Effects of ICT On The Performance of War PDF

Assessing The Effects Of Information Technology
(ICT) On The Performance Of Warehouse And

Inventory Operations (The Case Of Unilever Ghana
Limited)
ISSN 2319-9725
Meshach Awuah- Gyawu
Christ Apostolic University College
School of Business Management
Department of Procurement and Supply Chain Management
Emelia Darko Adzimah
Kumasi Polytechnic
Faculty of Business and Management Studies
Samuel Brako
Takoradi Polytechnic
Faculty of Business and Management Studies
Meshach Awuah- Gyawu
Christ Apostolic University College
School of Business Management
Abstract: The management of Inventory and warehouse is crucial to maximize value of the supply
chain of every organization. Unnecessary movement, over-staffing, pilferage, over-stocking, under-
stocking can all be minimized with good management of this area of business operation. The use of
ICT has become a strong tool driving the success of many organization’s supply chains. Similarly,
inventory and warehouse management can realize a lot of benefits if proper ICT tools are identified
and used well.
The study aims at assessing the effects of ICT on the performance of inventory and warehouse
operations. The study revealed the adoption of few ICT tools in the management of Inventory and
Warehouse Operations. Again, some of the ICT tools were underutilized as a result of major
challenges. The researchers found a positive relationship between the use of ICT tools and the
performance of inventory and warehouse operations even with the ICT tools that were
underutilized.
Keywords: Assessment, Performance, Inventory, Warehousing, Information Technology Tools,
Supply Chaain
September, 2015 www.ijirs.com Vol4 Issue 9
1. Introduction:
Warehousing plays a very important part of the supply chain of organizations. A warehouse
is a large building where raw materials or manufactured goods are stored. Warehousing may
also be considered as a commercial building for storage of goods, or an intermediate area for
storing raw materials or products until they are needed for production or consumption.
Warehousing is a part of logistics which serves as the backbone on which the whole supply
chain of an organization runs. According to Fiala (2005), supply chain is defined as a system
of suppliers, manufacturers, distributors, retailers and customers in which material, finance
and information flows connect participants in both directions. At various points in the supply
chain, goods, materials, component parts, work- in- progress, finished goods, etc are stored
temporary before further work or distribution to the final consumer or customer.
Ensuring effectiveness in warehouse operations is key to the success of the whole supply
chain as it helps to reduce waste and enhance value creation in the supply chain. Warehouse
management can be made more effective with the introduction of information technology to
help ensure a cost- effective warehouse operations. Innovations in information processing,
telecommunications, and related technologies known collectively as “information
technology” (IT) are often credited with helping fuel strong growth in many economies
(Coombs et. al., 1987). Through the use of computer technology and electronic data transfer
characterized by fast, accurate and comprehensive collection, analysis and use of data, there
has been a stepwise improvement in service levels, inventory reduction, effective utilization
of resources (such as storage space and handling of equipment cost), reduction or elimination
of paperwork and clerical errors, helped in easy tracking of goods, etc.
1.1. Statement Of The Problem:
According to Sunil and Sameer (1998), to compete more effectively in a global marketplace,
it is important that firms understand the issue of inventory control and align their supply
chain appropriately. Lack of inventory oversight in the warehouse of organizations cause a
buildup of inefficiencies within the warehouse which slows down operations and increases
cost as well. Without adequate insight into location and layout, pickers take longer time to
find the items needed. Poor security in the warehouse also lead to theft and pilferage whilst
excess movement and excess staffing becomes challenges to the organization as a result of
an inability to easily track items in stock. Poor warehouse management systems also may also
International Journal of Innovative Research and Studies Page 29

lead to excess stock which has a ripple effect on working capital. Late detection of expiry
dates also become cost to the organization. All these costs could however be avoided.
Warehousing is costly in terms of human resources and of the facilities and equipments
required, and its performance will affect directly on overall supply chain performance.
Inadequate design or managing of warehouse systems will jeopardize the achievement of
required customer service levels and the maintenance of stock integrity, and result in
unnecessarily high cost of business operations (www.ciilogistics.com, accessed June 2015).
Strategic use of ICT tools or facilities enable an organization to: easily do stock tracking,
quick identification of outdated stock, reduction of clerical errors which may lead to
overstocking or under-stocking with ripple effects on holding cost and poor customer service
delivery respectively. An MRP (Materials Requirement Planning) system for instance is a
strong ICT tool that helps to relate demand for material directly to the master production
schedule which helps to reduce shortage of materials with less demand in production.
This research is aimed at assessing the effects of information technology(ICT) on the

