Wor ld Wi de Jou r nal of Mu lti dis ci p lin a ry Res earc h and Dev elop men t
WWJMRD 2015; 1(5): 9-20
www.wwjmrd.com
e-ISSN: 2454-6615
Makafui R. Agboyi
Lecturer MSc Supply Chain
Management /MCIPS
Accra Polytechnic, School of
Business Department of
Purchasing & Supply
Department, Accra, Ghana
David Ackah
Senior Lecturer & Internal
Auditor Ph.D. /MSc / BSc.
/Dip. (Economics)
Golden Sunbeam University of
Science & Technology
School of Business & General
Studies, Accra, Ghana
Correspondence:
Makafui R. Agboyi
Lecturer MSc Supply Chain
Management /MCIPS
Accra Polytechnic, School of
Business Department of
Purchasing & Supply
Department, Accra, Ghana
The impact of warehousing on customer satisfaction
Makafui R. Agboyi, David Ackah
Abstract
The study was carried to throw light on how effective warehousing can have impact an customer
satisfaction.
Research has found that customer satisfaction is positively related to repurchase intention, actualh
repurchase, market share, and word of mouth. There is growing recognition among managers of the
importance of measuring the share of business a customer conducts with a particular service provide
(share-of-wallet) as opposed to simply repurchasing a product or service at some point in the future or
continuing to keep a business relationship with a service provider. Currently there is very little
empirical research concerning the relationship between customer satisfaction and share-of-wallet. This
research examines the relationship between satisfaction and actual share-of-wallet in a business-to-
business environment. The authors not only find that there is a positive relationship but the relation is
nonlinear, with the greatest positive impact occurring at the upper extreme of satisfaction levels.
It is also clear that EPP BOOKS has an adequate space for storing and the nature of the storage has
been chosen for effectiveness. Per the responses given, the common means of storage in the warehouse
is racks. The reasons of employing racking are numerous, but the researcher is of the opinion that
racking is deployed in business premises all around the world and this is testament to the safety record
that warehouse racking, which comes in a variety of different forms, is able to boast.
Keywords: Warehousing, Customer Satisfaction, Impact of Warehouse
Introduction
The way you manage your warehouse says a lot about your company. Efficient processes and
high productivity rates suggest that you value your company and the service you provide to
your customers. If your warehouse is running on inefficient processes and suffering from
poor productivity levels, you may be sending the wrong message to your customers.
Inefficient processes can lead to shipping delays, processing errors, and more complications
that could negatively impact your customer satisfaction rates.
Taking the time to improve your warehouse management strategy shows that you are serious
about satisfying your customers. With the help of a warehouse management software
solution, you can create an effective warehouse management strategy designed to improve
your overall customer service and retention rates. Let‟s take a look at how improving your
warehouse management efforts with warehouse management software can help you exceed
customer expectations and keep your customers coming back from Warehouse management
software can help you gain visibility into your operations. Knowing what is going on in the
warehouse (and where your products are) is critical to improving your customer service
efforts. If a customer calls to inquire about the status of their order and you cannot give then
a straight answer, the customer is not likely to be happy and you can guarantee they will not
be ordering from you in the future.
Warehouse management software can help you gain visibility in the warehouse so you know
exactly where your products are at all times. Warehouse management software can help you
get your products into your customers‟ hands faster. Today‟s customers expect to receive
their products quickly. If you cannot delivery your customers‟ products into their hands in
reasonable timeframe, your customers will look elsewhere for their products. For this reason,
it is imperative that you increase efficiency in the warehouse so you can deliver products to
your customers in a timely manner. Warehouse management software can help you eliminate
inefficiencies so you can get your products into your customers‟ hands faster. Warehouse
management software improves your communication.
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World Wide Journal of Multidisciplinary Research and Development
Communication is crucial to improving your customer
service. If you cannot effectively communicate with your
customers, you risk losing their business. Warehouse
management software can give you the information you
need so you can keep your customers informed throughout
the entire order process. Some warehouse management
software systems even provide your customers with
automatic order updates so they can stay informed as you
prepare their order for delivery. Warehouse management
software can help you improve your forecasting efforts.
Change is a constant factor in the warehouse environment.
Conditions change, workforces change, procedures change,
and customer expectations change. In order to remain
successful and stay competitive, your company needs to
anticipate change and the affect it will have on your
company. Warehouse management software can help your
company anticipate key changes so you know how to
handle any unexpected occurrences and respond in a way
that is pleasing to your customers.
Ultimately, customer service is about how your customer
views your company. If you stay on top of orders, keep
your customers informed, and respond proactively to
issues, your customers will continue to see value in your
company. With the help of warehouse management
software, such as the Automation Series for Sage 100 and
Sage 500 ERP and Scanco Warehouse for Sage 100 ERP,
you can improve your warehouse management efforts and
customer service at the same time. If you have any
questions about warehouse management software and how
it can help you improve your customer service efforts, give
our warehouse management experts a call today.
(Warehouse management)
Literature Review
This presents a review of related literature. It basically
considers observations, experiences and theoretical
literature that have bearing on the topic under study. Some
of the key topics under consideration are: customer
satisfaction, storehouse or warehouse, the importance of
storehouses, types of storehouses, storehouse design,
maintenance, safety and security, stocktaking inventory,
coding, information technology, location systems, and
documentation among others.
Customer Satisfaction
Customer satisfaction is a marketing term that, ensures how
a product or services supplied by a company meet or
surpass a customer‟s expectations (client heartbeat.com)
Customer satisfaction is defined as a customer overall
evaluation of the performance of an offering to date. This
overall satisfaction has a strong positive effect on customer
loyalty intention across a wide range of product and service
categories (Gustaffasson, 2005).
