Abstract

The project titled the effect of warehousing performance of building material shops in Buea Municipality, specifically the main objective of this study was to examine warehousing performance of building material shops in Buea Municipality.

The investigation was further broken down into analyzing the effect of inventory classification on the performance of building material shops in Buea, to anticipate the effect of material codification on the performance of building material shops in Buea Municipality. This was to understand the variable of performance of inventory classification on performance. The explanatory research design was implemented and data was collected from 50 respondents through self-administered questionnaires using Likert scale by Cronbach alpha of five responses.

Data was analyzed using SPSS 20Vfor descriptive statistics and analyses were further used to estimate the parameters of reliability and validity of performance on building material shops. Our findings show that inventory classification was significant at 5% level of significance, it was the fore recommended that shareholders having those building material shops should see into it that, seminars concerning the handling of warehousing should be carried out on a quarterly basis.

Furthermore, organizations should be able to set goals and follow up the achievements, full adoption of documented policies, and improvement in the handling of warehousing for better flow of its productivity for future benefits of the organizational performance and other variables in the sector.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

In today’s highly competitive global marketplace, the pressure on organizations to find new ways to create value and deliver it to their customers grows ever stronger. The increasing need for the industry to compete with its products in a global market across cost, quality, and service dimensions has given rise to the need to develop more efficient warehousing strategies.

Warehousing has come to be recognized as a distinct function with the rise of mass production systems. Warehousing is the storage of goods, whereas a distribution center precedes a postproduction warehouse for finished goods held for distribution. Therefore, warehousing and distribution centers basically have the same function as goods and products storage (Coyle, 2003).

The warehouse and distribution centers are very important nodes in a supply chain network. They perform valuable functions that support the movement of materials, storing goods, processing products, de-aggregating vehicle loads, and creating stock-keeping unit assortments, and assembling shipments (Langevin and Diana, 2005). The efficient management of warehouses helps to optimize the existing production and distribution processes and greatly assists in the goal of cost reduction and service enhancement.

The movement of goods and services from the production center to the final consumer across the world usually takes time. This is because of the gap between demand and supply. The demand and supply gap may cause by time and or quantity.

The number of goods and services manufacture and supply today may not meet the necessary or equal demand. Rather demand will surface after a week, month, or more (Robert et al., 1999).  Equally the quantity of goods demanded today may be in excess of what is supplied resulting in this gap.

The warehousing network plays a major role in the success of the physical distribution of products. It is observed that the leading firms adopt and implement the different warehousing strategies such as capacity switching, hub networking, cobbling, and outsourcing (Sople, 2010).

Both the analytic and simulation models are proposed for improving warehouse design practices. Analytic models are usually design-oriented; explore many alternatives quickly to find solutions. On the other hand, simulation models are usually analysis-oriented.

They provide an assessment of a given design, but usually have limited capability for exploring the design space. There is an important need to integrate both approaches to achieve more flexibility in analyzing warehouse problems (Jinxiang, 2010).

Warehousing or wholesale is a usual business phenomenon in Cameroon even though the size may vary compared to the warehouse practice of the advanced economy (Ritchie and Brindley, 2007). Standard warehousing practices are usually practiced in maritime or marine transport where goods are brought in organized and distributed across the nation.

The Douala and the Kribi seaport can set the base and practical view of the usual warehouse supply chain function. In addition to this mode of warehousing initiative, the hinterland does equally organized subsidiary warehousing national supply of goods and services across the economy. Ndangute and other national cement factories are set in one region of the economy.

The outputs of these factories are transported to warehouses across the nation. This is not limited to cement but other building material like nails, iron rods, zinc, and others that may be imported from foreign nations and stock for distribution.

The role of the intermediary institution cannot be underestimated in channeling the needed building material to the respective areas of need. It is sometimes very hard to have wholesale or these warehousing businesses organizes in the rural areas (Kleindorfer and Saad, 2005).

In most cases, those living in the role area will move to urban centers to place their demand. It will be misleading if the rural areas are made the unit of research. The organization of the warehousing business model (inbound, operation, and outbound/distribution) can ease distribution.

