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Warehouse maturity level and operational efficiency

Salhieh Loay M.

LogForum

2024

Vol. 20, no. 4

533--544

Background: This research examines the relationship between warehouse maturity level and operational efficiency in the context of an emerging market, specifically Jordan. The concept of warehouse maturity is relatively unexplored, particularly in emerging markets, where operational practices may differ significantly from those in developed regions. The study aims to shed light on how varying maturity levels impact warehouse performance, with a particular focus on operational efficiency. Methods: Data were collected from 202 third-party logistics (3PL) companies registered with the Jordanian Logistics Association (JLA) through self-administered questionnaires. To ensure relevance, only companies offering a combination of distribution, warehousing, and packaging services were included. Warehouse maturity level was assessed as both a continuous and a categorical variable to provide a comprehensive analysis of its relationship with warehouse operational efficiency. Results: The findings reveal that warehouse maturity levels significantly influence warehouse operational efficiency. However, the transition from maturity level 1 to level 2 did not result in substantial improvements in operational efficiency. The study also highlights that specific maturity dimensions, such as putaway and picking processes, have the most significant impact on warehouse operational efficiency performance. Conclusions: The proposed framework provides valuable managerial insights, offering a deeper understanding of how raising warehouse maturity levels can enhance operational efficiency. While the overall maturity level is important, targeting specific focuses like putaway and picking can yield substantial efficiency gains. This study addresses a critical gap in the literature regarding the role of warehouse maturity in emerging markets like Jordan, where empirical research remains limited.