What We Need To Measure
Organization can understand the satisfaction of their
customer through the number of problem calls; the number
of complaints by email, phone and the number of returned
product Worth, 2002{change sentences}. It somehow the
measurement of dissatisfaction (no satisfaction) Companies
should gather and analyse suitable data, which will provide
relevant information to real satisfaction. The criteria for the
measurement of satisfaction must be defined by the
customer (Hill, 1996). Some different kind of customer
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satisfaction measurement; Perceived quality, customer
expectation, perceived value, customer satisfaction,
customer complaint, customer loyalty.
Techniques to Measure Customer Satisfaction
Market research techniques to measure customer
satisfaction which are; customer satisfaction survey
methodologies, focus groups to study customer satisfaction,
standardized packages for monitoring customer
satisfactions and various computer software
Importance of Customer Satisfaction
 It a leading indicator of consumer repurchases
intention and loyalty
 It is a point of differentiations
 It reduces customer churn
 It increases customer lifetime value
 It reduce negative word of mouth
 It is cheaper to retain customer than acquire new ones
(client heartbeat.com)
Storehouse or Warehouse
Carter and Price (1993), regard storehouse as an area in
which all kinds of materials for production, distribution,
maintenance and packaging are received, stored and issued.
In the view of Tony (1996), inventory is any material and
supply that a business or institution carries either for sale or
to provide inputs or supplies to the production process.
Why Storehouses?
According to Weele (2000), as a result of increasing need
in demand for goods by both internal and external
customers, it will not augur well for any business or
organization to place order for each and every material or
item that may be urgently needed for production or meeting
customer needs. Stores therefore, play a vital role of
ensuring that any material required for production or
satisfying customer needs are just available to meet the
exact need.
Types of Storehouse
Storehouse can be put in to two ways, namely:
Single -Story Storehouses: These are probably the most
common and are very widely employed. As the name
suggest, the store is built on one level, without stairs or
upper floor. However, many single stored stores use
mezzanines to provide a degree of upper storage. Single
stored buildings have the following advantages:
i. They are relatively cheaper to construct and maintain
owing to the simple design and lack of upper floors.
ii. Handling and the natural flow of the materials through
the store.
iii. Ventilation and other basic services (electricity, water
and gas) are easier to install and operate.
iv. The uses of the ground floor only enables great
weights to be stored, without the problem associated
with multi- story buildings and the weight limitation
on the upper floor.
Multi-Story Buildings: Brigham and Pappas (1997)
observe that these are used mainly in areas of high density
population where resources such as land is not available, or
in situations where the organization itself is based on the
World Wide Journal of Multidisciplinary Research and Development
multi- story site and individual floors are served by the
different sections of the store. The multi-story has the
following advantages:
i. The multi floor environment enables great flexibility
for alternative use of storage space (offices and
production facilities) should the need arise.
ii. Separation of areas of stock by a system of floors can
be an aid to security and fire precautions, in that; an
outbreak of fire could be contained on one level
without damaging the rest of the stock.
Storehouse Design: According to Lyson (1997), to ensure
that storehouse operate efficiently and effectively, a logical
and workable design is paramount importance. It is not
easy to make recommendations for design of storehouse
because of the following reasons:
 The needs of organizations are different (organizations
belongs to different industries).
 The scale or the volume of operation is different, even
if they belong to the same industry.
 Their financial resources may differ in terms of money.
Before actual construction, there is the need for preliminary
investigations as to find out the factors that may affect
design and construction.
Below is a checklist of factors to be considered:
 The number of smaller or satellite stores to be served.
 The range and quantity of materials to be stored.
 The physical characteristic and packaging of materials.
 The type of handling equipment to be used.
 The mode of transport to be employed and the
frequency of deliveries.
 The number of staff or employees.
Apart from those factors mentioned the authors argue that
the following factors are also to be considered:
a) Frequency Of Usage
Materials must be stored keeping in view the frequency of
usage. Materials are grouped in to three logical sections:
high usage rate, medium usage rate and low usage rate. The
principle is that, the materials that are constantly being
issued and delivered to the storehouse should be placed
near to the entrance\exit, thus, reducing the rate of handling
high usage materials and minimizing traveling times. The
logic is following through in relation to the other
categories. That is medium and slow moving materials
being progressively further from the point of entry.
b) Entrances And Exits
These must be located on side by side so as to ensure a one-
way traffic system, thus, reducing delays. In many large
warehouses, the entrance and exit gates are side by side and
the control center or gatehouse is situated between them,
enabling materials to be reordered on delivery and issue.
The gatehouse at the entrance must be secure, lockable and
wide, and in some cases, high enough to allow the largest
vehicle employed to pass through
c) Floor
The floor is very important feature of any storehouse
because not only does have to carry the weight of the stock
held, but it also has to provide suitable surface for the
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operation of wheeled vehicles, whether manually or
mechanically operated. The floor must therefore, be of
adequate strength and have a good, hard and smooth finish
with a minimum obstruction. Modern practice is to use
concrete, and there is no really satisfactory alternative.
d) Receipt And Dispatch Docks
There should be a receipt and dispatch docks with facilities
for loading and unloading vehicles, preferably under cover.
e) Offices
Suitable offices or enclosures should be provided, adjacent
to the receipt and dispatch docks, for the storekeeping staff
responsible for handling, checking documenting
consignment inwards and outwards.
f) Structure
The design of the framework depends upon whether it is to
bear only the weight of the building itself or whether it is
expected also to carry overhead cranes, conveyors or
monorails.
g) Lighting
Lee H. Whang (2001), explains that the fullest possible
advantage should be taken of natural lighting. In most
storehouses, shelves or racks are placed along the walls
and, therefore, side windows should be at such a height that
these fixtures do not obscure the light from them.