It can also help to ensure the right goods with their specificity reaches the purchaser (customer) on time and safely. The study will apply descriptive statistics to cross-examine the contribution of the intermediate organization to the satisfaction of the purchase (customers) in the Buea municipality (Papadakis, 2006).

1.2 Statement of the Problem

The warehousing network plays a major role in the success of the physical distribution of products. It is observed that the leading firms adopt and implement the different warehousing strategies such as capacity switching, hub networking, cobbling, and outsourcing (Sople, 2010).

Both the analytic and simulation models are proposed for improving warehouse design practices. Analytic models are usually design-oriented; explore many alternatives quickly to find solutions. On the other hand, simulation models are usually analysis-oriented.

They provide an assessment of a given design, but usually have limited capability for exploring the design space. There is an important need to integrate both approaches to achieve more flexibility in analyzing warehouse problems (Gu Jinxiang, 2010).

Any organization along the supply chain of a given product desire performance, growth, survival, and sustainability. Such performance and survival goals can only be achieved only when the organization maximizes sales (Sheffi and Rice, 2005). It is for this reason why most social sciences research especially in the domain of marketing focuses more on customer/consumer satisfaction.

The warehousing business setting that organizes supply and inventory for purchasers cannot distance its operation from the consumer orientation marketing. As a mediator between the producers and the consumers, this warehousing structure requires some efforts to ensure that consumers in these cases purchasers enjoy their services (Sodhi, 2005).

It is worth mentioning that warehousing or whole seller’s business organization renders a service, though maybe supplying the tangible product. It cannot be disputed that a buyer of cement, nails, or iron roots and others building material may change a specific producer and its products but maintain it intermediary institution (warehousing/wholesaler) (Simatupang, 2002).

It is possible that a buyer may be satisfied with the services of the whole seller or warehouse but not satisfied with the consumption of the purchase of the tangible products. Customers not satisfied with the services of a supplier (warehousing or whole seller) may be forced to abandon it for an alternative supplier through maintaining consumer loyalty to the final product (Zsidisin and Ellram, 2003).

The building material warehousing whole seller in Buea may not be big compare to those of engaging in international business through maritime transport. However, they do portray the features that capture the mentioned services.  They may be operating at a small scale but have an obligation to satisfy their clients.

As noted, no business organization will love to underperform. Performance is driven by high-quality customer service and requires to prepare the organization of the warehouse activity in order to supply on time and as exactly described in the purchase agreement. Satisfaction in our scenario is not based on tangible attributes since this study is not associated to the satisfaction of the final product.

The intermediary functions or service of a warehouse and how it may help the satisfaction of the buyer is the core concern of the study. There is definitely an issue of dissatisfaction if supplies are delay. It will generate an atmosphere of dissatisfaction with demand if not available due to shortages of material in the warehouse.

Such shortages may source from delays in the inbound or poor inbound arrangements. Buyers of building material will not be happy once their purchase does not meet the requirement as per the invoice or bill of laden.

It may require a return to the warehouse if products of low quality or wrong products are delivered to the customer. The mentioned propositions are raised from a nonscientific position. This means the mentioned relationship between the activities and practices of the warehouse on the customer’s satisfaction is projected out of an empirical investigation.

While many studies on consumer satisfaction focus on the qualities of the final product and consumer, this study is the focus to study consumer satisfaction along the supply chain. In this context, it is satisfaction derives from the role of the warehouse or whole seller. The research problem is best presented through the research objectives. The reflected puzzle is clearly summarized in the research questions as seen below.

1.3. Research Question

The main research question is

“What is the effect of warehousing performance on building material shops in Buea Municipality”?

Other specific research questions that guide this thesis are:

1. To what extend does inventory classification contribute to the performance of building material shops in Buea Municipality?
2. To what extend does material codification contribute to the performance of building material shops in Buea Municipality?
3. What is the influence of material inspection on building material shops in Buea Municipality?