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Digital Technology in Ghana's Warehousing

This document is a research project submitted by Akorli Bright Kwesi to the Department of Port Transport at the Regional Maritime University in partial fulfillment of the requirements for a Bachelor of Science degree in Logistics Management. The research examines the impact of digital technology on logistics and warehousing. It discusses how digital technologies like warehouse management systems, automated storage and retrieval systems, and unmanned aerial vehicles have optimized warehouse operations by improving material handling, storage, inventory visibility and order fulfillment. However, most warehouses in Ghana still operate traditionally due to constraints like financial limitations and a lack of digital skills. The research aims to study trends in warehouse digitization globally and constraints to adoption in Ghana through surveys of warehouses in Tema

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0% found this document useful (0 votes)
69 views74 pages

Digital Technology in Ghana's Warehousing

This document is a research project submitted by Akorli Bright Kwesi to the Department of Port Transport at the Regional Maritime University in partial fulfillment of the requirements for a Bachelor of Science degree in Logistics Management. The research examines the impact of digital technology on logistics and warehousing. It discusses how digital technologies like warehouse management systems, automated storage and retrieval systems, and unmanned aerial vehicles have optimized warehouse operations by improving material handling, storage, inventory visibility and order fulfillment. However, most warehouses in Ghana still operate traditionally due to constraints like financial limitations and a lack of digital skills. The research aims to study trends in warehouse digitization globally and constraints to adoption in Ghana through surveys of warehouses in Tema

Uploaded by

selorm7tetteh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

REGIONAL MARITIME UNIVERSITY

ACCRA, GHANA

DIGITAL TECHNOLOGY IN
LOGISTICS WAREHOUSING
BY AKORLI BRIGHT KWESI

A RESEARCH PROJECT, SUBMITTED TO THE DEPARTMENT OF PORT TRANSPORT OF


THE REGIONAL MARITIME UNIVERSITY, IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE DEGREE IN LOGISTICS
MANAGEMENT

JUNE, 2020

DECLARATION
I, the undersigned hereby declare that this project work (with the exception of quotations and

references which are duly acknowledged) is the result of my own original research that no part

of it has been presented for another degree in this University or elsewhere.

NAME SIGNATURE DATE

AKORLI BRIGHT KWESI ………………. ……………….


DEDICATION
I dedicate this work first of all to God Almighty who granted me in-depth knowledge and insight
to go through this thesis fruitfully. I also dedicate our work to my supervisor Mr A.O Abebrese
for the unflinching support, advice and words of encouragement. This work is also dedicated to
my parents for their prayers, encouragement and financial support throughout the course of my
project work
ACKNOWLEDGEMENT

Acknowledgment goes to our Heavenly Father, the Almighty God for his abundant grace

and mercies during the course of this research, also to our parents for their

commitment.

We would like to commend our supervisor, Mr. Alfred Abebrese for his honest

comments, correction, and tireless effort in directing, advising and supervising the

project to ensure this vision accomplished.

Our heartfelt thanks goes to all the personnel and staffs of the warehouses sampled in

the Tema Industrial zone for welcoming and giving us all the information relevant to the

project.

We commend the Head of Port and Shipping Department, Mr. S.O.K Yeboah for his

advice and motivation throughout our stay in Regional Maritime University.

God richly bless you all.


ABSTRACT

Digital technology in logistics warehousing has taken a tremendous turn in recent years and its
impact in warehouse operations and management worldwide cannot be overemphasized. Gartner
(2020) referred to digitalization as an increase in the usage or application of digital technology
by a company, business, or institution. Most warehouses have seen their productivity and
efficiency of their operations increase while health hazards have been significantly reduced.
Warehouse management applications like Economic Resource Planning (ERP), Warehouse
Control Systems(WCS), Warehouse Management Systems (WPS) coupled with advanced
hardware( warehouse equipments and systems) like Automated Storage and Retrieval
systems( AR/RS), Automated Guided Vehicles, Collaborative robots, Sensors and Unmanned
Aerial Vehicles amongst others have optimized warehouse operations and management with
significant improvement in material handling, storage, stock visibility and order fulfilment.
However, warehouse digitization has more or less been a dream in African countries as most
warehouses still operate the traditional way.
This research examined current trend in warehouse digitization worldwide, the importance of
digital technology in logistics warehousing and the constraints in adopting digital technologies in
Ghana with samples drawn from warehouses in the TEMA industrial zone. The research
primarily used Questionnaires with close ended and open-ended queries coupled with
observations as instruments of data collection. The sampling technique used was purposive
sampling.
The study revealed that traditional warehouses encounter a lot of challenges in productivity,
efficiency, health and safety and inventory visibility. While modern warehouse technology
impacts warehouse technology impacts productivity and efficiency and health and safety in a
positive way, most of the warehouses were unable to adopt digitization due to factors such as
financial constraints, lack of executive support, the skill gap and psychological barriers
manifested as resistance to change stemming from the fear of job insecurity which comes along
with digitization.
It was recommended that more financial investment into warehouse digital technologies was to
be made. Also training of staff to sustain the capacity to go digital is vital. Back-up systems and
contingency plans must be put in place to deal with contingencies which may arise by
implementing warehouse digitization. There is also the need to ensure a good maintenance
culture to keep the system running effectively for the good purpose of automation to be achieved.
DEFINITION OF TERMS (MEANING OF ABBREVIATIONS

AI ARTIFICIAL INTELLIGENCE

AGVs AUTOMATED GUIDED VEHICLES

AR/AS AUTOMATED STORAGE AND RETRIEVAL SYSTEMS

CASDAS COMPUTER ASSISTED DATA ANALYSIS SOFTWARE

COBOTS COLLABORATIVE ROBOTS

DC DISTRIBUTION CENTRE

EDI ELECTRONIC DATA INTERCHANGE

ERP ECONNOMIC RESOURCE PLANNING

IT INFORMATION TECHNOLOGY

IoT INTERNET OF THINGS

RFID RADIO FREQUENCY IDENTIFICATION

SKU STOCK KEEPING UNIT

SMEs SMALL AND MEDIUM SCALE ENTERPRISES

UAV UNMANNED AERIAL VEHICLE

WERC WAREHOUSE EDUATION AND RESEARCH COUNCIL

WMS WAREHOUSE MANAGEMENT SYSTEM

WCS WAREHOUSE CONTROL SYSTEM

VDS VOICE DIRECTED SYSTEM

VLMs VERTICAL LIFT MODULES


CHAPTER ONE

GENERAL INTRODUCTION

1.0 BACKGROUND OF THE STUDY

In a competitive world, logistics operations are crucial for enterprises. They might be a

company's best or worst asset. The items offered by firms must be in the required quantity for the

consumer at the intended location and at the time specified to provide that company an edge;

alternatively, it will be at a deficit. Logistics operations may either defend or destroy all previous

efforts (Dede & Çengel, 2020).

The fundamental goal of logistics is to offer the best possible supply of commodities to the

client. Capacity planning, demand planning, warehouse management, transportation, packaging

and material handling, customer service, and inventory management are all operations that fall

under the logistics umbrella. A sound warehouse management system is an essential aspect of

logistics and may provide a firm with a significant competitive edge. Given this, a sound

warehouse management system involves digital technology.

Minette (2015) explained that, to a lane man, a warehouse is a storage facility for things that will

be used in the future. Minette further indicated that warehouses could be categorized as open or

closed. As the name implies, an open warehouse is a location where commodities such as raw

materials, components, or produced products are stored. A closed warehouse is a structure that
houses mostly commercial or sold goods. Manufacturers, wholesalers, and retailers are the most

common operators of closed warehouses. Based on these assertions, Warehouses, according to

Frazelle (2002), are corporate structures used to store produced items, imports, and commodities

destined for export. Changes in consumer behavior and supply chain structure have forced the

warehousing business to evolve from a storing role to fairly close motion.

Warehousing is a function of a company's logistics system that keeps products at and between

original locations and intake and provides management with information on the status, state, and

dispatch of those items. The purpose of warehousing is to reduce the cost of personnel, space,

and machinery in the storage facility while satisfying the policy's cycle time and shipment

accuracy criteria and the total capacity needs. Established systems include inventory

management, materials handling, packing, transaction processing, delivery, and warehouse

location selection (Minette, 2015). Changes in consumer behaviour and supply chain structure

have forced the warehousing business to evolve from storing items in fairly relative motion

(Bernhardt, 2014). There is a dynamic shift from traditional warehousing to a shorthand

distribution center. Digital technology in logistic warehousing seems to be the inevitable future

with many benefits. One of the common digital technology innovations in the warehouse

business is e-commerce.

Frey & Osborne (2017) explained that humans have always been fascinated by technological

advancement, which has both excited and alarmed us with its phenomenon of social revolution.

The use of new technology to rearrange human jobs has been a prominent feature of the

discourse about the future of work. Media coverage has brought the issue to readers and viewers

throughout the globe, with Ghana being no exception. What started as near-apocalyptic forecasts

of coming mass job losses has evolved into more nuanced assessments about job characteristics
and which jobs and individuals may be most impacted by technological change, which is a great

development (Muro et al., 2019).

Warehousing is often mentioned as one area that technology will change, maybe because it has

been a slacker in tech innovation for far too long, particularly when contrasted to its sister

domain, production. The sector is likewise experiencing a major transformation. The

development of e-commerce has boosted demand for quick, efficient warehousing operations

while also introducing new degrees of complexity in order assembly and shipment (Theodore et

al., 2019). All of these demands require modern digital technology in logistic warehousing.

There has been a rise of interest in how new technology might assist make the e-commerce

product delivery operations more effective and less labor-intensive. Historically, the sector has

been sluggish to accept new technology, but it looks to be nearing a tipping point. In the absence

of substantial economic developments, the future undoubtedly portends far more broad

technology adoption, although it will most likely occur in a piecemeal approach.

The importance of digital technology in logistic warehousing can be seen in implementing the

Warehouse Management System (WMS). Warehouse Management System (WMS) is a fantastic

product or program that aids the logistics industry in successfully and properly managing

inventories. Furthermore, it greatly aids in giving inventory control to all corporate stakeholders.

The WMS platform has seen tremendous technological digital advancement due to shifting

clients' needs since these digital technologies are viewed as key innovations add-ons to a

business. These add-ons include optimizing inventory accuracy, providing flawless online

information, enabling insights and legitimate inventory or database servers, and providing

dashboards and real-time inventory or business data. Therefore, it is paramount to assess the
importance of digital technology in logistics warehousing and the constraints in adopting

digitization.

