The Effect of Warehousing Management on Warehouse Performance: A Case of Modjo Dry Port, Ethiopia

Abstract

In today’s challenging and competitive world, success can be determined by whether a warehouse management is productive and effective enough to meet the expectations of customers. The purpose of this study was examining the effect of warehousing management on warehouse performance in the case of Modjo dry port concerning the five main warehousing activities (receiving, put-away, storage, order-picking, and shipping). Both primary (questionnaires and interviews) and secondary sources of data were used. To achieve the objectives of this study, an explanatory and descriptive research design was used, and this study also applies a mixed research approach. Stratified simple random sampling was used to select the respondents for the study and, accordingly, one hundred one (101) sample sizes were taken for the study. The descriptive and inferential statistical tools such as; mean, standard deviation, percentage, correlation and multiple regressions were used to analyze collected data with the aid of IBM SPSS statistics version 20. The descriptive analysis shows that there is lack of space for loading and unloading items, lack of shelves, pallets and racks; poor well established put away process for received items, poor tight control the storage areas, high warehousing cost, and high inventory cost. The multiple regression analyses reveals that receiving, storage, put away, order picking and shipping significantly influence warehouse performance of the organization. Hence, organizations are expected to enhance their warehousing management so as to gain better warehouse performance. Furthermore, it’s advisable to the organization to improve the warehouse performance making use of an automated system to reduce unnecessary process from receiving up to shipping, creating the additional areas for each warehousing activity, and codifying each of the material in the warehouse to reduce the theft and redundancy of materials in the warehouse.