ABSTRACT

Radem SARL Douala faces challenges in maintaining accurate inventory records and ensuring high levels of customer satisfaction. This study title: “THE IMPACT OF WAREHOUSE INFORMATION SYSTEMS (WIS) ON INVENTORY ACCURACY AND CUSTOMER SATISFACTION IN RADEM SARL DOUALA” aims to assess the impact of Warehouse Information Systems (WIS) on inventory accuracy and customer satisfaction in Radem SARL Douala.

The study employed quantitative research methods, including surveys and data analysis of 30 respondents selected randomly. Key WIS-related factors such as real time visibility, paper-based record, manual record was examined in relation to inventory accuracy and customer satisfaction. Our findings reveals that WIS related factors have a positive significant effect on inventory accuracy and customer satisfaction. We conclude that accurate inventory management, facilitated by technology, directly influences customer satisfaction and overall business success. Therefore, implementing WIS, digitizing records, and automating stock counts are essential steps for Radem SARL Douala. Recommendations to the Radem Sarl Douala include implementing a robust WIS to automate inventory tracking, improve accuracy, and enhance customer satisfaction. Leverage technologies like barcoding and RFID for streamlined operations.

Key Words: Effects, WIS, Inventory Accuracy Customer satisfaction, Radem Sarl Douala

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The general warehousing concept includes the storage and retrieval operations, the organizational aspects, the mechanisation equipment for materials handling, media for material storage, and the building itself which is necessary to protect the goods’ environments. The task of distribution consists of moving goods from the production line to the customer in an acceptable time and doing it economically. However, there are an infinite number of solutions. Optimum or near-optimum solutions are difficult to find and often involve more than errand running ingredients for the shortest path as well as the removal of unnecessary waiting time. Inventory control, production control and warehouse management are the underlying methodologies that affect the industrial success of distribution organizations. Both the physical processes of material handling and stocking, as well as the underlying methodologies, are commonly denoted by the word “warehousing”. Warehousing activities concern the physical storage and retrieval of materials, and also the processing of information needed about the goods stored. For example, lot (or the parcel) has an origin, its supplier, an identification, its designation, a dimension (usually the quantity), a destination and a customer. Basically, warehousing methodology is information-oriented and requires the use of efficient media to store and handle data about the movement of goods. It is important to have good control over the inventory. Management should ensure that, for each item the correct stock level is available no unnecessary money is tied-up in inventory the warehouse capacity is both economical and efficient; and the goods are properly kept. To achieve this, a focus on the correct evaluation, identification, classification and quantification, retrieval, and security of goods, would provide a clear and accurate view (Chorafas, 1974). Over the past 20 years, the automotive industry has been sinking deeper and deeper into recession. Owing to massive technological developments, a worker of the 1990s can produce as much as ten workers could in the 1960s. To remain at the forefront of progress, competition is fierce, and productivity and efficiency are nowadays the major focus of all development programmes in modern industry. For instance, it was proven that warehouses information are highly inaccurate, so manufacturers had to act on this research, and are continuously striving to reduce the cost and risk of their present products. To remain competitive in the global market, companies endeavour to maximize both their productivity and their quality. Warehouse performance measures should be based on organizational strategies, objectives and competitive demands. Effective performance measurement systems go beyond reporting history to improving future operations. The measurement system must be balanced between internal and external perspectives (Tompkins, 1996).

In manufacturing companies, companies produce/process raw materials into finished goods. Raw materials obtained from suppliers will be stored to meet the production needs. Warehouse as a place to store goods requires data accuracy for every transaction of goods that exist. Along with the growth of information technology, it is increasingly easy to process existing information, not least for manufacturing warehouses, especially in warehousing management. In warehousing management existing transaction data is required for accuracy and speed in processing using a system. Warehouse information system is now a necessity because it can improve warehouse efficiency and accuracy, thus providing solutions to problems that exist in the warehouse. a warehouse is a facility in the supply chain set to consolidate products to reduce transaction cost, achieve economies of scale in manufacturing or in purchasing or provide value added processes and shorten response time (Bartholdi & Hackman,2019).

