The Effect of Warehouse Operations on Organizational Performance: The Case of Ethiopia Disaster Risk Management Commission at Adama Branch
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Date
2022-06
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Addis Ababa University
Abstract
Warehouses are focal points for product and information flow between sources of supply and beneficiaries. The purpose of this study was to explain the impact that warehouse operations had on organizational performance in the case of DRMC Adama. Randomly chosen 119 employees and management members at different levels were the sources of primary data for the research apart from published documents and reports as a secondary source. A fully structured self-administered questionnaire on a five point likert scale was the main data collection instrument in addition to key informants’ interview. Descriptive results revealed that DRMC Adama was performing well in the key warehouse operations especially in storage and receiving activities followed by shipping, order picking/packing and put-away, respectively. Pearson’s correlation revealed existence of a statistically significant (at .01 levels) positive association between organizational performance and each of the receiving, put-away, storage, order picking/packing, and shipping warehouse operations. The association was stronger between shipping and organizational performance. Regression result indicated that each of the key warehouse operations practiced in DRMC Adama significantly (except for put-away) affect organizational performance in a positive manner. The five key warehouse operations combined can explain about 58% of the variation observed in organizational performance. It was conclusive that by bringing operational efficiency in warehouse activities DRMC Adama can improve organizational performance and achieve its goals; rescuing millions of lives. Yet, compared with modern warehouses and warehousing operations, the absence of IT supports and machineries were learned to impair warehouse operational efficiency in the case of DRMC Adama. The use of IT infrastructures and support system, acquiring machineries such as forklifts, and providing employees with training were recommended to help improve warehouse operations.
Keywords: warehouse operations, organizational performance, put-away, order picking/packing