Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 37

Chapter I

THE PROBLEM

This chapter deals with the presentation of the problem. Specifically, this

includes the introduction, background of the study, statement of the problem,

theoretical framework, conceptual framework, scope and limitations of the

study, significance of the study, and definition of terms.

Introduction

Any area of supply chain management and logistics can benefit greatly

from warehousing. Storage of tangible inventory for sale or distribution is

known as warehousing. All various kinds of businesses utilize warehouses

when they need to temporarily keep goods in large quantities before sending

them individually or in bulk to customers. Part of the transportation and

warehousing sector is the warehousing and storage subsector. The primary

activity of businesses in the Warehousing and Storage subsector is the

operation of facilities for the warehousing and storage of general

commodities, refrigerated goods, and other warehouse goods. The proper

setup of the warehouse, effective receiving of the items, proper storage of

temperature-sensitive commodities, efficient picking and packaging, and

oversight of warehouse operations are all aspects of warehousing. There are

warehouses in Batangas Province that are used by practically all business

sectors, particularly manufacturing firms, so it is inevitable that these

warehouses will have an impact on our environment and nature. According to

Fichtinger et.al (2016), Operating large and highly technological warehouses,

however, causes a significant amount of energy consumption due to lighting,


heating, cooling and air conditioning as well as fixed and mobile material

handling equipment which induces considerable carbon dioxide emissions.

Green warehousing practices are becoming increasingly important in

the Philippines, and Batangas Province is no exception. Batangas is a leader

in the field of sustainable urban development and has been awarded multiple

times for its sustainable efforts. The city enforces national environmental laws

and offers incentives for green initiatives. Batangas aims to be the first

carbon-neutral city in the Philippines by 2030 and has developed a

comprehensive climate mitigation and adaptation plan to realize this vision.

Green warehousing practices are a set of methods that aim to reduce

the environmental impact of warehouses. According to Interlake Mecalux, a

leading provider of warehouse solutions, some of the best practices for a

sustainable warehouse include maximizing energy efficiency, using

automated storage systems, storing products in the right conditions while

minimizing energy consumption, using high-density storage systems,

decreasing industrial waste ending up in landfills, bringing the warehouse

closer to the customer to reduce transportation-related emissions, performing

regular maintenance to reduce energy consumption and prolong the lifespan

of equipment, and optimizing the layout of the warehouse to minimize the total

floor space needed for products. By applying these practices, organizations

can reduce their dependence on fossil fuels, minimize waste production, and

make rational use of supplies, which can help reduce the environmental

impact of logistics activities and ensure sustainability in warehousing.


In this manner, the researchers perform this study to assess whether the

warehouses in Batangas City adhere to and follow the environmental policies

and laws in the Philippines that a business is required to follow. It is crucial

that a company abides by the environmental regulations put in place by the

government in order to achieve the level of environmental sustainability that a

region or nation should have. The researchers will also assess the extent to

which warehouses adopt environmentally friendly methods for mechanical

handling equipment, inventory management, warehouse management system

and warehouse operations.

Statement of the Problem

The study assessed the Green Warehousing Practices in Batangas

Province. Specifically, this answered the following questions:

1.What is the profile of the respondents in terms of:

1.1 Location

1.2 Size

1.3 Years in Operation

1.4 Nature in Service

2.What is the respondent’s assessment on the Green Warehousing Practices

in Batangas Province in terms of:

2.1 Warehouse Operation

2.2. Inventory Management

2.3 Warehouse Management System

2.4 Mechanical Handling Equipment


2.5 Warehouse Facility Design

2.6 Warehouse Layout

2.7 Warehouse Staff

3. Is there any significant difference on the Green Warehousing Practices in

Batangas Province when they are grouped according to profile variables?

4. What strategies may be proposed to enhance the Green Warehousing

Practices in Batangas Province?

Hypothesis of the Study

Ho. The is no significance difference between warehouse operation, inventory

management, warehouse management system, mechanical handling

equipment, warehouse facility design, warehouse layout and warehouse staff

when grouped according to profile variables.

Scope and Limitation of the Study

The primary aim of this investigation is on “Green Warehousing

Practices in Batangas City ”. The research study is confined to know the

current green warehousing practices present in Batangas Province. The study

also determines the efficiency of seven variables (Warehouse Operation,

Inventory Management, Warehouse Management System, Mechanical

Handling Equipment, Warehouse Facility Design, Warehouse Layout,

Warehouse Staff) in green warehousing practices. The respondents are the

manufacturing warehouse actively operating in Batangas Province. The


researchers used the descriptive-quantitative research design. The study was

done through the utilization of questionnaires to the respondents as a survey

and references. After data gathering, the results was tallied, tabulated, and

statistically interpreted.

One of the limitations of this study is the lack of previous research on the

subject as regarding to Green Warehousing Practices and the respondents'

possible lack of awareness of Warehousing practices.Another potential

disadvantage is that some respondents may be unable to participate in the

poll due to confidentiality concerns and availability.Researchers also

anticipated time restrictions, as all work is required to be finished in one

semester.