Storehouse Maintenance
According to Levy and Weitz (1998), storehouse
maintenance is the activities involved with managing the
exterior and interior physical facilities associated with the
storehouse. The exterior facilities include the parking lot,
the entrance to the storehouse and, signs on the outside of
the storehouse. Interior facilities also include the walls,
flooring, ceiling, and displays and signs. Storehouse
maintenance affects both the sales generated in the
storehouse and the cost of running the storehouse. A
storehouse cleanliness and neatness affects consumer
perceptions of the quality of its merchandise.
Inventory
According to Lysons (1992), inventory is an American
accounting term for the value or quantity of materials,
components, assemblies, consumable, work in progress and
finished stock that are kept or stored for use as the need
arises.
Types of Inventory
a. Transit or Pipeline Inventories: These inventories
are used to stock the supply and distribution pipelines
linking an organization to its suppliers and customers
as well as internal transport points.
b. Cycle Inventories: These stocks arise because of
management‟s decision to purchase, produce or sell in
lots rather than individual unit or continuously.
c. Buffer or Safety Stocks: These inventories exist as
result of uncertainties in demand and supply.
d. Anticipation or Certainty Inventories: These stocks
are accumulated for a well-defined need. They differ
from buffer stock in that, they are committed in the
face of certainty and therefore have less risk attached
to them.
World Wide Journal of Multidisciplinary Research and Development
Inventory Management (Control)
According to Fowell and Geoffrey (2000), inventory
management is the process of determining how many
supply and goods are needed and keeping track of
quantities on hand, where each item is and who is
responsible for it.
According to Ballou (1992) also defined inventory
management as an activity which involves balancing
products availability, or customer service, on the one hand
with the cost for providing a given level of product
availability on the other hand.
In the view of Lysons (1992), inventory control is a
technique used to ensure that stock of raw materials or
other supplies, work in progress and finished goods are
kept at levels, which provide maximum service levels at
minimum costs.
Aims of Inventory Management
a. To provide both internal and external customers with
the required service levels in terms of quantity and
order rate fill.
b. To ascertain present and future requirements for all
types of inventory to avoid over stocking while
avoiding „bottlenecks‟ in production.
c. To keep cost to a minimum by variety reduction,
economic lot sizes and analysis of costs incurred in
obtaining and carrying inventories.
Methods of Inventory Management
a) Aggregate Inventory Management: This deals with
managing stocks according to their classification (raw
materials, work in progress and finished goods) and the
function they perform rather than at the individual item
level. It is financially oriented and it is concerned with the
costs and benefits of carrying the different classifications of
inventories. Such, aggregate inventory management
involves:
 Flows and kinds of inventory needed
 Supply and demand patterns
 Functions that inventory perform.
 Objective of inventory management.
 Cost associated with inventories.
b) Item Inventory Management: Inventory is not only
managed at the aggregate level but also at the item level.
Management must establish decision rules about inventory
items so that the staff responsible for inventory control can
do their job effectively. These rules include the following:
 Which individual items are most important?
 How should individual items be controlled?
 How much should be ordered at a time?
 When can an order be placed?
Stocktaking
According to Jessop and Morrison (1994), stocktaking is a
complete process of verifying the quantity balance of the
entire range of items held in stock.
Carter and Price (1993) also defined stocktaking as regular
and complete physical checks of the item held in stock.
Stocktaking involves many valuable and expensive man-
hours to arrange and carry out, and a great deal of
management time is also needed to investigate the
inevitable list of stock discrepancies. However, the cost and
effort are more than justified by the following benefits:
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a. Stock records and stock control systems will be tested.
Verifying by the physical accounts will act as a form
of performance check on these systems and adjustment
needed can be made. Computerized control system can
be verified.
b. Accurate stock levels shown within the stock record
system, backed up by a regular physical count, will
ensure that all requirements of the user departments are
covered by existing stock levels and will be issued
promptly and efficiently. This avoids the common
situation of stock showing in the records system not
being physically present.
c. Financial report (including balance sheet) produce by
the organization‟s auditors will demand some form of
physical stock verification to back up the value of
stock shown within the balance sheet.
 The security aspect of the stores management
demands that regular and physical checks be made
to ensure that any possible theft and fraud is
quickly detected and investigation carried out.
Stocking is an indicator of overall stores
efficiency and management control.
There are several methods of carrying out stocktaking.
Some of these are:
(a) Periodic Stocktaking: This is where a complete
stocktaking is performed at regular interval, usually at the
end of each financial year or in some cases at quarterly
intervals. It is the most common method of checking or
counting stocks.
(b) Continuous Stocktaking: In this system, a selection or
section of items is checked every week. Throughout the
twelve-month period, every item in the stock would
therefore be physically counted and checked.
(c) Spot-Checking: This method is used in connection with
security and anti-theft aspect of the stores management.
Spot-checking is designed to verify the stock held without
prior warning, which could provide time for stock to be
replaced illegally.
Safety and Security
According to Dobler et al (1993) in their book state that
one of the most important aspects of storehouse operation
is security, which covers theft and fraud, but also stock
deterioration, damage location and special storage. There
are two main methods by which the security of the
storehouse can be attempted, namely:
a. Private security agencies.
b. Stores management security.
Storehouse security is vital for several reasons all of which
reflects on both the value of stock and its operational role
within the organisation. Stock records become meaningless
as a means of stock control if stock is lost and not recorded.
The calculated level of stock indicated by the stock cards
will not be resemblance to the actual stock held.
Also, production planning relies on stock being available
against a predetermined plan. If stock is not secure, then
this plan will need a constant review with all the loses in
output and efficiency that involves.
Moreover, stocks represent a major part of the
World Wide Journal of Multidisciplinary Research and Development
organisation‟s capital, therefore, any stock lost because of
theft, fraud or damage will have to be replaced which will
increase the origination‟s cost and reduces its profits.
