Assessment of Warehouse Performance: A Case of Ethiopian Trading Enterprise
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Date
2016-06
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Addis Ababa University
Abstract
In today’s challenging and competitive world, success can be hinge on whether a warehouse operation is productive and effective enough to meet the expectations of customers. One way to gauge how effectively the warehouse operations are meeting these expectations is to conduct a
warehouse operations assessment. Considering this reality, this particular study explores to investigate the warehouse performance (measured in terms of the most frequently used four dimensions as suggested by Edward Frazelle (2001), namely Quality, response time, total warehouse cost, and productivity in the enterprise called Ethiopian Trading Enterprise. This research study however provide a brief introduction to warehouse management, performance
measurement and metrics or key performance indicators based on the most recognized literature. Possessing to the small number of the total population, the study has employed census survey to quantitatively and qualitatively assess the warehouse of the enterprise. Questionnaire was used as the official instrument of data collection. A total of 70 questionnaires were distributed and 61 of them were filled and returned to make the response rate about 87%. The findings of the study suggested that all the dimensions of warehouse performance have statistically significant result. Generally, the study findings have suggested that the levels of warehouse performance is approximately moderate in the case of Ethiopian Trading Enterprise
in terms of the four key performance indicators. It has also discovered that, among the four key
performance indicator, measurement of the warehouse performance based on dimension of
response time is comparatively in a better position in the enterprise warehouse. And also
inferred that the perception of the enterprise employee in performance implication of size and
type of warehouse is based on the situation and they all have different point of view among the
four key performance indicator influence on the overall performance of a warehouse but they
believed that quality indicator seems to be most valuable and should be given with high
emphasis and response time and cost/financial indicator also important. However their
expectation for productivity indicator is less. The study advocated that a lot of emphasis need to be
directed to quality and cost indicator in order to achieve significant cost savings from minimized
total cost of warehousing and improved quality and also maintain improved response time and
improved efficiency or productivity, consequently improving the organizational performance as a
whole
Keywords: Warehouse, Performance, Performance Measurement
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Keywords
Warehouse; Performance; Performance measurement