Significance of the Study

The researchers held a strong conviction that the endeavor of carrying out

the study is advantageous and interesting for the subsequent purposes:

This study will beneficial to BS Customs Administration Students, as

can give the students further knowledge and information on Green

Warehousing Practices and this can guide them in their future career. In

addition this study also beneficial to College of Accountancy, Business and

Management, Batangas State University,that may provide knowledge and

information as to the current practices adopted by warehouse to sustain the

environment that could be used as a future module for students learning and

development. Furthermore this study also beneficial to the Faculty of Bachelor

of Science in Customs Administration, Batangas State University, the output


of this study may serve as supplemental reference and instruction materials

for the purpose of instructing the students.Moreover this study also beneficial

to the Warehouse Companies, the findings of this study will help them assess

the Green Warehousing Practices, hence maintain sustainable warehouse

management.In addition this study also beneficial to the Present

Researchers, this study will help the present researchers to be aware

regarding Green Warehousing Practices, and likewise give them knowledge

about the topic.Lastly this study also beneficial to the Future Researchers, this

study would serve as a guide in their own research.


Chapter II

REVIEW OF LITERATURE

This chapter deals with the review of related concepts found in

previous literature. It pertained to books and articles of theories and ideas

which provide information related to the study. Likewise, this includes a

synthesis of reviewed research literature.

Conceptual Literature

The foregoing concepts are found to be essential with the present

study. These were gathered from books, journals and articles and credible

online sources.

Green Warehousing Practices

According to Talib et al., (2018) Green warehouse plays a crucial role

in shifting from the environmentally-degrading conventional approach to the

more environmentally-friendly way of logistics management. (Luu, 2016)

states that the concept of green warehousing can help reduce greenhouse

effects and global warming for better tomorrow. Green warehousing needs

components such as energy and waste management, alternative energy and

green building.

According to Feng et al. (2018), green warehousing practices

positively influence environmental performance leading to low cost of

operation, low price of goods and increased market size, sales, net profit

margin and return on investment among Chinese automobile manufacturing


firms. As supported by Zelbst et al., (2013) Green warehousing is one of the

concepts from the green logistics knowledge branch. In recent years, as an

effort to minimize logistics ecological impacts, there is a large and growing

body of literature on green logistics practices.Thus, green warehouse plays a

crucial part in shifting from the environmentally-degrading conventional

approach to the more of environmentally-friendly way of logistics management

Warehousing is one of the critical activities of in-house and outbound logistics

and distribution ,warehousing and goods handling contribute to 2–3 percent of

energy-related CO2 emissions worldwide.

Jha (2016) stated that environmental consideration could create value

for the companies and differentiate them from competitors through a good

image of the organizations as eco-friendly companies. Energy and carbon

reduction results in a sustainable supply chain and higher carbon credits.

Moreover, waste reduction through green management can improve

employees’ living conditions and productivity. If environmental protection

concept is applied into warehouse management, it will help reduce carbon

emission and cost leading to economic sustainability. According to

(Abushaikha, 2018) Warehousing activities produce enormous waste in the

supply chain, which require the adoption of practices and policies that reduce

waste to eliminate their adverse impact on the environment and human lives.

Again, warehousing activities especially, where hazardous substances are

kept pose several risks to the safety of the role of supply chain sustainability

the environment and health of the employees in situations where employees’

knowledge is limited and proper labeling practices are not adopted.

Warehousing activities such as movement of vehicles from one warehouse to


the other also increase the carbon dioxide emission in the environment. This

shows that warehousing is an area of logistics that requires serious attention

from firms undertaking supply chain sustainability projects to meet the

requirements of stakeholders and gain competitive advantage

Torabizadeh et al. (2020) suggest that green warehousing has a

positive influence on firm performance. Again, ensuring the safety and welfare

of employees and external stakeholders through social values and ethics

improve social sustainability of firms which reduces labor turnover and

recruitment cost.Green warehousing, unlike traditional warehousing,

advocates that storage facilities can do more than pollute. Evidence from

industrialized economies verified that extensive warehousing and logistics

activities pollute the environment and permeate the atmosphere with harmful

gasses.

Warehouse Operation

According to Richards (2017), A warehouse is one of the most critical

functions in a supply chain as it accounts for 20-30% of total logistics costs. A

warehouse is used for a variety of functions ranging from storage to product

distribution which includes cross-docking. Almost 70% of energy consumption

in a warehouse is due to heating, ventilation and air conditioning. Due to its

nature, warehouse operations are harmfully affecting the environment. The

notion of SWM has assured to reduce carbon emissions (Ries et al., 2016).

Thus, with the integration of both internal and external factors, SWM is

designed towards better process productivity, minimizing environmental effect

and highest social standards without compromising financial productivity.


Likewise, SWM enhances firm cost efficiency, creates a competitive

advantage and increases customer satisfaction. SWM is part of a green

building initiative and it could reduce pollution because it is designed to

reduce, reuse and recycle. Green buildings deliver benefits to the

environment by protecting the ecosystem, reducing water streams and

restoring natural resources. Similarly, SWM can reduce the usage of

electricity by using solar panels to generate electricity (Bartolini et al., 2019).

Hence, SWM is important globally because warehouses operations cause

pollution like any other building.

According to Talib et. al. (2018), due to the increasing pressure of

minimizing costs as well as lowering logistics carbon footprints, logistics

service providers (LSP) are more concerned and dedicated to improving

warehousing operations and functions. This is understandable because

warehousing infrastructures and functions are among the critical activities of

the logistics system behind transportation. Hence, the environmental impact

induced by warehousing operations has become more significant than even.

