The Effect of Warehouse Management on the Productivity of Materials Shops in Buea Municipality
Department: Transport and Logistics
No of Pages: 56
Project Code: T&L7
References: Yes
Cost: 5,000XAF Cameroonian
: $15 for International students
ABSTRACT
Warehouse
managers faced the challenge of maximizing productivity while balancing
trade-offs under certain conditions, especially in less developing countries
such as Cameroon. Thus this study sought to examined the effect of warehousing
productivity of building material shops in Buea Municipality.
Specifically,
the study sought to analyzing the effect of inventory classification on the
productivity of building material shops in Buea, to anticipate the effect of
material codification on the productivity of building material shops in Buea
Municipality and the explore the effect of material inspection on the
productivity of material building shops in Buea Municipality.
In
order to achieves these objectives, the study employed quantitative techniques
to sample 100 respondents using structured-questionnaire to sample warehouse staffs
and employees in Buea Municipality using convenient and simple random sampling
techniques.
Collected
data were analyzed in SPSS (25.0) were descriptive statistics and hypothesis
testing were obtained through the spearman Rho correlation. The study findings
shows that, inventory classification, material codification and material
inspections has a significant effect on the productivity of warehouses in Buea
Municipality.
It
was the therefore recommended that shareholders having those building material
shops should see in to it that, seminars concerning handling of warehousing
should be carried out on quarterly bases.
Furthermore,
organizations should be able to set goals and follow up the achievements, full
adoption of documented policies and improvement in handling of warehousing for
better flow of its productivity for future benefits of the organizational
performance and other variables in the sector.
CHAPTER ONE
INTRODUCTION
1.0 Introduction
Warehouses
are vital components of today's supply chain. Today's trend indicates
increasing market volatility, product range proliferation and shortening lead
times that have an effect on the roles of a warehouse for it to perform.
Different
activities take place here and thus, require different nature of facilities, staff
as well as equipment to suit each function and to make the work easier and the
working environment safe. Warehouse operations may easily be the most expensive
element of the supply chain.
The
successful management of these warehouses is critical regarding the level of
service provided, as well as the cost incurred and will result in efficiency in
inventory management.
This
chapters covers the background of the study, statement of the problem,
objectives of the study, scope and delimitation, significance of the study and
organization of the study.
1.1. Background to Study
In
today’s highly competitive global market place, the pressure on organizations
to find new ways to create value and deliver it to their customers grows ever
stronger.
The
increasing need for the industry to compete with its products in a global
market across cost, quality and service dimensions has given rise to the need
to develop more efficient warehousing strategies.
Warehousing
has come to be recognized as a distinct function with the rise of mass
production systems. Warehousing is the storage of goods, whereas a distribution
centre precedes a postproduction warehouse for finished goods held for
distribution.
Therefore,
warehousing and distribution centres have the same function of goods and
products storage (Coyle, 2003). The warehouse and distribution centres are very
important nodes in a supply chain network.
They
perform valuable functions that support the movement of materials, storing
goods, processing products, de-aggregating vehicle loads, and creating
stock-keeping unit assortments and assembling shipments (Langevin and Diana,
2005).
The
efficient management of warehouses helps to optimize the existing production
and distribution processes and greatly assists in the goal of cost reduction
and service enhancement.
The
movement of goods and services from the production centre to the final consumer
across the world usually takes time. This is because of the gap between demand
and supply. The demand and supply gap may cause by time and or quantity.
The
number of goods and services manufactured and supplied today may not meet the
necessary or equal demand. Rather demand will surface after a week, month or
more (Robert et al., 1999). Equally the
quantity of goods demanded today may be more than what is supplied resulting in
this gap.
Warehousing
network plays a major role in the success of the physical distribution of
products. It is observed that the leading firms adopt and implement the
different warehousing strategies such as capacity switching, hub networking,
cobbling and outsourcing (Sople, 2010).
Both
the analytic and simulation models are proposed for improving warehouse design
practices. Analytic models are usually design-oriented; explore many
alternatives quickly to find solutions. On the other hand, simulation models
are usually analysis oriented.
They
provide an assessment of a given design, but usually have limited capability
for exploring the design space. There is an important need to integrate both
approaches to achieve more flexibility in analyzing warehouse problems
(Jinxiang, 2010).
Warehousing
or wholesale is a usual business phenomenon in Cameroon even though the size
may vary compared to the warehouse practice of the advanced economy (Ritchie
and Brindley, 2007).
Standard
warehousing practices are usually practised in maritime or marine transport
where goods are brought in organized and distributed across the nation. The
Douala and the Kribi seaport can set the base and practical view of the usual
warehouse supply chain function.
In
addition to this mode of warehousing initiative, the hinterland does equally
organized subsidiary warehousing national supply of goods and services across
the economy. Dangote and other national cement factories are set in one region
of the economy.
The
outputs of these factories are transported to warehouses across the nation.
This is not limited to cement but other building material like nails, iron
rods, zinc and others that may be imported from foreign nations and stocked for
distribution.
The
role of the intermediary institution cannot be underestimated in channelling
the needed building material to the respective areas of need. It is sometimes
very hard to have wholesales or this warehousing business organised in the
rural areas (Kleindorfer and Saad, 2005).
