Chapter 2 - Related Literatures and Studies

Related Literatures

Foreign Literatures
“Logistics management is the planning, implementation, and control of the efficient,
effective forward and reverses flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet
customer requirements” (CSCMP 2006). Supply Chain Management (SCM) plays a
critical role in optimizing decisions of the supply chain network flow for achieving
organizational competitiveness, improving higher service levels, lowering inventory, and
supply chain costs, and reducing electronic risks (e-risks) (Khan & Vharma, 2017).
Warehouse efficiency has now turned into a center of competency or a strategic
weapon among organizations. An efficient warehouse has the ability to fulfill customer
needs quickly and increases a firm's performance (Jermsittiparsert, Sutduean, 2019).

The warehouse is part of the company's logistics system as a place to store goods (raw
materials, parts, intermediate goods, finished goods) at and between the place of origin
and destination and provide information to management about the status, conditions,
and disposition of items being stored, (Stock & Lambert, 2001). Adopting efficient and
reasonable warehouse management measures to achieve effective management and
control of materials is a key means to flexibly adjust the supply and demand of storage
materials and reduce operating costs (Lihle N. Tikwayo and Tebello N. D. Mathaba,
2023).

The Internet of Things (IoT) is the network of physical devices, vehicles, home
appliances, and other items embedded with electronics, software, sensors, actuators,
and network connectivity which enables these objects to connect and exchange data,
(Mohammed Khaleeluddin, Pratap, Vineeth, Mrs. Maheswari, 2018). To reduce the
intervention of human activities the IoT allows things to be controlled and sensed
remotely across existing network connectivity, to create opportunities to connect the
real-time world with the computer operating system, which results in the efficiency of the
system, (K.Mohanraj, S.Vijayalakshmi, N.Balaji, R.Chithrakkannan, R.Karthikeyan,
2019). Along with the increasing use of warehouses in manufacturing activities, a
system that can provide information about the warehouse is needed, (Muhamad
Fadillah, 2019).

Weighing Scale is an important thing when it comes to discussing a business. It is

necessary to choose the right weighing machine for your business or industry (Unique
Power Technologies, 2001). Accuracy is one of the most important factors in any
weighing scale especially when it comes to the Digital Weighing Scale. Inaccurate
weight measurement can lead to a faulty result. The precision of scale depends on two
major factors such as scale precision and resolution. If the weight is when weighing an
item or product repeatedly, the weighing machine should display the same weight each
time, (Unique Power Technologies, 2001). IT applications include warehouse
management systems, order management systems, quality management systems and
performance management systems (Autry et al., 2010; Patterson et al., 2004). These
systems serve as a source of competitive advantage and offer cost-effective customer
order management, reduce error-related costs through real-time performance
measurement, handling inventories, and reduce storage costs (Adebanjo and
Laosirihongthong, 2014; Autry et al., 2005Autry et al., 2010, Patterson et al., 2004).

Local Literatures
In the ever-evolving landscape of global trade and competition, the demand for
efficient logistics systems continues to escalate. As Nicolas (2018) suggests, the surge
in trade and globalization necessitates a robust infrastructure for the seamless shipment
of goods and services. Central to this infrastructure are warehouses, as emphasized by
Duque et al. (2016). Acting as crucial role in the supply chain, warehouses facilitate the
smooth flow of commodities by handling their reception, storage, and distribution. They
serve as crucial buffers, ensuring equilibrium between supply and demand for consumer
goods. Even in the face of disruptions, the logistics industry in the Philippines has
demonstrated resilience and adaptability. Bolido (2022) highlights how innovation,
flexibility, and technology have enabled the industry to overcome challenges and
efficiently deliver products to their destinations, wherever they may be required.
Moreover, technological advancements continue to enhance various aspects of
logistics. Querikiol and Taboada (2018) present a noteworthy example with their
development of a device for monitoring the weight reduction of dried mango wastes
during the drying process. This innovation, incorporating wireless weighing scales and
microcontrollers, exemplifies the role of technology in optimizing logistics operations
and minimizing waste.