1.1 PROBLEM STATEMENT

Logistics performance is a strategic component that shows the productivity of industries and

enterprises and a driver of job creation and economic progress. The rising use of digital

information technology in logistics management has led to greater worldwide profitability

through improving knowledge transfer, forecasting, inventory tracking, branding, and delivery.

Studies by Kuteyi & Winkler (2022) on the Logistics Challenges in Sub-Saharan Africa and

Opportunities for Digitalization indicates that Sub-Saharan African (SSA) markets, which are

heavily reliant on export commodities, lagged alone, wrestling with insufficient regulatory

frameworks, massive infrastructure shortfalls, and trade restrictions, resulting in a

malfunctioning supply chain that adversely affects growth due to inadequate applications of

digital technology in their logistic warehousing.

Moreover, inadequate usage of modern technology in logistic warehousing can result in poor

inventory visibility where the operations of the logistic warehousing system seem vague to all

key players. Most importantly, without the usage of digital technology, there can be shipment

processing errors, warehouse space utilization problems, lots of manual and paperwork, and

safety problems.

This study therefore seeks to identify the challenges in traditional warehousing, and the

constraints in adopting digitization as the trend in logistics warehousing.


1.2 OBJECTIVES OF THE STUDY

The primary goal of this study is to examine the significance of digital technology in logistics

warehousing. The exact aims that led the investigation methodically are as follows:

 To assess the challenges in the usage of the traditional warehouse management system in

logistic warehousing

 To identify the importance of digital technology innovations in the logistics warehousing

business

 To find out digital technology innovations used in logistic warehousing

 To identify the constraints in adopting digital technologies in warehousing.

1.3 RESEARCH QUESTIONS

This research sought to determine the trend of technological developments in logistic

warehousing and their possible implications on the structure of employment and work activities

better to appreciate the role of digital technology in logistic warehousing. The data was gathered

with three key questions in mind:

 What are the challenges in using traditional warehouse management systems in logistic

warehousing?

 How important is digital technology innovations in the logistics warehousing business?

 What are the digital technology innovations used in the logistics warehousing business?

 What are the constraints in adopting digitization in warehouse logistics?


1.4 SIGNIFICANCE OF THE STUDY

The present research is interesting because it investigates the importance of digital technology in

logistics warehousing. This study is important because it will give policymakers in the logistic

industry key information on the relevance of implementation and usage of modern technological

innovation in the logistic warehousing business. This research will provide significant players in

supply chain management with relevant and up-to-date information to assist supply chain

efficiency.

Also at the end of this study, the research will be an addition to the current literature in digital

technology in logistic warehousing for future reference. It will provide a layperson with first-

hand knowledge of the importance of digital technology in the supply chain management system.

And the constraints in adopting digital technology.

1.5 BRIEF METHODOLOGY

In order to achieve the objectives of identifying the technological trend in warehouse logistics as

well as the constraints in adopting same, the researchers collected primary data through

questionnaires and made use of computer-based software; Microsoft Excel for analysis and

interpretation of the data collected.

1.6 SCOPE OF THE STUDY

This study and its conclusions are restricted to digital technology in logistics warehousing. It will

include assessments of recent technical developments utilized to assure the efficacy of logistic

warehouse management systems.


1.7 LIMITATIONS OF THE STUDY

This study was limited by factors that are likely to be encountered while carrying out the

research. These are:

 Time Constraints: The short duration of the project research and the interference of

other academic work have affected the work's timely conclusion.

 Financial Constraint: Being students, we, the researchers, have little means of

earning, so the finance or cost needed for transportation to acquire data for the

research work will be difficult to get. As a whole, the finance required to execute the

project effectively posed a challenge.

1.8 ORGANIZATION OF THE STUDY

The study has been structured into five chapters. Chapter one is introduction to the study, which

covers the background of the study, the problem statement, research objectives, research

questions, significance of the study, limitation, and organization of the chapter. Chapter two, the

literature review, reviews the relevant theoretical and empirical literature on the subject. Chapter

three covered the methodology to use in undertaking the study, including the sampling method,

research design, the various sources and methods of collecting data, and the process used in

analysing the data. Chapter Four provides a detailed presentation, analysis, interpretation, and

discussion of the study results. Chapter Five is devoted to summarizing the findings, conclusion,

and recommendation.
CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

The study examines the literature on integration of information technology in warehousing,

technology digitization in logistic warehousing and the identification of digital technological

solutions used in warehousing. The most crucial thing is to identify warehouse operations and

future trends. The impact of digital solutions on warehouse management will be explored, . After

conducting the literature review, the research gap will eventually be identified.

2.1 INTEGRATION OF INFORMATION TECHNOLOGY IN WAREHOUSING AND

INVENTORY MANAGEMENT

In today’s competitive business world, combination of IT in business to connect supply network

partners through information sharing has become a source of the competitive weapon over rivals

in the same industry. IT has been recognized as one of the most significant influencers in the

market world at the moment (Bhattacharya et al., 2010). According to Cachon & Fisher (2000),

information sharing across the supply chain partners decrease cost, quickly facilitate inventory

flows, and improve order processing. Enhancing efficiency in warehouse activities is a major

success of an entire supply network as it aids waste reduction and ensures value creation among

business partners. Warehouse management and inventory management can be made very useful

when integrated with IT to help ensure cost-efficient activity (Lefebvre et al., 2007). There are
several IT tools in the market environment. Some of the most common ones which enhance

efficient and effective management of stock in inventory or warehouse are bar code scanners or

readers, biometric verification system, warehouse management system (WMS) and electronic

data interchange (EDI). But currently, studies have progressively established that RFID has a

significant effect on both warehouse management and inventory management than any other

technology (Wamba & Chatfield, 2011). For instance, Cao et al. (2018) stated that RFID

technology could reduce the labor cost of put-away of inventory in the warehouse by 20-30%

and the order-picking labor cost by approximately 30-50%. Lefebvre et al., (2005) also

confirmed in a pilot study that integration of RFID technology in warehouse activities could

transform critical processes that will, in turn, facilitate supply network coordination like

cooperative planning, forecasting, replenishment, and vendor managed inventory. This is easy to

say that RFID can help automate the verification process included in the shipment, thereby

decreasing error prospects (Wamba & Chatfield, 2011). Therefore, Shapiro (2004) argues that

the integration of IT contributes to the growth of productive market activities and ensure

innovation to the supply chain.

In terms of the integration of information technology on the businesses in Asian countries, there

are some studies discuss the effect of information technology on the performance of

organizations. As the greatest number of SME (small and medium enterprises) are in the

developing countries, the discussion about the effect of information technology on inventory

management are discussing on the context of the driving and barrier factors. For instance,

Masudin et al. (2020) studies the contributing factors to the diffusion of information technology

within small and medium-sized firm in Indonesia. The study indicated that in facilitating the

diffusion of IT for SME developing countries requires three proxy factors such as IT knowledge,
IT investment, and coherent IT strategy. Moreover, a study by Masudin et al. (2020) on the 35

SMEs in Indonesia indicated that the main factors influencing SMEs to adopt information

technology are such as government role, competitors, and the failure faced by some participants.

2.2 DIGITALIZATION IN LOGISTIC WAREHOUSE MANAGEMENT

Gartner (2020) referred to digitalization as an increase in the usage or application of digital

technology by a company, business, or institution. In general, digitalization refers to the

expansion and usage of digital technology. Scholars have investigated how digitization has

become an important component of global financial flows. The reciprocal impact of digitization

and globalization may be seen. Researchers have also investigated the influence of digitalization

on country sovereignty, culture, people, money, and commodities. Several scholars (Verhulst,

2002; Van Dijk, 2005) have investigated digitalization in the context of communications.

Digitalization enables the discovery of new technologies that have the potential to dramatically

alter social and economic sectors. According to Castells (2011), digitization has become one of

the defining aspects of contemporary society. According to Hirsch-Kreinsen (2016), digitization

will play a significant role in future economic and social growth. Hirsch-Kreinsen (2016)

distinguishes two stages of digitization. The first phase may be traced back to the late 1990s,

when digitalization was already well entrenched in a variety of industrial sectors, with

manufacturing and communication based on information and data utilization and immaterial

operations. The phase from the end of the last century to the current time is referred to as the

second phase of digitalization. This phase is focused on the digitization of physical things of all

types (Hirsch-Kreinsen, 2016). This is referred to as a ‘second-wave mutation' by Zuboff (2010),


and it has an influence on the economic and technological worlds. It is worth noting that the

second phase may be referred to as the "Internet of Things" from a technology standpoint.

According to McKinsey Digital (2014), digitization enables businesses to develop swiftly and

reach new markets at a minimal cost. Furthermore, digitization promotes company development

by generating network effects and, to a large degree, lowering marginal expenses such as

transportation and distribution costs.

2.3 IMPORTANCE OF DIGITIZATION IN WAREHOUSE LOGISTICS

Mass digitisation is making its way through many industries at a remarkable pace. While several

processes can improve from implementing new digital technologies, the logistics sector has more to

gain than most. Digital warehousing can remedy issues that have plagued the industry for years and

unlock new opportunities ( Partida, 2014).

Warehousing. Digital warehousing optimises warehouse operations through technologies like the

Internet of Things (IoT), artificial intelligence (AI) and digital twins. Companies spend roughly £264

billion annually on warehousing, so this can have considerable positive ripple effects.

 WAREHOUSE VISIBILITY

Improved visibility is one of the biggest benefits of digital warehousing. According to studies,

62% of organizations have insufficient supply chain transparency. Manual processes that are

slow and prone to errors make it difficult to keep track of inventory levels and shipment status in

real time, resulting in delays and errors. By delivering automatic, real-time data, IoT technology

can help to mitigate this. IoT tracking sensors can show the exact location of any product or

cargo at any given time, as well as track its condition. Similarly, warehouse management

systems (WMS) may organize this data to give workers real-time information on where
everything is located. This amount of sight aids warehouses in avoiding a variety of mistakes.

Workers can find the relevant goods faster if they have easy access to real-time location data.

Having a single location where you can see all of your current inventory is beneficial. The

following are some of the importance of warehouse visibility.

