Warehouse Performance Assessment: The Case of Ethiopian Pharmaceutical Supply Service Head Office
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Date
2023
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Addis Ababa University
Abstract
Introduction: Warehouse plays an essential part in the supply chain management, as it is an
important hub for receiving and holding stocks until they distributed to the end consumers. In
today's competitive landscape, the success of organizations depends on the productivity and
effectiveness of their warehouse. Understanding warehouse efficiency is crucial for
organizations to identify where inefficiency is and to improving warehouse performance.
Therefore, assessing warehouse performance provides a valuable measure of how well these
expectations being met and to help the decision maker to identify where the inefficiency is
exist to set the policy to improve the warehouse performance.
Objective: This study aims to evaluate the warehouse performance of the Ethiopian
Pharmaceutical Supply Service head office with frequently used warehouse key performance
indicator, which proposed by Frazzle (2002), namely quality, response time, productivity and
cost/financial indicators.
Methods: A descriptive cross-sectional study design employed and followed by quantitative
data collection approaches. Primary data collected through a questionnaire adapted from
prior literature and employing a five-point Likert scale. Since the total population less the
researcher took all population using census method and the collected data analyzed
descriptively.
Results: The mean average score value of quality 3.1, response time 3.2, productivity 3.0 and
cost indicator was 2.9, all indicators rated under the moderate performance level. The lower
rating received for the Cost/Financial indicator, as reported by the respondents and EPSS
should focus on this aspect to enhance warehouse performance. The overall mean average
score value of the EPSS central warehouse performance of Head office measured across the
four KPIs on a five-point Likert scale found to be 3.1, the level indicating an average level of
agreement, which categorized under Moderate. This includes implementing cost-saving
measures, reducing the overall cost of warehouse operations, and optimizing financial
resources.
Conclusions: The findings concluded that warehouse performance of Ethiopian
Pharmaceutical Supply Service head office is at a moderate level. Further efforts should
make to enhance the quality, response time, productivity, and cost efficiency to optimize
warehouse performance and meet customer expectations effectively. Special attention should
have given to the cost indicator since it rated least among the four KPIs.
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Keywords
Warehouse performance, Performance management, Supply Chain management