Security Policy
It is vital that organization has a uniform security policy,
which should include the following:
i. Appointment of a senior management with overall
responsibility for security.
ii. Allocation of reasonable budget to cover the cost of
security.
iii. Consistent enforcement of the stated company
penalties for theft, from the shop floor to the manager.
Custody of Keys
The storekeeper or manager is responsible for all the keys
and locks used within the stores area and should therefore
ensure that the following rules are adhering to the latter:
a) All keys should be numbered so that the correct key
can be match with the correct lock quickly and
efficiently.
b) All keys should be registered in the central security log
of the overall security department.
c) Individual members of the stores staff should be made
responsible for certain keys and must be accountable in
terms of stock losses.
d) Keys taken from the central key bank must be signed
for and when returned.
Materials Control
According to Perllman (1994) the service given by the
stores department to other departments become effective at
the point where the stores- keeper makes issue of goods,
and users will naturally judge the efficiency of the stores
organization by the standard of services provided to them.
Stores efficiency can be assessed on the following basis:
a) Authority of Issues: Stocks in the warehouse
represent money, and should not be misappropriated‟
wasted or improperly used. For this reason, issues
cannot be made indiscriminately and, before goods can
be withdrawn from the warehouse; there must be some
authority for the transaction. This may be in form of a
signed document, a verbal instruction or routing
arrangement.
b) Timing of Issues: To avoid delays in a busy
warehouse, there should a plan to provide for a smooth
and even flow of work. Arrangement may be made for
issues of goods to some departments to be handling in
the morning, and some in the afternoon.
Coding
According to Turnbull, (1990) state that the complexity of
modern industrial organizations, the range and type of
items held in stock by organisation are correspondingly
complex. This means that a system has to be developed that
can identify and classify the wide range of items held in
stock, quickly and efficiently. Each organisation has its
own needs and resources, and this will influence the type of
coding system to be employed.
The following are some of the common systems:
a) End-Use Coding: This is where the item is coded by
virtue of its end-use in terms of the operation or
product.
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b) Color Coding: This system is based on the uses of
colors to code and identify items held in stock.
c) Supplier’s Code: This is where the stores employed
the coding system of the supplier of the goods.
d) Nature of The Item: This is where each item held in
stock is classified and coded according to the item‟s
basic nature and make-up.
According to Leenders and Fearon (2000) coding has the
following advantages:
 Accurately identifies all items.
 Avoids repeated use of long descriptive titles.
 Forms a convenience basis for the sorting and
recording of documents.
 Can be employed as a basis for stock control accounts.
 Simplifies pricing and costing.
Stock Location Systems
There is no single universal stock location system suitable
for all occasions, but there are a number of basic systems
that can be used. Which system or mix of systems, is used
depend on the type of goods stored, the type of storage
facilities needed, the throughput, and the size of orders.
Whatever the system, management must maintain enough
inventory of safety and working stock to provide the
needed required level customer service, keep the track of
items so that they can be found easily, and reduce the total
effort required to received goods, stored them and retrieve
them.
There are two basic systems for assigning specific location
to individual stock items:
a) Fixed Location System: In this system, a stock-
keeping unit (SKU) is assigned permanent location(s)
and no other items are stored there. This system makes
it possible to store and retrieve items with a minimum
of record keeping. In some small, manual systems no
records are kept at all. Everything is nice and simple so
things are readily found. However, fixed location
systems usually have poor cube utilization. If demand
is uniform, presumably the average inventory is half
the order quantity and enough space have to be
allocated for full-order quantity. On the average, only
50% of the cube is utilized. Fixed location systems are
often used in small warehouses where space is not at a
premium, where input is small and where there are a
few store-keeping units.
b) Random (Floating) Location Systems: Arnold Tony
.J R (2008) state that in this system, goods are stored
wherever there is appropriate space for them. The same
stock-keeping unit may be stored in several locations
at the same time and different locations at different
times. The advantage of this system is improved cube
utilization. However, it requires accurate and up-to-
date information on item(s) location and the
availability of empty storage space so that items can be
put away and retrieves efficiently.
Modern warehouses using floating system are usually
computer based. The computer assigns free locations to
incoming items, remembers what items are on hand and
where they are located and direct the order to the right
location to find the item(s). Thus, cube utilization and
warehouse efficiency are greatly improved.
World Wide Journal of Multidisciplinary Research and Development
Materials Handling
According to Tony (1996), materials handling is a short
distance movement that takes in or around a building such
as a plant or distribution center. For a distribution center,
this means the loading and unloading transport vehicles and
the dispatch, and recall of goods to and from storage.
Fowel and Geoffrey (2000) also defined materials handling
as a physical movement of products in warehousing and
transportation. Handling processes may vary significantly
due to products characteristics.
In addition, the racking systems used in distribution centers
are usually considered as part of materials handling.
Materials handling has the following aims:
a) To increase cube utilization by using the height of the
building and by reducing the need for aisle space as
much as possible.
b) To improve operating efficiency by reducing handling.
Increasing the load per move will result in fewer
moves.
c) To improve the service level by increasing the speed of
response to customer(s) needs. Some of the examples
of materials handling equipment are forklifts,
conveyors and cranes.
Preservation and Packaging
The rate of deterioration naturally varies with the material
concerned, but one fact is quite certain-the longer an item is
held in stock, the more risk of deterioration. For this
reason, it is an elementary rule of good storekeeping that
stock is to be issued in order in which it is received, that is
old stock is dispose off first- first –in-first-out (FIFO)
method of stock regulation. Dampness is the store-keeper‟s
worst enemy. It accelerates the corrosion of materials,‟
solidifies powered and discoloured papers. It is follow that,
for nearly all the storehouses, an effective space-heating
installation is necessity to avoid damp and the damage its
causes.
Stock Records
Stock records are formal set of records that contains
information about the stock held within the stores system.