 IMPROVED EFFICIENCY

Warehouses that improve visibility become more efficient as a result. Picking is where you'll

notice the most improvement. Workers who know where to find each item spend less time

wandering and searching the aisles. Data collected via WMS solutions about these picking

processes over time can indicate workflow improvements. Data analytics in some WMS

platforms help reorganize storage for more efficient picking. Because AI is often faster at data-

intensive activities than humans, automating this analytics process saves even more time. The

IoT can help warehouses predict upcoming needs by tracking shipments and inventory levels.

They can then refill inventory, prepare for packing or unloading, or make other adjustments to

make the business run more efficiently throughout the day, month, or year.

 REDUCED OPERATING COST

Digital warehousing can also help logistics companies save money in the long run. Warehouse

operators, for example, can use digital twins to simulate various workflow modifications and

observe how they affect energy, equipment, and personnel expenses. They can then determine

the best cost-effective alternative without having to conduct costly, real-world tests. Similarly,

data analytics engines can examine a company's shipping procedures to identify cost-cutting

opportunities. Some businesses may benefit from warehousing outsourcing, which frees up

money by reducing ownership costs, but they may not realize it. Analytics would display the
statistics behind how it would save money, assisting the company in discovering new methods to

cut costs. Automation is also easier and more adaptable in large digital contexts. Staffing and

error-related costs can be reduced in warehouses that automate additional tasks.

 IMPROVED FORECASTING

Forecasting is another major problem with warehouse operations that digital warehousing solves.

Consumer trends shift frequently, and they don't necessarily follow previous seasons' patterns,

leaving facilities with dead inventory or supply shortages. Data collection and analytics tools can

aid in the more precise prediction of these developments, enabling forward-thinking judgments.

Many stores now employ artificial intelligence (AI) to personalize client recommendations based

on their previous shopping habits. This provides a wealth of useful information regarding future

customer preferences and trends. The data can then be interpreted by predictive analytics

algorithms to identify what changes warehouses might expect. Warehouse managers that are

aware of future trends will be able to adjust their inventory accordingly. To anticipate for

incoming demand, they can order fewer of some things and more of others, saving waste and

avoiding delays.

2.4 LOGISTICS WAREHOUSING OPERATIONS AND TRENDS

Warehouses act as an important link in the supply chain between vendors, intermediaries, and

consumers (Chen and Wu, 2005). According to a Motorola Solutions research (2013), a

warehouse is no longer seen as a cost center, but as a commercial hub that can be a great

resource to a strong organization for generating profitable expansion and enhancing logistics
processes. According to Bartholdi and Hackman (2006), a warehouse is a location in the supply

chain that consolidates firm items, reduces transportation prices, and achieves efficiencies of

scale.

Moreover, warehousing has become a significant component of shipping as a result of trade.

Because it bridges the time difference between the creation and consumption of products, it

produces temporal utility. A warehouse is a big storage facility for products or items.

Warehousing is the act of keeping these items on a big scale in a systematic and ordered way

inside a storage facility, making them easily accessible when required (Hilmola et al., 2011).

Warehousing is an active participant in the supply chain. In demand-driven supply chains, this

may be primarily accomplished by holding products, or it may include additional sorting

operations, both of which are necessary to a great extent to feed external clients. Warehouses are

called shops in supply-driven supply chains, and they keep inventories needed to support internal

operations such as manufacturing. Warehouses' primary role is the proper coordination of

products manufacturing and utilization, which is a crucial component of any contemporary

country's economy. Figure 1 depicts storage as part of a simplified contemporary supply chain.

Figure 1: Simplified Supply Chain

raw
materials warehous retail/
assembly returns
/procure ing consumer
ment

There are very important new changes in the operational trends of logistic warehousing.

2.4.1 CHANGING WAREHOUSE OPERATIONS


Changes in purchasing behaviour and supply chain management have resulted in considerable

transformation in the warehousing business, prompting distribution network to transition from a

storage role to one in which items are theoretically in relatively close circulation. Traditionally,

warehouse were distribution hubs that that primarily deal with pallets and cases (full boxes of

goods). The activities of warehousing can be categorized into receiving, put-away, storage,

picking and shipping. While these tasks are still essential to warehouse operations, the industry's

prominence has altered in the past decade as internet shopping has acquired retail market share.

This simply means there is a new form of warehousing known as e-commerce.

The sector is likewise experiencing a major transformation. The development of e-commerce has

boosted demand for quick, efficient warehousing operations while also introducing new degrees

of complexity in order assembly and shipment (Theodore et al., 2019). All of these demands

require modern digital technology in logistic warehousing. There has been a rise of interest in

how new technology might assist make the e-commerce product delivery operations more

effective and less labor-intensive.

2.5 DIGITALIZATION IMPLICATIONS FOR WAREHOUSING

According to Fitzgerald et al. (2013) in an MIT Sloan paper, using digital technology may help

businesses simplify their processes and enhance customer experience. Streamlining processes

may help raise storage efficiency, while providing excellent customer service can boost customer

satisfaction. The two significant components where digitization had the biggest influence in the

customer experience category were increasing client satisfaction and upgrading current goods

and services.

It is worth knowing that digitalization will have great implication on the warehousing business.

Digitalization has the ability to reduce or even eradicate virtual goods transit and marginal
manufacturing costs. Such digital commodities may be developed in warehouse management like

bills of lading, regular reports, receipts, and so forth. It is worth noting that digitization has the

potential to turn certain physical flows of people into virtual flows by enabling workers to work

remotely utilizing digital technology. Digitalization may function as a counter-force by altering

value chains, allowing physical components to flow directly to consumers. According to Pfohl et

al. (2015), disruptive technologies may have an impact on firms' supply chain procedures,

particularly warehouse operations. For example, delivery information for transported products

may be modified in real time as required (Whang, 2010). As a result, digital technologies (such

as RFID technologies in this instance) enable issue management to be carried out online and

centrally.

Furthermore, more logistics companies plan to adopt mobile applications on a regularly basis to

improve warehouse procedures and boost warehouse staff productivity. According to David

Krebs, the main technologies in warehouse management include obtaining and put-away/picking

activities, with a rising interest in other applications such as load planning, cross-docking, and

package and item proportioning. In 2015, mobile costing for warehouse solutions increased by

8.7%. (McCrea, 2015).

Through data contact and cooperation among warehouse staff and other departments' people,

digital technologies aid warehouse management efficiency. Data can be captured, data can be

accessed, and data may be analyzed or contributed to a data analysis using digital technologies.

2.6 WAREHOUSING AND TECHNOLOGY

When it comes to adopting new technology, the warehousing business has been a bit behind the

curve. Over the last two decades, technology advancements have centered on eliminating data

input and minimizing the amount of walking a warehouse worker must do. Warehouse
management software, radio frequency scanners, and industrial conveyor systems were among

the primary kinds of technology, however adoption of these forms of automation has been

unequal between firms. Warehousing technologies come in two folds; the hardware and the

software. The two will be explored in the following sections.

2.6.1 WAREHOUSING SOFTWARE

When it comes to digitization in warehousing, various softwares are used to operate the

warehouse hardware. The most common softwares used include Warehouse management

systems, Warehouse control systems and Economic Resource Planning Systems

[Link] WAREHOUSE MANAGEMENT SYSTEMS

A warehouse management system is a software designed to optimize warehouse operational


processes. Implementing a WMS gives full visibility into real time inventory levels and storage,
staff productivity, demand forecasting and order fulfillment workflows within a warehouse
(Lopienski ,2019)
A warehouse management system (WMS) consists of software and processes that allow
organizations to control and administer warehouse operations from the time goods or materials
enter a warehouse until they move out ( O’Donell, 2022 )
Warehouses sit at the centre of manufacturing and supply chain operations because they hold all
of the material used or produced in those processes, from raw materials to finished goods. The
purpose of a WMS is to help ensure that goods and materials move through warehouses in the
most efficient and cost-effective way. A WMS handles many functions that enable these
movements, including inventory tracking, picking, receiving and putaway.
A WMS also provides visibility into an organization's inventory at any time and location,
whether in a facility or in transit.
The role of the WMS is to help users manage the fulfillment, shipping and receiving tasks in the
warehouse or distribution center, such as picking goods from shelves for shipment or putting
received goods away. Its role in inventory is to track the inventory data that comes in from
barcode readers and radio frequency identification (RFID) tags and update the inventory
management module in the ERP system to ensure it has the latest information. An integration
link synchronizes the inventory data that is stored in the ERP system and the WMS ( O’Donell,
2022). Examples of modern WPS are Sortly, Fishbowl Inventory, Netsuite WMS and Softeon,
3PL warehouse manager.
[Link] THE WAREHOUSE MANAGEMENT SYSTEMS PROCESSES.
The WMS as a system works with warehouse hardware or equipment to ensure optimum order
fulfilment and material handling. The following are the processes involved in executing
warehouse management systems
 INVENTORY TRACKING
This involves monitoring stock levels to know which stock keeping units ( SKU) in your
warehouse and the precise locations where you store them or if they are in transit from a
manufacturer or enroute to a store. As part of inventory management WMS helps you to know
how much product is ready to be shipped upon customer ordered as well as when you should
replenish stock.
 PICKING AND PACKING
These are two primary warehouse operations. A WMS should generate pick lists for each picker
to retrieve items efficiently. This may include zone picking, wave picking or batch picking. For
every order made, the picker will receive a packing slip of the items ordered and storage
locations in the warehouse. The picker will then collect the ordered products from their
respective locations.
Upon picking an order, the order is handed off to a packer that places them securely into a box or
poly mailer, adding any needed packing materials and labelling it for shipping.
 RECEIVING AND STOWING
Receiving freight or inventory from trucks at loading docks and then stowing them away in
storage locations is a typical warehousing operation. A warehouse management system will need
to be able to scan in each new box received with the inventory quantities it has. Then it will be
brought to its short term or long-term inventory storage location, where it will be scanned again.
Warehouse management software should provide clear instructions for each user so they know
how to receive, unpack, retrieve, pick, pack and ship inventory.

 SHIPPING
Once the order ships, the WMS should be able to automatically send ecommerce order tracking
information back to the warehouse so customers can track their shipments.

 REPORTING
A WMS should provide operational and inventory reports across the warehouse. This may
include total orders fulfilled, orders shipped on time, mis- picks, mis- packs etc.
There are also reports relating to people’s operations includind inventory forecasting to
understand labor management and staffing needs. With a WMS, you can quickly find which
employees have completed safety training and those who have licenses to operate certain
equipment.