For instance, the World Economic Forum in 2016 emphasized the role of

warehouse operations emission reduction and its importance towards a more

sustainable logistics operation. Furthermore, the 2015-2020 Logistics and

Trade Facilitation Master Plan has identified warehouses as an integral

element in logistics activities. The plan further accentuates raising need to

improve the overall warehousing standards as it could potentially increase the

efficiency of cargo distribution.


In addition according to De Koster et al,. (2015) Many warehouses

have attempted innovative approaches to order receiving, storage, order

picking, and shipping to mitigate risks and to handle the challenge from

uncertainties. This has also led to a far greater complexity in warehouse

operations and the use of new warehouse systems like dynamic storage, real-

time processing, and dynamic picking where products do not have fixed slots,

orders are released dynamically, and the travel time of pickers is reduced.

Inventory Management

Inventory is one of the important factors in business activities and its

availability cannot be avoided. Inventories arise because these items cannot

be obtained instantly, but a grace period is required to obtain them.

Inventories can also be caused by asynchronous demand with the supply and

time spent to process raw materials. With the inventory, the company can

meet customer demand in a timely manner (Wahyudi, 2015). Proper inventory

system control will make it easier for companies to carry out operational

activities and maintain a smooth operation cycle of the company (Singh,

2015). According to (Wambua et al, 2015) Organizing inventory needs to be

done to avoid inefficient work and create regularity of inventory. In organizing

inventory, it is necessary to have a system of control and recording of

supplies because it will affect the production process and the company's

financial statements . The inventory control and recording system included in

it is related to the type of inventory, the amount of inventory, and the location

of inventory. In connection to Kusuma et al, (2017) Inventory control and

recording systems are part of warehousing management. The implementation


of this management is the process of managing receiving goods the

warehouse and put away goods the warehouse. This process is carried out in

a warehouse with a certain administrative record

According to Madishetti and Kibona (2013) found that a well designed

and executed inventory management contributes positively to a small or

medium-sized enterprises (SMEs) profitability. They studied the association

between inventory conversion period and profitability and the impact of

inventory management on SMEs profitability. They took a sample of 26

Tanzanian SMEs, and used the data from financial statements for the period

2006–2011. Regression analysis was adopted to determine the impact of

inventory conversion period over gross operating profit. The results cleared

out that a significant negative linear relationship occurred between inventory

conversion period and profitability. According to Edwin Sitienei and Florence

Memba (2015) conducted a study on Effect of Inventory Management on

profitability of Cement Manufacturing Companies in Kenya. The study

concluded that Gross profit margin is negatively correlated with the inventory

conversion period, Increase in sales, which denotes the firm size enriches the

firm’s inventory levels, which pushes profits upwards due to optimal inventory

levels. It is also noted that firms inventory systems must maintain appropriate

inventory levels to enhance profitability and reduce the inventory costs

associated with holding excessive stock in warehouses.

According to Panigrahi (2013) undertook an in-depth study of inventory

management practices followed by Indian cement companies and its effect on

working capital efficiency. The study also investigated the relationship


between profitability and inventory conversion days. The study, using a

sample of the top five cement companies of India over a period of 10 years

from 2001 to 2010, concluded that a considerable inverse linear relationship

existed between inventory conversion period and profitability.

According to Nyabwanga and Ojera (2012) they highlighted the

association between inventory management practices and business

performance of small scale enterprises (SSEs), in Kisii Municipality, Kisii

County, Kenya. They used a cross-sectional survey study based on a small

sample size of 79 SSEs. The study inferred that inventory comprised the

maximum portion of working capital, and improper management of working

capital was one of the major reasons for SSE failures. The empirical results

disclosed that a positive significant relationship existed between business

performance and inventory management practices with inventory budgeting

having the maximum influence on business performance ensued by shelf-

space management. The study suggested that by following effective inventory

management practices business performance can be enhanced.

Warehouse Management System

Warehouse Management System (WMS) can be defined as an activity

that includes a series of measures including organizational, technical, and

economic operations related to the storage of stock. In a narrow view, a

Warehouse Management System is a software solution that provides visibility

into a company’s entire inventory and manages supply chain fulfillment

operations from the distribution center to the store shelf (Indriyani 2020).

According to Dulebenets et al., (2022) A modern warehouse is managed by


software systems, intended to organize the work and control and administer a

set of policies and processes. Nowadays, the most advanced WMSs

automate processes by delegating labor-intensive and manual or dangerous

tasks to robots, including goods inventory and heavy cargo transfer and loads.

Economies around the world have driven various sectors such as agriculture,

construction, healthcare, manufacturing, and retail to achieve highly efficient

operations in order to increase output and meet consumer demand. To meet

these growing demands, logistics companies are constantly evolving to meet

the challenges posed by fluctuating product markets and shipping schedules.

Warehouse Management systems are used in many environments

such as products distribution centers, storage of work-in-process materials (in

manufacturing), and testing for electronic equipment. All warehouse systems

share the basics of warehousing functions such as receiving, storage, and

retrieval of the productions. Even though the philosophies behind these

applications are similar, the characteristics for each system could be varied

greatly. Warehouse Management System (WMS) will provide an increase in

accuracy, reduction in operation costs (paperwork cost, labor & supervision

cost), and a greater ability to service the customer by reducing cycle times.