The range of this information depends upon the system
employed and the scope of operations.
However, the basic function, which every stock record
system should aim to cover, is the fundamental data on
stock held at any given time. Stock records are sometimes
called the „clerical memory‟ of stores, because of the wide
range of information held within a good stock record
system.
The operation of the stores function and the control of stock
cannot be performed in an efficient manner without some
means of capturing and storing information, and a facility
for the analysis and use of this information. Stock records
are expected to maintain particulars of receipts, issues and
balances remaining in stock for individual items held in the
storehouse from day to day or every day. As a result, two
systems are used either single or combined. These are
manual and computerized systems.
Documentation
Stores staff must ensure that all the documents prepared by
them, which are also needed by purchasing and other
departments are processed as soon as possible and then
passed on to the departments concerned for processing.
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The most common among these documents are:
a) Advice Note: This is issued by the supplier contracted
to supply the stock ordered by purchasing. It is issued
when the goods are dispatched by the supplier and it is
designed to provide the following data:
 It confirms that the goods will be delivered.
 Method of delivery to be employed by the supplier.
 A provisional delivery date and time.
 Quantity of goods to be supplied.
 The code number and description of the stock
concerned.
b) Delivery Note: This document is usually supplied with
the goods as they are delivered; it states what the
supplier has actually delivered to the store. However, it
must be carefully checked against the stock unloaded,
to ensure that the figures and details on the delivery
note are accurate. It is the responsibility of the store‟s
manager to check delivery notes and sign them as
correct or not as the case may be.
c) Reorder Notification Or Low Stock Advice: This is
produced by the stores records section and is sent to
purchasing who in turn will place an order with the
appropriate supplier after going through the purchasing
cycle.
d) Stock Counting Sheet: These sheets are produced
especially for stocktaking purposes. They are designed
to be used by each individual stock taker for each type
of item to be counted, and therefore, every item in
stock will have its own stock counting sheet.
e) Stock Certificate: This is a formal document which
indicates the value of the total stock as at the date of
the stocktaking. It is usually checked and signed by a
member of the senior management.
f) Carrier Consignment Note: This document is used
when the supplier has contracted-out the actual
physical delivery of stock to an organization in
business for that purpose. Such organizations provide
their own form and delivery notes that control what is
delivered can be maintained and claim for non-delivery
properly processed. In most cases, the goods delivered
will have both a supplier‟s delivery note and carrier‟s
consignment note.
g) Internal Packaging Note: This document is used to
carry out a more detailed check of the stock delivered
once the parcels, boxes and drums have been broken
down for storage. The packing note lists what is
actually within each unit delivered. It should give
specific data about quantities, types, sizes colours and
specifications.
Fire Risks in Storehouse Operations
It is reasonable in any circumstances to see that the
construction of a building takes account of the possibility
of fire but, where the materials in store present an
exceptional risk, it is wise to avoid the uses of timber in the
construction as far as possible and cladding which has been
treated with a bituminous compound or other flammable
mixtures.
Information Technology
1nformation technology is defined by United Nations
Education, Scientific, and Cultural Organisation
(UNESCO) as “the scientific, technological and
engineering disciplines and the management techniques
World Wide Journal of Multidisciplinary Research and Development
used in information handling and processing; their
applications; computers and their interaction with men and
machines; and associated social, economic and cultural
matters”. A good information technology system provides
data at the right time, in the right place and in the right
format.
According to Claycomb (1999) Information Technology
can be used in the storehouse or warehouse in the following
ways:
a) Automatic and instantaneous updating of stock
records: When issues or deliveries are made, the new
current stock level will automatically be calculated.
b) Interpretation of trends: A computer can be used to
indicate whether an item has become slow- moving or
whether an item enjoys seasonal usage.
c) Showing items on reorder point: When issues deplete
the stock levels to reorder point, a computer can print
out a requisition or show by visual display that the
item needs reordering. A computer could also provide
a list of all items needing reordering.
d) Showing all items at danger level or zero stock: If
either of this level is reached, a computer could warn
stock controllers by printing out or making a visual
display.
e) Preparation of random stock lists for stock checking: If
an organisation uses perpetual stock checking, it is
usual for the computer to print out at random, lists of
items to be checked each day.
f) Preparation of invoices from issues in consumer-based
operations: The computer can record issues and
automatically prepare invoices from them, thus
facilitating the whole invoicing process.
Research Methodology
This study discusses the method used to conduct the study
and how information was obtained for the uses of primary
and secondary research. It also focuses on the research
framework employed, the data collection instruments used;
sampling techniques, the data collection activities and
methods of data analysis.
Research Framework
This research was carried out using rapid survey
techniques. A rapid survey assessment is used to obtain a
broad and preliminary overview of the operation and
performance of food systems or components thereof and
designed to identify constraints and opportunities. The
following features of the exploration survey have been
used:
• Interviews were structured and semi-directed;
• The researcher conducted the interviews using
approximately thirty minutes per interviewee.
• It had a largely informal character and purposive
sampling was used rather than random sampling..
The Population/Sample
According to Joseph Cudjoe (2006) in his book Business
Math‟s defined population as “the totality of units (items or
individuals) from which we take a sample”, also population
is considered as the number of units of the phenomenon to
be investigated that exist in the area of investigation. The
population of workers in EPP BOOKS and their customers.
The study population of this study involves the staff
members of warehouse department and customers of which
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comprises of twenty in members.
Sample is a set of individuals or items selected from a
population for analysis to yield estimate of or to, test
hypotheses about parameters of the whole population. A
biased simple is one in which the items selected share some
property which influences their distribution, while a
random simple is devised to avoid any such interference so
that its distribution is affected only by, and so can be held
to represent, that of the whole population . A complete
simple is a set of objects from a parent population that
includes ALL such objects that satisfy a set of well-define
selection criteria.