[Link] WAREHOUSE MANAGEMENT SYSTEM BENEFITS


Although a WMS is complex and expensive to implement and run, organizations gain numerous
benefits that can justify the complexity and costs. Implementing a WMS can help an
organization to:
 Reduce labour costs
 Improve inventory accuracy
 Improve flexibility and responsiveness
 Decrease errors in picking and shipping goods
 Improve customer service

2.6.2 WAREHOUSE CONTROL SYSTEMS

A warehouse control system is a software application used for the management and direction of
material handling automation systems within a warehouse or distribution center. Warehouse
control systems (WCS) are responsible for ensuring an efficient product flow across different
material handling equipment and sub-systems such as conveyors, pick-to-light modules,
carousels, sorters, AS/RS systems and AGVs, among others. (Anish, 2022)

A warehouse control system (WCS) is a type of software that integrates with the WMS
(warehouse management system) in order to provide additional controls and functionality to the
system. The WCS is designed to interact with and control the automated equipment that is being
leveraged within the facility. This may include everything from basic conveyors to more
complex systems such as sorters, automated storage and retrieval systems (AS/RS), goods-to-
person, palletizing/depalletizing, print and apply (PANDA), and other technologies (Romaine,
2021
In most facilities, the WCS will control the automated material handling equipment and integrate
with a warehouse management system (WMS) that will manage and plan warehouse activities
from receiving through shipping. The WMS will typically direct the work of material handling
staff alongside the automation systems controlled by the WCS. More and more facilities are
adding AI-based warehouse optimization solutions to optimize and orchestrate the work of
people, WCS systems, and robotics ( Anish, 2022).
[Link] FUNCTIONS OF WAREHOUSE CONTROL SYSTEMS
Anish, 2022 identified the following functions of WCS
 Exchanging necessary information with the host or WMS to manage automated material
handling functions in a warehouse or DC.
 Coordinating activities across various material handling sub-systems.
 Determining the most efficient routing of products and transmitting directives to the
equipment controllers.
 Assigning cartons to divert locations.
 Real-time monitoring, controlling and diagnostics of automated systems based on data
collected from system-level controllers and sensors.

2.6.3 ENTERPRISE RESOURCE PLANNING SYSTEMS

Enterprise Resource Planning (ERP) inventory management is a system that allows businesses to

manage all aspects of their business on a single platform, including: inventory, finance, planning,

logistics and operations. An ERP inventory management system provides real-time inventory

information to the entire organization. This is an important capability for businesses that plan to

expand, have complex workflows or supply chains, need advanced automation, operate in “just

in time” mode, sell many products or simply wish to maximize their investments in

inventory( Schwarz, 2020).

The enterprise resource planning (ERP) software is essentially an integrated business suite for
your operation. It is designed to collect , store, and manage data from across multiple
departments within your business. This will often include information about manufacturing,
ecommerce, customer relations, sales, marketing, inventory management, shipping, product
planning, and more (Romain, 2021). The ERP is especially valuable due to the fact that it
includes comprehensive financial reporting capabilities that allows you to invoice, bill, track, etc.
In addition to the WMS, other systems will feed into it, making it a central repository of data for
your entire operation.

2.6.4 DIFFERENCES BETWEEN ERP AND WMS


Both softwares can be used to for warehouse operation automation.
On a high level, a warehouse management system (WMS) differs from an ERP because the
scope of your WMS is limited to the supply chain and movement of materials within your
company. An ERP, on the other hand, looks at broad financial and other businesses sectors to
manage and support the flow of data.
An ERP often includes support of some primary warehouse activities, such as tracking inventory,
order entry, invoicing, and purchase orders. A standard WMS will expand on those practices to
also include advanced functionality such as suggesting improvements to how your goods are
stocked or your warehouse is laid out, automation of inventory county and resupply orders,
monitoring how products and parts move throughout the warehouse, and advanced warehouse
activities like cross-docking
WMS is primarily used to manage inventory storage and transportation. The system keeps
account of every stock item's movement, such as when it is received, selected, packaged, and
delivered. The primary distinction between WMS and ERP is that WMS systems provide
inventory optimization based on real-time data. Based on previous trends and statistics,
information may be created to suggest the ideal position for each item to be placed. Furthermore,
WMS are often stand-alone systems that require additional modules like as accounting and
customer relationship management.
WMS is a standalone solution that merely focuses on controlling warehouse activities while ERP
system is an all-in-one software that helps its users to facilitate the flow of information between
all areas of business. All departments such as Finance, Customer Relationship Management,
Project, Sales, etc can be merged into one complete system. Nowadays, many ER
P systems can have a Warehouse Management System as one of their modules. Therefore,
though we can use two systems such as WMS or ERP for managing your warehouse, they have
their own set of attributes.

2.7 WAREHOUSE HARDWARE

Warehouses cannot operate without warehouse equipments. Some of the most important innovations
in warehouse hardware is explored below.

2.7.1 COLLABORATIVE ROBOTS


Collaborative robots or Cobots are machines that work alongside operators in a production line
or a warehouse. Their design ensures that the operator can safely interact with the machine,
guaranteeing the protection of both the worker and the goods. International standards such as
ISO 10218-1 and ISO/TS 15066 establish the necessary safety guidelines for joint work between
machines and operators.
Despite its significant presence in areas needing robust production processes, such as the
automobile industry, Cobotics is becoming an common solution in all sorts of enterprises. In
reality, collaborative robots are used in any logistical or industrial process that involves load
movements that are too difficult for people to handle.
Instead of replacing humans, these devices are used in warehouses and manufacturing plants to
supplement people' jobs and increase productivity. Collaborative robots, for example, execute
tasks that put the most pressure on workers, such as order packaging and pick and place
requiring large objects. Cobots are used in logistics are mainly used in the picking and placing of
objects. They’re often deployed in large warehouses or fulfilment centers where accurate,
consistent, and quick movement of goods is difficult. Collaborative robots for fulfilment can be
stationary or mobile, but the major area of growth lies in autonomous mobile robots (AMR).

Figure 2.7.1

Source: [Link]

2.7.2 AUTOMATED GUIDED VEHICLES


Sometimes called self-guided vehicles or autonomous guided vehicles, automated guided
vehicles (AGVs) are material handling systems or load carriers that travel autonomously
throughout a warehouse, distribution center, or manufacturing facility, without an onboard
operator or driver(TAGLIC, 2021)
Automated guided vehicle systems are utilized for repeated operations that would normally be
done by forklifts, conveyor systems, or manual carts, such as transporting big amounts of cargo.
AGVs have a wide range of uses. They're frequently utilized to carry raw commodities like
metal, plastic, rubber, or paper. AGVs, for example, can transfer raw materials from receiving to
the warehouse or directly to production lines. AGVs continuously and reliably supply raw
materials required without human involvement, ensuring that manufacturing lines never run out
of supplies. Raw materials, work-in-process, Finished products can all be moved with AGVs

2.7.3 BENEFITS OF USING AGVS IN WAREHOUSE OPERATIONS

Buist ( 2022) identified the following benefits of AGVs in warehousing operations

 FLEXIBILITY
The flexible technology used in AGVs have rendered them useful for many different tasks. It’s
difficult to relocate or shift a conveyor system, but with the wireless technology AGVs use, it’s
relatively simple and quick to remap a route and continue production. Today complex AGVs are
equipped with sensors, clamping mechanisms, positioning fixtures, and tool attachments and, as
such, are useful across a variety of sectors in many industries, including healthcare, military, and
transportation. They can work alone or in tandem with other AGVs.
  
 ACCURACY 

AGV computer systems can be coordinated with warehouse management systems. This allows
for companies to track every detail of material handling and make adjustments to increase
accuracy and efficiency. An AGV will do as it is programmed to do each and every time. It will
never get bored by repetitive tasks or distracted by workplace or social activity.

 SAFETY 
AGVs can operate in a number of environments that otherwise might be hazardous for people,
including those with exposure to extreme temperatures, gases, chemicals, sharp objects, or
biological contaminants. A damaged AGV can be repaired or replaced without the same
problems or liabilities worker injuries or health hazards create for companies and people.

 INCREASED PRODUCTIVITY 
AGVs can work continuously around the clock without breaks. They do not get sick. They will
do a task continuously for as long as necessary without flagging or complaining. They maintain a
constant speed, never hurrying or rushing to complete a task before the end of the work period.
Figure 2.7.3

Source: [Link]

.
2.7.4 RADIO FREQUENCY SCANNERS

The most frequently used tool in any warehouse are scanners. They are used for almost all

operations right from receiving to picking/packing and finally shipping (Vaibhav, 2022).

Radio frequency scanners typically store all the order information as well information of all the

SKUs in the inventory. The RF scanners are used to read the barcodes and transfer product

information, quantities and location information directly into the WMS via wireless networking.

Handheld radio frequency (RF) barcode scanners are used to manage inventory and track the

order-picking process, replacing the need for paper “pick lists.” RF scanners also allow

employers to monitor worker productivity. Hands-free RF scanners that attach to a worker’s arm

and are equipped with a barcode scanner on a finger are replacing handheld scan guns that can

cause tendonitis and other ergonomic injuries


Figure 2.7.4

2.7.5 VOICE-DIRECTED SYSTEMS

When it comes to warehouse picking systems, there are few as more widespread as voice


picking, a system that employs radio frequency identification (RFID) and/or WiFi to relay easy-
to-understand verbal instructions throughout your warehouse (Glynn, 2021).Voice picking, also
commonly known as voice-directed warehousing (VDW), pick by voice, and speech-based
picking, is a paperless, hands-free, and eyes-free system that employs easy-to-understand voice
prompts to direct warehouse operators to picking locations, and to instruct them in picking tasks. 
Workers using voice-directed systems wear a headset that provides instructions on what items to

pick or put away and where they are l ocated, and workers confirm the location and items by

speaking standardized commands. Voice-directed systems can replace the need for a worker to

read instructions from a list or scan items with a barcode scanner. According to a recent survey,

voice-directed systems are one of the fastest-growing technologies in warehouses—roughly one-

quarter of facilities reported using voice-directed picking in 2018, up from just less than 6% a

decade prior.39

[Link] OPERATION OF VDS


VDS has a standard operation procedure for use in warehousing. Glynn (2021) Identified the

following as the operation of VDS

 Each operator is equipped with a voice-picking device, often a headset + microphone, a


mobile device, or a voice-dedicated terminal. Often, operators also carry
a barcodescanner for increased efficiency.
 As orders are imported from your host system (for example, your existing warehouse
management system (WMS) or enterprise resource planning (ERP) software), they
are recorded, sequenced, and then released for processing.
 The operator’s voice-picking device will speak instructions regarding which picking tasks
must be performed, and where.
 Voice-picking devices are also equipped with multi-modal feedback, so your operator’s voice
(or text entry, or barcode scan) can feed information back into the system.
 When your voice-picking system commands and verbally directs an operator to a specific
warehouse location, the operator must then provide check digits upon arrival, to confirm s/he
is in the correct aisle or section, and in the correct bin.
 The voice-picking system will confirm location and then provide your operator with pick
quantity. Your operator verbally confirms that quantity.
 When picking is completed, the system will send your operator to the next pick location.
Notably, the system will optimize the pick path throughout the process, to maximize
efficiency and minimize walking through your warehouse.

