CHAPTER ONE

1. INTRODUCTION

1.1. BACKGROUND OF THE STUDY.

In the present day’s market scenarios of explosion of choice due to cut threat compactions, no
company can bear a stock out situation as a larger number of alternative products where
available with additional features. Furthermore, there was no cut and dried means of which one
can determine the demand exactly. When a firm needs an inventory, it must be stored in a way
that the physical attributes inventory items can be preserved as well as protected. Thus
inventory produces the need for warehousing. Traditionally, a warehouse was typically viewed
as a place where inventory items were stored. However, in logistics and supply chain
perspective. The role of the warehouse was more as a switching facility and less as a storage
facility.
(Bower ox, 1996; 196)
Warehouse is where the goods owns for keeping and storing goods (raw materials, semi-
finished and finished) and providing other related services the goods in as scientific and
systematic manner for the maintenance or their original value, quality and usefulness.
Warehouses may be the company for its own purpose (Agrawal, 2005;215).
In brief these studies would attempt to study an assessment of warehousing in the organization
of water supply.

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1.2. BACK GROUND OF THE ORGANIZATION.
Hawassa city is the regional capital of SNNPR. Beyond that, is center for social, political and
economical activities and rapidly expanding due to many factors like rural urban migration and
other effects. These factors lead to the responsibility for the rapid increase of population,
expansion of educational institutions and government offices within the city. Now a day, lack
of sufficient water supply became the major problem of this town.
Hawassa Town water supply service enterprises was established in 1975 E.C and currently, the
organization has 286 permanent employees and out of those, 44 are females and the rest of 242
are males. The existing water supply system of the town is inadequate to meet the demand of
rapidly growing population and the distribution network systems of the water do not cover
fringed areas of the town and also the online users forcing utility operators to adopt distribution
of water through shifting and zoning.
Expansion of the town rapid population growth and establishment governmental and private
institutions have made great burden for the existing water supply system. To avoid this existing
serious problem of water shortage; searching and identifying for different sources, designing
new structure, transmission of pipe line distribution network and further construction and
installation are inevitable measures to be taken.
Hawassa water supply service is an autonomous public organization responsible for the
provision of water supply in Hawassa town. The water supply service has been organized and
restructured on the basic principle of Autonomous management and financial self-sufficiency
under a supervisory water board. Structures provide a useful frame to organize the work flow
however, to ensure that the work objectives are achieved, supportive processes like human
resources development systems need to put in place.
Human resources is one of the most important factor that determine whether or not the
objective of an organization will be achieved. This is particularly the case in the water sector,
where there is an enormous backlog of service provision in urban and rural areas. This can be
improved only through strength ended activities of the Hawassa water supply service,
especially through motivational efforts of the staffs. To this end, the training and development
of staffs at different levels is a critical factor for institutional capacity building. This was taken
from written documents of the organization Hawassa water supply.

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 1.3. Statement of the problem
Warehousing was the most common practice in most organizations. The same also is true in
water supply Hawassa branch, these was an activity of warehousing which enables to control
the materials which are important to the sector. Even though Hawassa water and services
enterprise has the office of which is warehousing faces different related problems such as
shortage of skilled man power, unfaith full provider of materials and poor understanding on the
quality of materials. As a result of those, researcher motivated to conduct research on
warehousing activity in Hawassa Town water supply and service enterprises.( The problems
being identified specifically are;(1) Poor understanding on the quality of materials.(2) Shortage
of skilled man power )

Research questions
 What were the challenges related with warehousing activity?
 Those over all warehousing activities satisfactory for the organization?
 What measurements were taken by the organization to improve shortage of skilled man power?
 What improvements were the organization has taken to make good understanding on the
quality of materials?

1.4. Objectives of the study

1.4.1. General objective
General objective of the studies was an assessment of warehousing activity in Hawassa water
supply and service enterprise.

1.4.2. Specific objectives

Specific objectives of this study are;
 To identify the problems deals with the warehousing activity in the organization.
 To find out the overall activity of warehousing in the organization
 To investigate the measurement that was taken by the organization to improve the shortage of
skilled man power.
 To understand the role and responsibility the organization was taken to make good
understanding on the quality of materials.

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 1.5. Significance of the study

Those studies would have the following significances;

 These papers would be used as a reference material for further study in the future on the
same area.
 It would create awareness about the problem of warehousing for the workers.
 The studies would develop an experience for the researcher in areas such as research
technique and report writing.

1.6. Scope of the study

Those studies would geographically been limited to Hawassa town specifically water supply
and only covers an assessment of warehousing activity of the organization.

1.7. Limitations of the study

To accomplish those particular studies the researcher would have faced the following
limitations.
 Shortage of experience towards the researcher
 Financial problem (money constraint)
 Unwillingness of the respondents
 Shortage of time
 Unfaithful of the respondents

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 1.8. Functions of warehousing

The functions of warehousing can be properly discussed in the two heads namely.

1.8.1 Economic functions

Those category of function was directly related to the logistical costs i.e. trade off between
various elements of logistical costs for instance. Generally the addition of one more
distribution ware house results in to increase in the ware housing and inventory costs but these
may be a decrease in the overall logistics’ cost due to reduction in the transportation costs and
increase in the customer level, resulting in to an increase in the volume of sales.

Briefly stating economic functions of ware housing are related with

 Consolidation
 Break –bulk
 Stock piling
 Value added services.