performance of warehouse and inventory operations at Unilever Ghana Limited
1.2. Objectives Of The Research:
1.2.1. General Objective:
Assessing the effects of information technology (ICT) on the performance of warehouse and
inventory operations at Unilever Ghana Limited, Kumasi Branch; Ghana.
1.2.2. Specific Objectives:
1. To identify some of the ICT tools that can be used to manage Inventory and
warehouse operations at Unilever Ghana Limited.
2. To examine how ICT tools are used to manage warehouse and inventory operations at
Unilever Ghana Limited.
3. To assess the effects of ICT on the performance of inventory and warehouse

operations at Unilever Ghana Limited.
4. To identify some of the challenges associated to the use of ICT in the management of
inventory and warehouse operations at Unilever Ghana Limited.

1.3. Research Questions:
The research questions for this study are as follows:
1. What are some of the ICT tools that can be used to manage inventory and warehouse
operations at Unilever Ghana Limited?
2. How are the ICT tools used to manage warehouse and inventory operations at
3. How does ICT affect the performance of inventory and warehouse operations at
Unilever Ghana Limited?
4. What challenges are associated to the use of ICT in the management of inventory and
warehouse operations at Unilever Ghana Limited?
1.4. Justification Of The Study:
This research will contribute significantly to the existing stock of knowledge in this research
area by:
1. Stressing on the need to adopt some degree of automation in the management of

inventory and warehouse operations.
2. Helping management of organizations especially logistics firms to identify common

automated systems that can be used to manage their inventory and warehouse
operations.
3. Serving as a reference point for further studies into this research area.
1.5. Scope Of The Study:
The research will cover the effects of information technology in the management of inventory
and warehouse operations of goods at Unilever Ghana limited. It will also be limited in scope
to only one of the company‟s branches located at Kumasi in the Ashanti Region of Ghana.
The study does not also take care of the inventory and warehouse operations of the
company‟s supply chain partners.
1.6. Assumptions:
The researchers made the following assumptions:

There would be no policy change that will affect the addition or elimination of an ICT
tool currently in use to manage inventory and warehouse operations at the Kumasi branch
of Unilever Ghana Limited.
All information with regards to the technologies adopted, their use and challenges
associated to their use would be made available to the researchers.
1.7. Limitation Of The Study:
The study had the following limitations:
1. The frequent power outages in the country was a great constraint to the researchers.
2. The time required for the research was woefully inadequate and required the
researchers to overwork.
3. Financial constraints in terms of printing, typing and photocopying of materials

related to the research work.
4. Inadequate book, articles, journals on the research area also restricted the researchers
in his quest to make far better analysis, however, it had very minimal effect on the
study.
2. Review Of Related Literature:
2.1. Theoretical Perspective:
In this chapter, the researchers try to review literature related to the topic: the effects of
information technology in inventory and warehouse Management and how it will contribute
to organizations efficiency, effectiveness and profitability.
2.1.1. Background Of Unilever Ghana Limited:
Unilever Ghana Limited is Ghana‟s leading manufacturer of fast moving consumer goods and
it is one of Ghana‟s leading corporate citizens. It began in 1787 when two European trading
firms, Swanzy and King arrived in the Gold Coast. They later merged in 1931 to form the
nucleus of the United Africa Company of Gold Coast (UAC) with a strong commitment to
the socio-economic development of the nation involved in trading, manufacturing, agriculture

