stock management. The Stock Manager must ensure that the stock transactions are recorded post facto in GIMS/BMS per the timeline specified in the SOP OSS.SOP.XIII.001 Inventory Management (link).

240         A proper stock management system involves the transparent movements, storage, and accounting of all stock items. The purpose of a stock management system is to know at any given moment what inventories are in the warehouse, where they have come from, to whom they are allocated and, for those that have been dispatched, where they have gone. The system must provide timely information on stock movements, with appropriate documentation to support it and meet the reporting requirements.

250         Types of accounting practices include stock cards, stock tracking and physical control regimes. The stock management system should frame and support the following inventory transactions:

• Receiving/inbound reception: As soon as supplies (new or returned) arrive at the warehouse, they should enter the receiving/inbound reception process.

• The inventory should be immediately checked for type, quantity, and condition to ensure that it meets the details listed in accompanying documentation and that the warehouse can safely and appropriately handle it.
• Any discrepancies, damages or issues should be documented (including photos) and immediately reported to the shipper or the service provider in charge of the delivery.
• The warehouse then issues a Goods Received Note (GRN) to record the receipt of goods into the stock management system. It allocates the inventory to the appropriate storage location, updating any relevant Stock Cards or Bin Cards utilized by the stock management system, including updating GIMS (if in use).

As a signed waybill will later be used to pay supplies from suppliers, it is important to verify and confirm that the correct supplies (quantity, quality and as per the PO) have been delivered. The technical unit/SME should conduct delivery inspections where necessary for technical supplies.

• Stock request: When a stock request is received, the details of the items requested should be checked against the existing stock to ensure the stock request can be fulfilled. Any issues should be immediately reported to the requester and Stock Owner. Before accepting the request, the warehouse must ensure that the Stock Owner has approved the request. For a stock request subject to a funds-recovery process, it should be verified that the requester has the funds available and check on Delegation of Authority (DoA) limits. If the value exceeds the threshold of an authorized signatory, the release order must be escalated to a higher level under the DoA.

• Ownership/releasing authority: All inventory held by WHO has a financial value and, therefore, a specific budget reference (PTAEO). The authority for releasing stock lies with the Stock Owner or an individual to whom s/he has delegated that specific task. It is essential that the Stock Owner (or representative) is identified by name and that this information is known throughout the supply chain and published.
• Stock release: Upon acceptance of the request, the stock should be picked and packed in preparation for transport and preferably moved to a dispatch area of the warehouse to avoid confusing orders with stock. Once the consignment has been finalized, the transport documents should be prepared, including a packing list and transport waybill. Stock management tools should also be updated to reflect the stock release, including GIMS, stock and bin cards. When the transporter arrives, the warehouse should ensure the vehicle is suitable for transporting the consignment. When the consignment is handed over, the driver should sign the waybill, acknowledging receipt of the consignment and transferring responsibility to the transporter.
• Goods in transit: It is recommended that the warehouse has a dedicated space for "goods in transit" separate from the other items in the warehouse. This space can receive goods moving from one location to another that requires a transit stop; they are not recorded and entered into the warehouse record. In this case, the waybill related to this shipment should be kept during transit, as it will state the type of items and quantity being held in the transit space. The goods transiting in a warehouse can stay for a recommended duration of a maximum of one week. The Storekeeper should approve any extension of the transit duration; after that, it should be recorded and stored, as are the other items in the warehouse.

Accounting

260         WHO controls programme supplies until they reach their final destination or are delivered to a partner. If WHO controls inventory, it is responsible for proper accounting, monitoring, and reporting. For that, an inventory control system should document the movements and storage of supplies and the location of each consignment from order placement to final destination. The supply movements should always be promptly and accurately reflected in GIMS to ensure International Public Sector Accounting Standards (IPSAS)-compliant inventory reporting and insurance cover.

270         In the case of pharmaceutical products, the inventory control system should allow for the traceability of individual product batches from suppliers to beneficiaries.

280         Before distribution, the inventory control system should identify lost and damaged supplies and those that are outdated.

290         It is important that all warehouses provide visibility on the current stocks held and available for an emergency operation by ensuring regular weekly reporting of stock activities either through the online tools or manually. Standard WHO item codes and descriptions should always be used to standardize information and a common understanding of items. 

Reporting

300         The OSL team, SME and Stock Owners must follow the stock level and ensure that the stock is correctly and fully used. The OSL team is responsible for reporting weekly to the SME and Stock Owners to allow them to plan purchases and distribution activities.