WMS will not only lead in inventory reduction but also in greater storage

capacity. An increase in accuracy and efficiency of the receiving process

might lead to reduction in the level of safety stock required. WMS allows

warehouses to quickly and efficiently retrieve products right when they are

needed. Using WMS assists organizations to identify the products easily. This

will help organizations to fulfill a particular order and then direct the workflow
needed to fulfill the order in on time, which is called just in time (JIT)

(Williams, 2016).

The use of information systems for warehouse management is studied

extensively in literature. Complexity of warehouse management is indicated

among others by amount and heterogeneity of handled products, the extent of

overlap between them, amount and type of technology as well as

characteristics of associated processes. As the complexity increases it

becomes necessary to use Warehouse management systems for handling

warehouse resources and to monitor warehouse operations. The warehouses

with a high amount of processed order lines and amount of stock keeping

units will be best supported by customized software. It is difficult to update

daily operations of inventory level, locations of forklifts and stock keeping units

(SKUs) in realtime by using the bar-code-based or manual-based warehouse

management systems (Rene et al., 2014). In addition by Ramaa et al., (2015)

Warehouse Management System (WMS) is a database-based computer

application system, which is used to improve warehouse efficiency in

maintaining the accuracy of inventory data by recording every transaction in a

warehouse and acts as a system that regulates warehousing activities in the

supply chain, such as receiving stock, storing stock and managing order take

out of stock .The purpose of this system is to control the movement and

storage of inventory in a warehouse and process transactions related to

receiving, selecting, taking and shipping inventory in a warehouse.


Mechanical Handling Equipment

According to Folley (2021), the mechanical handling equipment helps

you store, move, load, and ship out your material. The choice of equipment

speeds up this process and adds to the staff’s convenience. From unloading

trucks, storing to shipping out, you must follow material\ mechanical handling

protocol. And the MHE helps you facilitate all these operations efficiently

within the warehouse.

According to Saputro, (2015), Warehouse operations are closely related

to material\mechanical handling activities. Loading, unloading, transporting

and picking material constitute a huge part of the activities. In order to handle

material properly as well as to contribute value to the material, the operator

and the environment, utilizing Mechanical Handling Equipment (MHE) is

required. The selection of proper MHEs requires great focus since its

consideration is linked to multi-criteria and multi-objective decision making

problems.

According to Melacini et. al. (2021), recently, warehouses have increased

their energy consumption figures—and consequently their share of supply

chain GHG emission—due to the real-time fulfillment requirements which calls

for a 24 h a day running and the growing power needs associated with the

extended use of information technology. The longer operating times require a

higher-intensity use of mechanical handling equipment (MHE), which has

been appointed as one of the main energy consumption areas in warehouses,

strongly contributing to the increase in GHG emissions. Mechanical handling

systems have been targeted with various initiatives aiming at achieving higher
energy efficiency for both labor-intensive warehouses and Automated Storage

and Retrieval Systems (AS/RS). Although AS/RS involve most of the energy

consumed for material handling, labor-intensive warehouses equipped with

forklift trucks still represent the majority of logistics buildings. Thus, focusing

on forklift trucks energy optimisation could represent a meaningful direction

for reducing the GHG emissions of warehousing operations. The GHG

emissions generated by forklift trucks depend on the unitary energy

consumption and on the time required to complete a process.

Lyson (2016) states that material handling should always be taken serious.

This state ment is more evident when large amounts of material is being

moved, this is because accidents can happen when large material is being

moved. This results into organisations paying compensation lawsuits.

According to Johnson (2017), stated that material handling improves the

profitability of an organisation when accidents are eliminated and/or reduced

in that, the organisation does not need to spend on the costs of accidents and

the same time attain optimum output. In the same tone, Okpara (2013) stated

that proper material handling reduces stress and effort. This is to say that,

when a proper functioning material handling system is in place, negative

factors that affect material handling would be eliminated.

Warehouse Facility Design

According to the study of Berkovic et al. (2022), the warehouse facility's

energy audit is a crucial phase in the analysis of energy efficiency. Where

continuous enhancement of energy efficiency is considered as one of the


most crucial pillars of modern energy policy and is the most effective and

efficient way to achieve sustainable development goals. Moreover, warehouse

operators can control expenses and lower energy use in their logistics system

by conducting an energy audit. As a result of the energy audit,

recommendations have been made for modifications to the way that people

work or behave as well as for the implementation of interventions and

investments that increase energy efficiency without negatively affecting

working conditions in the warehouse facility. The warehouse system operator

would be a great illustration of how investing in energy efficiency measures

has very positive benefits on budgets and the environment by implementing

and enhancing them in facilities under its jurisdiction. Enhancing the

effectiveness of energy use in warehouse facilities lowers costs, enhancing

the sector's competitiveness.

According to Daraei M. (2013), due to the fact that it accounts for a

sizable portion of the cost of logistics, warehouses have recently emerged as

one of the most crucial and important components of supply chain systems.