1.8.2 Operational function

Operational functions of ware housing include
 Receiving of goods
 Up to date recording of goods
 Protecting and preserving the physical attributes of the produce.
 Proper handling of goods
 Marketing intelligence (Agrawal)

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 CHAPTER TWO

2. RELATED LITERATURE REVIEW

2.1 The concept of warehousing

Warehouse is an essential limb of an industrial unit. It is the depository of all materials required by
the industrial unit and supplies materials as and when required. Different types of materials are
required for different operations in a production unit.
Warehouse is ago down or storage space a firm storage or holds raw materials, semi-finished good or
the finished goods, for different periods in time. It helps to create time utility for raw materials,
industrial goods and finished products. The basic nature of raw materials, parts and finished goods
flows through and between vast networks of facilities makes warehousing a labor intensive process.
Productivity has been an issue in warehousing.
Warehousing has incorporates many different aspects of logistics operations. Because of many types
of warehouse, the presentation does not fit the neat classification schemes used in areas such as order
management, Inventory and transportation.
Warehouse are traditionally been viewed as place to hold or store inventory. However, in
contemporary logistical systems, warehouse functionality is more properly viewed as mixing
inventory assortments to meet customer requirements.
(Donald I. Bowers OX. David J. Coss. M.Bix by Cooper 2010)
Warehousing has a much care needs to be taken over the design of the operating system within the
warehouse. It is vitally important to consider each of the different activities that are taking place.

Typically these are:-

Unloading and relieving goods

Putting away in the bulk storage area

 Transfer from bulk storage to order picking section

 _Order picking
 _Checking
 _Packing
 _Assembly of orders
 _Dispatch

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 2.2 Benefits of warehousing
2.2.1 Economic benefits
Economic benefits of warehousing occur when overall logistics costs are reduced for example: if
adding a warehouse in a logistical system reduces over all transportation cost by an amount greater
than required investment and operational cost, then total cost will be reduced. When total cost
reductions are achievable, the warehouse is economically justified. There are four basic economic
benefits.
These are;
1. Consolidation and break bulk
2. Sorting
3. Seasonal storage
4. Reverse logistics.
1. 1/Consolidation and break-bulk
The economic benefit of consolidation and break bulk are to reduce transportation cost by using
warehouse capacity to group shipment.
In consolidation, the warehouse receives materials from a number of sources that are combined in
exact quantities in to a large single shipment to a specific destination.
The benefit of consolidation are the realization of the lowest possible freight rate, firmly and
controlled delivery, and reduce congestion at a customer’s receiving dock. The warehouse enables
both the
In bound movement from original and the out bound movement to transportation charges per unit
destination to be consolidated in to large size shipments, which generally results in lower
transportation charges per unit and most often quicker delivery.

Break-bulk operation receives a single large shipment and arranges for delivery to multiple
destinations. Economy of scale is achieved by transporting the larger consolidated shipment the
break bulk ware house or terminal sorts or splits out individual orders and arranges local delivery.
2/Sorting
The basic benefit of sorting is to reconfigure freight as it flown from origin to destination. There are
three types of assortment; - cross- docking, mixing and assembly are widely performed in logistical
system.

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Cross-docking; - is to combine inventory from multiple origins in to a prospected assortment for a
specific customer. Retailers make extensive use of cross dock operations to replenish fast-moving
store inventories, cross-docking requires precise on time delivery from each manufacture. As product
is received and unloaded at the warehouse it is sorted by destination. In most instances, the customer
has communicated precise volume requirement of each product for each destination. The
manufactures, in turn, may have sorted, loaded, and labeled the appropriate quantity by destination.
Product is then literally moved across the dock from receiving in to a truck dedicated to the delivery
destination. Once tracks are loaded with mixed product from multiple manufactures, they are
released for transportation to destination. The high degree of precision required for effective cross-
docking makes success full operation highly depending on information technology.

Mixing:-is usually performed at an intermediate location between shipment origin and destination.
In atypically mixing operation, carloads or truck loads of products are shipped from origin to mixing
ware houses. These in bound shipments are planned to minimize in bound transportation cost. Up on
arrival at the mixing warehouse shipment are un loaded and sorted in to the combination desired by
each customer in transit mixing has been traditionally supported by special transportation rate that
provide financial incentives to facilitate the process. (Donald 2011.)
Assembly: - is to support manufacturing operations products and components are assembled from a
variety of second tier suppliers by a warehouse, often referred to as lead supplies or tier one supplier,
located in close proximity to the manufacturing plant. It has become common to utilize value added
services performed by a lead or tier one supplier or an integrated service provider (15p) to sort
sequence and deliver components when needed in manufacturing.
3/Seasonal storage
The direct economic benefit of storage is to accommodate seasonal production or demand. Lawn
furniture and toys are typically produced year round but are sold only during a very short market
period. In contrasts, agricultural products are harvested at specific times, with subsequent
consumption occurring throughout the year. Both situations require inventory storage to support
marketing efforts.
Storage provides an inventory buffer which allows production efficiencies within the constraints
imposed by material sources and consumers.

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 4/Reverse logistics processing
A great deal of the physical work related to reveres logistics is performed at warehouses and it
includes the activities to support;
 -Returns management
 _Remanufacturing and repair
 _Remarketing
 _Recycling
 _Disposal
 Return managements is designed to facilitate the reverse flow of product that did not sell or to
accommodate recalls. Remanufacturing and repair facilitate the reverse flow of product following its
use full life. (Donald J, Bowers 2011)

The products itself or components are then up dated for sale at a disconnected price. Many computer
and electronics manufactures use remanufacturing to then hence their profits offer initial leases are
over. Remarkets use coordination and reverse flow to position and resell product when the original
user no longer needs it. Recycling returns products following its use full life with the objective of
decomposing it to its component materials is so that they can be effectively reused. Metals, plastics
and precious commodities are often the focus of recycling activities reverse logistics is concerned
with both controlled and regular inventory.