and real estate development. In 1963, UAC established Lever Brothers, a consumer goods
manufacturing business.
Unilever Ghana came into being on July 14, 1992 when the two significant and
complimentary Unilever PLC subsidiaries; UAC Ghana Limited, reputed for excellence in
marketing and distribution, and Lever Brothers Ghana Limited, which is strong in
manufacturing company, merged to form Unilever Ghana Limited.
Unilever Ghana today manufactures and markets three broad categories of products under
Foods, Home Care and Personal Care categories. Their leading brands include: Blue Band
Margarine, Lipton, Royco, Annapurna Salt, Omo, Key Soap, Pepsodent, Close-Up, Lux,
Geisha, and Sunlight. Unilever is an international company with its manufacturing centres
As a result of the large number of products that are produced, stored and distributed by the
company, inventory and warehousing operations are key to the company‟s success.
(http://www.unileverghana.com/aboutus/Introducingghana/, accessed July 25, 2015).
2.1.2. Overview Of Warehouse And Inventory Management:
A very key component of logistics management is warehouse and inventory management.

Warehouses are essential components of any supply chain. In a warehouse items are handled
in order to level out the variability and imbalances of the material flow caused by factors such
as seasonality in demand, production scheduling, transportation, and consolidation of items
(Guet al., 2007). Inventories in warehouses are capital intensive assets that require storage
areas, handling equipment, and information systems (Nils B.& Stefan R., 2013).
The capital and operating costs of warehouses represent about 20- 25% of the logistics costs
(Frazelle, 2002; Baker and Canessa, 2009). Therefore, improvements in the planning and
control of warehousing systems can contribute to the success of any supply chain.
2.1.3. Overview Of Warehouse Operations:
A warehouse is typically divided into functional areas that are designed to facilitate the
material flow (Tompkins et. al., 2010). The main warehouse areas are outlined in the
following: receiving area, reserve and forward storage area, and shipping area. Operations in
the receiving area include the processing (i.e., unloading) of carriers, item identification, and
quantity and quality inspection. Received items are then moved to a storage area or directly to
the shipping area. The storage area is often divided into a reserve and a forward storage area.

The reserve storage area covers typically distant and heavily accessible locations, e.g., the
uppermost part of a rack, and is used to ensure the replenishment for the forward storage area.
Customer demand is primarily satisfied from the forward storage area, where the items are
typically stored in convenient sizes and the storage locations are easily accessible. In the
shipping area, items are sorted, consolidated and loaded on the carriers. While this is a
general material flow in a warehouse, the actual material flow depends mainly on the role of
the particular warehouse in the supply chain.
Specialized warehouses are established to fulfill the different requirements, e.g., production
warehouse, distribution warehouse and cross-dock. The main function of a production
warehouse is buffering and storage, it supplies raw or semi-finished material for production
and may prepare finished items for shipment; the typical objective is the minimization of
operation and investment costs given the storage capacity and response time (Rouwenhorst et
al., 2000).
Distribution warehouse (or distribution center) handles, in addition, the distribution of items.
In this case, the general objective is to achieve high throughput at minimum operational and
investment costs. In a cross-dock (or transshipment center), storage is scarcely presented, in-
coming items are immediately sorted and new customized shipments are created (De Koster
et. al., 2007).
2.1.4. The Objectives Of Holding An Inventory Or Keeping A Warehouse:
In the past, warehouses were referred to as cost centers and rarely adding value. But the
increasing need for transfer of products across cities, countries and continents resulting from
movement of production to the Far East, the growth in e- commerce and increasing demands
from end users, have caused a change in the perception of warehouses. They are vital
components within today's supply chain (Richards, 2011). According to Bassin (1990),
effective inventory management is essential in the operation of any business. Lining Bai and
Ying Zhong (2008), stress that it helps to reduce cost items such as capital cost for inventory
and holding cost of flows. According to Rushton, Croucher, and Baker (2010), warehouse
operations could easily be the most costly element of the supply chain if strategic measures
are not put in place. There is therefore pressure on warehouse managers to increase
productivity and accuracy, reduce cost of inventory whilst improving on customer service
levels.