In
most cases, those living in the role area will move to urban centres to place
their demand. It will be misleading if the rural areas are made the unit of
research. The organization of the warehousing business model (inbound, operation
and outbound/distribution) can ease distribution.
It
can also help to ensure the right goods with its specificity reaches the
purchaser (customer) on time and safe. The study will apply descriptive
statistics to cross-examine the contribution of the intermediate organization
to the satisfaction of the purchase (customers) in the Buea municipality
(Papadakis, 2006).
Warehousing
network plays a major role in the success of the physical distribution of
products. It is observed that the leading firms adopt and implement the
different warehousing strategies such as capacity switching, hub networking,
cobbling and outsourcing (Sople, 2010).
Both
the analytic and simulation models are proposed for improving warehouse design
practices. Analytic models are usually design-oriented; explore many
alternatives quickly to find solutions. On the other hand, simulation models
are usually analysis oriented.
They
provide an assessment of a given design, but usually have limited capability
for exploring the design space. There is an important need to integrate both
approaches to achieve more flexibility in analyzing warehouse problems (Gu
Jinxiang, 2010).
Any
organization along the supply chain of a given product desire performance,
growth, survival and sustainability. Such performance and survival goal can
only be achieved only when the organization maximize sales (Sheffi and Rice,
2005).
It
is for this reason that most social sciences research especially in the domain
of marketing focuses more on customer/consumer satisfaction. The warehousing
business setting that organizes supply and inventory for purchasers cannot
distance its operation from the consumer orientation marketing.
As
a mediator between the producers and the consumers, this warehousing structure
requires some efforts to ensure that consumers in these cases purchasers enjoy
their services (Sodhi, 2005). It is worth mentioning that warehousing or the
whole seller’s business organization renders a service, though maybe supplying
the tangible products.
It
cannot be disputed that a buyer of cement, nails, iron roots and other building
material may change a specific producer and its products but maintain its
intermediary institution (warehousing/wholesaler) (Simatupang, 2002).
It
is possible that a buyer may be satisfied with the services of the whole seller
or warehouse but not satisfied with the consumption of the purchase of the
tangible product.
Customers
not satisfied with the services of a supplier (warehousing or whole seller) may
be forced to abandon it for an alternative supplier through maintaining
consumer loyalty to the final product (Zsidisin and Ellram, 2003).
The
building material warehousing whole seller in Buea may not be big compared to
those engaging in international business through maritime transport. However,
they do portray the features that capture the mentioned services.
They
may be operating at a small scale but must satisfy their clients. As noted, no
business organization will love to underperform. Performance is driven by
high-quality customer service and requires preparing the organization of the
warehouse activity to supply on time and as exactly described in the purchase
agreement.
Satisfaction
in our scenario is not based on tangible attributes since this study is not
associated with the satisfaction of the final product.
1.2. Statement of the Problem
Inventory
is a vital part of current assets mainly in manufacturing concerns. Huge funds
are committed to inventories to ensure a smooth flow of production and to meet
customers’ demands.
However,
maintaining inventory also involves holding or carrying a lot of costs Coyle et
al, (2003). Inventory clasification, therefore, plays a vital role in balancing
the benefits and disadvantages associated with holding inventory.
Efficient
and efficient inventory classification goes a long way in the successful
running and survival of the warehouse. When organizations fail to manage their
inventory effectively; they are bound to experience stock out the decline in
productivity and profitability, and customer dissatisfaction.
Warehouse
managers face the challenge of maximizing productivity while balancing
trade-offs under certain conditions, especially in less developing countries
such as Cameroon.
But
in developed countries like Canada, USA, & Russia just to name a few, the
cause is not so reason being that, there are well-equipped personnel and even
equipment which can be put in place to effectively and efficiently manage
inventory.
Looking
at the case of Cameroon, there are hindrances to warehouse management which as
a result lead to stock out and lead time (Sawaya et al, 2006). Concerning Buea
Municipality, goods come in huge quantities but there is no good inventory
management approach to see into it that the goods are being put in the
warehouse properly.
As
such, an effective inventory management system will help you have products
stocked the moment the last of your product leaves the warehouse. The
intermediary functions or services of a warehouse and how they may help the
satisfaction of the buyer is the core concern of the study.
There
is an issue of dissatisfaction if supplies are delayed. It will generate an
atmosphere of dissatisfaction with demand if not available due to shortages of
material in the warehouse especially when materials that are been supply are
not well coded and inspect for nay damagaes.
Such
shortages may source from delays in the inbound or poor inbound arrangements.
Buyers of building material will not be happy once their purchase does not meet
the requirement as per the invoice or bill of laden.
It may require a return to the warehouse if
products of low quality or wrong products are delivered to the customer. The
mentioned propositions are raised from a non-scientific position.
1.3. Objectives of the Study
Main Objective
The
main objective of the study is to examine the effect of warehouse management on
the productivity of Materials shops in Buea Municipality.
Specific objectives
Specifically,
the study sought to;
- Analyse the effect of inventory classification on the productivity of building material shops in Buea Municipality.
- Anticipate the effects of material codification on the productivity of building material shops in Buea Municipality.
- Access material inspection on the productivity of building material shops in Buea Municipality.