Controlled inventory consists of hazardous materials and product recalls that have potential
consumer health or environmental consolidation. The reclamation of controlled inventory must be
performance under strict operating scrutiny that prevents improper disposal. As one might expect,
variety governmental agencies, such as the consumer product safety commission department of
transportation, environmental protection agencies food and drug administration and occupational
safety and health administration are directly involved in deposal of controlled inventory.

It is far more challenging for controlling inventory in both return situations, product flow lack the
orderly process characteristics of out bound movement. Reverse movement of case and pallets.

Packages are often broken and product is not packs aged correctly return products typically require
significant manual sortation and inspection to determine appropriate disposal. However the
opportunity to recover cost by reimbursement and recycling is significant. (Donald J. Bowers OX,
2010)

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 2.2.2.Service benefits

Warehouses can provide services that enable top-line revenue growth when a ware house is primary
justified on service, the supporting rationale is that sales improvement will more than offset added
cost. It is difficult assignments to quantity service return on investment because it’s hard to measure.
For example establishing a ware house to service specific market mat may increase cost but should
also increase market sales revenue, and potentially gross margin ware house can provide service as a
result of :-

.Spot-stocking

.Full line stocking

 .Value added services

 Spot-stocking; is typically used to support customer accommodation. It is a local market ware house
in anticipation of responding customer need during the critical sales period. It allows inventories to
be placed in a Varity of markets adjacent to key customers just prior to a maximum period of
seasonal sales. Agricultural fertilizer companies sometimes spot-stocking near farmers in
anticipation of the grow thing season. After the growing season, such spot-stocking would likely be
reduced or eliminated.
 Full line stocking; the traditional use of ware houses by manufactures, wholes sealers, and retailers
is to stock product inventory combinations in anticipation of customer orders typically retailer and
whole sales provide assortments representing multiple products from different manufactures in
effect. These ware houses can provide one stop shopping capability for goods from multiple
manufactures. The difference between spot-stocking and full line stocking is the degree and duration
of warehouse utilization.(M. Bix by Cooper, 2010).

2.3.Function of warehousing

A store or warehouse these two words are used interchangeable in this static unit in the material and
product pipeline, necessary to mach products in a faming sense with consumers, for storage of
products-many consider ware houses a necessary evil that add costs to the distribution process
however; in the broader in to assortments desired by customers.

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 The typical ware house receives merchandise by railroad car or truck. The items are moved to
storage area within the ware house and piled in stacks when customer orders are received products
are handpicked for placed on wagons and transported to the shipping area where the merchandise is
assembled and loaded on to desirers truck the description of the operations of a traditional ware
house also explain the reasons for low labor productivity. It is show because few if any skills are
required to perform many of the manual tasks.

However this limitation has been largely over come through new operational and technology.
Technology has had a great impaction the quality of service, costs and operations of ware housing
and improved the flexibility of ware housing ware housing has developed in to a strategic tool with
state of the art systems capable of providing necessary manufacturing and retail support.

Technology based improvements especially information technology makes, it possible to respond to

growing customer demands in terms of product and shipment profiles. With advanced information
technology, warehouse operators can quickly react to changes in market conditions.

Efficient ware housing permits reduction in materials and parts storage and handling costs while
optimizing production for manufacturers producing products at multiple locations.
(PudendaKachru,2009)

2.4. Types of warehousing

1. Hub and concept:- a central warehouse is used to maintain a basic stock of parts, thereby reducing
the need to maintain inventory at each assembly plant using consolidation shipment, products are
purchased and transported to the supply warehouse and then distributed to many caterings plants as
needed. When fully integrated the ware house is vital extension of manufacturing.
2.
3. Just in time support:- warehousing has become an integral part just in time and stock less
production storages the just in time concept reduces work in process inventory, but its success is
based on the support of a highly dependable delivery system. Such logistical support is possible only
through the use of strategically located warehouse.
4.
5. Market-oriented warehousing; -on the out bound side of manufacturing warehouse also create the

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 possibility of direct customer shipments enhanced service capability of the marketing organization.
As the level of completion in the market place increase, manufactures capable of rapidly providing
direct mixed shipments gain a competitive advantage.
6. Direct mixed shipments; -for the customer, direct mixed shipments have two specific advantages.
First, logistical cost is reduced because full product assortment can delivered while also taking
advantage of the benefits of consolidated transportation. Second, inventory of slow- moving product
can be reduced because they can be received in small quantities as part of consolidation.
7. Improvement in time and place capability; - from conceptual perspective, no ware house should
be included in a logistical system unless it is fully justified on a cost- benefit basis.
(Annakumar Sharma, 2006)

2.5. Objective of warehousing

Some of the company used operational logistic of the objective for cost reductions are Consolidation,
break bulk, processing
Postponement stock piling, cross docking.
2.5.1. Consolidation of warehousing
Consolidation of warehousing is a concept offer sappily chain specification and cost reduction in this
concept. Manufactures move away from multiple ware houses for downstream storage and combine
their inventories with that of other manufactures in huge warehouses that take the place of internal
distribution centers or third party logistic providers. It is called consolidation ware housing.
Consolidation ware house is a third party storage and consolidation point for the manufactures and
storage and order selection facility for warehouse scale grosses and real super market chains.