2.1.5. ICT Tools Commonly Used In The Management Of Warehouse And Inventory
Operations:
Information Technology (IT) can be defined as the use of electronic machines and
programmes for the processing, storage, transfer and presentation of information (Bell, L C.
and Stukhart, G.,1986). The emphasis to integrate ICT tools in industries today serve as a
vehicle for operational efficiency and strategic management; the interest generated by
researchers in this area has been a topic of interest and debate for a number of researchers
(Tushman, 1986; Nielsen & Erdogan, 2006; Kraus, 2006; Dyer, 2006; Wagner, 2000;
Breidenstein, 2001)
Common ICT tools that enable an efficient and effective management of stock in inventory or
in a warehouse include: The Use of Bar Code and Bar code scanners/ Readers, Biometric
Verification Systems, Warehouse Management System (WMS), Electronic Data Interchange
Systems (EDI), etc.
2.1.5.1. Bar Code Systems Of Technology:
Barcodes are “printed horizontal strips of vertical bars used for identifying specific items”. A
“scanning device reads the barcode by moving a beam across the symbol”. The first barcode
system was developed around the 1940s and 1950s, since then people have become very
accustomed to their use, through common applications such as in retail and grocery markets
(Granneman S., 2003). This tool enables inventory and warehouse managers to easily and
quickly track stock levels, items going out of date, the price and quantity of items left in
stock, etc.
2.1.5.2. Biometric Verification System:
Pilferage is one of the major challenges in the management of warehouses. The Biometric
Verification System (BVS) enable warehouse and inventory managers to easily track the time
of employees arrival at the warehouse. The identification of individuals and the time at which
they entered the warehouse are recorded and stored in the database of the system. It serves as
a great security tool that helps to easily track items lost in inventory.
2.1.5.3. Warehouse Management System (WMS):
Warehousing Management System (WMS) are best described as the advanced technology
and operating processes that optimizes all warehousing functions. These functions typically

begin with receipts from suppliers and ends with shipments to customers; it also includes all
inventory movement and information flows in between these functions. Successful WMS
solution are generally designed to merge computer hardware, software, and peripheral
equipment with improved operating practices for managing inventory, space, labor and
equipment in warehousing and distribution centers. Implementation of warehouse
management system allow a company to increase its competitive advantage by reducing labor
cost, improving customer service, increasing inventory accuracy, and improving flexibility
and responsiveness.
2.1.5.4. Electronic Data Interchange System (EDI):
According to Arnold et. al. (1997), the use of an EDI enables the exchange of transaction
information such as purchase order, invoice and materials requirement planning information.
It helps to eliminate time wastage, reduces paper work which most times lead to clerical
errors and facilitates easy communication between suppliers and customers. According to the
U.S. Department of the Treasury, (1999), EDI standards eliminate the need for human
intervention in the interpretation of incoming and outgoing data.
2.1.5.5. Value Added Network (VAN):
A third party network, also known as a value added network or VAN, serves as an
intermediary between trading partners. A VAN is an electronic service provider that receives,
stores, and transmits EDI and other electronic messages for trading partners .
This system helps to administer cross- company inventory on the basis of real-time
information. Key supply chain partners can benefit from the use of this system so that
management of all partners can make prudent forecast. This goes a long way to decrease the
incidence of bullwhip effect which has ripple effects on value creation of the whole supply
chain. The system is therefore a crucial elements of the supply chain success.
3. Methodology:
This chapter presents the methodology used for the study. It presents the tools that were used
to describe and analyze data collected for the purpose of this research. It explains the research
design, sources of data collected for the study, the population of the study, sample and
sampling procedures and the methods used for data analysis.

