Warehouse Certification

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 Executive Summary

W arehouse 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.

Warehouse Certification
 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.

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 Role of warehouse &
its impact on Supply Chain

I n 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.

Warehouse Activity

inspection allocation

receiving Stacking
Warehouse
activity

Dispatching picking

packing

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

Warehouse Certification
 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.

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 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.

Warehouse Certification
 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

Manpower Efficiency
Equipment Utilization
INCREASE

Space Utilization
Customer Satisfaction
Reliability ance
Flexibility erform
eP
h ou s Fixed Cost
are
l W
al Cycle Time
er
Ov Documentation
DECREASE

Loss of customer
Risk
Error
Waste

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 Levels of WAREX

PLATINUM

GOLD

SILVER

BRONZE

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

Warehouse Certification
 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 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.

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 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

Warehouse Certification
 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

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 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

Warehouse Certification
 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.

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Warehouse Certification
 Confederation of Indian Industry
Institute 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