EFFECT OF WAREHOUSE MANAGEMENT ON THE PERFORMANCE OF SELECTED BREWERY COMPANIES
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EFFECT OF WAREHOUSE MANAGEMENT ON THE PERFORMANCE OF SELECTED BREWERY COMPANIES
ABSTRACT
The study investigated the impact of warehouse management on the performance of three brewery companies: Nigerian Breweries Plc, Surulere, Lagos state; Sona Breweries, Lekki, Lagos; and Guinness Nigeria plc, Ikeja, Lagos. The study used a survey approach and a purposive sampling technique to pick 450 employees from management, senior, and junior levels.
Data from respondents was collected using a well-constructed questionnaire that was determined to be valid and trustworthy. The data collected through the delivery of questionnaires was analysed using Pearson correlation analysis.
The correlation analysis revealed a positive and significant relationship between warehouse costs and organisational productivity (r=0.772; p<0.05). Additionally, there is a positive and significant relationship between stock control and organisational effectiveness (r=.896; p<0.05)
and distribution planning and logistics performance (r=.896; p<0.05). The results were found to be compatible with empirical findings from previous studies in the literature.
The study revealed that warehouse management had a considerable impact on the performance of selected beer companies in Nigeria. The report suggests that the management of all beer enterprises should embrace computerised warehouse management.
Breweries should ensure that their warehouses are thoroughly checked daily by the storekeeper or store manager to prevent goods from cracking, falling on each other, or spoiling.
Warehouse managers should be suitably remunerated through attractive compensation packages after employment to reduce the temptation of staff to steal from the organisation. Standard personnel and recruitment rules should be developed and implemented to ensure efficient warehouse management.
Chapter one
INTRODUCTION
1.1 Background for the Study
Globally, there is a rising recognition of the relevance of storage to any organization’s profitability and sustainability. This is because effective and efficient management necessitates that all of an organization’s constituent pieces perform as a unit, with warehousing being a vital component of any organization’s make-up (Alan, Phil, & Peter, 2010).
More so in Nigeria, where multiple enterprises sell the same or comparable products, resulting in a lag between production and consumption, storage is critical to an organization’s profitability and survival (Ogbo, Onekanma, and Wilfred, 2014).
This is especially true in Nigeria’s manufacturing industry, where various companies produce homogeneous goods that compete in the same market.
Because the entry barrier to the manufacturing industry is low, warehousing has become critical to the survival and continued existence of any manufacturing organisation in Nigeria (Anichebe & Agu, 2013).
According to Alan, Phil, and Peter (2010), global manufacturing organisations, whether large and small, confront significant issues when it comes to warehousing due to the skyrocketing expenses involved. This has caused manufacturing companies to scramble for cost-cutting strategies and increased operational efficiencies (Teece, 2010).
Furthermore, multinational corporations continue to aim to reduce the number of stocking locations while increasing output from the existing distribution centres. Furthermore, as the cost of real estate in Nigeria has climbed, so has the expense of warehouse management in Lagos.
As a result, several manufacturing organisations have suffered significant losses when they fail to clear their inventory on schedule. This has had a negative impact on their organization’s future production (Anichebe and Agu, 2013).
Furthermore, manufacturing organisations around the world have failed to manage their inventory. Stock control is concerned with determining how much stock is accessible at any one time, as well as the methods for tracking that stock.
It also entails ensuring that a company maintains enough stock levels in order to meet client demand promptly. The majority of significant manufacturing organisations throughout the world use digital inventory systems as their primary stock control equipment (Chand, 2013).
However, according to Anichebe and Agu (2014), most Nigerian industrial enterprises still use rudimentary techniques of stock control, such as pen and paper to track stock availability.
This has resulted in numerous stock control problems, compromising brewery companies’ ability to complete important operations such as manufacturing on time and successfully. This has harmed the organisational performance of beer enterprises.
Furthermore, industrial organisations around the world struggle with distribution strategy. The unpredictable nature of transportation around the world has made it difficult for businesses to plan the appropriate ways and means of delivering goods to clients.
Manufacturing enterprises in Nigeria, in particular, frequently face distribution planning issues due to the weak infrastructure of our transportation systems (Anichebe & Agu, 2013).
According to Odepidan (2015), as a result of these distribution issues, many manufacturing companies have outsourced distribution planning and execution to third-party logistics providers, some of which frequently fail to deliver items to clients on time. Brewery businesses’ poor distribution planning has resulted in poor logistical performance.
These difficulties have hampered the organisational performance of Nigeria’s manufacturing enterprises, causing several to close. This has deterred both domestic and foreign investors from engaging in Nigeria’s manufacturing industry.
Thus, it is necessary to understand how warehousing can be handled to provide optimum organisational performance from manufacturing organisations.
Against this backdrop, the study will seek to examine the impact of warehouse management on the performance of selected brewing enterprises in Lagos State.
1.2 Statement of Problem
The primary goal of any corporate organisation is to achieve superior organisational performance. To effectively capitalise on the market’s expanding demand, manufacturing organisations must frequently raise their production capacity.
An increase in production capacity frequently results in an increased need for adequate warehouse management solutions. However, many industrial businesses in Nigeria, particularly brewery companies in Lagos, suffer from inadequate warehouse management, which has resulted in a decline in financial performance (Odepidan, 2015).
According to Okafor (2017), over a hundred manufacturing firms in Lagos have closed in the last five years, with many claiming inadequate warehouse management as a reason for the closure.
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