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Documente Cultură
TOPIC:
The Impact of Information Technology systems on warehouse processes. The case of the Beitbridge
Warehouse District.
1.0INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Well managed warehouse systems helps organizations keep proper track of inventory, maintain the levels
of inventory as per requirement, increase in accuracy, reduce labor costs and ensure proper maintenance
as well as storage of stock. This kind of management will provide ease and convenience to the suppliers
and distributors to keep the track of inventory and maintenance as well (Frazelle, 2002). Thus, warehouse
processes management is very beneficial in the storage and maintenance of stock or inventory as well as
reducing costs associated with inventory, wrong order dispatch and delays, to mention but a few. Indeed a
evidence indicates that efficient warehouse operations are crucial to an organization’s operational
performance (Rushton, Oxley & Croucher (2000).
However, many organizations today have not taken the issue of warehousing modernization into account.
Storage of goods and distributions from the same warehouses are done haphazardly that is without any
order (Frazelle, 2002), theft cases have been on the rise giving a compromise on the general ethics of
workers, due to the disorganization and inadequate incorporation of modern information technology.
Ultimately, these have resulted in poor customer order management techniques, delays in order
fulfilment, delays in production, lowered customer satisfaction and confidence, and as such organisations
have suffered as a result (Vanik, 2004).
Information technology has been identified as one of the biggest influencers of the business world today
(Chopra & Meindl, 2003). Though many believe that information technology mainly benefits large
operations that have considerable financial muscle, there is evidence that even small warehouses can
benefit from IT innovations. This can be achieved through partial automation of their operations through
emerging internet based services (Rushton et al, 2000).
Organizations are trying their best to cut on costs and increase profitability. Warehouse processes
management and automation is one of the areas in which substantial cost savings can be made.
Warehouse maintenance cost reduction can only be achieved by making appropriate design decisions on
the strategic characteristics of warehouse facilities, investing in Information technology systems and good
warehouse management practices (Kerridge, 2006). It is against this background that the researcher plans
It is expected that academics will benefit from the findings of this study as well, as it will serve as a
platform for further research, review and critiques which will notably help bring to the fore new
knowledge in warehouse management in the country. Furthermore, the study is set to make contributions
to the existing body of knowledge on the impact and effectiveness of information technology on
warehouse processes and ultimately, warehouse management.
1.8 DELIMITATIONS
The researcher will focus primarily on the impact that IT systems in warehouse management and
warehouse processes. The investigation will be limited to the operations of Beitbridge warehouses, which
include Malindi Transit Shed, Manica Bonded warehouse, the ZIMRA state warehouse, Beitbridge
National Foods Depot Warehouse, MMF Private Warehouse and the N&R Enterprises Warehouse. The
research period will be from August 2017 through to December 2017
1.9.2 Time
In order to produce quality research, a considerable amount of time will have to be invested into the
research. Owing to commitments such as his employment, family and other social engagements, the
available time for the project is short, such that it will not be adequate to produce a comprehensive study.
1.9.3 Finance
The researcher also anticipates that financial constraints will hinder him from conducting more in depth
and comprehensive research project consultations and interviews with the various persons of interest.
1.9.4 Information
The researcher is also likely to face difficulties in getting information from the respondents. Some
respondents may fail to or may be indisposed to provide valuable information in fear of divulging their
company secrets.
1.11 SUMMARY
This chapter covered the background of the study, outlined the statement of the problem as well as the
research objectives and questions. Furthermore, the chapter stated the significance of the study and how
useful it would be to the researcher and the organisations studied and to the warehousing industry at large.
A justification as to why the study is important was also given; delimitations identified, and the possible
limitations specified. The key terms were also defined.
Randolph (2009:1) defines literature review as the systematic exploration of issues related to one’s
problem which has been treated to date by other various authorities. Moustakas (1994) highlights that
literature review provides ideas, theory, explanations, hypothesis or the method of research valuable in
formulating studying the problem.
2.2 WAREHOUSING
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 (Frazelle, 2002). In other words,
warehousing means holding or preserving goods in huge quantities from the time of their purchase or
production till their actual use or sale. Chopra & Meindl (2003) advance that warehousing is one of the
important auxiliaries to trade, as it creates time utility by bridging the time gap between production and
consumption of goods.
The effective and efficient management of any organization requires that all its constituent elements
operate effectively and efficiently as individual facilities and together as an integrated whole corporate.