3.1. Research Design:
In this research, a multi-method approach is adopted. The study adopts both quantitative and
qualitative approach. Thus, both qualitative and quantitative data are collected to answer the
research questions. The interview and questionnaire have a very simple structure to enable
the researchers to cover all research questions. Personal observation by the researchers
enabled them to better understand the opinions of the respondents.
3.2. Population:
A population is a group of individuals, persons, objects, or units from which samples are
taken for measurement (Saunders et al., 2009). The population that is being studied is also
called the target population (Mann, 1995). The target population for the study consists of staff
and management of Unilever Ghana Limited in Kumasi in the Ashanti Region of Ghana.
Questionnaires were successfully administered and the interviews were successfully
conducted.
3.3. Sample And Sampling Procedure:
For the purpose of this study, a purposive sampling is used in the selection of the retail
company. A simple random technique is adopted in the selection of the staff and
management. In all 25 staff of the company are selected of which 10 of the staff work at the
managerial position which include the General Manager, Product-Line Managers, the
accountant and Stores Officers .
3.4. Data Collection Instruments:
In this study a structured questionnaire was administered which enabled the researchers to
address the objectives of the study. Both primary and secondary sources of data are used.
The primary sources of data are obtained through interviews and questionnaires and
secondary sources of data are obtained from published and unpublished articles and journals,
text books and the internet. A „face to face‟ discussions and the administration of
questionnaires enabled the researchers to easily compare and contrast all the responses of the
respondents. The interview and questionnaire had a very simple structure to enable the
researchers to cover all research questions.

The questionnaire was divided into five sections. The first section had to do with the
respondent‟s demographic characteristics such as age, sex, educational level whilst the
second part was also meant to identify some ICT facilities or tools used to manage inventory
or warehouse operations at Unilever Ghana Limited. The third section was meant to examine
the uses of the ICT tools in warehouse or inventory operations. The fourth section sought to
obtain information on the effects of ICT on the performance of warehouse or inventory
operations whilst the fifth section tried to obtain information on the challenges associated to
the use of the ICT tools in the management of inventory and warehouse operations in the
organization.
3.5. Data Analysis:
Most of the questions were of the closed ended type although few were of the open ended
type of questions. The open-ended questions solicited free responses from the respondents,
and the closed-ended questions allowed respondents to choose one response out of several as
a result of the low literacy levels of most of the respondents. The questionnaire consists of
both categorical and scale type question items. Likert-scale question items are used to gather
the information on the perceptions of the respondents. The questionnaire was pre-tested using
a selected group of respondents from the target population to ensure reliability and validity of
the questions and the responses. The secondary data used for the study are sourced from the
website of the organization, other related researches on warehouse and inventory
management operations, etc. These contributed immensely to the success of the study. All
data were coded and analysis was carried out using the Statistical Package for Social Sciences
(SPSS) and Microsoft Excel to measure the means and standard deviations of perceptions
obtained. Notwithstanding, the challenges faced during the data collection, it did not in any
way affect the reliability, validity, credibility, and accuracy of the result.
Data was presented in tables and graphs, and analysis was mainly done using descriptive
analysis where issues of similarity and dissimilarities of responses were compared and
statistical tools such as percentages, the mean and standard deviation enabled the researchers
to have a good quantitative comparative analysis of responses. The number of respondents to
a question was represented by „N‟ whilst „s.d‟ was used to represent standard deviation.

4. Results and Discussion:
4.1. Introduction:
This chapter presents and discusses the result of the study in an attempt to address the
specific objectives of the study. The major areas the chapter discusses include the socio
demographic characteristics of the respondents, identification of some of the ICT tools that
can be used to manage Inventory and warehouse operations at Unilever Ghana Limited. An
examination of the areas of warehouse and inventory operations where ICT can be used to
enhance performance, an assessment of the effects of the use of ICT on the performance of
inventory and warehouse operations management and finally, an assessment of the challenges
associated to the use of ICT in the management of inventory and warehouse operations at
4.2. Socio Demographic Characteristics Of The Respondent:
This section of the study elaborates the major demographic characteristics of the surveyed
respondents. The section discusses the gender, age, educational background, working
experience and position held in the company. The result is presented in Table 1.