310         The stock report aims to provide updated information on stock level, items movements (inbound and outbound), the value of items in stock (for IPSAS compliance and donor reporting) and expiration date. In addition, the stock report aims to alert SME and Stock Owners on low rotation (sleeping stocks), shortages and overstocks. Particular attention is given to items approaching the expiration date, with alerts issued 12, 9, and 3 months before expiration, and to low rotation stock (12 months without movements). Note that overstocking increases the risk of stock expiry with the subsequent waste of funds. Even if it does not expire, keeping excess stock cannot be justified towards donors who want their funds to benefit the beneficiaries.  

320         GIMS/BMS–IPSAS inventory reporting: WHO is committed to periodically reporting inventory values in line with IPSAS in addition to operational inventory reporting. To ensure IPSAS-compliant inventory reporting, the use of GIMS is mandatory for all offices/units that hold inventories for distribution.

 See OSS.SOP.XIII.001 Inventory: Recording and Reporting on IPSAS definition of inventory.

First Expiry, First Out (FEFO) and First In, First Out (FIFO) principles

330         Stock rotation is vital to a warehouse operation. Inventory in the warehouse should be regularly checked for condition, cleanliness, and expiry dates, with stock rotated as necessary to ensure longevity. The First Expiry, First Out (FEFO) and First In, First Out (FIFO) principles of picking goods must always be respected:

• The FEFO system applies to items with an expiry date to ensure that stock subject to early expiry is used first. Be aware that newly received supplies can have an earlier expiration date than previously received batches of the same item. Regular physical inventory counts should be undertaken to ensure stock levels align with stock records.
• FIFO applies to items without expiration date.

340         Supplies should be separated according to their storage requirements (e.g., cold room, racking, etc.) and stacked by i) Purchase Order (PO), ii) item code, as part of the standardization project, iii) expiration date and iv) batch number. Batch details and expiration dates must be correctly reflected in GIMS/BMS. For supply expiration dates showing only a month and year, the last calendar day of the expiring month indicated by the supplier should be entered into GIMS/BMS.

Physical stock count

350         Inventory should be physically counted at least once a year as part of the account closure activities (between 1 June and 15 October). The physical inventory ensures that the data recorded in the stock records correspond to the quantities of products present physically in the warehouse. In addition, the OSL team is to inspect the warehouse regularly (ideally once a month) and randomly check physical stock against corresponding entries in the stock control documents. Any discrepancies should be investigated, reported, and recorded in GIMS/BMS.

360         High-value items otherwise considered high risk (with high operational stakes) should be checked more frequently. Checks must be made for quantity, location, batch and expiration details, physical condition, damage, and obsolescence.

370         Ideally, a member of the Management Team participates in the physical count exercise. The counting team should be multidisciplinary, reflecting the separation of duties and be composed of staff from the technical units, administration, and logistics.

380         If discrepancies are noted outside the stock count exercise, such as damaged items or differences in counting, the discrepancies should be recorded and justified. A report should be issued without waiting for the next stock count. The root cause for stock discrepancies should be identified, and appropriate measures should be taken to prevent a recurrence. For guidance on inventory management, please refer to eManual XIII.3.2 Management of inventory. 

Waste management/disposal

390         Attention needs to be made to the expiry dates of items. The OSL team's role is to ensure that all staff employed in a WHO warehouse know and adhere to the rules. Ideally, the stock management system will highlight short expiry date items so that a proactive management approach can be applied. When necessary, any expired items or other items requiring disposal should be disposed of responsibly, in compliance with existing environmental standards and in line with national and WHO regulations. The stock management and financial reporting systems should correctly document the disposal process. See eManual XIII.3.3 Disposal of inventory.

400         Pharmaceutical disposals should be done, where possible, at Ministry of Health (MoH) incineration facilities and be signed off as witnessed by an MoH official.

410         Items awaiting disposal and other waste should be isolated from other inventory to avoid cross-contamination in a secure, well-marked location such as the Quarantine zone.

420         The destruction of expired goods is not only a waste of funds but can be a source of reputational risk for WHO, the donor and the national authorities. Careful consideration must be given to the Organization's reputational risk and potential liability. The justification for the disposal method proposed must clearly outweigh these risks. Refer to the WHO Health Care Waste Guidance 

Insurance

430         WHO warehouses/premises worldwide, and the goods stored inside them are insured by WHO global insurance. The maximum value insured is US$ 25,000,000 per warehouse location. Full Political Violence risks of WHO Storage (inventories) exposure are not covered by the WHO global insurance.

