Effects of material handling on warehouse costs (Case study BAK Logistics)

Author

MASAWI VITALIS T

Title

Effects of material handling on warehouse costs (Case study BAK Logistics)

Abstract

Efficient material handling plays a pivotal role in warehouse operations, directly influencing
costs and overall productivity. This dissertation explores the nuanced relationship between
material handling strategies and warehouse costs, focusing on the case study of BAK Logistics.
This research will employ a mixed-method approach. Quantitative data will be collected
through an analysis of BAK Logistics’ warehouse management system data, focusing on labour
hours, inventory levels, and damage reports. Qualitative data will be gathered through
interviews with warehouse personnel, to understand their experiences with current material
handling practices and identify potential areas for improvement. Use of interviews and
questionnaires within BAK Logistics’ warehouse facilities, elucidating the current material
handling practices, challenges faced, and perceived impact on costs. These qualitative insights
are complemented by quantitative data analysis, utilizing financial records and performance
metrics to quantify the direct and indirect costs associated with material handling processes.
Through the lens of cost accounting and supply chain management theories, the dissertation
evaluates various material handling techniques employed by BAK Logistics, including manual,
mechanized, and automated systems. By examining key cost drivers such as labour, equipment
maintenance, inventory holding, and space utilization, the study aims to identify critical areas
for cost optimization.
Furthermore, the dissertation investigates the influence of technological advancements and
industry trends on material handling strategies, exploring the potential for warehouse cost
reduction. Insights derived from the case study of BAK Logistics are contextualized within the
broader landscape of warehouse management, offering valuable implications for practitioners
and researchers alike. This dissertation aims to provide valuable insights into how material
handling strategies can be optimized to minimize warehouse costs at BAK Logistics. The
research will contribute to the existing body of knowledge on warehouse logistics and supply
chain management by providing a case study-based analysis of the impact of material handling
on warehouse costs.

Date

2024

Publisher

BUSE

Keywords

material handling

warehouse costs

Supervisor

Mr Bindu