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Is your Warehouse
     Certified?




     © Confederation of Indian Industry
Benchmarking Warehouse Practices
    CII – Institute of Logistics

        © Confederation of Indian Industry
Architecture
      1   Introduction – CII IL

      2   Warehousing in Supply Chain

      3   WAREX

      4   Process Overview

      5   Certification Methodology – framework

      6   Report Structure




           © Confederation of Indian Industry
The Confederation of Indian Industry (CII) is industry led and
industry managed organization, playing a proactive role in
India's development process.




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.

                     © Confederation of Indian Industry
90,000
            Indirect members

                  8100
            Direct members

                 CII


                 400
National © Confederation of Indian Industry
         & Regional associations
CII – Institute of Logistics
                  [CIL]




       A Centre of Excellence for
Logistics & Supply Chain Management
             © Confederation of Indian Industry
Be a committed platform to create & share
Intellectual capital, Induce best practices & optimize
the competitiveness of Indian Supply Chain
 CIL Mission




                   © Confederation of Indian Industry
To become an International Centre of Excellence in
facilitating Indian industry to be referred in Global
Business for its Best Practices in SCM and Logistics
 CIL Vision



                  © Confederation of Indian Industry
Education   Training                   Events      Advisory




              © Confederation of Indian Industry
Warehousing
A Key Integrator in Supply Chain




         © Confederation of Indian Industry
Warehousing
A Tool for competitive advantage




         © Confederation of Indian Industry
Warehousing
A Profit centre by itself




     © Confederation of Indian Industry
Warehousing Growth
          Other Logistic Segments
                                                                                   Warehousing expected to account
                                                                                    for 35% logistic activity in this
                                                                                               decade




                                                      Warehousing
                Market Size and Growth                                           Capacity Expansion
USD Billion                                                    Million mT
     60
                                                       55          120                       +10%                 110
                                                                                                         100
                                                                                                91
     50                         +40%                               100                 83
                                            39
                                                                            75
     40                                                             80
                           28
     30                                                             60
                20
     20                                                             40

     10                                                             20

      0                                                              0
              2007-08    2008-09          2009-10    2010-11                2008      2009     2010     2011     2012
                                   Year                                                        Year

                                             © Confederation of Indian Industry
Warehousing Sector


                    8%




                                              Organised
       92%

                                              Unorganised & Scattered




         © Confederation of Indian Industry
More Wastage



                                  Unorganized



Unskilled                                           Lack of
                                                    Technology




               © Confederation of Indian Industry
Logistics Cost Breakup
                            USA                    China       India



Transportation                    50 %                  49 %      35 %



Warehousing                       25 %                   9%        9%



Inventories                       15 %                  24 %      25 %



Others (incl. losses)             10 %                  18 %      31 %




                        © Confederation of Indian Industry
Government Initiatives




Logistics Parks               Freight Corridors




           © Confederation of Indian Industry
CII – Institute of Logistics
                  [CIL]




       A Centre of Excellence for
Logistics & Supply Chain Management
             © Confederation of Indian Industry
Benchmarking Warehouse Practices




        © Confederation of Indian Industry
Warex –      Warehouse Excellence Certification


Certification Program by CII – Institute of Logistics

Qualitative Grading of performance against Industry
                    benchmark

                                 Continuous
                                Improvement



       Advantages                                 Optimum use
                                                  of resources



                                 Grading &
                               Brand Identity


                 © Confederation of Indian Industry
Process Overview
                                 Qualification
                                   Application form



                                   Evaluation
Questionnaires                    Onsite Assessment                       Report Generation



                           Certificate Issuance
       Report Submission                                        Certificate Issuance



                                    Renewal
                                         Yearly


                           © Confederation of Indian Industry
Eligibility

                                    Legal
          Registered




                          Approved




              © Confederation of Indian Industry
Legal



                                       Registered




                                                      Qualify
                                       Approved
                                                                                 Framework




                                     Administration



                                     Infrastructure



                                       Operation



© Confederation of Indian Industry
                                                      Evaluate
                                                                 Certification




                                      Technology



                                     Risk & Safety




                                        Report
                                                      Certify
Risk Management [illustration]
                                              Assess

                  Check                    RM                       Evaluate
                                        Framework      Risk
                            Pollution                  Mitigation
                                                       •Process & Test
                                                                             Verify
   Evaluate
               EHS policy                                            Insurance



                                                                                 Check
                                                                            Crisis
             Technology
                                                                         Management
    Assess

                   Statutory                                    Disaster
                    Norms                                       Recovery

      Compliance                                   Safety                 Examine
                                    Review
                                                  training
                                                          Measure
                      Validate
                             © Confederation of Indian Industry
Certificate Echelons




          © Confederation of Indian Industry
Report Structure
Executive Summary

Overview of Assessment Approach

Assessment Methodology
 • Framework
 • Grading Methodology
Assessment Summary

Gap Analysis a propos Hygiene levels
 • Scope for Improvements

Summary and Grading

Annexure
 • Assessor’s review & notes


                               © Confederation of Indian Industry
Outcome

   Increase   Manpower Productivity
              Equipment Utilization
              Space Utilization
              Customer Satisfaction
              Reliability
              Flexibility

                                    Fixed Cost
                                    Cycle Time




                                                          Reduce
                                    Paper work
                                    Loss of Customer
                                    Risk
                                    Error
                                    Waste

                     © Confederation of Indian Industry
Benefits

                                                          Strategic
              End Users                                   Planning
           Assess    Select   Measure Control




