IntroductionWarehousing management is paramount due to the increase in producers (Pourhejazy, 2020). Pourhejazy advises that warehouse management is fundamental in handling goods in the various stages in the supply chain processes. Covid-19 has increased radically changes businesses, especially the e-commerce industry (Kim, 2020). The pandemic increased demand for e-commerce products due to the increase by customers' demands. This has further caused the unprecedented need for implementation of sustainable measures and strategic considerations by the logistics companies. As such, effective warehouse practices have been adopted to reduce excess inventory and enhance operational flexibility. Pourhejazy (2020) noted that inventory management is necessary to reduce lead time and additional logistics costs. Consolidation of warehouse activities enhances organizational costs, improves supply chain performance, and increases the profitability of the business (Parilla&Abadilla, 2021). Parilla and Abadilla further contended that companies consider warehouse consolidation because they should re-evaluate their supply chains to ensure optimal performance. Warehouse consolidation improves customer satisfaction, which increases the return on investment of the firms. Warehouse consolidation eases the process of distribution, increasing their distribution capacity. Transactional Cost Economies TheoryTransaction cost economic theory is thought to be relevant for this study in order to understand the effect of Economic order quantity on performance registered distribution firms in Nairobi City County, Kenya, hence it gives a theoretical background for this study. According to Williamson (1979), who stated that optimum organizational structure minimizes the exchange costs, ensuring economic efficiency? William posited that all transactions in organizations cause coordination costs. Coordination costs are costs incurred by an organization in managing inputs and outputs. Williamson asserted that transactional costs can be reduced by reducing operational expenses by altering the governance structure of a firm. The transactional cost economics theory also suggested that transactions should be considered before making any decisions in a firm.This theory was supported by Ketokivi and Mahoney, (2020), who posited that a transactional cost economy is efficient in supply chain because it emphasizes on economic organization by enhancing governance of exchange relationships. According to Ketokivi and Mahoney, the transactional cost economics theory is the most applied theory in Supply Chain Management (SCM), especially consolidation. The authors assert that the transaction cost analysis theory emphasizes on minimizing transactional costs, which eventually improves the firm's efficiency. Transactional cost analysis theory demonstrates that businesses should adopt supply chain arrangements that improve efficiency and competitiveness. Zylbersztajn (2018) noted that the transactional cost analysis theory helps to effectively manage costs and gover...
In today's volatile and uncertain humanitarian environment, adopting a purely lean or a purely agile supply chain is not effective. Humanitarian organizations are struggling to obtain the highest possible performance from their supply chains by utilizing and adopting various supply chain designs. This is upon realization that despite the huge chunks of money pumped into humanitarian sector, stringent oversight by donors and expectations from vulnerable populations, humanitarian supply chains still respond in a sluggish, inefficient and poorly coordinated manner to emergencies. The purpose of this study was to explore the influence of supply chain responsiveness and waste management on performance of humanitarian aid organizations in Kenya. The underpinning theories and model in this study included; Decoupling Point theory; Theory of Constraints and SCOR model. Survey research design was employed for this study. The study entailed a census survey of all the 330 humanitarian aid organizations in Kenya with supply chain managers as the unit of observation. Questionnaires were used to collect primary data. Descriptive statistics and inferential statistics was used aided by SPSS version 24 to facilitate data analysis. The data was presented using a combination of statistical and graphical techniques. Trend analysis was used to spot a pattern on the sub-constructs of performance of humanitarian aid organizations for five years. The study findings revealed that supply chain responsiveness and waste management are positively associated with performance of humanitarian aid organizations. From the findings, most humanitarian aid organizations had knowingly or unknowingly partially implemented leagility design in their supply chains. The findings further showed that despite the rise in disaster resource allocation, the culture of preparedness was lacking in the country. Based on these findings and conclusions, the study recommended that to achieve and sustain an efficient and responsive supply chain, humanitarian aid organizations should design, implement and fully adopt leagility design in their humanitarian supply chains. Humanitarian aid organizations are recommended to embrace advanced technologies to improve their supply chain leagility. Donors on the other hand were encouraged to strengthen local capacity of affected communities and increase their funding on humanitarian aid operations. In addition, supply chain professionals should come up with new ways of predicting demand in a volatile, uncertain, complex and ambiguous environment learning from data from previous disasters. The study further recommends for a creation of a disaster preparedness plan that gives the way forward in times of tragedies or disasters.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.