Effect of Warehousing Practices on Organizational Performance: A Case Study of My Wish Enterprise P.L.C.
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Date
2019-06
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Addis Ababa University
Abstract
Warehouses are used for receiving, storing, order picking and shipping goods. Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. Organizational performance is normally looked at in-terms of productivity, quality, customer satisfaction, and time outcomes. This research examined the effect of warehousing on organizational performance through a case study of My Wish Enterprise Plc. To achieve the objectives of this study an explanatory research design was used. Data was collected through a questionnaire survey from a total of 60 employees. The results of this study indicate that warehousing dimensions such as (receiving activity, storage activity, picking activity, shipping activity and order picking) have positive and significant relationship with organizational performance. The findings of the study indicate also that employees were well aware of the importance of warehousing activities on organizational performance. The results also indicate that, unlike order picking, the four warehousing dimensions (receiving activity, storing activity, picking activity, shipping activity) have a relatively more positive and significant effect on organizational performance. These dimensions contribute significantly (47.6%) to organizational performance. Based on the findings of the study, several recommendations are made, including that order picking should be given higher priority so as to improve organizational performance, but also since this activity is at the closest interface with the customer - customer satisfaction is at risk. Finally, based on the gap observed, it would be to the benefit of My Wish Enterprise to streamline its warehousing operations through a formalization of its warehousing guidelines, to improve the knowledge capacity of staff with regards to warehousing operations, to improve the security measures i.e. with CCTV systems, and, in view of its expansive stock, to explore the possibility of digitalizing warehousing operations.
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Keywords
Warehousing, Organizational, performance