2.5.2 Break bulk warehousing

Break bulk warehouse operation, no storage is involved in a break bulk facility it is for the
consolidation of long distance transportation movement for less-than truck load freight to lower
transport cost. It is means for cargos that are not in bulk. It receives combined customer order from
manufactures, sorts or splits individuals orders them to individual customers.

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 2.5.3 Processing /postponement warehousing
Stores can also be used to post pavements or delay production. Aware house with packaging or
labeling capability allows postponement of final production until actual demand is known once of
specific customer order is received the ware house can complete final processing and finalizing the
packaging.

Processing postponement ware housing is two economic benefits;

1. Risk is minimizing because final packaging is not completed until an order has been received.
The required level of total inventory can be reduced by using the basic production for variety of
labeling and packaging configurations. (M. Bixby Cooper, 2010)

2.6.Major of warehousing

There are four (4) major of warehousing

 _Receiving
 _Storage
 _Order picking
 _Shipping
Storage and order picking are typically the most costly. Storage is aright function /high cost item
because of inventory holding cost and picking because it is labor incentive.
2.7.Warehousing options
It is not necessary for the firm to own and operates its warehousing requirements. The different
options include owner or land managed public.
2.7.1 Private ware house

Private ware houses is charges clients a basic fee for holding and storage the handling charge is
based on the number of case or weight handled the storage, the charge is assessed on the number of
cases or weight in storage during the month. When economics of scale are not possible in a private
facility, public ware housing is a low cost alternative.

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2.7.2.Principle of warehousing
 Product movement warehousing; is physical facility characteristics and product movement
ware housing are the main criteria for determine the ware house.
 Handling technology of ware housing; it is the focus on the effectiveness and efficiency of
material handling technology. The elements of this principles concern movement continuity
and movement scale economics.
 Storage play ware house; it must be address the specific characteristics of each products,
characteristics, particularly those pertaining to volume, weight and storage.
 Future expansion warehouse; A fundamental element in the infrastructure of their firm.
While planning the facility, sufficient attention has to be given for future requirements.

2.8.Warehouse management systems

The development of procedures goes hand in hand with training warehouse personnel. Most firms
depend up on a ware house management system to standardize work procedures and encourage best
practices it is management’s responsibility to see that all personnel understand and use these
procedures. One of the main uses of a ware house management system is to coordinate order
selection. Just basis methods of order selection are discrete selection, a specific work assignment
discrete order selection is often used when order content and handling selection are critical.

(David J. Closs, 2010).

If follows from this that everything the length of the warehouse the dispatch area should be adjacent
or close to the goods reception area to that the fast moving items come straight in and out of the
warehouse, almost without getting in to the system it set to all. It is not possible in this section to
consider all the different activities within the warehouse, or even to describe the different types of
equipment that are available so let us look at one or two examples of systems that have been
introduced in different situations. It is not possible in this section to consider all the different
activities within the ware house, or even to describe the different types of equipment that are
available. So let us look at one or two examples of systems that have been introduced in different
situations.

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2.9 Raw materials metal bars and coils

First, let us take an example from the engineering industry and consider a company using a raw
material both metal bare and metal coils Now, pigeon hole racking is a most effective way of storing
small quantities of a large number of offering grades of bar.

A point to watch here is that the bars are delivered in stipulated lengths in the company we have in
mind, the stipulation was that bars should be between 8 and 11 long and indeed they were stored in
racking which was designed to house bare of these limits. Usual inspection soon indicated that
something was seriously wrong and we found bars up to length of 19 if in the system. You can
imagine what effect this had on the working area of the fore.

Flow ever, as the quantities increase then pigeon-hole racking and the manual system it embraces
becomes less satisfactory and the use of stackable storage cradles with in over head hoist becomes
quite attractive this method is satisfactory if the number of qualities or grades is limited otherwise a
large amount of double handling is going to be incurred.

If this is the case then we have to look for alternative methods such as powered mobile fir tree and
tacking served by a four way reach frock this enables us to get maximum accessibility with
minimum storage space.

Now then storing metal coils none of the methods just described seems to be appropriate. A different
Sumiton has to be sought and one that comes to mind is double deep racking equipped with cradles
in which the coils can rest, served by a fork lift example ill curates some of the alternatives available
to a company, fusty for its raw materials stores. (Donald, 2011) finished parts

Let us now low in a second engineering company at the finished parts store. Which contains small
engineering parts, Here there is a very successfully system based up on a series of captive stoker
cranes. As the cares move gland the aisles under, manual control, the operators place the items they
have paced on to turn small conveyors running along the frocking at mind level and these in
transport the picked items to the order packers. The storage area is set out with alternative picking
and replenishment aisles each reeking is to deep with live storage rollers transferring parts from the
replenishment to the picking face.

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2.10 palletized carton

For the third explain we go to the food industry, where the traditional ware house system is based on
pallet facing with order picking taking place at fist two levels. Over head is the bulk storage area
which is organized on semi random location system, back up pallets are placed as near to the picking
station as possible order picking stations are in taxed locations and the picking lists are made up in
order of ware area store sorting order in to the other hand are based on a prelisted ordered form
(PLOF) which is also made out ware house order. (Donald J. Bowers 2011)

2.11 choice of storage system

Which storage scheme will give us the efficient system before we can decode this; we have to
balance the need for accessibility against that of storage space utilization. It will help if for armament
we think interims of square footage of floor space rather than in farms of public capacity the most
effective system from a storage capacity point of view is without a shadow of doubt a bloke stacking
system which may be five ten or even more pallets deep. (Donald J. Bowers ox 2010)

2.12 Store verification

Store verification is the process of physically counting measuring or weighting the entire range of
items in the stores and recording the results in a systematic manner, In other words it is also means
testing or checking the stores records with the actual items stocked in store. This is as certain any
discrepancy of actual store when compared with record.