Figure 2.7.5
Source: [Link]

2.7.6 UNMANNED AERIAL VEHICLES (UAV)

Warehouse drones, also known as UAV (unmanned aerial vehicles), are aerial robotics platforms

used in Smart Warehouses for inventory management. Warehouse drones perform tasks

such inventory audit, cycle counting, stock finding, etc.

 They fly autonomously, identify and count the material stocked in the warehouse and compare it
with the data stored “virtually”, enabling safe and cost saving inventory operations.  inventory
audit, inventory management, cycle counting (Cycle counting is a popular
inventory counting solution that allows businesses to count a number of items in a number of
areas within the warehouse without having to count the entire inventory. item search, buffer
stock maintenance. stock taking (Stock taking is the counting of on-hand inventory. This means
identifying every item on hand, counting it and summarizing these quantities by item). The main
objective of using drones for inventory management are to increase the inventory accuracy,
decrease labor costs and minimize dangerous tasks for the workforce.
  Figure 2.7.6

Source: [Link]
2.7.7 SENSORS

Sensors have many applications in the warehouse, from being able to dynamically track

inventory to monitoring the movements of workers to controlling energy usage. Combined with

other technologies, sensors can, for example, allow for autonomous palletizers to stack boxes on

a pallet by determining the dimensions and proper stacking order. The Internet of Things (IoT),

where vehicles, devices, or goods are embedded with sensors that can communicate

automatically with each other, is seen to have significant potential to capture real-time data

across the logistics system.

The wide range of innovations speaks to the potential opportunity for technology to be applied

across warehouse activities. Depending on the source—trade literature, interviews with industry

insiders, or technology developers—reports on the state of uptake among leading technologies

vary. For example, two different surveys, conducted by Honeywell and the Warehousing

Education and Research Council (WERC) three years apart, estimate that voice-directed picking

is in use in 12% and 25% of facilities, respectively.40 There is no shortage of new technologies

available to warehouses—the question is how firms make choices about techno-strategy.

Figure 2.7.7
Source: [Link]

2.7.8 AUTOMATED STORAGE AND RETRIEVAL SYSTEM (AS/RS)

An automated storage and retrieval system (AS/RS) also called AS-RS or ASRS is a type or
genre of warehouse automation technology specifically designed to buffer, store, and retrieve
product and inventory on demand ( Romaine, 2022). It is a combination of equipment and
controls that handle, store and retrieve materials as needed with precision, accuracy and speed
under a defined degree of automation. Systems vary from relatively simple, manually controlled
order-picking machines operating in small storage structures to extremely large, computer-
controlled storage/retrieval systems totally integrated into a manufacturing and distribution
process.( ARSR Group, 2022)
AS/RS technology varies substantially, and can consist of shuttles, cranes, carousels, vertical lift
modules (VLMs), micro-loads, mini-loads, unit-loads, or other systems. It is often integrated
with a warehouse execution software (WES), warehouse management software (WMS), or other
controls. It is is one of the major material handling systems, which is widely used in distribution
centers and automated production environments. AS/RSs have been utilized not only as
alternatives to traditional warehouses but also as a part of advanced manufacturing systems.
AS/RSs can play an essential role in modern factories for work-in-process storage and offer the
advantages of improved inventory control and cost-effective utilization of time, space and
equipment ( Vasili et al., 2014).
[Link] COMPONENTS OF AS/RS SYSTEMS.
Automated Storage and Retrieval Systems have four components which work together to optimize storage
and retrieval of materials in warehouse operations. The following section details the various components.

 THE STORAGE STRUCTURE


The storage structure is the rack framework typically made of fabricated steel, which  supports
the loads contained in the ASRS. This structure must possess sufficient strength and rigidity that
it does not deflect significantly due to the loads in storage or other forces on the framework. The
individual storage compartments in the structure must be designed to accept and hold the storage
modules used to contain the stored materials.

 S/R MACHINE:
The S/R machine is used to accomplish storage transactions, delivering loads from the input
station into storage and retrieving loads from storage and delivering them to the output station.
To perform these transactions the S/R machine must be capable of horizontal and vertical travel
to align its carriage (which carries the load) with the storage compartment in the rack structure.
In many cases the S/R machine consists of a rigid mast on which is mounted a rail system for
vertical motion of the carriage. Wheels are attached at the base of the mast to permit horizontal
travel along a rail system that runs the length of the aisle. A parallel rail at the top of the storage
structure is used to maintain alignment of the mast and carriage with respect to the rack structure.
 STORAGE MODULES:
The storage modules are the unit load containers of the stored material. These include pallets,
steel wire baskets and containers, plastic tote bins and special drawers (used in mini-load
systems). These modules are generally made to a standard base size that can be handled
automatically by the carriage shuttle of the S/R machine. The standard size is also designed to fit
in the storage compartments of the rack structure.
 PICK AND DEPOSIT STATIONS:
The pick and deposit station is where loads are transferred into and out of the ASRS. They are
generally located at the end of the aisles for access by the external handling system that brings
loads to the ASRS and takes loads away. Pickup stations and deposit stations may be located at
opposite ends of the storage aisle or combined at the same location. This depends on the
origination point of incoming loads and the destination of output loads. A P&D station must be
designed to be compatible with both the S/R machine shuttle and the external handling system.
Common methods to handle loads at the P&D station include manual load / unload, forklift
truck, conveyor (e.g. roller) and AGVs
2.7.9 TYPES OF AR/RS
According to Romaine (2022), Automated storage and retrieval systems (AS/RS) come in two
main varieties: Unit-Load AS/RS and Mini-Load AS/RS. The two types are discussed below.

[Link] UNIT-LOAD AS/RS

Unit-load AS/RS systems are typically used to handle exceptionally large and heavy loads
ranging from 1,000 to 5,500 pounds. This capability allows for unit-load AS/RS to handle full or
partial pallets and cases. 
Usually, unit-load AS/RS consists of narrow aisle racks, which can extend to heights greater than
100 feet and which house pallets of product and inventory. These racks are paired with a crane,
which is used to physically place and retrieve pallets as needed.
Figure [Link]

Source: [Link]

[Link] Mini-Load AS/RS


Mini-load AS/RS typically handles smaller loads (up to 75 pounds) compared to unit-load
systems. Instead of full pallets, mini-load AS/RS handles totes, trays, and/or cartons. Sometimes,
these systems are called “case-handling” or “tote-stacking” systems.
Figure [Link]
Source: [Link]

[Link] HORIZONTAL CAROUSEL

A horizontal carousel is an automated storage and retrieval (AS/RS) system and a form of goods-
to-person technology consisting of a series of bins that are supported by an oval track. The bins
are fitted with shelves which can be adjusted as necessary to account for inventory, or can be
removed altogether to handle items such as hanging garments, drums, totes, boxes, and
more( Romaine, 2021)
Typically, multiple horizontal carousels will be grouped together to form a single pod or
workstation. This pod is integrated with a batch pick station and pick-to-light technologies in
order to facilitate an extremely efficient batch picking system. HORIZONTALCAROUSELS
Ideal for storing small parts and pieces, horizontal carousels are comprised of a series of bins that
rotate horizontally around a track

Figure [Link]
Source: [Link]

[Link] SHUTTLE-BASED AS/RS

Shuttle-based AS/RS delivers inventory via a shuttle or “bot” that runs on a track between a
racking structure. 
They can operate on a single level or multiple levels, depending on the needs of the operation,
and can be battery- or capacitor-powered. The shuttles deliver the tote or carton to a workstation
integrated with the system.
When an item is requested, the shuttle drives to the location of the product and retrieves the tote
or carton that contains the requested item. The shuttle will then take the tote/carton directly to a
workstation or transfer it to a conveyor to convey the tote/carton to a workstation. 000

Figure [Link]

source: [Link]
[Link] VERTICAL LIFT MODULES ( VLMs)
consist of a column of trays in the front and back of the module with an automatic
inserter/extractor in the center that stores and retrieves the required trays

Figure [Link]

Source: [Link]

CHAPTER THREE
METHODOLOGY AND ORGANISATIONAL PROFILE

3.0 INTRODUCTION

This chapter covers the research methodology of the study. The chapter include research design,

sampling technique, sample size, data collection instruments and source of data.

3.1 RESEARCH APPROACH AND DESIGN

Qualitative and quantitative methods are the most commonly used methods in social research.

They can be used independently, or they can be combined to give what is known in social

research as mixed methods. Quantitative research aims to measure using numbers while

qualitative research usually describes scenarios and gathers data through interviews or analyse

the meaning of information from documents. Taking into consideration the main objectives of

the research which to assess the digital technology used in logistics warehousing and the

constraints in adopting same, both qualitative and quant Kathori (2004) explained that qualitative

research is concerned with qualitative phenomenon relating to or involving quality especially for

investigating reasons for a particular behaviour. It is a formal, objective, systematic process of

describing and testing relationships and examining cause and effect interactions among variables.

The qualitative research method became more appropriate for this study because it is sensitive

and powerful in capturing people’s experiences and meanings of events. It also allows the

respondents to share their experiences with others from their own perspectives. The adoption of

the qualitative approach also enabled the presentation of data in a descriptive design format.

