Proceedings of The 2nd International Conference on Advanced Research in Management, Economics and Accounting
Developing a Comprehensive Standard to Evaluate the Warehouse’s Efficacy, Effectiveness and Performance
Abdallah Alalawin, and Wafa’ Alalaween
During the era of rapid globalization and eliminating the vertically integrated strategy from the company options to have more control on its supply chain, outsourcing of logistic activities is considered as an alternative solution for vertical integration. Companies for their out borders markets are looking in general for third-party logistics providers to provide the warehousing service. Selecting this provider is based on the company criteria. Developing an international standard is the objective of this paper, a comprehensive standard that can be used to evaluate the warehouse based on its performance, efficiency, and effectiveness. A qualitative method was used based on expert opinions and literature to develop the standard, which was validated via experts opinion after evaluating the standard clauses in seven warehouses. A valid first virgin draft of an international comprehensive standard is the result of this paper, a standard with ten main clauses can be used by certification bodies to evaluate warehouses, to rate them, and to rank them. Thereafter, the company can use the certificates, which are issued by the certification bodies to select the logistic provider instead of the current method of selection, as result, the third party logistic providers selection process cost is reduced.
keywords: Warehouse assessment standard, third party logistic provider, logistic, Warehouse assessment standard.