Discrepancy is any deviation in the quantity and quality of the materials received and ordered. Or it
is any difference between the actual stock and the records of the items in stock.

2.13. Nature of Discrepancies

- Materials received in excess /lesser in quality

- Material specification does not fully with the specification as ordered.

- A difference item is dispatched mistake in plastic of the ordered.

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- Material is visibly damaged

2.14 Reasons for Discrepancies

- Clerical errors
- Wrong descriptions
- Incorrect counting
- Misappropriation by dishonest staff
- Incompetent and inefficient staff
- Osniggion in issue note
- Theft /pilferage
- Looses to damage or leakage/deterioration
- Material issued, but requisition not posted yet
- Posting done on the wrong card.

2.15 Main purpose of stock verification

 To reconcile the stock records and documents for their accuracy and use fullness
 To identify areas which require more disciplined document control
 To buck up the balance sheet stock figures
 To minimize pilferage
 To minimize fraudulent fraction

2.16.Methods of stock taking and verification

A. Rout in check: - it is design to verify the stock held without prior morning of the store keeper.
This prevents illegal replacement of goods material outside the store.

B. Spot check:- it is done by store keeper clerical when fresh stock received or issued it is
voluntary carried out by the stores staff for their satisfaction and for accuracy store materials it
shroud be done in addition to annual stock flaking is done for the following reasons.
 To check the accuracy of store record
 To verify the physical counting case of doubt to confusion
 To be ready for any inspection of stores

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C. perpetual:- regularly checks carried throughout the year and carried by least two persons
discrepancy between actual stock and the records examined and modified damager or deterioration
materials may get service or written off
D. annual:- it is the most common methods of checking inventory (store) both physical and book
record it is done at the end the financial physical year for an organization normally work has been
suspended and therefore, it must be completed in possible fame, it is an expansive method because it
requires closing the plant or store for at least few days and its more use full for seasonal factories.
(M. Bixby cooper 2010)
2.17 Materials handling management
Material handing is the science of moving materials from one place to another materials includes raw
materials finished components finished goods packing materials operational supplies, fools figs and
fixtures scrap etc. material handling is closely connected with the storage of materials in any store
organizations one of the major problems to which considerable though should be given is material
handling. A good deal of labor and money can be saved by using the right method and proper
equipment in the movement of materials.

Basic principles of materials handling management

 eliminate unnecessary handing

 minimize manual handling and use mechanical handling equipment where possible
 Use the right equipment handling so as to avoid damage and to reduce cost.

 Handle materials in the largest convenient unit load by the quickest means over the
shortest route.
 Make full use of the equipment
2.18 Benefits of proper materials handling

- increase safety
- reduce handing cost
- reduce risk of damage to stock
- reduce labor requirement
- less fatigue .greater economy in use of space

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2.19 Factors for selecting materials handling management
 the nature of the material to be handled
 Whether they are in lose condition increase drums bottles cartons etc.
 quaintly involved
 distance to be covered
 facilities available for house of the equipment
 frequency of movement
Objectives of good materials handling management are;

I. Reduction in wastage of machine time keeping the loading and unloading time of
machine of minimum enables the completion of manufacturing cycle at reasonably short
time.
II. Reduction in manufacturer cycle time proper material handling system would ensure
regular supply and distribution of raw material and finished product. This will not create
the problem of idling of machine and eliminate problems of wastage of machine time.
III. Avoid disruption in production schedule in mass production system all parts or materials
must come in the assembly line in correct quantity and at precisely the right time to avoid
risk shut down.
IV. Safety and safe marking conditions correctly designed material handling system enable
utilization of proper material handling device and training selling in reduce insurance
rates payment of compensation and boost to markers moral.
V. Customer satisfaction:- regular market supplies by avoiding disruption in production
schedule shortening manufacturing cycle time timely deliveries lead to customers
satisfaction a key to business success.
VI. Enhancing productivities and avoid thither costs: - efficient materials handling system
results in reduction in cost through various steps discussing above and results in higher
productivities.(Ls.Pandorakachru 2009)
2.20 Stock piling warehousing
In the case of seasonal products like agricultural commodities which are harvested at specific times
but consumed throughout the year or product like sare which are manufactured throughout the year
but sold mainly during festival seasons such products require warehouse stock piling. stock piling
provides an inventory buffer which allows production efficiencies within the constraints imposed by

19
material sauces and consumer behavior while at the same time supporting marketing requirements.

2.21 Cross docking warehousing

Cross docking ware house is a practice in logistics of unloading materials from an incoming truck
rail car and loading these materials in out bound truck or rail way wagons with little or no storage in
between cross docking may be done to change type of conveyance or to sort material intended for
different destinations or combine material from different organs simply seated cross docking means
receiving goods at one door and shipping out through the other door almost immediately without
putting them in storage.

2.21.1 Type of cross docking warehousing

 Hub and stock arrangement where materials are brought in to one central location and then
sorted for delivery to a variety of destinations
 Consolidation arrangements where a vilely of small shipments are combined in to one larger
shipment for economy of transport.
 Deconsolidation arrangements where large shipments are broken down in to smaller cost for
ease of delivery cross docking may also involve off loading pre assembled products for
integration with other core orders before on ward delivery to retail out let.

