CHAPTER ONE

INTRODUCTION

1.1 Background of the study

 In today’s highly competitive global business cenario, organizations are compelle to find innovative ways to deliver value to their customers. Generally, Tripathi (2020) says complex business environmental realities are increasingly compelling firms to revisit strategies, propelling them to focus on the core competencies while outsourcing non-core business functions. The changing global market dynamics make an organization compete with competitors in terms of products, cost, quality and services.  This in turn has paved the way for a need to develop logistics systems that are more advanced as compared to traditional methods. over the last two decades. logistics has shifted its focus from a mere operational level to the corporate level. A growing need for effective logistics management that encompasses the whole organization assist in cost reduction and enhancing service delivery. 

According to Shah  and  kanzode (2017) the objective of warehousing is to satisfy customers with effective resource utilization and delivering right product, at right place, at right time and good condition. He also says warehouse is a means of providing functions of temporary storage, protection of goods, fulfillment of individual customer orders, packaging of goods, after sales services, repair, testing, inspection  and  assembly .major open warehouse operations are classified into receiving, put-away, storage, picking and packing and shipping (Gu el al 2007).

Different researchers have shared their views on operational issues and and decision classification Martins, Silva  (2020) in a market that is increasingly competitive, the success depends on the efficiency, highlighting the importance of the operations related to warehouse operation in the logistics flow. Chakkravorty (2009) processes improvement. Singh, Rastogi,Sharma (2014), Freitas, Silva, Pereira.(2019) improving efficiency in a hybrid warehouse. They found these all operational issues are interrelated and affects performance of each other.

As the field of logistics changes, many organizations need to address the factors affecting warehousing efficiency in order to prepare for the future. According to Mccrea,(2019)  supply Chain reports that UK warehouses lose nearly three thousand hours every year, thanks to inefficient processes—especially when it comes to inventory control, packing, unloading, and picking. In the US, inventory management challenges like stockpiles of unsold goods hinder warehouse efficiency. And global organizations with underperforming supply chains struggle to achieve profitability, calling for a need to optimize everything from distribution to warehousing.

Logistics performance is when a firm receives an order, it carries out certain activities to complete that order. These activities take a recurring form as they need to be carried out with every order (Indiafreenotes ,2020). According   to Yingfei (2022) logistics has evolved as a vigorous industry that is growing quickly on a worldwide scale and plays a crucial role in global trade and economic performance. It is a multifaceted component  in the trade operations that focuses on processes, competencies, and technologies. In particular, green logistics influence the country’s trade performance in terms of cost, consistency ,duration, dependability ,and customer service which has an impact on export’s overall competitiveness in the global market( Arvis et al.,2007).

      Consequently, companies are constantly improving the quality of logistic activities, reducing cost, human resource management, adopting innovative technology and efficient procedures (An et al.,2021,xialong et al.,2021).it has been argued that efficient green logistics performance and infrastructure greatly influence the service trade and environment(Gani,2017). Better green logistics performance reduces trading cost  and eliminates inefficiencies related to traditional shipping and handling business strategies.

     Moreover, improved logistic performance is significantly linked to export diversification, trade expansion, acquiring foreign direct investments and economic development.( Mercangoz et al.,2020). In essence, high –quality infrastructure would allow the logistics sector to plan, control, and store products, services, and information related from purchasing raw material to manufacturing finished products to satisfy consumer demand (Huo et al.,2021)  which therefore indicates that logistics performance plays an important role in an organization. Countries should focus on identifying a critical areas of green logistic performance to get benefits of trade from the globalization process.

Few researchers have investigated the impact of  logistics performance on foreign direct investment,  supply chain, especially in warehousing operations and in other contexts (Soh et al.,2021). But studies have not mentioned the mediating role of firm performance and service quality on the environment. Organizations

should improve their warehousing operations to improve the sustainability and

logistics performance of an organization.

Globally. The size of the logistics sector is not clearly known.  Shepherd’s (2020) analysis of logistics data, covering 45 countries, revealed that ,on average, the logistics sector accounts for about 5 percent of the gross domestic product with range of 2 to 12 percent. open warehouse operation have made research on logistics formidable. Recent initiatives by the world Bank in terms of compiling the logistics performance index for several countries across the world. it is possible to get reasonable understanding of  warehousing operations such as receiving, storage and picking and packing to achievement in logistics at the national level for several  countries around the world. The world bank has been producing some measures of logistics  performance since 2007. These measures include the tracking and tracing of consignments, the competence and quality of logistics services, competitive  priced shipment, special handle of cargo in a warehouse and a reduction in lead time to improve their logistics performance and satisfy their customers.

 Africa, contains many of the world’s fastest growing economies, but an acute infrastructure gap is constraining growth. The African Development   Bank estimates that investment of  $130-170  billion per year is needed to tackle the continent’s lack of  quality roads, warehouses, power and other infrastructure. Warehouses tend to be one of the most ignored elements of infrastructure and logistics, but they are fundamental part of the supply chain, critical for economic development and growth.(Geoffrey, 2019). High quality warehousing is not only needed for storage and distribution, but also for the packing, processing, assembling and light manufacturing of goods ,in the foundations of any economy.

