LOGO PROCEDURE Code:

Version:
WAREHOUSE OPERATION AND CONTROL
Validity:
PROCEDURE
Page: 1 of 7

WAREHOUSE OPERATION AND CONTROL PROCEDURE

1. AIM
The purpose of this Procedure is to establish standards, criteria,
procedures and responsibilities for the operation of the warehouse.

2. LEGAL BASE
The legal basis that supports this regulation is given by the legal
provisions, directives and related internal regulations.

3. SCOPE
This procedure applies to Logistics personnel and all company bodies
related to storage activity.

4. DEFINITIONS
4.1. Store
Physical area selected under appropriate criteria and techniques,
and organized in a logical, orderly and systemic manner, intended
for the reception, acceptance, custody, conservation and
distribution or dispatch of the goods that are going to be used for
the production of services or economic goods.
4.2. Physical Warehouse Areas
They are those previously defined and differentiated areas that will
allow the implementation of a technical organization and the flow
of resources according to established standards.
Are detailed below:
 Reception and Dispatch
It is the place where materials purchased from suppliers and
those returned for reasons of not having been used will be
received. Likewise, this is where the materials will be delivered
to users for consumption or activation in appropriate cases. The
reception and dispatch areas must be clearly delimited to avoid
confusion between the acceptance and dispatch of materials.
 Corridors and passageways
They are the environments determined for the transit of
materials, people or vehicles, these being main and transversal,
and must be signposted and structured in a rectilinear manner.
 Storage Area
 It is the physical place where the received goods are placed,
which may be: Warehouses, Zones, Levels, Sub Levels, Shelves,
Shelves and others that must be adapted to the characteristics
of the materials in storage.

 Transit and Setup Zone

Area immediately adjacent to the reception and dispatch area
where the received materials are located awaiting their final
location or those that require preparation to be dispatched to
users.
 Contingency Location
Area that can be temporarily converted into a warehouse, to
cover a possible storage contingency, and must be previously
designated as part of the Company's logistics policy.
 Changing rooms and toilets
They are places intended for the use of workers who work in
warehouses, for their personal hygiene, protection of their
clothing and satisfaction of their physiological needs.

4.3. Cataloging System

Process of describing the physical, chemical, functional and/or
administrative characteristics that distinguish each material, with
the purpose of identifying and differentiating it from the others and
including it in a catalog of materials after classification and
assignment of a unique code that allows its identification. and
individualization by users.

4.4. Storage Process

Storage is a technical supply process and its activities refer to the
location of goods in a specific physical space for custody and
control purposes to avoid their unauthorized use, as a way to
transfer them to the users who require them. It consists of the
following phases:
a) Reception: Process that develops from the moment the goods
have arrived at the warehouse location, and ends with their
location in the transit area and preparation to carry out
verification and quality control.
 b) Verification and Quality Control: It is the quantitative and qualitative
review that serves to determine that the characteristics and
properties of the goods received are in accordance with the
requested technical specifications and that the quantities sent
are consistent with those required. The user of the good may
participate in this process when it involves special or high-tech
materials, at the request of the warehousekeepers.
c) Acceptance: Action of accepting or rejecting the entry of a good,
provided by a supplier, to the Company's warehouse, based on
the verification and quality control process previously carried
out. A good cannot be accepted that does not comply with the
physical, chemical, functional or administrative characteristics
detailed in the corresponding Purchase Order.
d) Internment: It includes the actions that will serve to locate the
assets in the previously assigned places.
e) Registration and Control: It is the activity that consists of recording
the data referring to warehouse movements in records that
serve to carry out control actions over their custody and
operation.
f) Custody and Maintenance: Set of activities carried out with the
purpose that the stored goods retain the same physical,
chemical, functional or administrative characteristics in which
they were received, as well as their cleaning and maintenance.

4.5. Distribution Process

Logistics process consisting of the delivery of the material or good
requested by the user in the place where the user needs it or in the
dispatch area of the Warehouse.
It consists of the following phases:
a) Formulation of the Order: It is the action through which the user
agency formulates its requirement for materials based on its
needs, preparing the respective Consumption Note.
b) Dispatch Authorization: It is the action that defines the approval of
Consumption Notes by the specially established authorization
levels.
c) Conditioning of Materials: It is the activity that consists of removing
the goods from their location and placing them in the place
intended for dispatch and subsequent delivery to the recipients.
It includes the necessary activities related to the packaging,
loading, carrying and handling of materials or goods in an
appropriate and timely manner.
 d) Physical Distribution: It is the action of physically delivering
warehouse goods to end users.
e) Material Control: It is the control activity over goods or materials
carried out by security or surveillance personnel, before
removing them from the company's facilities.
4.6. Warehouse Physical Inventory Verification
It consists of verifying the existence or real presence of the stored
goods, assessing their state of conservation or deterioration and
safety conditions, comparing the results of the verification carried
out with the balances indicated in the physical and/or valued
records.