Socio demographics Frequency Percentage
Gender
Male 17 68.0
Female 8 32.0
Age of respondent
Below 20 years 0 0.0
21-30 years 12 48.00
31-40 years 8 32.00
41-50 years 5 20.00
51+ years 0 0.00
Educational background
No formal schooling 3 12.00
Basic 2 8.00
Secondary 8 32.00
Tertiary 12 48.00
Job Description
Manager 4 16.00
Supervisor 4 16.00
Forklift Operator 3 12.00
Loader 6 24.00
Accounts 3 12.00
Customer Service 3 12.00

Security 2 8.00
Years worked with the

Company
1-3 years 4 16.00
4-6 years 16 64.00
7-10 years 3 12.00
11+ years 2 8.00
Table 1: Socio Demographic Information (N=40)
Source: Field Survey, 2015
From table 1, it is observed that majority of the respondents are males. Respondents
explained that most of the customer service personnel are females as a result of the less
energy involved in the work whereas most of the other operations require a lot of energy
which account for the high level of males in the organization.
4.3. Are ICT Tools Used To Manage Inventory And Warehouse Operations At Unilever
Ghana Limited:
All the 25 people (representing 100% of respondents) admitted that ICT tools are used to
manage inventory and warehouse operations at Unilever Ghana Limited.
4.4. ICT Tools Used To Manage Inventory And Warehouse Operations At Unilever
Ghana Limited:
An interview with the 25 respondents to this question revealed that the following ICT tools
and systems are used for the management of the inventory and warehouse operations at
Unilever Ghana Limited:

Figure 1: ICT Tools Used to Manage Inventory and Warehouse Operations at Unilever
Ghana Limited (N= 25)
Figure 1 above shows that the ICT tools used to manage Inventory and warehouse operations
are:
1. Warehouse Management System (WMS)
2. CCTV (Close Circuit Television) Cameras
4.5. Uses Of The ICT Tools In The Management Of Warehouse And Inventory
Operations At Unilever Ghana Limited:
Table 2 below shows the uses of the ICT tools used in the management of inventory and
warehouse operations at Unilever Ghana Limited as perceived by staff and management of
the company.
Total Number of Respondents(N): 25
Scale: ( 3= agree, 2= unaware, 1= disagree)

ICT TOOLS USES Mean S.d
Warehouse 1. Used to control the movement and 2.86 0.37

Management storage of stock in the warehouse.
System 2. Used for generating invoices and

2.88 0.33
receipts
2.43 0.65
3. Used to generate query of items in
stock and their descriptions.
4. Used to easily identify the 2.60 0.50

manufacturing and expiry dates on
products in the warehouse
CCTV 1. It serves as a 24 hour surveillance 1.96 0.98

cameras to the warehouse.
2. It is used to monitor the activities

2.52 0.51
of staff who work at the
warehouse.
3. It deters anyone who intends to 2.72 0.61

cause mischief or sabotage
through theft or pilfering at the
warehouse.
Table 2: Uses of the ICT Tools Used to Manage Inventory and Warehouse Operations
Key: (s.d=> Standard deviation)
Staff and Management of the organization seem to realize a lot of uses of the warehouse
management system and this can be clearly seen from table 2 above. For instance many of the
staff and management agree to the fact that the system is used to generate query of items in
stock and their descriptions(a mean of 2.43 and a low standard deviation of 0.65 show clearly
shows that to a high extent, the system is very useful in that regard.

From Table 2, it is also observed that most of the respondents did not really seem to realize
the benefits of the 24-hour surveillance of the use of CCTV cameras. Some respondents
explained in a further interview explained that some of the cameras were with faults. Others
also explained that the current power outages in the country makes the cameras white
elephants often times and a continuous use of the cameras required management to power the
generating plants of the company throughout the day and that did not seem cost- effective.
4.6. The Effects Of Using ICT Tools On The Performance Of Inventory And
Warehouse Operations At Unilever Ghana Limited:
The table 3 below also shows the impact/ effect of the use of ICT tools on the performance of
inventory and warehouse operations.
Total number of Respondents (N) = 25
Scale: ( 4= Strongly agree, 3= agree, 2= unaware, 1= disagree)

ICT Tools Performance Indicators Mean S.d
WMS 1. Helps to speed up transactions: 2.88 1.05
2. Helps to reduce human errors with regard to 3.2 0.56

stock counting:
3. Helped to reduce stock-out levels:

2.8 1.0
4. Enhances easy demand forecast:
2.28 1.02
5. Enhanced the efficiency of warehouse
3.12 0.73
operations
CCTV 1. Provides remote monitoring 2.6 0.82

