Research on Factors Affecting Warehousing Efficiency

VTT Technical Research Centre of Finland conducted a study on warehousing in 1999-2000. The objective of the study was to examine the present state of Finnish warehouses and to create guidelines for improving warehousing. Forty-five Finnish warehouses, including wholesalers, industrial companies and contract warehouses, participated in the study. A benchmarking method developed at VTT was used in the study. The study concentrated on the following areas: warehouse efficiency (work efficiency, space utilisation, cost efficiency); warehousing costs calculated by activity-based costing method; service level; and working methods. As required by benchmarking theory, some "best practices" were also defined. The best practices include, for instance, IT solutions, tracking and control systems, working methods and an efficient warehouse. This paper concentrates on factors that have an impact on warehouse efficiency and on the possibilities of improving warehousing operations.