Which constitute the warehouse department and their
customers EPP BOOKS?
Sampling Technique/Method
A sample is the subset of population chosen according to
some rule called sample technique or sample method. Since
the entire population of the workers in EPP BOOKS cannot
be used as respondents for the questionnaire due to time
factor and the availability of the workers, the researcher
decide to use purposive sampling techniques. Thus out of
this 50 workers in the company they have 20 workers at the
warehouse department. The entire targeted group or the
sample frame used as respondents for the questionnaire
were 20 in number.
Sample Size
Simple size includes the number of participants or objects
in a research study. Researchers use this sample size to
represent a larger proportion of their study. 20 people were
selected to undertake the exercise in order to meet the
standard of the research which comprises of 10 from
warehouse department and 10 from their customers.
Data Collection Methods
The researcher will make use of methods that would assist
him in obtaining data for the study. These methods would
consist of primary and secondary data. The primary
research comprises use of questionnaire, interviews, visits
and observation; references is also be made to pertinent
literature relating to the topic for the secondary
information.
Primary Data Collection
Due to the nature of the population the researcher
considered using interviews, questionnaires and
observations in gathering data from the sample.
Interviews
Interviewing is a technique that is primarily used to gain an
understanding of the underlying reasons and motivations
for people‟s attitudes, preferences or behavior. Interviews
can be undertaken on a personal one-to-one basis or in a
group. This technique was adopted to obtain information
from both the senior and junior staffs about their perception
of the impact of buyer-supplier relationship on profitability
within the organization. They were to give their view about
the procedures used in the company in achieving stock at
optimum level.
Face-to-face interviews
This was where the researcher conducted personal
interview on the respondent. Here the researcher
communicated directly with the respondents for whatever
World Wide Journal of Multidisciplinary Research and Development
information needed and also, the respondents were able to
ask questions they did not understood and had detailed
explanations to such issues. The face-to-face interview was
the most effective way to solicit the co-operation of
respondents and also the means of establishing a rapport
with them. Also with this form of interview the researcher
clarified all questions and also made a follow-up to unclear
or incomplete answers. Face-to-face interviews also
permitted more time to be spent with respondents. Face-to-
interview may take very long time in the data collection as
a result of the detailed explanation and the time that was
spent with each respondent.
Questionnaires
To enable the researcher obtain information on the topic,
questionnaires were designed and distributed to selected
number of people. The main aim of designing the
questionnaire was to enable the researcher to obtain lot of
responses from the various respondents. The selection of
the respondents was done through target people. This
technique was used because it is a procedure in which all
the individuals can be reached. Structured questions are
meant to gather specific data for mainly quantitative
research, and on certain occasions, qualitative analysis. The
structured questions are close-ended in nature, which
means the respondents need to give specific answers and
not deviate too much from the query. The scope of giving
generalized answers to the structured questions is very
little. In case of unstructured questions, the questionnaire
has close-ended questions. The replies on this kind of
questionnaire are chiefly utilized to construct the frame of a
qualitative study with theoretical analysis of a particular
situation or event. To obtain valid responses, the researcher
combined both open ended questions and closed ended
questions. With the open-ended questions, questions were
left blank for respondents to provide answers in their own
words and that there were no alternate answers to select
from. But as in the case of the closed ended questions,
alternates or options were given to select from. It must be
stressed that almost all the questions in the questionnaires
are closed ended questions. The reason has been that, the
respondents are known to be literate and can answer the
questions in the least time. Questionnaires are more
objective and are relatively quick to collect information.
Respondents may not be willing to answer the questions
and long-time may be spent in gathering responses.
Data Collection Activities
Questionnaire is administered to management and staff of
EPP BOOKS. These questionnaires are aimed at collecting
information on the organisation‟s distribution and method.
Questionnaires were also distributed to users or customers
of EPP BOOKS to assess their views about the product and
service of EPP BOOKS Open ended questions were used.
The questionnaire used enabled people to produce accurate
information without having face –face contact, with the
respondent did not become nervous when answering
questions.
Two types of questionnaire were designed for the target
group. One for the personnel in EPP BOOKS and another
for customers of the organization.
Triangulation
The study employs the various uses of personal interview,
observation and questionnaire in triangulation. The purpose
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is to increase the credibility and validity of the research, by
using these three methods to get the answer to the
questions. Personal interview was also employed to know
the true feelings of customers and know their views. An
observation was made on the interviewers to know their
mode of distribution of drugs and materials in the health
sector by an observation from customers in accordance to
what they gave on the questions they were interviewed on.
Questionnaires made for management was open and close
questionnaire. The closed ended questions are administered
to limit the respondent in his or her answer for easy and
quick analysis. The open-ended questions are asked
because the researcher intends to get extra information
from the respondents.
Data Analysis Procedures
The descriptive approach was used for data analysis.
Statistical tables were drawn, based on the percentage
corresponding to absolute figures. The tables were prepared
after the answered questionnaires had been edited and
tallied. Percentage was used to highlight findings about the
research topic. Data was analyzed using statistical table, pie
charts and histogram.
Rigour
Due to the number of respondents needed for the research
the study employed various ways of selecting the
respondents. A stratified sample was employed for the
interview, where every member of the population was
given a chance of been use for the study. The target
population was grouped into twenty for which every 5 th
member has the chance of being selected.
1--- 20, 1---5, 6---10, 11---15, 16---20
Upon this out come every 5th member was used for the
study.
A quota sampling was also employed in selecting
respondent for observation, where a quota of the population
was use, instead of the entire population. Here every
member does not have the equal chance of being selected
for the study. And the research involves 20 out of 50
respondents because of the time and resources. Every
member of the respondents was given the chance to be used
so every member was used for the study.
