Warehouse Certification

2

Warehouse Certification

ExECutivE Summary

Warehouse support in modern day business process has become

an important focus point since it regulates the inventory in both

upstream and downstream function. The operations and functions of

a warehouse has now become very critical focus point since it defines

the efficiency of a production and as well as the level of customer

satisfaction. We are witnessing a high level of activity, pressure in the

distribution part of the supply chain.

The key to a Company’s Distribution Strategy and profitability has

become focus point thus making the warehouse location and function a

vital one. Logistics cost in the country is around 13 percent of National

GDP with Warehousing activities accounting for about 22 - 27 per cent

of the total Indian logistics cost. With the economy on the positive

trend and buoyant market condition Warehouse Services play a crucial

role in every key area for ensuring end user satisfaction. In such a

scenario, Sustaining and Enhancing performance levels, requiring

constant Monitoring, Benchmarking is becoming the order of the day.

WAREHOUSE CERTIFICATION is a new initiative by India’s Apex

Industrial body, Confederation of Indian Industry, which assesses and

certifies the overall functionality of the warehouse. This Warehouse

certification process will enable the service provider to understand the

current level and upgrade to the next level, and also helps end user

to choose their appropriate collaborative partner that will suit their

supply chain design.

4

CII Institute of Logistics will administer the Warehouse Certification

Process. The level of certification has four categories namely, Platinum,

Gold, Silver and Bronze, based on the overall functions of warehouse

encompassing the various factors for efficient functioning.

Warehouse certification will help in develop a road map for future

growth, set benchmarks and have defined improvement plan. This

process will also help in integrating the intra and inter linkage of the

supply chain which will certainly benefit all those associated in this

process.

Warehouse Certification will benefit all the warehouses which already

exist, new generation ones, those functioning under the Logistics Park,

SEZ, FTWZ.

Warehouse 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.

allocation

Stacking

picking

packing

Dispatching

receiving

inspection

Warehouse activity

WarEhouSE aCtivity

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

6

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.

Warehouse Certification

WarEhouSE CErtifiCation

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:

1 To enable the warehouse service provider to assess their operation/

Process

2 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.

8

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

Fixed Cost Cycle Time Documentation Loss of customer Risk Error Waste

INC

REA

SE

DEC

REA

SE

Manpower Efficiency Equipment Utilization Space Utilization Customer Satisfaction Reliability Flexibility

Overall W

arehouse Performance

Warehouse Certification

lEvElS of WarEx

fEaturES of lEvEl

• 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

platinum

GolD

SilvEr

BronZE

10

HoW to get Certified?

Different Levels of certification are awarded based on the total points

earned.

Each level has mandatory requirement which has to satisfy basic

mandatory criteria.

The certification is valid for 2 years. On completion of 2 years

certification is renewable based on the prevailing version.

For Further details

please visit our website : www.ciilogistics.com and

email to : ciladv@cii.in, Phone: (D): +91 44 4292 8902 / 4292 8900.

proCESS introDuCtory viSit

rEport SuBmiSSion

SuBmiSSion of QuEStionnairE

rECEipt of thE fillED in QuEStionnairE

WarEhouSE viSit & aSSESSmEnt By ExpErt tEam

Warehouse Certification

aCknoWlEDGEmEnt

CII Warehouse certification as been made possible through the efforts of many dedicated professionals and staff members.

We extend our most sincere gratitude to Mr R Dinesh, JMD TVS Sons Ltd, who, in the Capacity of Chairman of the Committee has provided the consistent support and guidance in developing the Warehouse Certification process.

Our special thanks to the following members for their participation and contribution in developing the warehouse certification model.