The process of product weighing holds significant importance in various industries

such as food processing, pharmacology, chemistry, and technology. The need to
accurately measure the weight of items continues to grow as the types and quantities of
products requiring weight control increase (Renren Alberto).

In 2018, the Philippines' food processing sector contributed approximately 713.52 billion
Philippine pesos to the economic value, representing around 20% of the GDP. This
sector encompasses all major areas of food and beverage processing, with raw
materials and ingredients being direct import goods. The efficiency of this market relies
on specific weighing scales to enhance financial costs, storage, transportation, and
packaging (Camaweigh, 2019). Improvements in the government's infrastructure
programs, as outlined in the Philippines Development Plan, are expected to have a
positive effect on logistics demand. This will necessitate investments in emerging digital
technologies by logistics and transportation firms, including automated logistics, real-
time monitoring, automation, and robotics (Camaweigh, 2019).

The Department of Trade and Industry Philippines (2018) identifies cost, time, and
reliability as the three primary components of logistics performance. Reliability plays a
crucial role as it directly impacts cost and can lead to additional expenses for suppliers
or customers. Therefore, enhancing reliability is essential to mitigate cost-related
challenges. Effective inventory management is vital to ensure that inventory levels are
sufficient to meet demand without overstocking (Jaime Vega Bautista Jr, Michael Nayat
Young, 2022).
According to Market Research Philippines (2020), reliance on manual distribution
techniques in the country leads to longer lead times and an ineffective flow of products.
This traditional approach may hinder industry growth as operational demands increase.

Mioten (2023) emphasizes the critical role of productive and efficient logistics and
transportation systems in facilitating trade, connecting people, and driving economic
progress. Customer satisfaction in this context is influenced by factors such as the
quality and quantity of goods and services, customer experience, and value for money
(Joy Rabo, Michelle Ang, 2018). The enhancement of infrastructure in warehousing,
logistics, and transportation contributes to increased sales of weighing scales for
companies (Camaweigh, 2019).

Corpuz (2020) has developed a weight monitoring system that utilizes the Arduino Uno
and transmitter to transmit weight data to the system. This innovation demonstrates the
potential of using new technologies to improve productivity and efficiency in weight
measurement processes.

Related Studies

Foreign Studies
Wedha, B. Y., Haryono, A., & Wedha, A. B. P. B. (2022) discuss the ongoing
relevance of manual weight measurement systems. Despite the surge in technological
advancements, traditional scales remain indispensable in scenarios where automated
systems are either impractical or unavailable. These manual systems not only provide a
cost-effective solution but are also crucial for calibrating more advanced, IoT-enabled
scales, ensuring accuracy across various contexts.

Liang, C. (2013) advances the conversation by highlighting the benefits of integrating

automated functionalities into warehouse management systems. Automated systems
enhance efficiency, accuracy, and consistency in inventory management, which are
essential for maintaining competitiveness in the logistics sector. This shift towards
automation represents a significant improvement over traditional methods, addressing
the limitations of manual weighing and counting in dynamic warehouse environments.

Budoyo, Y. D. S., & Andriana, A. D. (2017) explore the application of IoT-enabled digital
scales, specifically in the agricultural sector, illustrating their transformative impact on
optimizing practices and boosting productivity. This discussion provides a valuable
parallel to logistics, suggesting that similar IoT advancements could significantly
enhance product weight measurement and overall efficiency in logistic warehouses.

Mridha, M. T. (2022) focuses specifically on the advantages of IoT-based Warehouse

Management Systems (WMS). The incorporation of IoT technology not only improves
product identification and inventory control but also enhances overall productivity within
warehouses. The emphasis on IoT-enabled weighing scales underlines their potential to
refine weight measurement accuracy and streamline operational workflows,
demonstrating a clear evolution from Liang’s discussion on automated systems.

Torabizadeh, M., Yusof, N. M., Ma’aram, A., & Shaharoun, A. M. (2020) further expand
on this technological progression by introducing the concept of sustainable warehouse
management. They advocate for a triple-bottom-line approach that considers economic,
social, and environmental factors. This holistic perspective emphasizes sustainability
not merely as an ethical choice but as a strategic one that enhances operational
efficiency, profitability, and human well-being in warehouse management.