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 CHAPTER THREE

3. METHODOLOGY OF THE STUDY

3.1 Data sources and methods of collection.

For those studies the researcher was used both primary and secondary sources. The primary
sources were questionnaire and interview and the secondary sources were from related written
materials such as books, magazines and documents of the organizations.
3.2 Research design
To conduct this research, the researcher was used descriptive type of research because the
purpose of the researcher was simply described and assessed the situation warehousing of the
organization.
3.3 Target population
Employees of water supply were being on the target population of the studies. They were 286
in number, 242 males and 44 females. And the total number of employees specifically in
warehouse department was 34 and the researcher was targeted all 34 as a target population by
taken 30 samples employees.
3.4 Sampling technique and sample size
According to those studies the researcher was used simple random sampling technique, the
reasons for using simple random sampling is its ease of use and accuracy of representation.
And using those methods sampling, the researcher was selected 30 subjects from the total
targeted population which mean, 34(89%). The reasons for selected such a small sample size
was because, it saved time during collection and gathering of information and it is more
accurate than large sample size.
3.5. Methods of data analysis
After the data were already been collected through primary and secondary sources, the close
ended questionnaires were being analyzed in to quantitative data analysis by using simple
statically tools such as percentage and tabulation while the open ended questionnaires and
interview questions were also being analyzed into qualitative data analysis by using sentence or
paragraph form based on the response from the sample employees of Hawassa water supply.

21
 CHAPTER FOUR
4. Data presentation, analysis and interpretation
This part deals with the analysis and discussion of data which was got hard by the means of
questionnaire from 30- sample respondents. The data was gathered by close ended and few
open ended questions.
4.1. Profile of the sample respondents

Table 4.1 Demographic characteristics of the sample respondents

No Sex No %
1 Male 21 70
2 Female 9 30
3 Total 30 100
4 Age - -
5 20-30 3 10
6 30-40 23 76.7
7 41-50 4 13.3
8 >50 - -
9 Total 30 100
10 Educational level - -
11 1th_12th grade 2 6.8
12 Certificate 3 10
13 Diploma 20 66.7
14 Degree 5 16.5
15 Above degree - -
16 Total 30 100
Source; questionnaire 2008
As clearly indicated in the above table 4.1, out of the total sample respondents 21 (70%) of
them are males while the remained 9(30%) are females. And also 3(10%) of the respondents

22
are in the age range between 20-30 years. While the remained 23 (76.7) are between 30-40
years and 4(13.3%) of the sample are from 41-50 years.
Respondents are mostly in the age range between 30-40 and 41-50 years respectively.
Moreover, 2(6.8%) of the respondents are in the grade between1th-12th, 3(10%) of them are
certificate holders. While the remained 20 (66.7%) and 5(16.5%) of the sample respondents are
diploma and degree holders.
From the above results of this study one can conclude that majority of the respondents are
males and they are in the age range between 30-40 years. In addition, most of them are diploma
holders.

Table 4.2 problems that are faced by warehousing activity

2 Are There any problems faced by the No %

company’s warehousing activity?
Strongly agree 6 20
Agree 22 70
Disagree 2 10
Strong disagree - -
Total 30 100
Source; questionnaire 2008
As indicated in the above table 4.2, among the sample respondents 6(20%) of the respondents
strongly agreed with the idea that there are problems faced by the company’s warehousing
activity. While the remained 22 (70%) of the sample respondents were agreed with the idea
and the 2(10%) Disagree with it. According to the above result of this study, as noted by most
respondents there are problems faced by the organization’s warehouse such as lack of skilled
man power and shortage of warehouse.
Table 4.3 workers educational background and warehousing
3 Does the workers educational background is familiar with the No %
matter of warehousing?
Yes 22 73.3
No 8 26.7
Total 30 100
Source; questionnaire 2008

23
As presented in the above table 4.3, 22(73.3%) of the total sample respondents replied that the
Workers educational background is familiar with the matter of warehousing and on the other
hand 8(26.7%) of the respondents disagreed with the idea that the workers educational back
ground is familiar with the matter of warehousing.

Table 4.4 Sufficient of workers and warehousing activity

4 Are the workers sufficient enough to the right No %

warehousing activity?
Yes 17 56.7
No 13 43.3
Total 30 100
Source; questionnaire 2008
As clearly indicated in the above table 4.4, 17(56.7%) of the sample respondents replied that
the workers are sufficient enough to the right warehousing activity, on the other hand
13(43.3%) of the sample respondents responded that the workers are not sufficient enough to
the right warehousing activity.
Table 4.5 Training course in relation to warehouse activity
5 Does your organization provide training course in relation No %
to warehouse activates?
Yes 17 56.7
No 13 43.3
Total 30 100
6 If your answer is “yes’’ to what extent? - -
Annually 15 39.4
Semi-Annually 2 17.3
Quarterly - -
Total 17 56.7
Source; questionnaire, 2008
As indicated in the table above 4.5, out of the total sample respondents 17(56.7%) answered
that there is a training course provided by the organization in relation to warehouse activity. On
the other hand 13(43.3%) of the sample respondents disagreed with the idea that there is a
training course by the organization in relation to warehouse activities. And out of those 17 who

24
were agreed with the idea, 15 (39.4) responded that training was provided annually, on other
hand 2(17.3) from Yes answer responded that the training was semi-annually
From the above result of this study we can understand that to some extent there is a training
course by the organization in relation to warehouse activity and the training mostly was held
annually.
Table 4.6 Quality of materials
7 Does your organization have problem of No %
poor understanding on the quality of
materials?
Yes 20 30
No 10 70
Total 30 100

Source; questionnaire, 2008

Based on the table 4.6 above, it indicated that 10(30%) of the sample respondents replied that,
their organization has no problem of poor understanding on quality of materials and in another
way, 20(70%) also responded that, the organization actually has problem of poor
understanding on materials quality. In real sense one can concludes that, the organization has
problem of poor understanding on the materials quality.