Conclusion
This analysis of the data collected will be analyzed n the
subsequent chapter. This will aid the researcher in drawing
conclusions and giving appropriate recommendations.
Data Presentation and Analysis of Findings
This study deals with the findings and analysis of data in
respect of the research problem and objectives as stated in
the introductory pages of this paper, using the methodology
indicated in the foregoing chapter.
Interactions with the respondents by means of interviews,
observations and the questionnaires yielded very useful
results by throwing more light on most of the data gathered
from the secondary sources, and gave greater insight into
some aspects of inventory management.
This has also deepened the researcher‟s understanding and
appreciation of the problems associated with formulating
an inventory control policy that would help minimize
investment in inventory without any adverse effects on the
finances of the institution.
World Wide Journal of Multidisciplinary Research and Development

Purpose and Objectives of the Study
The general objective of the research is to highlight the
impact of warehousing on customer satisfaction, the
specific objectives are;
 To investigate the warehousing procedures in use in
the organization.
 To identify the challenges with implementing the
warehousing procedures.
 To examine the impact of the challenges on operations
 To ascertain how the challenges impact on customer
service and profitability.
 To find out how goods are prevented from
deteriorating
 To analyze cost associated with holding stocks.
Research Question
The following research questions have been formulated to
direct the researcher in achieving the objectives of the
study.
i. Does effective warehouse management impact on level
of customer service?
ii. Is warehouse management important for achieving
profitability?
iii. Does effective management of warehouse increase
customer base?
Analyses and Discussion
This section presents the analysis of data collected from
responses to the questionnaires administered. The analysis,
is in two parts, namely the analysis of personal data and
analysis of data on the topic of the study
Model for Testing Research Questions
The model used in testing the research questions was
simple percentage formula thus
Outcome x 100
Main class
Where outcome = number of respondents in each class
Main class = the total number of respondents.
Therefore, the number of yes respondents x100%
Total number of respondents
a. Questions Distributed in the Warehouse

Fig. 4.1: Received 20 x100 = 100%

20

Fig 4.1 Responses to Questionnaires Distributed data, twenty were filled and collected. The twenty
The above figure indicates that out of twenty questionnaires questionnaires represent 100 % of the total questionnaire
that were sent to EPP BOOKS Stores for the collection of that were sent out.

Fig 4.2 Nature of Warehouse All twenty respondents, representing 100% of respondents
All ten respondents, representing 100% of the respondents indicated that the company has adequate space in the warehouse.
answered „Yes‟, indicating that the company has a purpose
built warehouse.

Table 4.1: Do you have adequate space for storage?

Response Frequency Percentage (%)
Yes 20 100
No 0 0
Total 20 100
Source; field survey May 2013

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World Wide Journal of Multidisciplinary Research and Development

Table 4.2: what means of storage do you use in the warehouse? Table 4.5: How frequent are items damaged on account of poor
storage conditions?
Response Frequency Percentage
Racks 20 100 No. of Respondents Very Frequent Frequent Not at all
Stacking 0 0 20 0 0 20
Total 20 100
Source; field survey May 2013 100% of respondents answered that no items get damaged
on the account of poor storage conditions.
All twenty respondents, representing 100% of respondents
indicated that the company uses stacking as the major
means of storage in the warehouse.

Summary
Table 4.3: to what extent does the means of storage enable you to From the earlier presentation and responses from
utilize the cubic capacity of the warehouse?
respondents the following conclusions have been drawn by
Response Frequency Percentage (%) the researcher:
Very High 20 100 There is a purpose built warehouse for storage of the
High 0 0 company‟s supplies. Because of the nature and expected
Low 0 0 functions of the various materials, a purpose built
Total 20 0 warehouse will ultimately ensure a very effective
warehousing. Some products that need special temperature
100% of the respondents answered very high whiles 0% conditions are addressed. It is also clear that EPP BOOKS
answered high and low respectively. has an adequate space for storing and the nature of the
storage has been chosen for effectiveness. Per the responses
given, the common means of storage in the warehouse is
racks.
The reasons of employing racking are numerous, but the
researcher is of the opinion that racking is deployed in
business premises all around the world and this is testament
to the safety record that warehouse racking, which comes in
a variety of different forms, is able to boast. Obviously,
warehouses have to adhere to certain health and safety
guidelines when it comes to the storage and safe movement
of goods on business premises and many find that
warehouse racking provides not only a cost effective but
also highly successful means of storing all manner of goods
in buildings of varying dimensions. Any company's most
Table 4.4: Do all the items stored require the same storage valuable asset is its workers and it is important to ensure
conditions? their health and safety at all times when working in
Number of Respondents Yes No warehouses and warehouse racking is a good means to
20 0 20 achieve this aim. Warehouse racking is designed to cut
down on workplace accidents by providing a safe means of
100% of the respondents said no whiles 0% answered yes. storing all types of goods in the most economical means in
terms of maximizing the amount of space available.
Warehouse racking is an extremely safe means of storing
goods in warehouses but there is still a requirement by a
company's safety compliance officer to regularly check
warehouse racking to ensure that it is utilised properly and
not being overburdened with weight, for example. There
are all sorts of different types of warehouse racking and the
regularity with which it will need to be checked will
depend on the types of goods it is being used to store. For
these reasons it has been established that the means of
storage employed by EPP BOOKS enables the company to
utilize its cubic capacity of the warehouse very high.
Because of the varied nature of materials used by the
company, it was also realized that adequate provisions have
been made for the different items stored. Materials with
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World Wide Journal of Multidisciplinary Research and Development
common characteristics are stored in particular warehouses
to minimize the propensity of items getting spoilt due to
poor storage conditions. It is worth knowing that incoming
materials are inspected both before delivery and after
delivery. Due to this, shortages after inspection is rare.