• mr arif a Siddiqui, Director, Coign Consulting

• mr ajit Jangle , Managing Director, Toll (India) Logistics

• mr Badhri, Director Sales, Perspecte Solution

• Mr C N dumasia, Chief Manager, Godrej &Boyce Mfg Co Ltd

• mr Gunjan Bhargava, Senior Manager, Godrej &Boyce Mfg Co Ltd

• Mr H N Khumbatta, Vice President, Godrej &Boyce Mfg Co Ltd

• mr Jasjit Sethi, CEO, Transport Corporation of India ltd

• mr manivannan r rajan, Management Consultant

• Mr ramesh Nair, Managing Director, Jones Lang Lasalle Meghraj

• mr ravichandran, President , TVS Logistics Ltd

• dr t V Subramanian, Management Consultant

• mr Sanker, CEO, Perspecte Solution

• mr vijay nair, Vetron, Hypercity Retail Ltd

• mr a m viswanathan, Vice President, Godrej & Boyce Mfg Co Ltd

12

Our sincere thanks for the following organization for their valuable inputs to design Warehouse Certification:

• ACC Ltd

• AFL Pvt Ltd

• FLEXTRONICS

• Glenmark Pharmaceuticals Ltd

• Hindustan Unilever Limited

• ITC Ltd

• IFB AGRO Industries Ltd

• JCBamford Excavators Limited

• JK Tyres & Industries Ltd

• LT FOODS Ltd

• Loreal India Pvt Ltd

• MRC LOGISTICS (India) Pvt Ltd

• MAHINDRA & MAHINDRA Ltd

• NILKAMAL Ltd

• PIRAMAL HEALTHCARE Ltd

• SICAL LOGISTICS Ltd

• TATA STEEL Ltd

• TATA MOTORS Ltd

Warehouse Certification

aBout Cii

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes.

CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. Founded over 115 years ago, it is India’s premier business association, with a direct membership of over 8100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 400 national and regional sectoral associations.

CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialized services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward our initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and environment, to name a few.

CII has taken up the agenda of “Business for Livelihood” for the year 2010-11. Businesses are part of civil society and creating livelihoods is the best act of corporate social responsibility. Looking ahead, the focus for 2010-11 would be on the four key Enablers for Sustainable Enterprises: Education, Employability, Innovation and Entrepreneurship. While Education and Employability help create a qualified and skilled workforce, Innovation and Entrepreneurship would drive growth and employment generation.

With 64 offices in India, 9 overseas in Australia, Austria, China, France, Germany, Japan, Singapore, UK, and USA, and institutional partnerships with 223 counterpart organizations in 90 countries, CII serves as a reference point for Indian industry and the international business community

14

Cii- iNStitute of LogiStiCS

To address the need of sharpening India Inc’s competitive edge through better

Logistics and Supply Chain practices, CII Institute of Logistics (CIL) was established

in 2004 by the Confederation of Indian Industry as a Center of Excellence in

Logistics and Supply Chain.

At CII Institute of Logistics we create a platform for the Industry to gain more

insights into the emerging trends, industry specific problems of national

importance and global best practices in logistics & supply chain management.

We enable the industry to cut down the transaction cost, increase efficiency, and

enhance profitability and enable to sensitize and bring solutions to macro level

issues.

For over four years now, CII Institute of Logistics, the country’s premier Centre

of Excellence in logistics and SCM, has enabled a number of exemplary success

stories in logistics.

thE viSion:

CII Institute of Logistics to become an International Centre of Excellence in Logistics

and SCM and to facilitate Indian industry to be referred in Global Business for its

Best Practices in SCM and Logistics.

thE miSSion:

CII Institute of Logistics to be a platform to create and share intellectual capital for

reducing transaction cost and improving competitiveness, in the process nurture

the skills of Logisticians and ensure adoption of Best Practices in Logistics and

SCM through online and offline activities.

Warehouse Certification

Confederation of indian industryInstitute of Logistics

New No.33, Velacherry main Road (Near Guru Nanak College)Velacherry, Chennai – 600 042

Phone: (D): +91 44 4292 8902 / 4292 8900, Fax: +91 44 2255 1341 e-mail:ciladv@cii.in, website: www.ciilogistics.com