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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