According to (Hale, 2011), there are three main types of descriptive methods: observational

methods, case-study methods and survey methods. The researchers realized that amongst the

three methods, the survey method was the most appropriate for this study. In survey method

research, Hale (2011) discussed that participants respond to questions administered through
interviews or questionnaires. After the sampled respondents have answered the questions, the

researcher describes the responses given as findings. In order for the survey to be both reliable

and valid it is important that the questions are constructed in a way that will not direct the

respondent to a particular answer. Questions should be clear, easy to comprehend and

unambiguous.

This study's design was established based on the research questions and objectives. Because the

study is designed to be descriptive and exploratory, qualitative methodologies were used to

conduct the research in order to appropriately answer the questions and meet the goal of the

study.

3.2 SOURCES OF DATA

The researcher collected data from both primary and secondary sources. The primary data

comprised data that were gathered from qualitative and sources through open and close

ended questionnaires, observations and zoom interviews. The secondary sources of data

comprised articles, books, reports and publications

3.2.1 Primary Data

The primary data for this research was obtained mainly through the administration of

structured questionnaires and on zoom interviews scheduled with respondents within the

population sample. The research questionnaires were first administered, followed by

interviews with respondents. Observations were also made during a visit to the warehouses.

3.2.2Secondary Data
Secondary data was also gathered mainly through the review of literature materials made up

of publications, articles, journals, newsletters, and reports relevant to the study. Asco, and…

provided very helpful information.

3.3 Target Population

A study population is the total member of a defined class of people, objects, places or events

selected because they are relevant to a research according to Burgess (2001). Population

simply refers to all the members of a group that the researcher is interested in. In research,

target population is the entire set of units for which the survey data is to be used to make

inferences. It can also be defined as the eligible population that is included in research work.

It includes all the elements that meet all the sample criteria for inclusion in this study

In order to meet the research goals, information was gathered from a study population that

included members of the warehousing industry in the Tema Industrial Zone. These groups of

people are perceived to have enough experience of coastal pollution and could give satisfactory

information. From the searches made there are about 27 warehouses in the research area and that

constitutes our target population.

3.4 SAMPLING TECHNIQUE.

Purposive sampling method was used for the study. Purposive sampling is a non-probability

sample that is selected based on the characteristics of the population and the objective of the

study. It helps researchers to focus on personnel with expert knowledge pertaining to the

research work.

3.5 Sample Size


The sample for the study comprised of 10 warehouses in Tema Industrial Area with over 5 years

of operation. According to Bless and Higson-Smith, (2000), a representative sample must have

the same properties as the population from which it is drawn. These 10 warehouses were chosen

because they had had been operating for over ten years was believed to be capable of providing

the operations needed

3.6 INSTRUMENTS FOR DATA COLLECTION

A questionnaire is a research tool that consists of a series of questions designed to elicit

information from respondents (Reynolds et al., 1997). The research questions outlined in the

introduction were utilized as an example of a qualitative collecting technique. The researcher

created the questionnaire for this study based on the research goals and a thorough assessment of

comparative literature. The questionnaires had both close and open ended questions . Open

ended questions were employed to give room to the respondents to express their views. On the

other hand, closed-ended inquiries predominated to prevent overburdening and boring

respondents

3.7 DATA ANALYSIS AND INTERPRETATION OF TOOLS

The data collecting instruments used was based on the qualitative nature of the research, it was

suitable to utilize computer-assisted qualitative data analysis (CAQDAS) applications such as

Microsoft Office Excel to output statistical analyses and show frequencies (Saunders et al.,

2007). CAQDAS improves the study findings' transparency and methodological rigor. On the

other hand, relevant remarks were grouped per the research issues they addressed. Based on the

findings and opinions of the interviews, conclusions and suggestions will be developed.
3.8 RELIABILITY AND VALIDITY

The researcher prepared the questions to suit the topic matter to ensure the work's dependability

and validity. Again, plain English language was used to create questions that ranged from closed

to open-ended.. In addition, the researcher employed additional instruments such as personal

observations and informal queries to establish the legitimacy of this study.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.0 INTRODUCTION
This chapter is made up of results and discussions of the analysis of the quantitative and
qualitative data gathered from the field. The results and the discussions include some
demographic characteristics of the respondents and various themes based on the objectives of the
study. The themes comprise the most frequently used traditional warehouse material handling
equipment, the warehousing software employed, the kind of automated equipment used, the
challenges of traditional warehousing, the constraints in adopting warehouse automation
systems, the perceived impact of warehouse automation on productivity, efficiency and safety of
operation, the perceived impact of automation on job security and recommended equipment and
software for better storage and material handling.

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS.


The demographic characteristics of the respondents include the Gender distribution of the
respondents that took part in the research, age, level of education, experience level. The details
of the demographic data of respondents are presented in the discussions that follow.

4.1.1 GENDER DISTRIBUTION OF RESPONDENTS


The research captured both male and female respondents because warehouse operations
transcend gender limitations. The research sampled 10 warehouses in the Tema Industrial area
which represented 100% of the sample size used for the study. The respondents comprised 8
males and 2 females from ages within 20 to 60 years which represented 80% males and 20%
female respectively (see Tab. 4.1). Although there ae no gender limitations to warehouse
operations, men were more involved in warehouse operations than women.

Table 4.1.1 Gender Distribution of Respondents

Gender Frequency Percentage

Male 2 20%

Female 8 80%

Total 10 100%
Source: Field Data 2022

Fig 4.1.1 Gender Distribution of Respondents


A PIE CHART SHOWING THE GENDER DIS-
TRIBUTION OF RESPONDENTS

20% Male
Female

80%

Source: Field data 2022

From the graph above, 80 percent of the respondents were male while 20 percent were females.
This shows an unbalanced ratio between male and female involvement in warehouse operations
hence the need for more female involvement in warehouse operations.

4.1.2 AGE DISTRIBUTION OF RESPONDENTS

The age distribution of the respondents represented in the table and figure below showed that the

age groups 20-30 years recorded 4(40.0%) of the respondents, 31-40 years of age recorded

5(50.0 %) of the respondents, 41-50 years recorded 1(10.0%) of the respondents and 51- 60 years

and above 60 altogether recorded 0(0%) of the respondents. This means that the age group 31-40

are more involved in warehouse operation and 51-60 and above 60 years are least involved in

warehouse operations as per the number of respondents sampled


Table 4.1.2 Age Distribution of Respondents

Age Group Frequency Percentage(%)


20-30 4 40
31-40 5 50
41-50 1 10
51-60 0 0
Above 60 0 0
Total 10 100
Source: Field Data 2022

Figure 4.1.2 Age Distribution of respondents.

A GRAPH SHOWING THE AGE DISTRIBUTION OF


RESPONDENTS

Above
60

51-60

41-50

31-40

20-30

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

The graph above shows that those engaged in warehouse operations are youthful, particularly in

the middle age( 20-30 and 31-40 years.)


4.1.3 EDUCATIONAL LEVEL OF RESPONDENTS

The educational level of respondents was ascertained to see if they had any formal education

based on their academic qualification. It was found out that 6 of the respondents, representing

60% of the total have graduated from some senior High School whiles 4, representing 40% of the

respondents are university graduates. None of the respondents had no formal education and none

had a masters degree.

Table 4.1.3 Educational level of respondents

Academic Qualification Frequency percentage(%)


No Formal Education 0 0
JHS 0 0
SHS 6 60
Bachelor’s Degree 4 40
Masters Degree 0 0
Total 10 100
Source: Field Data 2022

Figure 4.1.3 Educational level of respondents


A GRAPH SHOWING THE EDUCATIONAL LEVEL OF RESPONDENTS
Total

MASTERS DEGREE

FIRSTDEGREE

SHS

JHS

No formal education
0 2 4 6 8 10

Source: Field Data 2022

From the figure above it can be deduced that all respondents had some level of formal education.

60% of the respondents are SHS graduate and 40% are First Degree holders. None had a Masters

degree and none had only JHS certificate.

4.1.4 LEVEL OF EXPERIENCE IN WAREHOUSE OPERATION

The level of experience of the respondents in warehouse operations was ascertained. From the

responses gathered, 2(20%) of the respondents had between 1 to 5 years of experience in

warehouse operations. 4(40%) of the respondents had between 5-10 years of experience, 30%

had from 6-10 years of experience, 30% had 11-15 years of experience whiles 10% of the

respondents had between 16-20 years of experience. None of the respondents had over 20 years

of experience. A Visual impression of the data in the table below is given in the Figure 4.1.2

Table 4.1.4 Respondents Experience Level In warehouse operations.

Experience Frequency percentage(%)


1-5 4 20
6-10 3 40
11-15 2 20
16-20 1 10
20+ 0 10
Total 10 100

Figure 4.1.4 Respondents level of experience in warehouse operation

A GRAPH SHOWING RESPONDENTS LEVEL OF EXPERIENCE IN


WAREHOUSE OPERATION.

4
3.5
3
2.5
2
1.5
1
0.5
0
1-5 6-10 11-15 16-20 20+

Source: Field Data 2022


4.2 MOST FREQUENTLY USED WAREHOUSE MATERIAL HANDLING EQUIPMENT

To ascertain the extent to which warehouse digitization has been achieved by the respondents,

they were asked the most frequently used warehouse equipment. It turned out that 40% of the

respondents used forklift trucks in material handling more frequently. 3(30%) of the respondents

used hand trolleys more frequently whiles 2 respondents(20%) voted pallet jacks as the most

frequently used equipment and 1 (10%) of the respondent affirmed side loaders as the most

frequently employed. No respondent employed automated order pickers and conveyor belts.

Figure 4.2

FREQUENC PERCENTAG
Equipment Y E
Forklift trucks 4 40
Power trolleys 0 0
Hand trolleys 3 30
Pallet jacks 2 20
Side loaders 1 10
Conveyor belts 0 0
Automated Order pickers 0 0
Total 10 100
Source: Field Data 2022
MOST Frequently used WAREHOUSE equipment
40

30
40
35 20
30
25 10
20
15 0 0 0
4 3 2
10 1
0 0 0 Percnetage
5
0 Frequency
s ys ys ks s ts s
ck lle lle ac er el er
tru ro rt o j ad rb i ck
lift
t l et l o o rp
rk e r nd Pa
l de ey de
o w Ha Si nv r
F Po Co O
ed
at
m
to
Au

Frequency Percnetage

From the graph above it can be seen that forklift trucks are most frequently used in warehouse

material handling and automated order pickers and conveyor belts are the least frequently used.

