Warehouse Excellence Certification

Role of warehouse & its impact on Supply Chain

In the present context of global business scenario, the management is constantly on the lookout for enhancing efficiency, performance and the profitability. The manufacturing has always been closely monitored activity while the sourcing and the distribution are becoming complex and challenging. The distance between the supplier, manufacturer and the consumers is ever growing.

With the increase in product range, customer base, customer demand, the performance of an organization is challenged. The one strong emerging trend is the optimization of the Supply Chain process, in which the Warehousing is becoming a differentiator for success.

The warehouse support has become an integral part of the strategic decision making process. The function of a warehouse from mere storage concept has now developed in to a multifaceted activity centre. The variety of the value added service that is being provided is enabling many organizations to optimize their resource and profits.

Needless to say the demand for value addition activity is also continuously increasing for achieving the customer satisfaction. The warehouse is now looked as profit centre even by the organization managing their own warehouses.

The Supply Chain at various stages is adopting different tools and techniques to suit their functions and requirement to optimize their overall efficiency. Manufacturing adopts to Milk Run, Kan Ban, Two bin system, JIT, Postponement decisions, Lean concepts, etc.

The marketing team adopts to strategies like Hub & spoke, Channel distribution, direct marketing, promotional sales, etc. The after sales aims at least down time of their product and high customer satisfaction by various SLAs and AMCs.

All the above system is now becoming more and more dependent on a good, efficient and dependable warehouse system. The warehouse is now becoming a high transaction centric, there by demanding performance, efficiency, value addition, cost saving etc.

Sectors like retail, pharma, food, electronics, FMCG, bulk commodities are now adding new dimensions to the functions of the warehouse. The present users of warehouse are from different verticals with varieties.

With gradual improvement in the logistics infrastructure like dedicated freight corridors, logistic parks, coastal shipping, the exim cargo will also witness huge activity.

The GDP growth being projected at 7%, the growth of the logistic sector is expected to be in the range of 20%. With huge investment happening, buoyant manufacturing activity and mass distribution taking place, the movement of materials will be even at a higher pace.

All this will lead in to the increase in the warehouse requirement with good service levels. The warehouse function is set to be an key factor in Supply Chain design.

What is Warehouse Certification?

Warehouse Certification is a process which assesses the various parameters and functions that are essential to run and manage an efficient warehouse.

This certification process recognizes the efforts and the practices followed in a warehouse, which is based on the level of complexity, sustainability, scalability required to run a warehouse.

CII – Institute of Logistics offers Warehouse Certification process for the benefits of business in India to:

• To enable the warehouse service provider to assess their operation/Process

• To enhance business and end user service

Technology plays a major role in modern day functioning of a warehouse. As processes are certified, organizations are likely to uncover redundancy in the form of reports and tasks.

Benefits of WAREX

National

• To facilitate the Indian warehousing industry to achieve world class Levels.

• To decrease the logistics costs spend and increase the turnover.

• To Identify key area for improvement

End User

• Enables the end user to make warehouse decision

• Helps them in long term strategic planning

• Enhances customer responsiveness to products and service

Service Provider

• Acts as a critical marketing tool to promote their business

• Facilitate in reaching higher level of services

• Helps in reducing cost and increase efficiency

Levels of WAREX

• Bronze:
  Accredits the Acceptable practices with basic infrastructure

• Silver:
  Accredits the Standard practices in warehousing

• Gold:
  Accredits the Best Practices in Warehousing

• Platinum:
  Accredits the Excellence in class integrated with green concepts

How To Get Certified?

Process

• Introductory Visit

• Submission of Questionnaire

• Receipt of the Filled in questionnaire

• Warehouse Visit & Assessment by Expert Team

• Report Submission

Different Levels of certification are awarded based on the total points earned. Each level has a mandatory requirement which has to satisfy basic mandatory criteria.