For the reasons that designing phase of the storage system is the most

crucial portion of warehousing where majority of strategic and tactical

decisions should be made during this phase. Companies aim to achieve high

volume production with little stocks and deliver goods to clients within short

periods of time using a well-designed logistic system in today's competitive

market setting. Therefore, in order to achieve this goal, warehouse design and

performance are of extremely high importance. Even though the significance

of warehouse design and its impact on costs are obvious, there is still no all-
encompassing, clearly defined, and widely accepted method for doing so. Due

to this, almost all warehouse designers employ a distinctive methodology.

According to Khan (2023), A warehouse facility is a large complex

designed to store and distribute goods. It may be owned by third-party logistic

providers and tailored to cater to small-scale storage needs or large-scale

distribution centers. The primary purpose of a warehouse facility is to provide

ample space for businesses to store inventory, pack, label, and ship goods.

For growing eCommerce businesses, the leading warehousing facilities in

India present a cost-effective solution for managing their inventory. By

delegating inventory management to these facilities, businesses can focus on

their core operations and remain productive and efficient.

According to Pranata (2022), Warehouse facility design involves the

process of creating an efficient layout for storing and distributing products. It is

important to consider factors such as storage capacity, product retrieval time,

and allocation of products. Multi-criteria decision making (MCDM) methods,

such as the weighted product method, can be used to determine the priority of

products for placement near inbound/outbound areas.

New warehouse facility concepts and applications have been derived in

recent years. These concepts may be similar to smart warehouses we

characterize. Boysen et al. (2019) survey relevant literature about warehouse

facility systems for e-commerce warehouses. Warehouse facility systems

need to cope with the requirements of e-commerce, including small orders,

large assortment, tight delivery schedules, and varying workloads. The

warehouse facility systems adopted e-commerce warehouses are

investigated in their review.


Warehouse Layout

Warehouse is a location used for the accumulation or storage of

products where warehouse activity has an important role to increase the

production. A significant issue can arise when raw materials are stored in

warehouses thus, planning the layout of the warehouse is necessary to

address the issue. As stated by Sudiarta et al. (2020), every business wants

to raise demands, production time efficiency, and profit margins. Because of

this, both the present systems must be improved and a new system must be

developed for the benefit of the business. A business must improve

warehouse operations in order to improve the systems. Warehouse refers to

all product and data movement inside of warehouses and distribution facilities.

It involves tasks like order selecting, receiving, storing, accumulating, sorting,

and shipping. Moreover, an efficient warehouse plan is required to maximize

warehouse operations. The primary goal of layout planning is to shorten the

distance that raw materials must travel from the warehouse to the production

area.

As per the study of Frazelle E. (2014) , creating a storage facility is

comparable to presenting a mystery, with the method involving stereotyping,

optimization, rationalization, computerization, as well as automation of

material handling. Some well strategic planning could indeed markedly

reduction, effort, counterproductive occasions, this same lot of barriers, or

even the time it takes to manage materials.

The best warehouse layout is one that makes the most of the space

while reducing the amount of time spent traveling and the number of points of

contact. During the design phase, all of the warehouse's working areas and
the space each needs should be taken into account (Richard,2015.)

According to Hassan M. (2013) revealed that setting up the layout of a

warehouse framework is difficult for a number of reasons. These include big

decisions about the building's structure and a lot of problems that are hard to

solve all at once. This extra factor looks at a number of operations (picking,

double direction, cross docking, and value-added services) and factors

(request, physical properties of things and unit loads, serving international

markets, material care, and Just-in-Time (JIT), travel time, material care cost,

and warehouse throughput). Such parts and processes should be shown in a

clear warehouse layout so that they can adapt to any changes in operations

without having to change the design.

As stated by Faber et al,. (2018), that the layout of warehouses should

be standardized to get around administrative spending limits. Other related

things that need to be thought about include security, labor, offices,

framework, correspondence, stock, and control. There should be enough

flexibility to be able to meet any requests or needs that clients or providers

have for their stock. So, the layout of a warehouse is the most important factor

in how well it works as a supply chain warehouse. By selecting the best

warehouse layout is difficult because there are so many factors that influence

the success of warehouse activities, such as dock area, rack types, rack

access, and others.

Warehouse Staff

Warehouse staff are in charge of keeping products stored in the

warehouse in a manufacturing or production environment. As stated by


Rumadhani et al. (2022), since numerous applicants do not fit the

requirements, the hiring procedure for warehouse employees might be

difficult. The issue with this is that employers still choose employees based on

their willingness to work, even when the job also demands skill sets,

education, work experience, a positive attitude toward one's job, and effective

communication.The process of choosing warehouse employees can be aided

by the use of decision support systems, such as the MOORA and ROC

techniques. The two suggested techniques by Rumadhani include helping the

business make it easier for businesses to employ warehouse staff as input

when making judgments utilizing decision support systems and obtaining a

more objective assessment as a consequence.

One of the ways an employee's performance can be improved is by the

use of tool called training, but before training is initiated it is crucial that a

training needs assessment be done. Contrary to many beliefs training can't fix

everything, and unfortunately training is sometimes done just for the sake of

training. Needs assessments are critical, they identify the potential causes of

problems, determine whether the problem can or can not be solved with

training and if it can be solved with training it will be significant in determining

the training objectives. (Lee & Nelson, 2015).