4.7. Disposal of assets

Action of technically determining the qualification of a good that
due to its condition or characteristics should no longer remain in
the company's stock, proceeding to its withdrawal under the forms
and procedures permitted by current regulations in this regard.

4.8. Restocking
It is the set of actions that aim to maintain continuity of supply,
replenishing consumed stocks, in order to have timely availability
of materials.
a) Economic Acquisition Lot
It is the optimal quantity of materials to acquire established
based on demand. It is the amount of materials that balances
the costs of possession and renovation.
b) Maximum Stock Level
It is the maximum economically justifiable quantity of a good
that can be held in a Warehouse, above which a possession cost
that would be too high and detrimental to the company would be
incurred.
c) Minimum stock
It is the minimum economically justifiable quantity of a good
that can be kept in a Warehouse, below which there is a high
possibility of causing a stockout.
d) Security stock
Minimum quantity of material that is established as a security
measure against possible non-compliance with the timing of
arrival of the material by the supplier.
The safety factor used for its determination is given by a
percentage decided by the Company's Logistics in coordination
with the user area, based on a policy defined in this regard.
 There should only be safety stock for type A materials (high
consumption) or for Critical Items.
e) Critical Item
They are materials whose absence could cause the paralysis of
vital operational processes for the organization or cause severe
damage to them.
f) Point of order
It is given by the amount of stock of a material that requires it
to be replaced and that guarantees its consumption during the
delay in its supply, or in order to prevent stock outages from
occurring.

4.9. Stock Registration and Control

It consists of the set of records and reports in which data is
recorded on the movements of goods in the warehouse, and the
quantities available to satisfy user requirements.
The elements that record and control the movement of stocks are:
 Physical Warehouse Kardex
 Kárdex Valued Accounting
The source documents to carry out the records are:
 Warehouse Entry Note
 Warehouse release note
 Referral Guide
 Purchase order

5. GENERAL RULES
 All goods acquired by the Company must necessarily enter through
the warehouse. Exceptionally, when the goods due to their special
characteristics have to be stored in other facilities or sent directly
to the users in charge of their use, the Storekeeper must carry out
direct verification and process the corresponding documentation.
 The verification process of the materials delivered by the suppliers
to the warehouse must be carried out by the Storekeeper and the
user who requested their acquisition, in the presence of the
person(s) who deliver the good to the Company's warehouse.
 In cases where, due to the number and characteristics of the
goods received, more time is necessary to carry out the
verification and quality control, the Storekeeper will sign the
supplier's Remittance Guide, placing a stamp that indicates
“RECEIVED” indicating the number of packages received. and the
respective gross weight, without delivery of the corresponding
Income Note.
 Within the following 24 hours, the Storekeeper and the user who
requested the acquisition must carry out the verification and
quality control of the goods received, making the respective
Income Note available to the supplier.
 Only people who work in the warehouse are authorized to have
access to said facilities and distribute goods according to
established procedures.
 The Head of Logistics with the Head of Asset Security will
establish and define the security measures that must be provided
to the company's warehouses when work carried out by third
parties is carried out. Without prejudice to this, the Storekeeper
must permanently supervise that such work does not affect the
integrity or quality of the stored goods.
 The location of the materials in the Warehouse will obey technical
criteria commonly accepted in the warehouse organization
processes, with the Warehousekeepers being in charge of this
responsibility.
 The cataloging, classification and coding process of the materials
will be in charge of the Logistics area, under responsibility.
 Materials in stock, as well as those that have to be moved, must be
covered by insurance coverage, and the Logistics area must inform
Finance so that it can take the appropriate measures.
 This regulation also includes all recovery materials, which will
have the same treatment intended for stock materials.

