DC Velocity - May 2012

by major companies like Colgate and Starbucks. (To avoid the appearance of conflict, Supply Chain Visions is contractually barred from providing consulting services to a company it has audited for the program unless the two had a pre-existing business relationship.)

For companies considering going through the process, which does carry a fee, WERC provides an audit preparation guide. That guide, Murray says, includes a step-by-step explanation of what the auditor will look for.

The process itself involves a questionnaire, an initial telephone conversation with Murray about the procedure, and a full-day site visit. “We go through a kick-off meeting, then go out and walk the facility,” he says. “We follow the flow of product from receiving to shipping, then we talk about the WMS and other tools used to run the warehouse.” The evaluation covers 114 individual process elements categorized within the eight process areas.

After the audit, Murray prepares a spreadsheet tool and a report that normally runs 20 to 30 pages, which WERC sends to the facility. Finally, Murray and facility management hold a conference call to review the document. “I go through it to the level of detail they want,” he says.

Earning the certification requires achieving a minimum score on each of the 114 elements. “You fail one, and you are not certified,” Murray says.

BIG BENEFITS

As for what prompts companies to go through the certification process, Murray says it’s a couple of things. “We believe it’s in everyone’s best interest to meet a minimum level of best practices,” he says. While companies could perform self audits using the WERC guide, both third parties and first-party warehouse operators see value in the certification, he asserts.

“If you’re a 3PL, theoretically you’re in a better position to market your services if you can declare you are certified,” Murray says. In a few cases, he adds, third parties have gone through the process at the insistence of their customers.

For first-party warehouses, it’s usually about the process, Murray says. “Often we find that internally they know they have problems and want someone to help them understand where the problems are and where they could improve. Or the managers of supply chain or distribution feel they’re not getting enough respect from senior management. I’ve seen cases where a facility may be lobbying for capital, technology, or manpower. Going through the process will show weak-nesses and support the request. Another potential motivation: If a facility manager can prove through the certification process that a facility has adopted best practices, it could dissuade management from considering outsourcing.”