Table.4.7 satisfaction of training course given by the organization

8 Does the training course given by your No %

organization is satisfactory?
Yes 9 30
No 21 70
Total 30 100
Source; questionnaire, 2008
As clearly described in the above table 4.7, among the sample respondents 9(30%) of them
replied that the training course provided by the organization is satisfactory. Whereas 21 (70%)
of the sample respondents answered that the training course given by the organization is
unsatisfactory. According to the above result, one can concludes that, even though the

25
organization provides a training course in relation to warehouse activities, it still not
satisfactory.
Table 4.8.About warehousing activities
9 Do you think the warehousing activity of your No %
organization is good in maximum?
Strongly agree 2 6.7
Agree 18 60
Disagree 10 33.3
Strongly disagree - -
Total 30 100
Source; questionnaire, 2008
As indicated in the above table 4.8, 2(6.7%) of the respondents strongly agreed that the
warehousing activity of their organization is good in maximum, 18(60%) of the sample
respondents also agreed with the idea, on the other hand 10(33.3%) of the sample respondent
disagree with the idea that the warehousing activity of the organization is good in maximum.
Based on the above responds one can concludes that, less completely the warehousing
activities of the organization is good in maximum.
Table 4.9 Improvements regarding warehouse activity
10 Is there any improvement regarding to No %
warehouse activity from the previous year?
Yes 21 70
No 9 30
Total 30 100
Source; questionnaire, 2008
As clearly shown in the above table 4.9, 21(70%) of the sample respondents replied that there
is an improvement regarding warehousing activities as compared to the previous year, on the
other hand 9(30%) of the sample respondents respondent that there is no any improvement in
relation to warehousing activity from the previous year.

Stating from the above result, one can conclude that there are some improvements regarding to
warehousing activity. Because as compared to the previous year, today there are some qualified
employees that can facilitate the warehousing activity to some extent.

26
Table 4.10 Training program for the workers

11 Does your organization provide regular No %

training program for the workers regarding
materials quality?
Yes 22 73.3
No 8 26.7
Total 30 100
Source; questionnaire, 2008
As indicated in the above table 4.10, among the total sample respondents 22(73.3%) of the
replied that there is a training program for the workers. On the other hand 8(26.7%) of the
sample respondents replied that there is no any training program for the workers.

From the above result of this study one can conclude that there is a training program for the
workers and this enables them to advance their experience and ability above warehouse
activities.

Table 4.11 Contribution of workers for warehouse activity

12 What seems to be the contribution of No %

workers to warehouse activity?

Very good 3 16.3

Good 27 83.7
Bad - -
Worst - -
Total 30 100
Source; questionnaire, 2008
As clearly indicated in the above table 4.11, 27(83.7%) of the respondents replied that the
contribution of workers to warehousing activities is good and on other hand 3(16.3%) of the
respondents replied that the workers have very good contribution to warehousing activity.
Mostly, workers’ contribution for warehouse activity is good.

27
Table 4.12 Attitude towards warehouse operation
13 What types of warehouse do your No %
organization under taken in the plant?

Centralized 20 66.7
Decentralized 6 20
Combination of both 4 13.3
Others - -
Total 30 100
Source; questionnaire, 2008
As indicated in the above table 4.12, the type of warehouse the organization undertaken in the
plant, 20(66.7%) of the respondent replied that centralized warehouse dominantly used.
6(20%) of them replied as decentralized warehouse is under taken in the plant, whereas
4(13.3%) of them answered that the combination of both centralized and decentralized
warehousing is available and undertaken in the plant. Thus, these indicated that, the factory
uses mostly that of centralized warehouse.
Table 4.13.Location of warehouse
14 How far the warehouse is located from No %
production point?
Very far - -
Medium 15 50
Far 5 16.7
Nearest 10 33.3
Total 30 100
Source; questionnaire, 2008
As indicated in the above table for the location of warehouse department location on reference
to the production point, 15(50%) of the respondents replied that it is medium. 5(16.7%) of
them replied as it is far located from production point and 10(33.3%) of them replied that it is
nearest. This indicates that the warehouse is not as such far from the production point, it is in a
medium location as per the replied of most respondents. This may enable the factory to save
time cost in handling materials.

28
An interview analysis (To manager of the warehouse)
15. What seems to be warehouse activity in your organization? Warehouse activity in our
organization seem almost good, but less completely there are some challenging areas and also
the warehouse activity in our organization are computerized, we are good at that system.
-----------------------------------------------------------------------------------------------
16. What measurements was your organization taken to improve the warehousing activities?
Introducing some new means of warehouse activities, expanding an additional warehouse and
providing training courses for the employees.