           3PL & Service                          Brand
             ProvidersDecide
                                                                 Grade

                                                •Professional assessment
                Facility                        •Benchmarking
               Operators                        •Improve service levels




           © Confederation of Indian Industry
Benchmarking Warehouse Practices




        © Confederation of Indian Industry
your Warehousing will become
A Tool for competitive advantage




        © Confederation of Indian Industry
for further details:




                                       madhu.vasudevan@cii.in



Please visit www.ciilogistics.com




        © Confederation of Indian Industry

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Warex certification

  • 1. Is your Warehouse Certified? © Confederation of Indian Industry
  • 2. Benchmarking Warehouse Practices CII – Institute of Logistics © Confederation of Indian Industry
  • 3. Architecture 1 Introduction – CII IL 2 Warehousing in Supply Chain 3 WAREX 4 Process Overview 5 Certification Methodology – framework 6 Report Structure © Confederation of Indian Industry
  • 4. The Confederation of Indian Industry (CII) is industry led and industry managed organization, playing a proactive role in India's development process. 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. © Confederation of Indian Industry
  • 5. 90,000 Indirect members 8100 Direct members CII 400 National © Confederation of Indian Industry & Regional associations
  • 6. CII – Institute of Logistics [CIL] A Centre of Excellence for Logistics & Supply Chain Management © Confederation of Indian Industry
  • 7. Be a committed platform to create & share Intellectual capital, Induce best practices & optimize the competitiveness of Indian Supply Chain CIL Mission © Confederation of Indian Industry
  • 8. To become an International Centre of Excellence in facilitating Indian industry to be referred in Global Business for its Best Practices in SCM and Logistics CIL Vision © Confederation of Indian Industry
  • 9. Education Training Events Advisory © Confederation of Indian Industry
  • 10. Warehousing A Key Integrator in Supply Chain © Confederation of Indian Industry
  • 11. Warehousing A Tool for competitive advantage © Confederation of Indian Industry
  • 12. Warehousing A Profit centre by itself © Confederation of Indian Industry
  • 13. Warehousing Growth Other Logistic Segments Warehousing expected to account for 35% logistic activity in this decade Warehousing Market Size and Growth Capacity Expansion USD Billion Million mT 60 55 120 +10% 110 100 91 50 +40% 100 83 39 75 40 80 28 30 60 20 20 40 10 20 0 0 2007-08 2008-09 2009-10 2010-11 2008 2009 2010 2011 2012 Year Year © Confederation of Indian Industry
  • 14. Warehousing Sector 8% Organised 92% Unorganised & Scattered © Confederation of Indian Industry
  • 15. More Wastage Unorganized Unskilled Lack of Technology © Confederation of Indian Industry
  • 16. Logistics Cost Breakup USA China India Transportation 50 % 49 % 35 % Warehousing 25 % 9% 9% Inventories 15 % 24 % 25 % Others (incl. losses) 10 % 18 % 31 % © Confederation of Indian Industry
  • 17. Government Initiatives Logistics Parks Freight Corridors © Confederation of Indian Industry
  • 18. CII – Institute of Logistics [CIL] A Centre of Excellence for Logistics & Supply Chain Management © Confederation of Indian Industry
  • 19. Benchmarking Warehouse Practices © Confederation of Indian Industry
  • 20. Warex – Warehouse Excellence Certification Certification Program by CII – Institute of Logistics Qualitative Grading of performance against Industry benchmark Continuous Improvement Advantages Optimum use of resources Grading & Brand Identity © Confederation of Indian Industry
  • 21. Process Overview Qualification Application form Evaluation Questionnaires Onsite Assessment Report Generation Certificate Issuance Report Submission Certificate Issuance Renewal Yearly © Confederation of Indian Industry
  • 22. Eligibility Legal Registered Approved © Confederation of Indian Industry
  • 23. Legal Registered Qualify Approved Framework Administration Infrastructure Operation © Confederation of Indian Industry Evaluate Certification Technology Risk & Safety Report Certify
  • 24. Risk Management [illustration] Assess Check RM Evaluate Framework Risk Pollution Mitigation •Process & Test Verify Evaluate EHS policy Insurance Check Crisis Technology Management Assess Statutory Disaster Norms Recovery Compliance Safety Examine Review training Measure Validate © Confederation of Indian Industry
  • 25. Certificate Echelons © Confederation of Indian Industry
  • 26. Report Structure Executive Summary Overview of Assessment Approach Assessment Methodology • Framework • Grading Methodology Assessment Summary Gap Analysis a propos Hygiene levels • Scope for Improvements Summary and Grading Annexure • Assessor’s review & notes © Confederation of Indian Industry
  • 27. Outcome Increase Manpower Productivity Equipment Utilization Space Utilization Customer Satisfaction Reliability Flexibility Fixed Cost Cycle Time Reduce Paper work Loss of Customer Risk Error Waste © Confederation of Indian Industry
  • 28. Benefits Strategic End Users Planning Assess Select Measure Control 3PL & Service Brand ProvidersDecide Grade •Professional assessment Facility •Benchmarking Operators •Improve service levels © Confederation of Indian Industry
  • 29. Benchmarking Warehouse Practices © Confederation of Indian Industry
  • 30. your Warehousing will become A Tool for competitive advantage © Confederation of Indian Industry
  • 31. for further details: madhu.vasudevan@cii.in Please visit www.ciilogistics.com © Confederation of Indian Industry