Unveiling the Key Drivers of Warehouse Performance: A Case Study from Malaysia’s Steel Stockist and Distribution Industry

Tan Kian Boon and Azilah Anis

Information Management and Business Review, 2025, vol. 17, issue 3, 412-425

Abstract: Warehouse management performance is vital for operational efficiency, particularly in the steel stockist and distribution industry where handling large, heavy inventories presents logistical challenges. Many companies face inefficiencies that lead to higher costs, delayed deliveries, and reduced service quality. These setbacks highlight the need to identify factors driving warehouse performance. While prior studies examined warehouse components individually, limited research explores the combined effects of space utilization, inbound activities, outbound activities, and human resource management, especially in emerging markets like Malaysia. This study investigates these relationships within a leading Malaysian steel stockist and distribution company. A quantitative design was employed, with data collected via structured questionnaires from 97 employees using stratified and convenience sampling. Data were analyzed through Pearson correlation and multiple regression. Findings show all four variables positively correlate with warehouse performance; however, only outbound activities were statistically significant. Outbound logistics—picking, packing, and shipping—proved the strongest determinant of overall efficiency. While space planning, inbound flow control, and workforce optimization provide support, it is the effectiveness of outbound operations that fundamentally dictates warehouse success. The study suggests managers should prioritize outbound excellence while aligning other operational areas to reinforce this focus. Practically, this means early warehouse development should emphasize efficient shipping processes, with complementary improvements in space and workforce management. This research contributes to both academia and industry by identifying operational drivers that enhance warehouse performance, offering insights for managers seeking competitiveness in high-demand sectors.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:17:y:2025:i:3:p:412-425

DOI: 10.22610/imbr.v17i3(I).4669

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