Cameras
2. Provides a flexible security system 3.2 0.76
3. Reduces the cost of providing security personnel 1.72 0.98

at the warehouse
4. Helps to reduce theft in the warehouse

2.76 0.93
5. Enhances the management of warehouse
2.16 0.90
operations
Table 3: The effects of the use of ICT Tools on performance of Operations
It can be observed that management and staff perceive a significant effects of the use of ICT
tools in the management of inventory and warehouse operations in their organization.
However, management and staff do not seem to perceive a significant effect of CCTV
cameras on the reduction of the cost of providing security (a low mean of 1.72 and a
considerably low standard deviation of 0.98) depicts that most members of the staff and
management seem to be unaware of the significant effects of the facility to their operations.

However, it must be noted that management and staff still acknowledge some positive effects
of the CCTV camera system on the security of the warehouse.
4.7. The Challenges Associated To The Use Of ICT In The Management Of Inventory
And Warehouse Operations At Unilever Ghana Limited:
The responses from the questionnaire revealed the following challenges to the use of ICT
tools in the management of inventory and warehouse operations at Unilever Ghana Limited
as shown in table 2 below:
Total Number of Respondents (N): 15
Scale: ( 4= Strongly agree, 3= agree, 2= unaware, 1= disagree)
ICT Tools Challenges Mean S.d
WMS 1. Requires a lot of time to learn the 3.07 0.80

software
2. High cost of training staff to use the

3.2 0.68
system well.
3. Has quite a complex user interface.

2.13 0.92
4. The frequent power outages makes the
use of the system uneasy. 3.47 0.52
CCTV 1. It invades the privacy of staff and 1.93 1.03

Cameras personnel who work at the warehouse.
2. It is unreliable because of the frequent power

3.2 1.01
outages.
3. Frequent breakages make the use of the

cameras unreliable 3.33 0.49
4. The cost of cameras are expensive
2.27 0.52
Table 4: The challenges of using ICT tools to manage Inventory and Warehouse Operations

From the table 4 above, it could be observed that irrespective of the positive effects of the
Warehouse Management System, management still acknowledge a lot of challenges. For
instance the cost of training staff and the time required to learn the use of the software are
major challenges ( mean scores of 3.2 , 3.07 and standard deviation scores of 0.68, 0.80
respectively) clearly shows this fact.
5. Summary, Conclusions And Recommendations:
5.1. Summary:
The study sought to identify some of the ICT tools that can be used to manage Inventory and
warehouse operations at Unilever Ghana Limited. It also sought to examine how ICT tools
are used to manage warehouse and inventory operations, assess the effects of ICT on the
performance of inventory and warehouse operations and also to identify some of the
challenges associated to the use of ICT tools in the management of inventory and warehouse
5.2. Key Findings:
The study revealed that a high percentage of the respondents were males. It is also observed
from table 1 that a significant number of the respondents (21 out of the 25 representing 84%)
have worked with the organization for at least 4 years. The study revealed that the ICT tools
used to manage inventory and warehouse operations at Unilever Ghana Limited are: CCTV
cameras and Warehouse Management System only.
It is observed that management and staff realize a lot of benefits from using the ICT tools in
the company although the benefits of CCTV cameras seemed to show the least benefit to the
organization; respondents attribute it to the frequent power outages which prevents the
cameras to work continuously and also cause some to periodically break down. Respondents
explained that without human security, security could have been very porous in times of
power- cuts.