From the responses, the method used for replenishing
stocks at EPP BOOKS vary. A combination of Economic
Order Quantity and Fixed Order Point System is used.
From the researchers own research; the main advantage of
the EOQ model is the customized recommendations
provided regarding the most economical number of units
per order. The model may suggest buying a larger quantity
in fewer orders to take advantage of discount bulk buying
and minimizing order costs. Alternatively, it may point to
more orders of fewer items to minimize holding costs if
they are high and ordering costs are relatively low. Another
advantage of the EOQ model is that it provides specific
numbers particular to the business regarding how much
inventory to hold, when to re-order it and how many items
to order. This smooths out the re-stocking process and
results in better customer service as inventory is available
when needed. Also, any fixed order point system will
monitor stock levels on a continuous basis. When the stock
levels falls to a certain (fixed) point then an order is
generated to replenish stocks. There are two main factors to
be deliberated when establishing the fixed order point,
namely what levels of stock need to be kept to ensure the
smooth and uninterrupted flow within the production
process and what is the economic order point i.e. when do
orders present the best value for money? Defining the
optimum stock levels is difficult. There will always be
fluctuations in demand and there will be a need to minimize
stock, but conversely not to let stock levels become
dangerously low. The fixed order point also does not take
into account the fact that costs will vary as the supply of
raw materials fluctuates. This means that the economic
viability of orders will change as time goes on, so the fixed
order point needs to be re-assessed as time goes on.
The stock location system in use at EPP BOOKS is fixed
location system. This is used often as the primary location
in piece picks and case-pick operations can also be used for
secondary storage. The fixed location system is an
organized method of storage that places a product in a
specific, pre-defined location that does not change. Fixed
location storage dictates that a given stock-keeping unit
must always be stored in its assigned space even if there is
available storage space elsewhere in a warehouse. This
method has the advantage of making items easy to find, but
it is not always the most space – efficient method of
storage.
It has also been established that very good environmental
and hygienic standards are maintained at EPP BOOKS. The
warehouse is cleaned every day and it is located very far
from any possible source of infection.
Chapter Five
Summary, Conclusions and Recommendations
Introduction
This chapter summarizes the findings of the study and
pertinent conclusions drawn. Recommendations are made
to the tackling of the problems in the findings and areas of
strength.
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Summary
The literature review was done on the topic and various
approaches were adopted in data collection after which a
careful analysis of the findings were made by the
researcher.
It has been established that EPP BOOKS can increase in
growth if warehouse management is effectively practiced.
The reason of this fact is that warehouse managements will
minimize cost thereby increasing profit margin.
It is also clear that EPP BOOKS has an adequate space for
storing and the nature of the storage has been chosen for
effectiveness. Per the responses given, the common means
of storage in the warehouse is racks. The reasons of
employing racking are numerous, but the researcher is of
the opinion that racking is deployed in business premises
all around the world and this is testament to the safety
record that warehouse racking, which comes in a variety of
different forms, is able to boast. Obviously, warehouses
have to adhere to certain health and safety guidelines when
it comes to the storage and safe movement of goods on
business premises and many find that warehouse racking
provides not only a cost effective but also highly successful
means of storing all manner of goods in buildings of
varying dimensions. For these reasons it has been
established that the means of storage employed by EPP
BOOKS enables the company to utilize its cubic capacity
of the warehouse very high.
From the responses, the method used for replenishing
stocks at EPP BOOKS varies. A combination of Economic
Order Quantity and Fixed Order Point System is used.
It has also been established that very good environmental
and hygienic standards are maintained at EPPBOOKs. The
warehouse is cleaned every day and it is located very far
from any possible source of infection.
Conclusions
An efficient company will ensure that materials are
supplied at the right time, in their right conditions, in their
right quantities and kept at the right place under safe
conditions for the intended usage.
However, insufficient storage and handling of materials if
left unchecked can result in major deteriorating of the
materials leading to vast amounts of valuable stock been
ruined which ultimately leads to financial loss to a
company.
Faulty storage areas that allow damp to enter through
broken windows, leaking roofs, badly fitting doors and
failure to follow specific supplier‟s storage conditions on
the packages or delivery documents are many but few of
the factors that companies tend to be oblivious of which
largely imparts negatively on the company.
The company has been keeping records of stock. The stock
records are being solely kept on computer software and
stock cards which entails the details of the items in the
warehouse. The company has been checking balances and
levels of stock at the close of each day. This ensures
effectiveness in its warehouse managements procedures.
The company has consistently been taking stock daily. This
enables the company to be taking track of stocks.
It can be concluded that processes and procedures of
stocktaking at EPP BOOKS is very good and therefore
makes little room for wastages and losses.
World Wide Journal of Multidisciplinary Research and Development

Recommendations
Based on the findings of the study, the following
recommendations are made:
One big advantage the firm enjoys is its consistent daily
taking of stock and checking of stock levels. It is
recommended that this should be maintained since it forms
the basis of ensuring effective warehouse management
system.
Another competitive advantage of the firm is its ability to
serve various departments of the company with what they
want due to effective warehouse management system
which is in place. It is recommended that this must be
maintained.
The determination of Economic Order Quantity (EOQ)
solely depends on changes in the business environment.
This helps the company to prevent wastage or unnecessary
purchase of stock for resale. In order to avoid the difficulty
in maintaining stock control system for fast moving goods,
the firm must update records of as frequently as possible. A
firm should find another method of determining EOQ
instead of depending solely on the business environment
since a targeted period of the business in expectation of
peak sales can be a great loss if within that period there is
an unperfumed change in the business environment leading
to a slack in sales.
Store managers must ensure that conditions of temperature
and humidity are correct be goods been stored. They must
also ensure that these conditions are maintained constantly
and that materials requiring similar conditions are stored
together to concentrate the efforts and resources involved

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