Need for Effective Warehouse Management on Physical Distribution in a Service Organization
CHAPTER ONE
Objective of the study
The general objective of this study was an assessment of Need for effective warehouse management on physical distribution in a service organization. The specific objectives of the study was:
- To determine the effect of stock control in organizational productivity in PHCN.
- To Examine how distribution planning influence organizational productivity in PHCN.
- To determine the impact of Information Technology used in organizational productivity in PHCN.
CHAPTER TWO
REVIEW OF LITERATURE
Conceptual Review
Concept of warehouse
In the current business world, warehouse management as perceived by the industry today is not just managing within the boundaries of a warehouse, it is much wider and goes beyond the physical boundaries,(Bartezzaghi, 2003). Saleemi (2003) indicate that container storage, loading and unloading are also covered by warehouse management today which is also part of Supply Chain Management (SCM) and demand good management. Even production management is to a great extent dependent on warehouse management. Efficient warehouse management gives a cutting edge to a retail chain distribution company. Decades ago, warehousing company managers often shopped for best of breed technology to manage their facilities and to track inventory. Systems were implemented with expectations that they would run effectively for fifteen years or more before requiring upgrades. Today, the constant evolution of technology requires a different approach to purchasing warehouse management solutions. Instead of buying a single system rated “very best,” managers are happy to purchase exactly what they need right now to evolve and expand their systems (De Boer, 2002). Interoperability and expansion are the key buzzwords right now, since facility managers must be ready to integrate their systems with clients and with other vendors. Overall, the trends affecting warehousing services currently stem from end user demands for speed, efficiency, and environmental awareness (Kouvelis, 2006).
Concept of Physical Distribution
Physical distribution is responsible for actual movement of products in such a way as to accomplish the goal of providing place and time utility. Physical distribution provides place utility by moving goods from points of surplus to points where demand exists and time utility by making goods available when they are demanded. Place utility is primarily created through transportation and time utility is created through proper inventory maintenance and the strategic location of goods and services. Transportation may also play a role in time utility creation by quicker movement of goods to a point of demand. Thus, quicker transportation can be a substitute for warehousing. Therefore, physical distribution involves the integration of two or more activities for the purpose of planning, implementing and controlling the efficient flow of raw materials, in-process inventory and finished goods from point-oforigin to point-of-consumption. These activities may include, but are not limited to; transportation, warehousing and storage, inventory control, order processing, material handling, distribution communication etc [National Council of physical Distribution Management (NCPDM)].
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Data Presentation
Response Rate
Out of the 60 questionnaires that were administered, 46 questionnaires were filled and returned successfully. This represents a response rate of 76 percent which was considered sufficient forming a good representation of the whole population. This response rate is well above the 50 percent recommended by (Mugenda & Mugenda, 2003).
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
From the descriptive statistics, the study established that majority of respondents were found to highly agree that the lack of technology is one of the challenges of stock control in organization productivity in PHCN. There is need for more time to be taken in the processes within the warehouse. The organization does not have adequate inventory control measures in place. The impact of training as enhanced by the organization has been established in compliance with the rules and regulations. The warehouses under management of the organization are frequently evaluated. The organization has adequate warehouse space to hold additional stock. The organization has stock control systems available. The performance contracts are an impediment to works. Internal and external controls are rarely monitored. The workforce needs external guidance with regard to stock control.
Conclusions
The study on the Need for effective warehouse management on physical distribution in a service organization; it found that stock control influence organizational productivity in state corporations in Nigeria. The regression coefficients of the study show that stock control has a significant influence on organizational productivity in state corporations. This shows that stock control has a positive influence on organizational productivity in state corporations. Further, the study revealed that the variable statistically and strongly correlated to organizational productivity in state corporations.
Recommendations
The study recommends for the enhancement stock control and the workforce needs external guidance with regard to stock control. There is need for more time to be taken in the processes within the warehouse. The organization should have adequate inventory control measures in place. The impact of stock control training as enhanced by the organization should be well established in compliance with the rules and regulations. The study recommends for the proper distribution planning enhancing organizational productivity in the state corporations.
REFERENCES
- Aberdeen Group (2013), The Warehouse Productivity Benchmark Report; A Guide to Improved Warehouse and Distribution Center Performance. Aberdeen Group, Inc. 260 Franklin Street Boston, Massachusetts 02110-3112 USA
- Aminoff , D.J. (2002), Technological innovation and the Theory of the Firm: The Role of Enterprise – level Knowledge, Complimetaries and Dynamic capabilities. In N. Rosenberg and
- Bartezzaghi, S. (2003). “National and International Perspectives on the Regulation of Public Procurement: Harmony or Conflict?” In Arrowsmith, S. & Davies, A. (Eds.), Public Procurement: Global Revolution 3-26). London, UK: Kluwer Law International.
- De Boer, J. B. (2002), Gaining and Sustaining Competitive Advantage. Addison – WesleyvPublishing Company, New York
- Dimitrios P. Koumanakos (2010). The effect of inventory management on firm performance. International Journal of Productivity and Performance Management. 12-20
- Eisenhardt, K.M. & Martin, J.A. (2011), Dynamic Capabilities: What Are They? Strategic Management Journal, 21(10/11), 1105-1121
- Everett B. M. (2001), Linking warehouse complexity to warehouse planning and control structure: An exploratory study of the use of warehouse management information systems. International Journal of Physical Distribution & Logistics Management [online].32,(5), 381 – 395
- Ghosh M. & Kumar H.(2003) Supply Network Strategies: John Wiley & Sons Ltd., 2007.
- Hamzah C (2001), A performance evaluation model for order picking warehouse design, Computers & Industrial Engineering 51(2), 335-342.
- Hopkins, T. K., Martin, B., & Humphries, M. (208). The Power of Relational Responsibility. Electronic Journal Of Business Ethics and Organization Studies, 16 (2), 22-27.
- Institute of economic affairs (2014); Budget for 2014/2015: Balancing financing concerns while responding to spending inefficiencies.
- Jang. A, (2006); Procurement Challenges In The South African Public Sector; Department of Business Management; University of South Africa (Unisa)