Across the supply chains, warehousing is an important element of activity in the distribution of goods,
from raw materials and work in progress through to finished products (Frazelle, 2002). It is an integral
part of the supply chain network within which it operates and as such its roles and objectives should
synchronize with the objectives of the supply chain (Vanik, 2004). It is not a ‘Stand-alone’ element of
activity and it must not be a weak link in the whole supply chain network.
Chopra & Meindl (2003) state that warehousing is costly in terms of human resources and of the facilities
and equipment required, and its performance will affect directly on overall supply chain performance.
Inadequate design or managing of warehouse systems will jeopardize the achievement of required
customer service levels and the maintenance of stock integrity, and result in unnecessarily high costs.
Today, some organizations are dependent on IT for deploying e-commerce platforms to increase business
presence and link to customers, data mining where patterns can be used to guide firms to make timely
decisions and simplification of tasks that otherwise could be cumbersome to manage by humans. Because
businesses are dependent on IT in improvement of service delivery, they have incorporated it into their
strategic plans to give it deserved attention (Kodama, 2013).
Kodama (2013) further opine that applications of IT are as wide as are the needs of an organization; they
can range from simple point of sale unit to a whole organization where Enterprise Resource Planning
system is installed to manage almost every aspect of the organization and some of these areas include
supply chain management, human resources, customer management and accounts
2.5.1 Receiving:
Wen items of inventory are first delivered to the warehouse facility, the first point of call is receiving.
This process involves offloading of delivery vehicles, checking against purchase orders, verification of
quantities against delivery orders, recording these items into inventory. Rushton et al (2000) advance that
this is a very labor intensive process which when done manually, takes a long time and is prone to human
error.
2.5.2 Putaway:
Putaway is defined by Chopra & Meindl (2003) as the process by which items, after having gone through
the process of receiving and recording into inventory, are physically taken to their specific and individual
storage areas in the warehouse. Usually deliveries are done in bulk to save on transaction costs (Frazelle,
2002), and as such large quantities of inventory items have to be putaway at a single time, and for security
reasons, in the shortest time possible. There is need therefore to shorten the time taken for items to be put
away into storage, and precisely so, hence, manual systems fall short in this regard.
2.5.3 Storage:
This is the process of allocating items in the warehouse. Since warehouse storage locations and pickers
are generally scarce resources, therefore high allocation efficiency is required in terms of utilization of
both picker effort and storage capacity. Storage includes the following interrelated activities: sequencing
and consolidation, storage location assignment, and shuffling (Rushton, 2000).
2.5.4 Picking:
Picking or retrieval is the process of taking out items of inventory from their storage positions so as to
fulfil a customer order or for use in manufacturing processes of any other reason (Rushton et al, 2000). It
involves locating the particular items from the inventory, and physically retrieving them from that
location. Customer orders can have various items of inventory; hence the picking/retrieval process
becomes a lengthy process. In order to fulfil customer orders and maintain customer satisfaction, it is
imperative that the picking process is error free so that the precise customer orders are fulfilled, and quick
to reduce order lead times (Vanik, 2004). Manual systems, in most cases fall short in this regard and as
such, warehouses have a lot of returns due to wrong orders, long lead times caused by lengthy picking
times. This leads to low customer confidence and dissatisfied customers. It is therefore important for
2.6 SUMMARY
This chapter has reviewed literature pertaining to the impact of IT on warehouse processes. The literature
has demonstrated how the advancement in IT and the plethora of ICT tools where adopted have
transformed supply chain management and of interest warehouse processes. In the context of a highly
volatile global business environment and high customer expectations, it is imperative for firms to improve
their product and service offering to remain competitive. To ensure such agility and customer
responsiveness, adoption of modern IT cannot be opposed.
In this research the researcher will use causal or explanatory research design, which is a form of
qualitative research. A qualitative research design provides researchers with different ways of
operationalizing and measuring theoretical constructs and practical concepts (Frankfort & Nachmias,
1992).
A causal/explanatory research design seeks to determine how one variable, the independent variable (In
this case, use of information technology systems) influences another, the dependent variable (efficiency
and effectiveness of warehouse processes). A qualitative case study will be chosen for this study because,
as Patton (1990) states, it offers a complete investigation into the research topics. Kuul (2006) advances
that, a case study is a form of qualitative analysis which uses an in depth investigation of a situation or
institution.