Warehouse information system (WIS) is an interconnected set of components used to collect, store, process and transmit data and digital information of a warehouse. This information is very essential to control the stocks and maximize contents supply of its products in the markets. Improper information will lead to inventory inaccuracy and mist management in the company. This research will investigate the effects of information systems on inventory accuracy including the factors influencing accuracy, the benefits and challenges of implementation.

It is often observed that the terms information system and information technology. The great advantage in information systems is due to development in information technology and introduction of computers. People and organizations use information every day. The components that are often used are often called an information system. An information system [IS] is the set of interrelated components that collect, manipulates, store and disseminate data and provide feedback mechanism that help organization achieve their goals such as increasing profit or improving customer service. We live in an information economy, information itself has value and commerce often involves the exchange of information rather than tangible goods. Systems based on computers are constantly being used to create, store and transfer information. Using information systems, investors make multimillion –dollar decisions, financial institutions transfer billion of dollars around the world electronically and manufacturers order supplies and distribute goods faster than ever before. Computers and information systems will continue to change businesses and the way we leave. To prepare for these innovations you need to be familiar with fundamental information concept.

 Inventory is one of the important factors in business actives and its availability cannot be avoided. Inventories arise because these items cannot be obtained instantly but a grace period is required to obtain them. Inventories can also be caused by asynchronous demand with the supply and time spent to process raw materials with the inventory the company can meet customer demand in a timely manner (Wahyudi, 2015). Proper inventory control will make it easier for companies to carry out operational activities and maintain a smooth operation cycle of the company (Singh & Singh , 2015) organization inventory needs to be done to avoid inefficient work and create regularity of inventory. In organization inventory, it is necessary to have a system of control and recording of supplies because it will affect the production process and the company’s financial statements (Wambua et al., 2015). The inventory control and recording system included in it is related to the type of inventory, the amount of inventory and the location of inventory. Inventory control and recording systems are part of warehousing management. The implementation of this management is the process managing receiving goods in the warehouse and put away goods in the warehouse. This process is carried out in a warehouse with certain administrative record (Kusuma et al., 2017). Warehouse management is design for the benefit of processing warehouse activities that will affect the entire production process. Well managed inventory will be able to increase the efficiency of material control or material handling in the warehouse (Azize et al,2018). Coupled with technology advances handling of materials and supplies in warehouse will be faster and more practical (Ogbo et al., 2014). Complex warehousing management activities will be very complicated if done manually. The impact of manual recording is the possibility of the emergence of information that is of less quality and not timely, giving a biased assessment of inventory (Chow et al., 2016). Advance in technology become a solution to make it easier to access and control warehousing activities, namely by using a computerised warehousing system that is considered to have effect workmanship and accuracy in processing data (Alyahya et al., 2016) the implementation of a computerized warehousing system can improve the effectiveness of warehouse operations, work, data accuracy facilitate the search for goods, process data better and faster and better inventory recording and storage.