Training for warehouse staff enhances the efficiency at work of

workers, teams, and organizations by investing to increase their knowledge,

hone their skills and characteristics, and develop the right frame of mind

(Aguinis & Kraiger, 2017). It is generally agreed that investing in training is

crucial for building solid human capital where the warehouse staff are capable
of adapting to the new emerging technologies or newly implemented systems

within an organization (Conley & Kadrlik, 2013). Lacking training offers can

cause career-minded people to look somewhere else for possibilities to

advance and develop. Training can be divided into the following two types of

training: on-the-job training, off-the-job training (Sambrook, 2015).

Research Literature

The present study draws upon several relevant studies that have been

previously conducted. All of these studies were taken into consideration

during the composition of this paper. The researchers conducted a literature

review to support the objectives of their study, which focused on the green

warehousing practices.

In the most advanced stage of green implementation, a sustainable

warehouse exceeds environmental requirements and performs beyond

existing standards. The warehouse managers focus on total lifetime

emissions concerning macro level for environment and ecology. The

warehouse can self-produce energy from renewable sources such as solar

panels, winds turbines, and biomass. At this stage, the warehouse becomes a

truly green component of the sustainable supply chain. (Baker & Marchant

2015). According to Fichtinger (2015), Green warehousing practices is an

important element in the overall logistics system after transportation

services.Furthermore, scholars agreed that the practice of green warehousing

is employee centric as it regards the safety and wellbeing of workers in

warehouse environments.
As stated by Roy (2014), the function of warehouse is integral in

logistics and supply chain management (SCM), the number of warehouse

infrastructures have steadily increased over the years and such circumstance

has tremendously impacted the environment. Moreover, similar with

commercial and residential buildings, warehouse infrastructures must also

embrace a sustainability concept. The parallel approach to implement

sustainable concept is required because, like other infrastructures, warehouse

infrastructures generate pollutions too.

According to Mckinnin et al,. (2016), Green warehousing practices are

essential in transitioning from the traditional, harmful to the environment

method to the most environmentally responsible method of managing

logistics.One of the ideas from the green logistics knowledge stream is green

warehousing. There has been a significant and expanding body of literature

on green logistics methods in recent years in an effort to reduce the ecological

implications of logistics. As stated by Mulder (2013), empirically explored

warehouse of Unilever in five dimensions (lighting, water, energy, waste and

heat) for sustainable warehousing, through interview. Recently, Torabizadeh

et al.(2020) proposed 33 main performance indicators for sustainable

warehouse management divided into six dimensions: operational

performance, economy, resource, waste management,

environment/product/social agreement and appropriate use of labor. Luu

(2016) defined 6 concepts for green warehouse development in IKEA,

Finland. The concepts of green warehouse consisted of green supply chain

management, green warehouse, energy efficiency, waste management,


alternative energy source and sustainable design.Green warehousing needs

components such as energy and waste management, alternative energy and

green building

Jha (2018) stated that environmental consideration could create value

for the companies and differentiate them from competitors through a good

image of the organizations as eco-friendly companies. Energy and carbon

reduction results in sustainable supply chain and higher carbon credits.

Moreover, wastes reduction through green management can improve

employees’ living conditions and productivity. If environmental protection

concept is applied into warehouse management, it will help reduce carbon

emission and cost leading to economic sustainability. According to Wahab et

al,. (2018),Green warehouse plays a crucial role in shifting from the

environmentally-degrading conventional approach to the more of

environmentally-friendly way of logistics management.

According to Coyle et al. (2013) and Amemba et al. (2013), green

warehousing involves using minimum energy and maximizing space usage to

reduce cost and ensure efficiency to enhance economic performance.

Besides, green warehousing involves the use of pollution-free energy, which

may save firms the cost of environmental fines. Moreover, warehouses built

with high-energy performance certificates consume less energy to reduce

energy cost and advance profitability (Indrawati et al., 2018). Further, green

warehousing may eliminate the cost of pollution control through zero

production waste and emission,which may translate into improved economic


performance. Again, green activities that deal with lighting, air tightness and

thermal insulation in the warehouses ensure a reduction energy

consumption.According to Cox Graham(2010), green warehousing provides

optimal use of capacity to increase profitability. Green warehousing activities

like any other green supply chain practices are acknowledged as an efficient

and broad approach to achieving higher operational performance. As stated

by Wong et al., (2015), The use of green technologies in warehouses may

result in less waste management and improve process quality, which creates

ability for firms to respond to changes in customers’ demand leading to

improved sales and profitability.

Theoretical Framework

To provide the theoretically guided research, the researchers used a

model of sustainable warehousing practices constructive by Amjed, T. W., &

Harrison N. J (2013). The researchers used this frame work as it is necessary

for the study’s variables to ensure that the research study is well guided by

existing theories.

Warehousing is a crucial function in supply chains, accounting for 24%

of logistical costs. It involves the storage of materials at various stages of the

supply chain, including packaging, finished goods, and raw materials.

Warehouses play a wide range of functions, including product distribution,

cross-docking, and composite storage. Green warehouses, which prioritize

sustainability, are a departure from conventional methods, focusing on

environmental sustainability. These techniques can lower carbon emissions,


conserve energy, and contribute to the sustainability movement. A sustainable

warehouse benefits customers, staff, and the environment.

