Warehouse Distribution Management Efficiency and Operational Performance: Basis for Cost Reduction Plan

Abstract

This study examined the relationship between Warehouse Distribution Management Efficiency and Operational Performance as a basis for developing a Cost Reduction Plan for a distribution company in Canlubang, Laguna. Anchored on Lean Warehousing and Total Quality Management (TQM), the study focused on key operational dimensions, including receiving, inventory management, order picking, dispatching, manpower capability, technology utilization, and policy implementation and compliance. A quantitative descriptive-correlational research design was employed. Data were analyzed using mean and standard deviation to determine efficiency and performance levels, while Mann–Whitney U test, Kruskal–Wallis H test, Spearman’s rho correlation, and regression analysis were applied due to non-normal data distribution. The findings revealed that warehouse distribution management efficiency was generally efficient (M = 3.08), with receiving process and manpower capability rated highest, while order picking efficiency obtained the lowest rating. Operational performance was also found to be effective (M = 3.00), with strong performance in SOP compliance but relatively lower inventory accuracy. Significant differences in efficiency assessments were observed when grouped according to age, length of service, and position, but not sex. A strong positive relationship (ρ = 0.789, p < 0.001) was identified between warehouse efficiency and operational performance. Regression results further indicated that order picking efficiency, technology utilization, and policy implementation and compliance were significant predictors of operational performance. These findings support the need for process optimization, enhanced inventory control, improved technology integration, and stricter policy enforcement as key inputs in the development of a Lean-based Cost Reduction Plan.