From further probing it was found out that none of the warehouses had automated order

pickers( a breakthrough technology in order picking) at all, which proves that they are more

traditional oriented rather than digitally oriented in their material handling.

4.3 WAREHOUSE SOFTWARES USED


A very key element of warehouse digitization is the software that controls and coordinate

warehouse operations. These software include WMS, ERP, WCS. The respondents were asked

which of these software they employed in their operations. The results as tabulated below

showed that 2 warehouses corresponding to 20% of he total used WMS, 3(30%) employed ERP

and 1(10%) used WCS in their operations. 4 warehouses however did not use any of the software

above.

Table 4.3

Warehousing softwares used Freq Percentgae(%)


Warehouse Management System(WMS) 2 20
Economic Resource Planning System(ERP) 3 30
Warehouse control system(WCS) 1 10
None of the above 4 40
Total 10 100
Source : Field Data 2022

Figure 4.3

Warehouse Software employed

None of the above 4

Warehouse control system 1

Economic Resource Planning System 3

Warehouse Management System 2

0 0.5 1 1.5 2 2.5 3 3.5 4


Source : Field Data 2022

From the graph above inference can be made that ERP is the most widely used software in

warehouse management and WCS is least employed. Additionally it can also be inferred that

40% of the respondents did not use any warehouse management software at all. This is a red flag

in this era of warehouse automation.

4.4 RECOMMENDED AUTOMATED EQUIPMENT AND SYSTEMS

To ascertain the kind of equipment that in the view of the respondents will optimize warehouse

operations, the respondents were asked which type of automated equipment they will

recommended. From the responses collated as tabulated in the table 4.4 below, 5 respondents

representing 50% of the total recommended Automated Storage and Retrieval Systems (AR/RS).

3(30%) recommended Automated Guided Vehicles (AGVs). For Unmanned Aerial Vehicles

(UAV), 2 respondents representing 20% made recommendations. No respondent however

recommended Voice Directed Systems(VDS) and Collaborative Robots( Cobots). The visual

impression of this data is made given in the figure 4.4 below

Table 4.4 Recommended Automated equipment

Frequenc Percentage(
Equipment y %)
Unmanned Aerial Vehicles 2 10
Automated Guided Vehicles 3 30
Automated Storage and Retrieval Systems 5 50
Voice Directed Systems 0 0
Collaborative Robots 0 0
Source : Field Data 2022

Figure 4.4 Recommended Automated Equipment

A GRAPH SHOWING THE RECOMMENDED AU -


TOMATED EQUIPMENT(SYSTEMS)
10
9 5
6 2 3
3 0 0
0

Source: Field Data 2022.

Most of the respondents recommended AR/RS and none recommended Voice Directed systems

and Collaborative robots. When explanation was sought for this, some respondents hold that the

AR/RS when optimally used can achieve the same results that Cobots and VDS can achieve.

This is a rather controversial issue because Cobots apart from the fact that they are expensive,

can improve efficiency and productivity significantly while keeping error and safety hazards

“under the wrap.” It was quite baffling that one of the respondents who said no to Cobots

recommended drones which fall in the same category as Cobots.


4.5 RESPONDENTS’ PSYCHOLOGICAL ORIENTATION TOWARDS WAREHOUSE

DIGITIZATION.

The shift towards digitization is mostly influenced by the perception about the impact of

digitization on a number of factors such as job security, productivity and efficiency amongst

others. This is revealed by the following data

4.5.1 RESPONDENTS PERCEPTION OF DIGITIZATION IMPACT ON PROFITABILITY

Digitization cannot be achieved if one is not willing and open to incorporate it into operations.

Willingness or otherwise is predicated upon how profitable digitization is perceived to be in the

light of efficiency of operations, productivity and safety. To that end, the respondents were asked

how they think digitization impacts or will impact efficiency, productivity and health and safety.

The results are tabulated in the table below. The graphical deductions are also presented below

(see Figure 4.4.1)

Table 4.5.1 Respondents Perception of digitization impact on productivity, efficiency and

safety

Impact Frequency Percentage(%)


Positive 7 70
Negative 2 20
Zero 1 10
Total 10 100
Source: Field Data 2022
Figure 4.5.1 Respondents Perception of digitization impact on productivity, efficiency and

safety

A Bar Graph showing the Perceived Impact of digitization on


productivity, efficiency and safety
8

7
7
6

2
2
1
1
0
Positive Negative Zero

Source: Field Data 2022

From the figure above, 7 respondents amounting to 70% of the total sampled view digitization as

a positive influence on productivity, efficiency and health and safety. On the contrary,2

respondents(20%) believe digitization will influence those indicators negatively and a respondent

said she doesn’t see digitization changing the status quo. The respondents who responded in the

negative claimed that digitization comes with increased cost both fixed and variable. And it also

takes skill investment to operate. It is a good sign however that that a 70% majority see

digitization as a blessing rather than a curse.

4.5.2 RESPONDENTS PERCEPTION OF DIGITIZATION IMPACT ON JOB SECURITY


One factor that causes repulsion rather than embracing digitization is the threat of digitization on

job security. Many employees are digitization averse in the sense that they feel their jobs will be

scrapped off with advancement in technology. In line with the objectives of this study, the

respondents were asked whether they perceive warehouse digitization and automation as a threat

to job security. 6 respondents representing 60% of the total saw warehouse digitization as a

threat to job security. 40% (4 respondents) saw no threat to digitization.

Table 4.5.2 Respondents View of digitization as a threat to job security

Threat Factor Frequency Percentage (%)

Threat 6 60

No threat 4 40
Source: Field data 2022

Figure 4.5.2 Respondents View of Digitization As A Threat To Job Security


A GRAPH SHOWING RESPONDENTS VIEW OF DIGITIZATION
AS A THREAT TO JOB SECURITY

No threat

Threat

0 1 2 3 4 5 6

Source: Field Data 2022

From the graph above it can be seen that a 60% majority of the respondents perceive a threat to

their job security posed by digitization. 40% however see digitization as no threat at all. They

said (the 40%) all they need to do is to build up their skill set to follow suit. This data in the face

of their response in 4.4.1 above as to how they see digitization impacting productivity, efficiency

and safety shows that though they know digitization is positively impactful, they are not ready to

dance to the drums even though the beats are sweet.

4.6 EMPLOYEES’ SKILL READINESS TO GO DIGITAL

Warehouse digitization cannot be achieved when the requisite skill is lacking. In line with this,

the respondents were asked their skill readiness to operate digital warehousing systems. This was

to know whether they are already skilled to go digital or they need training. From the data

collected, it was revealed as shown in the table 4.6 that 50% (half) of the respondents had the
requisite skills to operate the software used in digital warehousing whiles 50% said they needed

more training. A visual impression is given in the figure 4.6 below.

Table 4.6 Employees’ Skill Readiness To Go Digital

Skill Readiness Frequency Percentage(.0%)

Already Skilled 5 50

Training Needed 5 50

Source: Field data 2022

Figure 4.6 : Employees’ Skill Readiness To Go Digital

A PIE CHART SHOWING EMPLOYEES' SKILL


READINESS TO GO DIGITAL

Already Skilled
Training Needed

50% 50%

Source: Field Data 2022.


4.7 THE CHALLENGES (CONCERNS) IN THE USAGE OF THE TRADITIONAL

WAREHOUSE MANAGEMENT SYSTEM IN LOGISTIC WAREHOUSING

In operating traditional warehouses, there are some challenges expected. To identify what the
challenges are, the respondents were asked to state the areas where their challenges bordered. The
results are tabulated in the table below. From the table, it can be realized that 20% of the respondents
stated had challenges along the lines of health and safety. Work related injuries are amongst the safety
concerns raised. 30% of the respondents identified their challenge was along the line of productivity(low
productivity). The majority(40%) identified that their challenges were along the line of efficiency. The
submitted that operations could be made more efficient with digitization. 10% of the respondents
submitted that their challenges fell along the line of inventory visibility. That is to say that their
inventory is not visible.

Table 4.7 The Challenges (Concerns) In The Usage Of The Traditional Warehouse
Management System In Logistic Warehousing

Challenge Frequency Percentage(.0%)


Product Invisibility 1 10
Health and safety hazards 2 20
Low productivity 3 30
Comparative Inefficiency 4 40
Total 10 100

Source: Field Data


A COLUMN CHART SHOWING THE CHAL-
LENGESTION IN TRADIONAL WAREHOUSING

4
3
4
2 3
2
1 1

0
li ty ds ity nc
y
bi ar tiv
is i az uc cie
In
v
tyh od effi
t e pr In
uc s af w ve
rod d Lo ra
ti
P an pa
a lth m
He Co

As seen in the figure 4.7, most of the traditional warehouses had challenges with safety and

health, productivity efficiency and inventory visibility. The problems associated with the usage

of traditional warehouse management systems may impact the speed, efficiency, and

productivity of a single warehouse activity as well as the entire chain of activities that are

connected to it. The majority of the time, these problems are discovered after the procedure has

started or even after it has been finished.

4.8 CONSTRAINTS IN ADOPTING DIGITAL TECHNOLOGY IN LOGISTICS WAREHOUSING

Part of the objectives of this research was to identify what factors constrain the adoption of

digital technology in warehousing. Per the respondents’ responses it was found out that resource

limitation or financial constraints was the most are significant challenge, chalking about 40% of

the total. The lack of skill to operate automated warehousing was yet another challenge
constituting 30% of the total. Employee and management was yet another factor identified. Some

workers and management actually felt digital technology was an extra cost and a threat to job

security, hence they were not much supportive of full automation. This constraint accounted for

20% of the whole. 10% of the respondents pointed at the lack of executive support as the

constraint. The were of the view that the executive management did not put in place strategies

and policies for the smooth incorporation of digital technology into warehousing.

Table 4.8 Constraints in adopting digital technology in logistics warehousing

Constraint Frequency Percentage(%)


Resource Limitations
4 40
The Skill gap
3 30
Employee and Management Resistance
2 20
Lack of executive support
1 10

Figure 4.8 Constraints in adopting digital technology in logistics warehousing


A TABLE SHOWING THE CONSTRAINTS IN ADOPTING DIGITAL
TECHNOLOGY IN LOGISTICS WAREHOUSING
4
3 4
2 3 2
1 1
0

Source: Field Data 2022

From the graph above, inference can be made that financial constraint constituted the most

challenge faced by warehouses in digitalization corresponding to 40% of the total. Lack of skill

or expertise to operate the warehouse software that comes with digitization amounted to 30% of

the whole, Employee and management resistance constituted 20% whiles lack of executive

support constituted 10% of the whole.

