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Benchmarking Warehousing and Distribution Operations: An Input-Output Approach

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  • Steven Hackman
  • Edward Frazelle
  • Paul Griffin
  • Susan Griffin
  • Dimitra Vlasta

Abstract

We developan input-output model of a warehouse system to assess operationalefficiency. Our model simultaneously accounts for all of thecritical resources (labor, space, storage and handling equipment)and the different workload requirements (broken case, full caseand pallet picking, storage and order accumulation) of a warehouse.We collected extensive data on 57 warehouse and distributionfacilities from a variety of industries, including auto parts,dental and office supplies, electronics, fine papers, hardware,health care, industrial packaging, mail order apparel, officemachines, photographic supplies, and wholesale drugs, and usedthe model to assess and compare their efficiencies. We offer3 conclusions based on a statistical analysis of the operatingefficiencies obtained from several models: Smaller warehouses tend to be more efficient than larger warehouses.Warehouses using lower levels of automation tend to be moreefficient. This association is more pronounced in small firms.Unionization is not negatively associated with efficiencyand in fact may actually contribute to higher efficiency. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Steven Hackman & Edward Frazelle & Paul Griffin & Susan Griffin & Dimitra Vlasta, 2001. "Benchmarking Warehousing and Distribution Operations: An Input-Output Approach," Journal of Productivity Analysis, Springer, vol. 16(1), pages 79-100, July.
    • Handle: RePEc:kap:jproda:v:16:y:2001:i:1:p:79-100
    DOI: 10.1023/A:1011155320454
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    References listed on IDEAS

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    1. Henry Tulkens, 2006. "On FDH Efficiency Analysis: Some Methodological Issues and Applications to Retail Banking, Courts and Urban Transit," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 311-342, Springer.
    2. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
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    Cited by:

    1. Kim, T.Y., 2018. "Improving warehouse responsiveness by job priority management," Econometric Institute Research Papers EI 2018-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Andrejić, Milan & Bojović, Nebojša & Kilibarda, Milorad, 2016. "A framework for measuring transport efficiency in distribution centers," Transport Policy, Elsevier, vol. 45(C), pages 99-106.
    3. Bhatia, Vinod & Sharma, Seema, 2024. "Trends and policy analysis: A case for sustainable transport systems in India," Transport Policy, Elsevier, vol. 153(C), pages 76-86.
    4. Garcia, Fernanda A. & Marchetta, Martin G. & Camargo, Mauricio & Morel, Laure & Forradellas, Raymundo Q., 2012. "A framework for measuring logistics performance in the wine industry," International Journal of Production Economics, Elsevier, vol. 135(1), pages 284-298.
    5. XiaoLi Zhang & Jelle de Vries & René de Koster & ChenGuang Liu, 2022. "Fast and Faultless? Quantity and Quality Feedback in Order Picking," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1536-1559, April.
    6. Hao Zhang & Jianxin You & Xuekelaiti Haiyirete & Tianyu Zhang, 2020. "Measuring Logistics Efficiency in China Considering Technology Heterogeneity and Carbon Emission through a Meta-Frontier Model," Sustainability, MDPI, vol. 12(19), pages 1-18, October.
    7. Boaz Golany & Steven Hackman & Ury Passy, 2006. "An efficiency measurement framework for multi-stage production systems," Annals of Operations Research, Springer, vol. 145(1), pages 51-68, July.
    8. Patricija Bajec & Danijela Tuljak-Suban, 2019. "An Integrated Analytic Hierarchy Process—Slack Based Measure-Data Envelopment Analysis Model for Evaluating the Efficiency of Logistics Service Providers Considering Undesirable Performance Criteria," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    9. Vidal Vieira, José Geraldo & Ramos Toso, Milton & da Silva, João Eduardo Azevedo Ramos & Cabral Ribeiro, Priscilla Cristina, 2017. "An AHP-based framework for logistics operations in distribution centres," International Journal of Production Economics, Elsevier, vol. 187(C), pages 246-259.
    10. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2010. "Research on warehouse design and performance evaluation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 203(3), pages 539-549, June.
    11. Gafner, Andreas & Loske, Dominic & Klumpp, Matthias, 2021. "Efficiency measurement of grocery retail warehouses with DEA," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 317-348, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    12. Sylvain Bouhnik & Boaz Golany & Ury Passy & Steven Hackman & Dimitra Vlatsa, 2001. "Lower Bound Restrictions on Intensities in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 16(3), pages 241-261, November.
    13. Baker, Peter & Canessa, Marco, 2009. "Warehouse design: A structured approach," European Journal of Operational Research, Elsevier, vol. 193(2), pages 425-436, March.
    14. Bhatia, Vinod & Sharma, Seema, 2021. "Expense based performance analysis and resource rationalization: Case of Indian Railways," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    15. Kim, T.Y., 2018. "Improving warehouse responsiveness by job priority management," Econometric Institute Research Papers EI2018-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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