Abstract

Warehouse managers faced the challenge of maximizing productivity while balancing trade-offs under certain conditions, especially in less developing countries such as Cameroon. Thus this study sought to examine the effect of warehousing productivity of building material shops in Buea Municipality.

Specifically, the study sought to analyzing the effect of inventory classification on the productivity of building material shops in Buea, to anticipate the effect of material codification on the productivity of building material shops in Buea Municipality and the explore the effect of material inspection on the productivity of material building shops in Buea Municipality.

In order to achieves these objectives, the study employed quantitative techniques to sample 100 respondents using structured-questionnaire to sample warehouse staffs and employees in Buea Municipality using convenient and simple random sampling techniques.

Collected data were analyzed in SPSS (25.0) were descriptive statistics and hypothesis testing were obtained through the spearman Rho correlation.

The study findings shows that, inventory classification, material codification and material inspections has a significant effect on the productivity of warehouses in Buea Municipality. It was the therefore recommended that shareholders having those building material shops should see in to it that, seminars concerning handling of warehousing should be carried out on quarterly bases.

Furthermore, organizations should be able to set goals and follow up the achievements, full adoption of documented policies and improvement in 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

Introduction

Warehouses are vital components of today’s supply chain. Today’s trend indicates increasing market volatility, product range proliferation and shortening lead times that have an effect on the roles of a warehouse for it to perform.

Different activities take place here and thus, require different nature of facilities, staff as well as equipment to suit each function and to make the work easier and the working environment safe. Warehouse operations may easily be the most expensive element of the supply chain.

The successful management of these warehouses is critical regarding the level of service provided, as well as the cost incurred and will result in efficiency in inventory management. This chapters covers the background of the study, statement of the problem, objectives of the study, scope and delimitation, significance of the study and organization of the study.

Background to Study

In today’s highly competitive global market place, 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 centre precedes a postproduction warehouse for finished goods held for distribution. Therefore, warehousing and distribution centres have the same function of goods and products storage (Coyle, 2003). The warehouse and distribution centres 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 centre 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 manufactured and supplied 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 more than what is supplied resulting in this gap.

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 practised 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. Dangote 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 stocked for distribution. The role of the intermediary institution cannot be underestimated in channelling the needed building material to the respective areas of need. It is sometimes very hard to have wholesales or this warehousing business organised in the rural areas (Kleindorfer and Saad, 2005).

In most cases, those living in the role area will move to urban centres 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 its specificity reaches the purchaser (customer) on time and safe. 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).

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 goal can only be achieved only when the organization maximize sales (Sheffi and Rice, 2005). It is for this reason that 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 the whole seller’s business organization renders a service, though maybe supplying the tangible products. It cannot be disputed that a buyer of cement, nails, iron roots and other building material may change a specific producer and its products but maintain its 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 product.

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 compared to those 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 must satisfy their clients. As noted, no business organization will love to underperform. Performance is driven by high-quality customer service and requires preparing the organization of the warehouse activity 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 with the satisfaction of the final product.

Statement of the Problem

Inventory is a vital part of current assets mainly in manufacturing concerns. Huge funds are committed to inventories to ensure a smooth flow of production and to meet customers’ demands. However, maintaining inventory also involves holding or carrying a lot of costs Coyle et al, (2003). Inventory clasification, therefore, plays a vital role in balancing the benefits and disadvantages associated with holding inventory.

Efficient and efficient inventory classification goes a long way in the successful running and survival of the warehouse. When organizations fail to manage their inventory effectively; they are bound to experience stock out the decline in productivity and profitability, and customer dissatisfaction.

Warehouse managers face the challenge of maximizing productivity while balancing trade-offs under certain conditions, especially in less developing countries such as Cameroon. But in developed countries like Canada, USA, & Russia just to name a few, the cause is not so reason being that, there are well-equipped personnel and even equipment which can be put in place to effectively and efficiently manage inventory.

Looking at the case of Cameroon, there are hindrances to warehouse management which as a result lead to stock out and lead time (Sawaya et al, 2006). Concerning Buea Municipality, goods come in huge quantities but there is no good inventory management approach to see into it that the goods are being put in the warehouse properly. As such, an effective inventory management system will help you have products stocked the moment the last of your product leaves the warehouse.

The intermediary functions or services of a warehouse and how they may help the satisfaction of the buyer is the core concern of the study. There is an issue of dissatisfaction if supplies are delayed.

It will generate an atmosphere of dissatisfaction with demand if not available due to shortages of material in the warehouse especially when materials that are been supply are not well coded and inspect for nay damagaes. 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.

Objectives of the Study

Main Objective

The main objective of the study is to examine the effect of warehouse management on the productivity of Materials shops in Buea Municipality.

Specific objectives

Specifically, the study sought to;

1. Analyse the effect of inventory classification on the productivity of building material shops in Buea Municipality.
2. Anticipate the effects of material codification on the productivity of building material shops in Buea Municipality.
3. Access material inspection on the productivity of building material shops in Buea Municipality.

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