5.3. Conclusion:
From the findings of the researchers, it can be concluded that Unilever Ghana Limited uses
ICT tools to manage their inventory and warehouse operations. It can also be concluded that
there is a positive relationship between the use of ICT tools and the performance of
inventory and warehouse operations at Unilever Ghana Limited. Lastly it can be concluded
that cost of training staff, the time required to learn the use of the software and the frequent
power outages in the country are the major challenges faced by management and staff of the
organization in the management of their inventory and warehouse operations.
5.4. Recommendations:
I recommend that the User Departments of ICT tools should be involved in procurement
decisions early enough so that the user interface and simplicity of the software as perceived
by users are well taken into accounts prior to their purchase.
I will also recommend that management try to explore and identify other very important ICT
tools such as the Biometric Verification System which helps to easily track the time staff
report to work and also track the time a staff enters particular sections of the warehouse. A lot
of benefits can also be realized from the use of biometric scanners which could help the
organization to easily identify the content of packages and the specifications of products in
the warehouse; this could help in easy sorting and arrangement of the inventory in the
warehouse and also limit the frequency of breakages and waste from unnecessary movement
and overstaffing.
5.5. Suggestion For Further Research:
This study sought to assess the effects of information technology (ICT) on the performance of
warehouse and inventory operations at Unilever Ghana Limited. The study was only limited
to Unilever Ghana Limited in Kumasi. I would therefore recommend that other researchers
research into this same area of study but this time, include other organizations in order to
obtain a good comparative study. The researchers also recommend further research to
ascertain the level at which a manual system is used to manage inventory and warehouse

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Journal of Operational Research, 193, 425-436.
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Change. Macmillan: London.
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Commerce: A Best Practice Model for Business. Aussie Print Australia Retrieved
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http://www.securityfocus.com/columnists/169
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http://www.unileverghana.com/aboutus/Introducingghana/
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Business.
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handbook for researching online. London: Sage Publications

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and Distribution Management. Kogan Page Publishers.
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W.H.M. (2000). Warehouse design and control: Framework and literature review.
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Assessing The Effects Of Information Technology

(ICT) On The Performance Of Warehouse And

1.1. Statement Of The Problem:

International Journal of Innovative Research and Studies Page 29

This research is aimed at assessing the effects of information technology(ICT) on the

1.2. Objectives Of The Research:

1.2.1. General Objective:

1.2.2. Specific Objectives:

3. To assess the effects of ICT on the performance of inventory and warehouse

International Journal of Innovative Research and Studies Page 30

1.3. Research Questions:

The research questions for this study are as follows:

1.4. Justification Of The Study:

1. Stressing on the need to adopt some degree of automation in the management of

2. Helping management of organizations especially logistics firms to identify common

1.5. Scope Of The Study:

The researchers made the following assumptions:

International Journal of Innovative Research and Studies Page 31

1.7. Limitation Of The Study:

The study had the following limitations:

3. Financial constraints in terms of printing, typing and photocopying of materials

2. Review Of Related Literature:

2.1. Theoretical Perspective:

2.1.1. Background Of Unilever Ghana Limited:

International Journal of Innovative Research and Studies Page 32

2.1.2. Overview Of Warehouse And Inventory Management:

A very key component of logistics management is warehouse and inventory management.

2.1.3. Overview Of Warehouse Operations:

International Journal of Innovative Research and Studies Page 33

2.1.4. The Objectives Of Holding An Inventory Or Keeping A Warehouse:

International Journal of Innovative Research and Studies Page 34

2.1.5.1. Bar Code Systems Of Technology:

2.1.5.2. Biometric Verification System:

2.1.5.3. Warehouse Management System (WMS):

International Journal of Innovative Research and Studies Page 35

2.1.5.4. Electronic Data Interchange System (EDI):

2.1.5.5. Value Added Network (VAN):

International Journal of Innovative Research and Studies Page 36

3.1. Research Design:

3.3. Sample And Sampling Procedure:

3.4. Data Collection Instruments:

International Journal of Innovative Research and Studies Page 37

3.5. Data Analysis:

International Journal of Innovative Research and Studies Page 38

4. Results and Discussion:

4.2. Socio Demographic Characteristics Of The Respondent:

International Journal of Innovative Research and Studies Page 39

Socio demographics Frequency Percentage

Below 20 years 0 0.0

21-30 years 12 48.00

31-40 years 8 32.00

41-50 years 5 20.00

51+ years 0 0.00

No formal schooling 3 12.00

Forklift Operator 3 12.00

Customer Service 3 12.00

International Journal of Innovative Research and Studies Page 40

Years worked with the

1-3 years 4 16.00

4-6 years 16 64.00

7-10 years 3 12.00

11+ years 2 8.00

Table 1: Socio Demographic Information (N=40)