6. PROCEDURES
6.1. RECEPTION PROCEDURE
STEP N° WORK TO BE DONE
01 The Supplier presents to the Warehouse the materials
requested by EGASA in the respective “Purchase Order”,
attaching the Purchase Guide.
Remission (Original, and SUNAT and Carrier Copies).
02 The Storekeeper, in the presence of the supplier,
removes the corresponding Purchase Order from his file
of “Purchase Orders Pending Attention” and proceeds to
carry out the documentary receipt of the good,
comparing the content of the Purchase Order with the
Purchase Guide.
Provider Referral.
03 Proceeds to the physical receipt of the good through
qualitative and quantitative verification and control of
the material, taking into account the technical
 specifications and information contained in the
Purchase Order and Shipping Guide.
04 It requires the presence of the user requesting the
material to give conformity to the purchased products.
05 IS THE MATERIAL COMPLIANT?
05A It is not compliant.- It does not receive the material and
requests regularization.
Return to Step No. 01
05B Yes, it is compliant.- Receive the material, seal and sign the
supplier's Shipping Guide, as a sign of compliance.
06 Issues the Entry Note (Original and 3 copies), recording
the corresponding location code, having it endorsed by
the user as a sign of conformity and endorsed by the
Logistics area headquarters.
07 Distribute the documents as follows:
Referral Guide (from Provider)
- Original - To the supplier
- SUNAT copy - To the supplier
- Carrier Copy - Warehouse
Entry Note
- Original - Accounting
- Copy 1 - Supplier
- Copy 2 - Logistics
- Copy 3 - Warehouse File with Purchase Order
08 It proceeds to the internment of the assets, carries out
their preparation and places them in their final location.
09 With copy 3 of the Entry Note, record the entry of the
materials into the Warehouse in the Physical Card.
10 Carry out maintenance, custody and permanent cleaning
of materials.
11 End of the procedure.

6.2. DISTRIBUTION PROCEDURE / DISPATCH OF MATERIALS

STEP N° WORK TO BE DONE

01 The user proceeds to prepare their Consumption Note,

selecting the user options and registering the
corresponding information.
02 The Official in charge of authorizing the Consumption
Note enters, and according to the level of authorizations
 established in
the “Table of Authorizations for Internal Operations” in
force in the
Company, proceeds to authorize the Consumption Note,
being able to validate or modify the requested quantities
and even partially or totally cancel the Consumption
Note.
03 The requesting user, once his/her Consumption Note has
been approved, proceeds to collect the requested
material from the warehouse, indicating the number of
the Consumption Note.
04 The Storekeeper, through the automated system, will
locate the approved Consumption Note, and will proceed
to dispatch it according to the existing stock, previously
verifying the location of the requested goods.
05 The Storekeeper records the information and proceeds
to prepare the Output Note / Delivery Order (original and
2 copies), has it signed by the user as a sign of
acceptance of receipt of the delivered materials,
updates the Physical Cardex and proceeds to distribute
the Output Note / Delivery Order as follows:
- Original: Accounting
- Copy 1: Warehouse
- Copy 2: User (Destination warehouse in cases of
transfers).
06 Termination of the Procedure.

6.3. PROCEDURE FOR ISSUING REFERRAL GUIDES

STEP N° WORK TO BE DONE
01 The user who needs to move a company asset must
request the person in charge of the respective
warehouse to issue the
Referral for which you must provide the following
information:
a) Departure address: (street, No., district, department)
b) Arrival address: (street, No., district, department)
c) Recipient: (name, Company, RUC, DNI)
 d) Transport unit:
 Vehicle, make, license plate.
 Registration Certificate Number in the Ministry of
Transportation, when applicable.
 Company Name and RUC.
 Driver's license and driver's name.
e) Description of the good to be transported, in a clear
and precise manner, quantity, unit, packaging
material, dimensions and, if possible, weight.
f) Reason for transfer.
02 The Storekeeper of each Warehouse issues the Shipping
Guides (Original and 5 copies) that are necessary as a
result of their dispatch activities or that are required by
the user, with the Logistics area in charge of controlling
them.
03 Distribute the Referral Guide (from EGASA) as follows:
Original - To the Recipient (with goods/materials)
Copy 1 - SUNAT (with goods/materials)
Copy 2 - Sender (EGASA Warehouse File)
Copy 3 - Carrier
Copy 4 - Surveillance or exit gate
Copy 5 - Logistics Department (Asset Control)
04 Termination of the Procedure .

Elaborated Warehouse Manager Edgard Tataje Carbajo 13/05/13

reviewed
Approved