Empirical Evidence on Failure Factors of Warehouse Productivity in Malaysian Logistic Service Sector

Abstract

ABSTRACT Warehousing is a crucial industry for trade-dependent nations like Malaysia. According to the World Bank Logistic Performance Index (LPI) 2016, Malaysia was ranked number 32 out of 160 countries in 2016, as against number 25 in 2014, despite a high level of warehouse activity during that year. The decrease in ranking was due to low warehouse productivity in Malaysia. Therefore, the objective of this paper is to consider ten parameters to assess the failure factors of warehouse productivity in the Malaysian logistics service sector, by applying a fuzzy analytic hierarchy process method. The findings highlighted the top three failure factors that influence the levels of warehouse productivity in the Malaysian logistics service sector as being ‘labour productivity’, ‘warehouse utilisation’ and ‘inventory space utilisation’. This study contributes to the empowerment of warehouse productivity in the industry, in alignment with Malaysia's aspirational 2020 economic target. Consequently, this study provides new knowledge on warehouse productivity issues that will benefit decision makers in the warehouse industry. This research may enable decision makers to recognise problematic factors when planning their warehouse productivity improvement strategy, which may contribute to fulfilling government targets and empowering the national economy.

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