This theoretical framework from the study of Amjed, T. W., & Harrison

N. J. ( 2013), provides green warehousing practices as it aims is to assess

warehouse operations and their impact on the environment. The framework

provides green warehousing practices which includes seven (7) practices

which are warehouse operations, inventory management, warehouse

management system, mechanical handling equipment, warehouse facility

design, warehouse layout and warehouse staff which can be helpful to

Batangas Province warehouses to reduce costs and become more

environmentally friendly.

Warehouse operation involve daily physical activities like unloading,

receiving, storage, handling, and inventory counting. These operations are

divided into four categories: inbound, storage, picking, and outbound, to

analyze their impact on sustainability. In addition Amjed, T. W., & Harrison N.

J. ( 2013), suggest that warehouses are essential for businesses as they store
inventory and generate waste. Implementing sustainable inventory

management techniques can benefit both the company and the environment.

Furthermore, by providing better energy efficiency and/or operational

performances. As stated to the study Amjed, T. W., & Harrison N. J. ( 2013)

inventory management helps to keep an optimum level of inventory (or stock)

that could meet the fluctuating customer demand. This results in improved

revenues; reduced degradation and obsolescence; improved warehouse

utilization; and lower utility, labour and capital costs.To minimize

environmental impact in warehousing activities, adopt a material handling

strategy that reduces inbound logistic activities, such as order-picking, which

is the most laborious and costly activity in a typical warehouse, accounting for

up to 55% of total operating costs.

Moreover, for managing a best-in-class warehouse, a warehouse

management system (WMS) is essential. WMS manages not only the

oversees not only internal procedures but also the entire warehouse complex.

Thus, it might play a evaluating the facility social and environmental

performance is crucial. In addition, performance measurement and

warehouse strategy and roadmap could play important role in WHS.

In addition sustainability in warehouse facility design, focusing on

energy usage and daylight usage. Energy costs make up 5-10% of operating

costs, and it directly affects the environment and running expenses. The

placement of windows, doors, and roof openings must be carefully

considered, considering local geography and weather. As stated by De Koster

et al,. (2014), which has been cited in the study of Amjed et al,.(2013) The
warehouse layout has strong impact on warehousing costs. Layout decisions

are mainly divided into two broad categories – first is related to the placement

of departments (receiving, storage, picking, shipping etc.) and second

concerns the design of layout, paths, storage etc. Designing the layout of the

warehouse is a tactical choice.

Lastly, warehouse staff construct focuses work/life balance, shift

management, staff training and occupational health and safety. Simply put,

work-life balance is striking a balance between a person's personal and

professional lives.

The following framework will guide this study to ensure the concrete

assumption will be given. These theory is concrete and powerful guidelines to

be use as the basis and would help attain the study objectives.

Conceptual Framework

The conceptual framework provides the viewpoint of the study. The

people who have knowledge about the green warehousing practices being

observe in Batangas Province.

To present the concept of the study and the interplay of variables, an Input

Process-Output (IPO) model was used. IPO is used because this model was

one of the dominant approaches to understanding research today. The

researchers believed this would apply to the current research because it

avoids complications and simplifies the study’s flow.

The paradigm shows three boxes presenting the input, process and output.

In the first box, the inputs represent the profile of the respondents and the

green warehousing practices and significance of the two. The second box
represents the process of the data gathering. It includes the recommended

possible output,recommendation and strategies to enhance the Green

Warehousing Practices

Figure 2

Conceptual Paradigm

INPUT PROCESS OUTPUT

Company Profile:
 Location
 Size
 Years in Operation
 Nature in Service

Green warehousing
practices in Batangas Date Gathering
Province Proposed strategies
 Warehouse through Questionnaire
to enhance the
operation
 Inventory Green Warehousing
Management Data Analysis
Practices in
 Warehouse and
Management Batangas Province
system Interpretation
 Mechanical
Handling
Equipment
 Warehouse Facility
Design
 Warehouse Layout
 Warehouse Staff
Definition of Terms

The following terminologies were defined conceptually and operationally

to facilitate a more comprehensive comprehension of the research, thereby

enhancing understanding of the objectives of this paper.

Green Warehousing Practices. This means making updates that reduce the

amount of energy used, tap into sustainable energy sources and materials,

and reduce the amounts of non-recyclable waste created during warehouse

operations (Amsc-usa, 2023).

Warehouse Operation. This means the process of managing the activities

associated with receiving, storing, packing and distributing goods in a

warehouse (Extensiv, 2023).

Inventory Management. This refers to the process of ordering, storing,

using, and selling a company's inventory. This includes the management of

raw materials, components, and finished products, as well as warehousing

and processing of such items (Hayes, 2023).

Warehouse Management System. Warehouse Management System (WMS)

is a database-based computer application system, which is used to improve

warehouse efficiency in maintaining the accuracy of inventory data by

recording every transaction in a warehouse (Ramaa et al, 2012).


Mechanical Handling Equipment. This refers to machines, equipment and

other mechanical aids used to facilitate this process, such as pallet trucks,

conveyor belts and bucket elevators, which reduce the risk of injury to workers

(Axiom,2023).

Warehouse Facility Design.Warehouse design is the process of defining the

optimal warehouse size, layout and technology for a facility or operation. It

looks at the processes to determine the requirements of a new facility (i.e.

footprint, clear height, floor strength, power, yard size etc.) based on the

preferred handling technology (Boxlogic, 2018).