Qualitative data is collected in the form of words and descriptions other than numbers. Thus, the case
study will provide a comprehensive and deeper understanding of the situation under study. The qualitative
case study design is appropriate to the study because it is going to give the researcher the room to
describe non- quantifiable information such as the factors that hinder the productivity and efficiency of
the warehouses and why the warehouses are not embracing the use of IT systems in their operations.
A hallmark of case study research is the use of multiple data sources, a strategy which also enhances data
credibility (Patton, 1990). This research’s data sources may include, but are not limited to documentation,
archival records and interviews. According to Kothari (2004), case studies can be seen to satisfy the three
tenets of the qualitative method, namely, describing, understanding, and explaining a situation. The case
study method, with its use of multiple data collection methods and analysis techniques, provides
The researcher will make use of the knowledge and experiences of the employees and management teams
in the various warehouses so as to fully understand the phenomena under study.
Owing to the heterogeneous nature of the respondents, (management and employees/subordinates), the
researcher will use Stratified random sampling in order to select a sample for the study. Lapin, (1987)
opines that a stratified random sample is obtained by separating the population into mutually exclusive
sets, or strata, (in this case, respondents will be stratified according to whether they are management or
they are the shopfloor workers), and then drawing simple random samples from each stratum. These strata
will be used so as to get the views of the different groups in relation to the area of study.
The strata will be as follows:
STRATA 1 STRATA 2
Management Shopfloor Workers
3.3.1 Interviews
Patton (1990) defines an interview as a face to face conversation between people in which one person has
the role of a researcher who elicits data on people's views, attitudes and meanings that inter-pin their lives
and behaviors. Interviews are going to be used as a supplement to the questionnaires. These involve face
to face communication with the respondents. The interviewees are going to be chosen from people who
will respond to the questionnaires to further their interest. The interviewer is going to write simple word
answers during the interview session and expand them into sentences immediately after the interview in
order to avoid interruption or stoppages. Thus, a semi-structured interview on the specific aspects of the
research is going to be used by the researcher to elicit correct responses.
The employees are going to be questioned on how they actually feel about their job and current work
environment, and the possible improvements the wish to see happen in their workplaces, their attitudes
towards technology and IT systems as well as their competencies in relation to the use of automatic
systems in their place of work. The researcher is going to use interviews because their response rate is
high. More so, feedback is provided immediately.
However interviews are subject to personal bias (Kothari, 2004) and this short coming is to be addressed
by the use of questionnaires. Interviewing and recording concurrently affects the flow of information and
the interviewer is going to write points and expand them soon after the interview. Moreover, it can be
difficult to bring forth participation from individuals who have time constraints; documentation and
analysis can be time consuming and may require the help of someone versed in qualitative analysis and
since the interview is conversational in nature, it could bring up a lot of unnecessary information.
3.3.2 Questionnaires
A questionnaire is a research instrument consisting of a set of written or printed questions and other
prompts for the purpose of obtaining statistically useful or personal information from
Questionnaires have advantages of being more objective in the sense that responses are gathered in a
standardised way and they are straight to the point and they are easy to interpret and generally it is
relatively quick to collect information using a questionnaire. Another advantage is that information can be
collected from a large portion of a group and in a short period of time and also questionnaires can be used
to explore potentially embarrassing areas (such as sexual and criminal matters) more easily than other
methods. The questionnaire can, for example, be both anonymous and completed in privacy (Kothari,
2004). This increases the chances of people answering questions honestly because they are not
intimidated by the presence of a researcher.
There are disadvantages in using questionnaires and these include, where the researcher is not present, it's
always difficult to know whether or not a respondent has understood a question properly and as such vital
information may be lost. Also the format of questionnaire design makes it difficult for the researcher to
examine complex issues and opinions since simple answers will be given with no explanation at all.
Questionnaires also don’t show the feelings of the respondents, which are usually important in research.
Even where open-ended questions are used, the depths of answers that the respondent can provide tend to
be more limited. This makes it difficult for a researcher to gather information that is rich in depth and
detail.
3.4.5 Deception:
Chiromo (2006) says deception lies in not telling the subjects the truth about the research. Thus, when no
harm comes to the respondents this may be used by the researcher to discover things of real importance.
The researcher will convince the subject that there will be no harm due to the deception in future.
3.5 SUMMARY
This chapter was aimed at outlining the methodologies to be used in data collection. In addition, a
discussion of the research design for this study was made. The chapter discussed the analysis methods to
be employed as well as the sampling techniques and the research instruments that the researcher will use.
Furthermore, the chapter identified the ethical concerns that the researcher will take into consideration
during the research.
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