Warehouse operations lay the foundation for organizational performance by

focusing on inventory management, logistical efficiency, space utilization, and
production support. In a competitive manufacturing market, efficient warehouse
operations are critical components of the supply chain ecosystem, supporting the
reliability of production processes. Recognizing the larger implications of warehouse
operations allows firms to embrace technological innovations like IoT-enabled weighing
scales to improve operational efficiency and create long-term success in an increasingly
competitive market (Fernando, A., Mirando, U., & Perera, D., 2021). Warehouse
management is essential for business operations as it ensures efficient storage,
management, and distribution of items to satisfy customer demand. Optimizing
inventory management, speeding up order fulfillment, and maximizing logistics
efficiency contribute to boosting customer happiness, increasing competitiveness, and
ultimately leading to business success (Hanafi, A., Kamaruddin, N. S., Salehuddin, N.,
& Ibrahim, S., 2023).

A Warehouse Management System (WMS) plays a vital role in the overall supply
chain process, optimizing warehouse operations, maintaining inventory accuracy,
maximizing resource utilization, and improving order fulfillment. Recent technological
advances have made WMS an essential tool for simplifying warehouse operations and
remaining competitive. When combined with low-cost IoT-enabled weighing scales, a
WMS optimizes operations, ensures inventory accuracy, increases resource utilization,
and enhances customer satisfaction, thereby contributing to achieving operational
excellence and sustainability in logistic warehouses (Yener, F., & Yazğan, H. R., 2019).

Analog weighing machines, commonly used in warehouses, are often not very
accurate and convenient to read. There is an increasing need for digital weighing
machines with enhanced precision, readability, and use, especially in areas where
accurate weight measurements are crucial for quality control, safety, or regulatory
compliance. The limits of analog weighing devices highlight the increasing demand for
digital alternatives in logistic warehouses. The use of low-cost IoT-enabled weighing
scales presents significant potential to improve product weight measurement accuracy,
efficiency, and dependability in these situations, thereby contributing to improved
operations, compliance, and overall performance in modern warehouse management
(Fagbemi, A., Momoh, M., & Akpootu, D., 2014).

The development of a model for warehouse performance measurement aims to

optimize operations, increase productivity, and ultimately deliver better outcomes for
organizations. This systematic approach for measuring performance, evaluating current
performance levels, and identifying areas for improvement in warehouse management
is crucial for enhancing inventory accuracy, delivery time, and overall efficiency.
Identifying areas for improvement could aid in the development of accurate and efficient
weighing scales for warehouse operations, thereby contributing to improving overall
efficiency in warehouse management (Indrawati, S., Miranda, S., & Pratama, A. B.,
2018).

Local Studies
The Internet of Things (IoT) has revolutionized logistics in the Philippines by
enabling real-time data collection and sharing, leading to increased efficiency and
valuable insights. This technology has the potential to transform the manufacturing and
logistics sectors as part of the Industry 4.0 plans laid out by the Philippine government.
The Internet of Things, ranked by Filipino youth as the most impactful technology on
their lives (IoT News), has revolutionized logistics through its capacity for real-time data
collection and sharing. This technological leap is integral to the Industry 4.0 initiative by
the Philippine government, aiming to modernize the manufacturing and logistics sectors.
IoT technology not only facilitates job execution within these sectors but also enhances
customer service by ensuring timely and accurate delivery of goods.

Gyoji A. et al. (2022) emphasized the significant impact of IoT on logistics

warehouses in the Philippines. The IoT has enabled real-time data collection and
sharing, thus improving efficiency and providing valuable insights. Amidst this
technological evolution, warehouses continue to serve as critical hubs within the supply
chain. According to Angelita M. et al. (2015), warehouses manage various stages of
sourcing, production, and distribution. They are essential for storing inventory, handling
raw materials, manufacturing components, and organizing finished products. By
centralizing functions such as receiving, inspecting, and coordinating shipments,
warehouses ensure a streamlined flow of goods from suppliers to consumers.