4.9 RESPONDENTS RECOMMENDATION ON TECHNOLOGICAL ADVANCEMENT IN

WAREHOUSE OPERATIONS

To adopt digitization in warehousing, a conscious effort in that direction must be made and

systems must be put in place. It was recommended by 4 of the respondents constituting 40% that

proper training in the software used in digital warehousing is needed to achieve the aim of

digitization. 5(50%) of the respondents responded that financial investment into digital

technology made be consciously made. 1 respondent(10%) recommended that there is the need
for improved maintenance to keep the systems running smoothly and a backup system in case of

system failure.

Table 4.9 Respondents Recommendation on technological advancement in warehouse

operations

Recommendation Frequency Percentage(%)

Proper Training 4 40

Financial Investment in digitization 5 50

Improved Maintenance and Back up systems 1 10


Source: Field Data 2022

Figure 4.9 Respondents Recommendation on technological advancement in warehouse

operations

Chart Title

10%
Proper Training
Financial Investment in digitization
40% Improved Maintenance nad Back up
systems

50%
CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATION

5.1 INTRODUCTION

This chapter comprises the summary of the findings, conclusion and recommendation of the

study. The findings are based on the various objectives of the research. They include the digital

trends in logistics warehousing, the challenges in traditional warehousing and the constraints in

adopting digital technology in logistics warehousing as well as the recommendations.

5.2 SUMMARY OF FINDINGS


The findings of this research indicated that modern warehouse technology impacts warehouse

technology impacts productivity and efficiency and health and safety in a positive way. Some of

the most common cutting edge technology in logistics warehousing employed generally in

warehouses around the globe includes Automated Storage and Retrieval systems (AS/RS),

Unmanned Aerial Vehicles (UAV) also known as warehouse drones, Collaborative

Robots(Cobots), Automated Guided Vehicles, conveyor belts and automated order pickers.

These have the tendency to improve productivity, efficiency, reduce human errors and ensures

overall convenience in warehouse management. Coupled with these are the software that run
these systems such as warehouse management system, warehouse control system, Economic

Resource Planning Software amongst others. However most of the warehouses have not

automated their operations, though a few of them operate some warehouse management

software.

Traditional warehouses work in a non-automated mode, with activities carried out by the

company's employees with manually controlled equipment. Forklifts, hand trolleys and pallet

jacks are amongst some of the most frequently used warehouse equipment amongst the

warehouses sampled. That is an indication that they are traditionally oriented. Most of the

respondents nevertheless were of the view that warehouse digitization would do them more harm

than good.

The study also showed that traditional warehouses have lots of constraints and challenges. The

problems associated with the usage of traditional warehouse management systems may impact

the speed, efficiency, and productivity of a single warehouse activity as well as the entire chain

of activities that are connected to it. Some of the challenges revealed are along the lines of health

and safety (work related accidents), comparably low productivity and efficiency and inventory

invisibility.

Furthermore, the study identified some constraint to adopting digital technology. They include

financial constraints, lack of the necessary skills to operate automated systems, lack of

management or executive support, psychological barriers( the fear of job insecurity created by

digitization). Some were of the view that some modern warehouse technologies like warehouse

collaborative robots would actually inflate the cost of doing business and could be substituted

with Automatic Storage and Retrieval Systems which can they can leverage to get more done.
The study also revealed the fact that most of the warehouses employees are not skill equipped to

go digital which actually made some of them to resent warehouse digitization.

5.3 CONCLUSION

There is the need to adopt digitization in warehouse logistics. Warehouse digitization comes with

both hardware and software to enhance coordination in warehousing. Some of these include

Automated Guided Vehicles, Warehouse Drones, Collaborative robots, Automated Storage and

Retrieval systems, automated order pickers and voice directed systems. These solutions address

certain aspects of warehousing such as warehouse operation, data transmission, and commodities

identification.

Warehouses around the world that employ automation have increased productivity and customer

satisfaction dramatically. Warehouse digitization has the propensity to increase productivity,

reduce health hazards or workplace accidents, increase product visibility and efficiency of

operations.

But due to financial hitches, lack of skill and executive support, and some psychological barriers,

warehouse digitization has not been fully implemented.

Some challenges associated with operating warehouse traditionally include

 comparably low productivity

 Increased Health hazards,

 Comparatively low efficiency.

 Inventory invisibility
These challenges can be dealt with by automation or digitization of operations hence it was

recommended that:

 More financial investment into warehouse digital technologies was to be made

 More training to sustain the capacity to go digital is vital

 Back-up systems and contingency plans must be put in place to deal with contingencies

which may arise by implementing warehouse digitization.

 There is the need to ensure a good maintenance culture to keep the system running

effectively for the good purpose of automation to be achieved.

The findings of the research are inline with the objectives of the study which sought to

identify the current trend in warehouse logistics, the challenges associated with traditional

warehouses and the constraints in adopting or implementing digitization in logistics

warehousing.
5.3 RECOMMENDATIONS

Digitization irrespective of whatever defenses anyone could have against it is beneficial to every

business and warehouses are no exception. The management of warehouses should look at new

policies to adopt warehouse digitization. In line with this there is the need to invest in new

warehouse technologies to scale up productivity and reduce health hazards while keeping human

errors at the minimum. As digitization cannot be achieved without the capacity to operate it,

warehouse staff need to be well trained to operate this systems. When they are trained, there will

be no more resentment towards digitization.

If at all any worker will be displaced by digitisation some form of support should be provided.

Systems should also be put in place to ensure that contingencies such as system failure and

technical faults are dealt with when they arise. This will ensure that digitization in warehouse

logistics is attained.

APPENDICES

Common questions

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Digital technologies transform traditional warehousing by shifting from static inventory holding to dynamic inventory management, aligning with e-commerce demands for quick, efficient operations. They enhance receiving, storage, picking, and shipping through real-time data access and automation, reducing manual interventions . RFID and mobile applications increase inventory visibility and staff productivity, facilitating efficient order assembly and shipment in e-commerce environments . These technologies enable seamless coordination between warehouse activities and customer demand, curbing inefficiencies associated with manual systems .

Digitization in warehousing poses a perceived threat to job security as it automates tasks traditionally done by workers, potentially reducing labor demand . However, it also offers opportunities for employees to engage in more skilled tasks, requiring further training and skill development . While 60% of respondents see digitization as a threat, others believe the key is building skills to adapt to evolving technologies . Despite fears, digitization is seen positively for productivity and safety, suggesting that job roles might change rather than diminish .

The adoption rate of warehousing technologies varies significantly across industries and regions. In developed markets, there's a higher uptake of digitization technologies like WMS, RFID, and mobile applications to enhance supply chain efficiencies, driven by the growing e-commerce demand and technological infrastructure . In contrast, regions like Sub-Saharan Africa experience slower adoption due to infrastructure deficits, regulatory challenges, and limited access to technology . Industries that rely heavily on e-commerce and have robust technology ecosystems show rapid integration, while sectors with lower tech penetration are slower in adopting these innovations . Despite these disparities, where implemented, digital technologies consistently lead to enhanced operations and competitiveness .

Implementing digital technology in warehousing, particularly through the use of Warehouse Management Systems (WMS), significantly enhances operational efficiency by optimizing inventory accuracy, providing real-time inventory data, and improving workflow management . It reduces labor-intensive processes, minimizes manual errors in shipment processing, and improves space utilization, leading to cost-effectiveness . Digital technologies like RFID enable real-time data modifications and remote management, streamlining operations and reducing costs associated with virtual goods transit .

Warehouse Management Systems (WMS) significantly enhance logistics performance by providing real-time visibility into inventory and optimizing storage and retrieval processes . They facilitate accurate demand forecasting and efficient order fulfillment by tracking inventory data, picking, receiving, and put-away operations . This transparency improves workflow management, reduces processing errors, and enhances stakeholder visibility, thereby driving productivity in logistics operations . By automating these tasks, WMS minimizing labor-intensive processes, leading to a more efficient and cost-effective logistics performance .

Traditional warehousing systems face several challenges in adopting digital technologies, including insufficient regulatory frameworks, inadequate infrastructure, and trade restrictions that hinder digital application in Sub-Saharan Africa . These issues lead to poor inventory visibility, shipment processing errors, and extensive manual paperwork . The slow adoption of technology is also due to the costs of implementation and the skills required to operate digital systems, which are lacking in many workforce segments .

A majority of respondents, 70%, view digitization as having a positive impact on productivity, efficiency, and safety within warehouse operations . They believe that digitization streamlines processes, enhances operational transparency, and reduces manual errors, thus boosting overall productivity and safety standards . Despite some concerns about implementation costs and skills requirements, the perceived benefits of increased efficiency and improved safety measures are significant motivating factors for embracing digital technologies .

The adoption of digital technologies in warehousing is influenced by the educational and age demographic of employees, as these factors affect their receptiveness and capability to handle new technologies . The majority of respondents have formal education, with 60% being high school graduates and 40% holding bachelor's degrees, suggesting a basic readiness for digital skills acquisition . The age group most engaged in operations is between 31-40 years, who are more adaptable and open to technological changes . This demographic is likely to influence the pace and effectiveness of digitization due to their educational background and age-related adeptness with technology.

Automation plays a critical role in mitigating warehousing inefficiencies by enhancing precision and speed in handling and retrieval systems . Technologies like Automated Storage and Retrieval Systems (AR/RS) and Automated Guided Vehicles (AGVs) reduce manual labor and errors, optimize space utilization, and improve throughput efficiency . By automating these processes, warehouses achieve greater operational efficiency and lower operational costs, while improving safety standards and reducing the dependency on manual labor . The reduced need for physical handling accelerates the flow of goods and increases the overall effectiveness of warehouse operations .

RFID and mobile applications significantly enhance warehouse management efficiency by providing real-time data on inventory location and status, which improves inventory accuracy and reduces manual input errors . These technologies enable centralized issue management, streamlined data capturing, and facilitate communication and collaboration among warehouse staff, leading to decreased processing times and improved workflow . Mobile applications also enhance staff productivity by optimizing their tasks and providing access to critical data on-the-go, aligning operations with modern digital demands .

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