Benchmarking Warehousing and Distribution Operations: An Input-Output Approach

Authors: Hackman S.T.¹; Frazelle E.H.²; Griffin P.M.¹; Griffin S.O.³; Vlasta D.A.⁴

Source: Journal of Productivity Analysis, Volume 16, Number 1, July 2001 , pp. 79-100(22)

Publisher: Springer

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Abstract:

We develop an input-output model of a warehouse system to assess operational efficiency. Our model simultaneously accounts for all of the critical resources (labor, space, storage and handling equipment) and the different workload requirements (broken case, full case and pallet picking, storage and order accumulation) of a warehouse. We collected extensive data on 57 warehouse and distribution facilities from a variety of industries, including auto parts, dental and office supplies, electronics, fine papers, hardware, health care, industrial packaging, mail order apparel, office machines, photographic supplies, and wholesale drugs, and used the model to assess and compare their efficiencies. We offer 3 conclusions based on a statistical analysis of the operating efficiencies obtained from several models: Smaller warehouses tend to be more efficient than larger warehouses. Warehouses using lower levels of automation tend to be more efficient. This association is more pronounced in small firms. Unionization is not negatively associated with efficiency and in fact may actually contribute to higher efficiency.

Keywords: Efficiency analysis; data envelopment analysis; benchmarking

Language: English

Document Type: Regular paper

Affiliations: 1: School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205 2: Logistics Resources International, Inc., Atlanta, Georgia 30326 3: Centers for Disease Control and Prevention, Atlanta, Georgia 30341-3717 4: Experian, Inc., Atlanta, Georgia

Publication date: 2001-07-01