Warehouse Charter

Majority of the firms do not give due importance to warehousing operations. A warehouse is treated as a place for storage of goods till they are shipped. The top management treats a ware­house as a variable in make-and-sell equation and expect to align with production demands to meet sales promises. Often warehouse management do not get clear signals from the top manage­ment regarding their performance criteria but they are vulnerable to criticism and blamed for performance gaps. Hence, it is wiser for the warehouse management to have a charter to avoid errors, perform better and meet customer satisfaction. A warehouse charter should incorporate the following:

  • Place of warehouse in supply chain and the reporting system
  • Span of authority and responsibilities of a warehouse manager
  • Empowerment to perform day-to-day functions without permissions/sanctions from top man­agement
  • Expenditure limits for capital equipment acquisition
  • Warehouse performance measurement parameters.

Hence in an integrated supply chain where a warehouse is a strategic link in the customer-value chain, it has an important role to play, which may be performed with clear-cut guidelines in the form of warehouse charter.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.

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