Warehouses, which account for 20% of total logistics costs, are essential for
supply chain efficiency. In today's competitive global business environment, minimizing
warehousing costs is crucial for return on assets. Automating key functions can
increase throughput and inventory turns (Robimarl B. T. et al.,2021). The warehouse
offers flexible storage and delivery services, responding to the needs of client
companies (Felicia Rezanne R. et al., 2023). Effective management of these
warehouses is crucial, as highlighted by a 2018 report from the Department of Trade
and Industry (DTI). The report outlines the significant logistics cost issues primarily
affecting users, stressing the need for a strong logistics system to manage inventory
and warehouse operations efficiently. Without an efficient system, businesses risk
delays in order processing, potentially leading to customer dissatisfaction and loss of
sales. Ineffective warehouse management can also lead to inventory imbalances—
either shortages or excess stock—both of which negatively impact a company's bottom
line.

Stephanie B. et al. highlighted the importance of accurate weight measurements in

warehouses, especially in the context of supply chain efficiency and customer
satisfaction. Warehouses play a pivotal role in the supply chain, ensuring a balance in
supply and demand for customers. Inaccurate measurements can lead to increased
shipping costs, inefficient use of storage space, and potential customer dissatisfaction
due to discrepancies in the weights billed. Satur Dorado A. and Marvin I. (2021)
suggested that IoT can be utilized to tackle the problems of inaccurate weight
measurements and facilitate a smoother shift towards a more automated and efficient
Supply Chain 4.0 system. This aligns with the emphasis placed by previous studies on
the importance of accurate weight measurement in logistics, as well as the impact of
inaccurate measurements on shipping costs, storage space utilization, and inventory
management.

Researchers such as Raven Marie F. et al. (2024) are exploring the potential of
developing innovative weighing scales that can connect to the internet and
automatically transmit weight data to computers. This technology has the potential to
save warehouses time and money while ensuring accurate measurements for enhanced
operational efficiency. The study aims to improve product measurement by developing a
reliable, efficient, and cost-effective IoT weighing scale for logistics warehouses that can
accurately measure product weight and record IoT-based data. The integration of IoT in
logistics warehouses has the potential to revolutionize operations, improve efficiency,
and address key challenges related to accurate weight measurements, supply chain
efficiency, and customer satisfaction.
Synthesis
The literature review encompasses a comprehensive understanding of the
significance of warehouse management, weighing scales, and the integration of IoT
technology in logistics or supply chain operations. Both foreign and local studies
converge on the significant role of accurate weight measurement and efficient
warehouse operations

Both local and foreign studies emphasize the significant role of warehouse operations in
the overall supply chain ecosystem. Efficient warehouse management is vital for
inventory control, logistics efficiency, and customer satisfaction. The need for accurate
weight measurement using advanced weighing scales is extensively highlighted,
especially in the context of reducing shipping costs, optimizing storage space, and
ensuring compliance with quality standards.

The integration of IoT technology in warehouse management is recognized as a

transformative force, enabling real-time data collection, sharing, and automation. This
technology has the potential to revolutionize operations, improve efficiency, and
address challenges related to accurate weight measurements and supply chain
optimization. The potential impact of IoT on logistics warehouses in the Philippines is
underscored, with an emphasis on its ability to enhance operational efficiency, provide
valuable insights, and support Industry 4.0 initiatives laid out by the government.

Foreign studies stress the multidimensional concept of sustainable warehouse

management, considering economic, social, and environmental factors. This underlines
the importance of embracing sustainability principles for operational efficiency and long-
term success. The benefits of adopting advanced technologies, such as IoT-enabled
weighing scales, are highlighted in both local and foreign studies. The potential for
these technologies to improve accuracy, efficiency, and dependability in warehouse
management is a common theme across the literature.

The literature demonstrates a collective interest in innovative developments, such

as IoT-enabled weighing scales that can automatically transmit weight data to
computers. Such technological advancements have the potential to enhance
operational efficiency, save time and money, and ensure accurate measurements in
logistics warehouses.

The synthesis of the foreign and local related literature underscores the critical
importance of accurate weight measurement, efficient warehouse management, and the
integration of IoT technology in driving operational excellence, supply chain
optimization, and customer satisfaction in the logistics or supply chain industry. These
findings provide valuable insights for the development of innovative and sustainable
solutions in warehouse operations and logistics management.

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