The Impact of Extended Warehouse Management System Implementation on Warehouse Operational Performance: A Case Study of Fast Moving Consumer Goods Industry

Abstract

Warehouses operating in the Fast-moving consumer goods (FMCG) industry are affected by the supply chain disruptions. Therefore, it is critical to develop faster and effective mechanisms of managing warehouse operational performance. In this regard, this paper aims to evaluate the impact of Extended Warehouse Management System (EWMS) implementation on warehouse operational performance. It intended to achieve two objectives: to examine the advanced features of EWMS and the impact of EWMS implementation on warehouse operational performance. The case study method gathered operational quantitative and qualitative data from multiple sources, ensuring data richness. Descriptive statistics and mean comparison tests through hypothesis testing were used as quantitative data analysis techniques, using the IBM SPSS Statistics 21 statistical analysis software package. The Framework Approach was used to analyse qualitative data. By mapping Process Flowcharts before and after the implementation, the improvements and drawbacks were identified with their root causes. Advanced features of EWMSs are presented by reviewing the literature. The study's findings reveal that implementation of EWMS increases the throughput, average receiving rate, average allocation and picking rate, average loading rate, average last truck dispatch time, and average on-time delivery. The scope of the research is limited to evaluating the EWMS implementation impact on warehouse operational performance in a selected FMCG warehouse. Future researchers can focus on the effects of EWMS on supply chain capability enhancements and the strategic performance of supply chain partners. The in-depth analysis of performance improvements in the extent of the throughput, average receiving rate, average allocation and picking rate, average loading rate, average last truck dispatch time, and average on-time delivery signals warehouse managers in decision making on effective utilisation EWMS implementation. This paper is among the very few evaluating Extended WMS, specifically, empirical investigation of the impact of EWMS system implementation on FMCG warehouse operational performance.

Keywords: Extended Warehouse Management Systems, Advance Features, FMCG Warehouses, Warehouse Operational Performance