440         Insurance declaration is based on a quarterly 'retroactive' declaration of stored value to the insurance broker:

• For goods registered in GIMS, the assets management (AMG) team shares with the insurance broker the report extracted from GIMS, which contain all necessary information, including exact warehouse(s) location/address, description of goods stored and average stored value (USD).

For goods not registered in GIMS/BMS, the AMG team informs the insurance broker, detailing the stored items and value. The Warehouse Manager must notify the AMG team about the exact warehouse(s) location/address, description of goods stored and value (USD) on the reporting date (i.e., the last day of each quarter). In the case of significant fluctuations, the maximum expected value should also be provided.

450         Reports should be issued on the last day of each quarter (March 31 for the 1^st quarter, June 30 for the 2nd quarter, September 30 for the 3rd quarter, and December 31 for the 4^th quarter).

Warehouse facilities planning and selection

460         Good Storage and Distribution Practices are adopted and implemented by WHO. They are considered the primary guidance for warehouse management.

470         The choice of the warehouse should be based on the priority needs of the particular operation (warehouse space availability, closeness to beneficiaries, rental charges, security considerations, etc.). When other types of buildings are used as local warehouses, particular attention must be paid to security and accessibility. It is essential that warehousing is planned and operational before emergency shipments arrive to avoid any delays in the commodity pipeline or lost commodities due to inadequate storage. Particular attention should be given to the following:

• Needs assessment: Before exploring the storage facilities available in a specific location, a needs assessment should be carried out to establish the storage requirements and needs. Warehouse size should be based on peak demand requirements throughout the year. Every effort should ensure the prompt and efficient turnover of supplies to minimize associated storage and supply handling costs and mitigate the risk of deteriorating product quality due to aging stock. The type of storage required relates to the nature of supplies to be stored in a warehouse: vaccines and pharmaceuticals may require temperature-controlled storage, and high-value items, or items of high interest, may require additional security (e.g., a locked room). All WHO supplies need clean, dry storage space, free from pests and large temperature variations.
• Sizing: Based upon the response plan, including planned procurement, the volume and type of storage space should be estimated, including requirements for different cold chain temperatures and out-of-dimension cargo. Sufficient space, in addition to storage areas, should be allowed for administration, handling, and packing activities. It is preferable to have too much space than not enough due to uncertainties in emergency operations.
• Selection: Warehouse selection should be based on several criteria in addition to size. These include location and access; proximity to major transport routes and existing WHO sites; seasonal impacts; site security for stock and personnel; backups for communication, energy and cold chain; and overall warehouse condition.
• Security and safety: A security assessment should be undertaken before the final site selection. Ideally, warehouse facilities should meet the Minimum Operating Security Standards (MOSS). However, compliance of warehouses with MOSS standards may require a lengthy process (which is not always possible in emergencies), and this process does not apply to warehouses owned and managed by third parties. In all cases, the WHO Field Safety Officer (FSO) should validate warehousing site selection. The property surrounding the warehouse must remain free of health care and general waste. Maintaining a clean environment where health supplies are stored will reduce the number of pests, insects, and rodents. In addition, the facility should be equipped with fire prevention equipment (information is available on the UNDSS website).

• Contracting: The warehouse should be contracted by the WCO through appropriate finance and procurement channels to ensure compliance with local contracting conditions.
• Staffing: In addition to the full-time warehouse staff for managing and facilitating average daily activities, such as the warehouse manager and stock clerks, systems should be implemented to quickly mobilize extra surge staff for days with high workloads, particularly for loading/unloading.
• Cleaning and sanitation: The warehouse should be maintained in a clean and sanitary condition at all times. Any damage or pest infestations should be reported and immediately resolved.
• Health and safety: Appropriate health and safety equipment should be available to all staff and used when necessary. Hazards should be clearly marked, and new staff should be briefed on the health and safety procedures of the site and any known hazards. All accidents or incidents should be reported to the OSL team.
• Access control: Access to the warehouse should always be controlled, with only authorized staff and visitors allowed on site. Vehicles arriving and departing the site must be inspected, with documentation checked for any goods on vehicles. A register should be maintained of all entries and exits of the site.
• Power supply: To ensure the proper functioning of the cold chain equipment and the site's lighting and office equipment (e.g., computers), the warehouse must be connected to the national electricity grid. In addition, to prevent power outages, the warehouse should be equipped with a generator as a backup power source.