17. What do you think about the problems that are faced by the warehouse activity? There are
many problems that are faced by warehouse activity in the organization such as lack of
warehouse and shortage of skilled man power. To solve those, we need to works on it by
introducing new room for the materials that are in the field and upgrade workers who have no
enough experience
-----------------------------------------------------------------------------------------------
18. How do you see the warehouse activity compared to the previous year with in your
organization? Generally, to some extent there are some improvements such as building pipe
shade, new stores and providing training course for the employees has been started currently.
-----------------------------------------------------------------------------------------------
19. What measurements was your organization taken to overcome shortage of skilled man
power? To overcome the existing shortage of skilled man power, the only alternative is to
provide training to our employees especially those who are working in warehouse.
----------------------------------------------------------------------------------------------

29
 CHAPTER FIVE
5. Summary, conclusion and recommendation

5.1. Summary

 Majority of the respondents are males, and they are in the age range between 30-40
years.
 Most of the respondents are college diploma holders.
 As noted by most respondents most of the workers are sufficient enough to the right
warehousing activity.
 To some extent there is a training course by the organization in relation to warehousing
activity.
 According to the majority respondents the training course that given by the
organization is not satisfactory.
 The warehousing activity of the organization is good
 Even though the workers are not qualified enough their contribution to the warehousing
activity is almost good.
 Warehousing activity in the organization seems almost good.
 To sum up as compared to the previous year now a day to some extent there are some
improvements such as providing course for the employees has been introduced by the
organization.

5.2. Conclusions

Based on the analysis part of this study the researcher put the following points as conclusions.
As noted by most respondents there are problems faced by the company warehousing activity
such as;

 Lack of skilled man power

 Poor understanding on quality of materials
 The organization provides a training course for the employees about warehousing
activities but still yet not satisfactory

30
  As compared to the previous year to some extent there is an improvement with regard
to warehouse activities within the organization.
 Generally even though the workers are not qualified enough their contribution to the
organization is almost good. And also the workers educational background is familiar
with the matter of warehousing activities

5.3. Recommendation

According to the conclusions and finding of this study the researcher recommended the
following points.

 Even though the contribution of workers for the warehouse activity within the organization is
almost good, it should provide them more training courses to advance their role on the actual
warehouse activities.
 The organization should work hardly in order to minimize the problems that are faced by the
company warehouse activity.
 The organization should works to have sufficient enough workers that can facilitate effective
warehouse activity.
 The training courses provided by the organization should be satisfactory enough for the
workers that can enables them to have an advanced experience and knowledge about the
warehouse activities.

31
 References

 Dk Agrawal (2003) logistics and supply chain management. First editions India,
Macmillan publishing p/c
 Janet shah (2003) supply chain management 1st edition India, push print service p/c
 Patrick Jonson (2008) logistics and supply chain management 1st edition British
McGraw Hill
 Burton, J.A (1981). Effective warehousing (3rd edition), Macdonald and Evans Ltd:
Great Britain.
 Doblelr, D. and Burt, D. (1996). Purchasing and supply management (6th edition)
McGraw Hill publishing Co. New Delhi.
 Gopalakrishnan, P. (1981). Purchasing and materials management. McGraw Hill
publishing Co. New Delhi.
 Gupta, D.R. and Rajput, R.K (1982). Purchasing and Store keeping. McGraw Hill: New
Delhi.
 Nair, N.K. (1985). Purchasing and materials management. Vikas publishing house pvt.
Ltd: New Delhi.

32
 APPENDIX

HAWASSA UNIVERSITY

AWADA BUSINESS AND ECONOMIC COLLEGE

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Dear Respondent

This questionnaire is designed and given to you in order to collect data as per your knowledge,
attitude and beliefs basically on assessment of warehousing activity in the case of your
organization. My name is Changkuoth Deng Piak, candidate at Awada Business and
Economics College conducting a research under the title of “Assessment of Warehousing
Activity” for partial fulfillment of the requirement of my BA degree in logistics and supply
chain management. .

I would like to express my gratitude and heart full appreciation for your cooperation in
completing this questionnaire. Please be confident and faith full that your information will just
only be used for the purpose of this study.

You are kindly requested not to write your name or anything that will identify your
participation, just put “tick’’ or “x” in the box provided for the first part questions and write the
answer in the space provided for the second part questions.

I hope, your kindness would be mine. For further inquiry please, contact me; Mobile No;
+251917924393.E-mail:changkuoth33@gmail.com

Demographic characteristics of the sample respondents

1. Gender; Male Female

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2. Age; 20-30 30-40 41-50 >50

3. Educational level; 1th -12th Certificate Diploma Degree Above degree

Basic questions (part 1)

4. Are there any problem faced by your organization warehouse?

Strongly agree Disagree

Agree Strongly disagree

5. Does the workers educational background is familiar with the matter of warehousing?

Yes No

6. Are the workers sufficient enough to the right warehousing activity?

Yes No

6. Does your organization have problem of poor understanding on quality of materials?

Yes No

8. Does your organization provide training course in relation to warehouse activity?

Yes No

9. If your answer is “yes” to what extent?

Annually Semi-Annually Quarterly

10. Does the training course given by your organization is satisfactory?

Yes No

11. Do you think the warehouse activity of your organization is good in maximum?

Strongly Agree Disagree

Agree strongly Disagree

12. is there any improvement regarding to warehouse activity from the previous year?

Yes No

34
13. Does Hawassa water supply and service enterprise provide regular training program
regarding materials quality?

Yes No

14. What seem to be the contribution of workers to warehousing activity?

Very good Bad

Good Worse

15. What type of warehouse do your organization under taken in the plant?

Centralized Combination of both

Decentralized Others

16. How far the warehouse in your organization is located from production point?

Very far Far

Medium Near

Part (2)

To manager of the warehouse

17. What seem to be warehouse activity in your organization?

------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
18. What measurements will your organization take to improve the warehousing activity?

------------------------------------------------------------------------------------------------------------------

19. What do you think about the problems that are faced by the warehouse activity?

------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
How do you see the warehouse activity compared to previous year with in your organization?--
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------

21. What measurements will your organization take to overcome shortage of skilled
Manpower? --------------------------------------------------------------------------------------------------

35
36