 According  to  White. 2019,industrial real estate demand is estimated at over 15million m2 in Africa’s highest –potential markets. The shortage of quality warehousing is increasing the price of goods and stifling business growth. In African markets, flexibility is key. local companies looking to scale up and export, and  international companies keen to establish a presence in the region are seeking high-quality warehousing without the need to raise or invest large amounts of capital which could potentially delay the start of operations in a warehouse.

For many years in Cameroon, companies   recognized  that the competition today is through their capabilities and competencies. By managing their core processes better than competitors manage theirs, organizations can create superior value for customers and  consumers (Takwi 2020).Logistics best practices is presented as a progress. subject to continuous change based on evolving nature .competitive companies in Cameroon such as GOS(Global Outsourcing Services Ltd) face lots of challenges in their warehouse operation in the such as receiving, put-away, storage, picking and packing and lastly shipping . this could be as a result of poor weather conditions, poor packing ,inventory control and wrong picking. a perfect warehouse operation lead to achievements in logistics performance.

1.2 Statement of the problem

 Business all over the world are very challenging. To stay profitable in the highly challenging and competitive global market economy, all factors of production including the organizational image should be efficiently managed. Efficient logistics performance can be achieve through warehousing operations such as receiving, put-away, storage , picking and packing and shipping. Optimizing these processes will allow you to streamline your warehouse operation, reduce cost and errors, and achieve a high perfect order rate. warehousing here refers to the storage of goods until they are needed. The goal of warehouse operations is to satisfy customers’ needs and requirements while utilizing space, equipment, and labor effectively. The goods most be accessible and protected. meeting this goals requires constant planning and ongoing changes.

     We cannot over emphase the need for warehousing operations as they are must essential in the smooth functioning of a warehouse and all of these activities but never the less some of these operations have weakness some problems especially in must warehouses in the city Douala. Some of these open warehousing operations that face challenges include:

 Receiving is the first warehouse operation and one of the most crucial. To perform the receiving process properly, the warehouse should be able to verify that it has receive the right product, in the right quality, in the right condition and at the right time. Failing to do so will have consequent impacts on all subsequent operations(Sunol .H,2021).Receiving at times is more costly than expected. Receiving is very low and if we do not have an efficient store keeper. In receiving we records certain mistakes for example the quality not properly check by the store accountant because most of them working in these warehouses did not really study warehousing to carefully understand the dynamic of receiving operations in the warehouse.

Storage is the warehouse process in which goods are placed into their most appropriate storage space. if not done properly, the storage process fully minimizes the available space in your warehouse and thus a reduction in labor efficiency. Sunol (2021).Most of this warehouses in Douala lack the necessary tools or equipments to keep goods in their perfect condition. Also some warehouses in Douala for example perforated buildings which allows for rain to come in through the roofs leading to eventual damage of products. Therefore poor storage facilities has let to damage products and thus loses to the company.

Picking and packing operation. Picking is the warehouse process that collects products in a warehouse to fulfill customer orders. Since it is the costliest process in the warehouse, comprising as much as 55percent of the total operating expense, if not optimized this process will allow you to increase cost significantly and reduces your warehouse efficiency and logistics  performance. These process needs high accuracy, as errors can have a direct impact on your customer satisfaction. Packing here is the warehouse operation that consolidates picked items in a sales order and prepares them for shipment to the customer. if the one of the primary tasks of packing is not ensure ,damages will be maximized from the time the items leaves the warehouse. Again, if packaging is not light enough , it will increase the weight of the goods and also an increase to control packaging costs (Peter 2021). In picking and packing there is usually delay since most warehouses in the city of Douala utilizes human labor instead of deploying automation in those warehouses for efficiency or optimization of this operation. Picking and packing has lead to increment in lead time and thus leading to less customer satisfaction.

However it has been observe that most outsourcing companies in the Cameroonian context neglects these operations in warehousing thus reason for poor performance in logistics organizations. There is still a rather understanding of warehousing operations in Cameroon. There is therefore an academic gap that exist in this field and the study seeks to fill it. With the above mention facts the researcher seeks to deal more with warehousing operations and its effects on logistics performance of most outsourcing companies in the city of Douala.

1.3 Research questions

The main research question of this study is : what are the effects of open warehouse operations on logistics performance of outsourcing companies in the city of  Douala.? Specifically, the research questions are as follows.

what is the effect of receiving operations on logistics performance  of outsourcing companies in the city of  Douala?

What  is the effect  of storage operation on logistics performance of outsourcing companies in the city of  Douala?

What is the effect of picking and packing operations on logistics performance of outsourcing companies in the city of  Douala?

1.4 objectives of the study

The objective of this study is to investigate the effects of open warehouse operations on logistics performance of outsourcing companies in the city of  Douala.

1.4.1 Specific objectives

1. a) To investigate the effect of receiving operations on logistics performance of outsourcing companies in the city of
2. b) To analyze the effects of storage operations on logistics performance of outsourcing companies in the city of

c)To examine the effects of picking and packing operations on logistics performance of outsourcing companies in the city of  Douala.