Storage of sensitive inventories

480         The following sensitive inventory requires specific storage:

• Cold chain: Temperature-controlled shipments (-80C°, -20C°, +2C°/ +8C° and +15C°/ +25C°) require specialized handling and storage equipment to ensure that items remain within defined specifications. Attention should be paid to cold chain equipment availability and quality to ensure appropriate storage conditions. Supplies requiring temperature-controlled storage must be handled and stored as quickly as possible to provide an uninterrupted cold chain. As much as possible, temperature monitoring equipment should be utilized. In this regard, the following steps are to be taken:

• Before acquiring cold chain equipment or identifying a facility to stock cold chain inventories, estimate the volume requiring temperature-controlled storage.
• Determine your needs for refrigerator, freezer, and temperature monitoring equipment.
• Before storing vaccines or other items that require refrigeration, ensure that the power supply is reliable and will work without interruption during the entire storage period.

• Dangerous goods: Items classified as dangerous or hazardous must be handled and stored in line with regulations and processes associated with their classification. Service providers, storage facilities and handling staff should be trained, equipped, and qualified to handle these items.
• Valuable equipment: Such equipment (e.g., Comms, IT, etc.) should be secured in a locked area/ room, and each stock movement must be tracked (per their serial numbers).
• Controlled drugs (narcotics, antipsychotics): These drugs should be kept in a locked place and regularly checked and accounted for. They should be stored in compliance with international conventions, national laws, and regulations.
• Quarantine area: Inventory subject to disposal or to be isolated are to be stored in a quarantine area.

Warehouse operating models

490         Irrespective of the warehouse operating model in use, inventory management responsibility in GIMS/BMS lies with WHO, which ensures that the warehouse function is adequately resourced/ performed by WHO staff, with appropriate GIMS user roles assigned. Depending on the situation, several options can be envisaged to contract warehouse facilities:

• Free-of-charge government facility: The host government provides WHO warehouse space free of charge. WHO manages the warehouse operation with WHO staff or through a third party. When a government cannot source premises to store supplies, WHO may provide supply-related support services to a government to lease, rehabilitate or provide prefabricated warehouse premises. WHO may also support the government in purchasing the necessary equipment and systems to operate a warehouse. In all cases where WHO provides support services or capacity building, any agreement should clearly define who regulates access and controls the release of supplies.
• Own and manage: Warehouse premises owned by WHO and managed with WHO staff or through a third party.
• Lease and manage: Warehouse premises rented by WHO from a third party but managed by WHO staff.
• Third-party outsourcing: Warehouse premises leased by WHO to a third party, which includes contracted warehouse management and/or handling services. Warehouses managed by a third party should have an adequate warehouse management system; however, every transaction must also be recorded in GIMS/BMS to ensure adequate movement records and inventory levels. WHO staff in charge of warehouses are the custodians of inventory irrespective of any contractual arrangements between WHO and the third party.

Warehouse layout

500         A warehouse layout should ease and facilitate locating, accessing, and counting supplies. Supplies should be grouped by programme. Storage areas should be clearly marked, and the sequence of naming and numbering should be consistent. Warehouse layouts can vary substantially depending on the size and type of operation supported. To carry out operations efficiently and safely, each warehouse should have, in addition to designated storage areas, the following as a minimum:

• Receiving area: To accept, receive and unload supplies, which can be checked against the shipping documents before being put away in designated storage areas.
• Dispatch area: To prepare ordered supplies against instructions (according to a release order) and check them before loading for transport.
• Transit zone. This zone is dedicated to goods in transit for a short term (1 week). Transiting goods will not necessarily be recorded in inventories, as the waybill is the reference document and states the list of items. Movement of the goods should still be recorded in distribution or request monitoring.
• Storekeeper office: This office should be equipped with a computer connected to the internet for recording, accounting, and reporting inventory transactions.
• Parking for vehicles

510         Other areas that may be required:

• Temperature-controlled storage: To store supplies at a specific temperature. Backup power sources (e.g., generator and fuel) should be made available to ensure temperature-controlled storage in case of electricity failure.
• Locked area/room: To secure high-value and interest supplies.
• Quarantine area: To store supplies subject to uncertainty (awaiting inspection, claim processing, etc.).
• Employees' rest area and washroom
• Area for pallets and empty boxes