Inventory management is a complicated process that needs to keep the correct number of items in a warehouse to avoid product shortage or oversupply. Its required to manage all the processes effectively to deliver items fast to overcome competitors and keep recurring clients. Usually, businesses use warehouse management systems to keep track of their inventory digital warehouse management systems are advance enterprise resource planning (ERP) solutions. Technology in inventory management helps get a competitive advantage by optimizing the use of resources, increasing customer satisfaction, conducting detailed analysis and minimizing losses. More than 88% of retailers plan to upgrade their inventory by integrating new age digital solutions like live tracking, detailed analysis and data –driven demand forecasting. The role of inventory management and supply chain is vital. Inventory management feature help companies that operate in the logistics niche achieve optimized resource usage, enhance customer’s satisfaction, automate inventory management, reduce product delivery time and lowered operations expenses as well as minimized fraud and theft. Many inventory management techniques are applied to track and maintain a consistent supply chain. The top three commonly use are push strategy –items are delivered from manufacturer to a warehouse mainly not to run out of stock, retailers need to forecast the approximate number to store. Pull strategy – warehouse request product from suppliers when clients order them usually this technique is applied to expensive item. Just in time (JIT) strategy –a warehouse store the minimum number of items. All extra requested get processed by applying the pull strategy, which may cause delivery delays. Drop shipping –product management and shipment are delegated to a third party company that has a large warehouse. Bulk shipment –products get purchase in bulk to avoid shortage and get a discount. Cross-docking, items are sorted and shipped simultaneously after being delivered to a warehouse. The strategy eliminates the need to hold products. Consignment – a supplier delivers a certain number of products without upfront payments, a retailer pay for the product only when they are sold to customers. Cycle counting is a strategy use to count a small variety of items on certain days, it help monitor the number of different products groups left effectively. impact on inventory accuracy and customer satisfaction. This study seeks to fill this gap by delving into the current state of Warehouse Information Systems in a warehouse, evaluating their implementation, and assessing their influence on inventory accuracy and customer satisfaction. The findings are expected to contribute valuable insights for businesses, policymakers, and stakeholders, guiding informed decisions to enhance the efficiency of warehouse operations in Radem SARL Douala .

1.2 Statement of the Research Problem

Radem SARL Douala faces challenges in maintaining accurate inventory records and ensuring high levels of customer satisfaction. The company currently relies on manual inventory management processes, which are prone to errors and inefficiencies. These manual processes include paper-based records, manual stock counts, and limited visibility into real-time inventory data. As a result, Radem SARL Douala experiences issues such as stockouts, overstocking, inaccurate order fulfillment, and delays in serving customers.

To address these problems, Radem SARL Douala is considering implementing a warehouse information system that utilizes modern technology and automation. The warehouse information system aims to improve inventory accuracy by providing real-time visibility into stock levels, automating inventory tracking, and streamlining order fulfillment processes. Additionally, it is expected to enhance customer satisfaction by ensuring timely and accurate order processing, reducing stockouts, and improving overall service levels.

However, before implementing the warehouse information system, it is crucial to assess its potential impact on inventory accuracy and customer satisfaction. This study aims to investigate the following research questions.

1.3 Research Questions

1.3.1 Main Research Question

What is the impact of warehouse information system on inventory accuracy and customer satisfaction at Radem SARL Douala?

1.3.2 Specific Research Questions

What is the impact of paper-based records on inventory accuracy and customer satisfaction at Radem SARL Douala ?

What is the impact of manual stock counts on inventory accuracy and customer satisfaction at Radem SARL Douala?

What is the impact of real-time visibility into stock levels on inventory accuracy and customer satisfaction at Radem SARL Douala ?

1.4 Research Objectives

1.4.1Main Research Objectives

To assess the impact of Warehouse Information Systems (WIS) on inventory accuracy and customer satisfaction in Radem SARL  Douala.

1.4.2 Specific Objectives

To examine the impact of paper-based records on inventory accuracy and customer satisfaction at Radem SARL Douala.

To examine the impact of manual stock counts on inventory accuracy and customer satisfaction at Radem SARL Douala.

To assess the impact of real-time visibility into stock levels on inventory accuracy and customer satisfaction at Radem SARL Douala.

 1.5 Research Hypothesis

1.5.1 Main Research Hypothesis

H0: Warehouse Information Systems (WIS) have no significant effect on inventory accuracy and customer satisfaction in Radem SARL Douala.

H1: Warehouse Information Systems (WIS) have a significant effect on inventory accuracy and customer satisfaction in Radem SARL Douala.

1.5.2 Specific Research Hypothesis

1. H0: Paper-based records have no significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.

H1: Paper-based records have a significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.

2. H0: Manual stock counts have no significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.

H1: Manual stock counts have a  significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.

3. H0: Real-time visibility into stock levels has no significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.

H1: Real-time visibility into stock levels has a significant effect on inventory accuracy and customer satisfaction at Radem SARL Douala.