Warehouse Layout. This means the planned design of a warehouse to

streamline overall operations. The right layout should help to improve the flow

of production and distribution (Vasquez, 2021).

Warehouse Staff. Warehouse Staff or Worker is a professional who is an

integral part of any business that stores and processes orders or products.

They oversee receiving and processing of incoming stock, picking orders from

the warehouse stock and managing them. (Natsir,2022).


Chapter III

RESEARCH METHODOLOGY

This part discusses study design and techniques, such as sampling,

environment, subjects, instruments used to establish rigor during and after

data collection, ethical issues, and data processing.

Research Design

The study used the descriptive method as means of generating data in

Green Warehousing Practices in Batangas Province. The descriptive research

type was used to investigate the issue mentioned in the study. The objective

of the descriptive method of research was to gather, analyze, and tabulate

data regarding current circumstances, practices and beliefs, trends, and

cause and effect relationships. Furthermore, it involved the aspect of

interpretation of the relevance or meaning of the data with or without the

statistical method.

The researchers considered this particular method to be the most

appropriate because descriptive research, as explained by Siedlecki (2020),

involves the comprehensive examination and analysis of the current nature,

composition, and processes of various phenomena. The main focus is on

capturing and understanding the dominant findings and performance of

individuals, groups, or objects in the present context. Descriptive research

encompasses investigations that provide supporting evidence and insights

into the current actions and behaviors related to the phenomenon under

study.
Respondents of the Study

This was participated by the selected Warehouse Officers from the

selected Manufacturing Warehouses in Batangas Province. The researchers

used random sampling, a type of probability sampling wherein all samples are

chosen randomly. The total number of respondents are those manufacturing

warehouses and officers. The selection procedure is completed ensuring that

the well diverse respondents are represented and presents a diverse range of

the manufacturing warehouses through random sampling.

The respondents for this research are strategically selected from various

manufacturing warehouses based on the assumption that these individuals

are essential to the success of the study. These respondents can provide

significant information and have a better response rate. The study encloses a

total of 117 Manufacturing Warehouses in Batangas Province, however, only

90 participants were able to participate as respondents in the study due to

some confidentiality concerns and use of the sampling technique.

Data Gathering Instrument

The descriptive research method, utilized a survey questionnaire, the

researchers have constructed their own, as the primary instrument for

collecting sufficient data. Therefore, the necessary data for this study was

derived solely from the survey questionnaires formulated by the researchers.

The researchers had it validated and approved by the adviser, and

concerned authority. Upon approval, copies of the questionnaires were


administered to their respondents from Batangas Province that observed

Green Warehousing Practices.

The researchers created questionnaire in order to collect the necessary

data.Rest assured that all data gathered by the researchers will be totally

secret and used solely for the purposes of this research. Furthermore, all of

the information contained within the proposed study came from reliable

sources such as books, reputable websites, and the internet

Data Gathering Procedure

To obtain relevant data for the study, the researchers analyzed diverse

resources including literature and scholarly articles. The researchers analyzed

both the local and foreign sources of reference materials in the course of their

study.

Online resources were browsed to collect data pertaining to the subject

matter in the study. In addition to the primary collected data, the researchers

utilized secondary sources obtained from various resources

The preliminary draft of the questionnaire is given to the thesis

adviser for review and correction. After incorporating the adviser’s criticisms

and ideas, a final document is distributed to experts in the subject for future

feedback. Following that,the validation and checking of the questionnaire was

carried out with the assistance of the adviser and an expert in the field.

Comments and suggestions are taken into account in the final draft of the

questionnaire. Following validation,a dry run was conducted to assess the

questionnaire’s clarity and readability.


After presenting the questionnaire for approval, the researchers

created a letter of request for their respondents. The thesis experts and the

Dean of the College of Accountancy, Business, Economics, and International

Hospitality Management must sign.

For the distribution of the questionnaire, the researchers sought

permission from each respondent to distribute the questionnaire designed by

the researchers.

Statistical Treatment of Data

The data gathered were tallied, summarized and tabulated for further

interpretation and analysis. The responses are treated with the use of the

following statistical tools:

Frequently and Percentage. This was used to determine the profile of

the respondents in terms of locations, size, years in operations, and nature in

service.

Weighted Mean/Average. This was used to determine the respondent’s

assessment on Green Warehousing Practices in terms of Warehouse

Operations, Inventory Management, Warehouse Management System,

Mechanical Handling Equipment, Warehouse Facility Design, Warehouse

Layout, and Warehouse Staff.

Analysis of Variance. This was used to determine any significant

difference on the respondent’s assessment on the Green Warehousing

Practices in Batangas Province when they are grouped according to locations,

size, years in operations, and nature in service.

Ethical Consideration
This study must adhere to ethical standards when conducting research,

as it is crucial for maintaining the integrity of the field and ensuring

responsible and legal conduct. These ethical standards considerations include

obtaining proper authorization and consent of the respondents. Participants

must know the purpose, benefits, risks, and funding behind this study before

they agree or decline to join. In addition, all participants have a right to

privacy. Researchers protect their personal data even if they can’t collect data

anonymously. Researchers should secure confidentiality whenever you can

by respecting their privacy and confidentiality before agreeing or declining to

participate. Researchers follow the proper citation format by acknowledging

the author of the study to avoid plagiarism.

You might also like