Impact of Warehouse and Logistics on Healthcare SME Performance

This report investigates warehouse management and logistics within the healthcare sector, focusing on small and medium enterprises (SMEs). It explores the concept of warehouse management, examining its role in controlling day-to-day operations like shipping, receiving, and picking. The study delves into the impact of effective supply chain management on cost reduction and operational efficiency within SMEs, highlighting the importance of information flow and stakeholder coordination. The report identifies challenges in inventory management, such as optimizing storage, tracking stock, and ensuring timely delivery of medical supplies. Furthermore, it examines the strategic role of warehouse management and logistics in healthcare, emphasizing the need for efficient material flow, continuous improvement, and collaboration with suppliers to meet patient needs and improve outcomes. The report analyzes the complexities within the healthcare sector and how efficient logistics and warehouse management can help organizations plan, organize, and coordinate the movement of goods effectively.

Improving
warehousing and
logistics for a
healthcare SME

Table of Contents
Research Topic: Warehouse management and logistics for healthcare sector for small and
medium enterprises. An investigation on Small or Medium Enterprises........................................3
Chapter 1: Introduction....................................................................................................................3
Background to the study.............................................................................................................3
Research aim and objectives.......................................................................................................3
Rationale for selection of topic...................................................................................................4
Research questions......................................................................................................................4
Chapter 2: Literature review............................................................................................................5
To review about the concept of warehouse management and logistic within in health care
sector for a small and medium sized enterprise..........................................................................5
To determine about the impact of effective supply chain management on the cost reduction
and operational efficiency of the small and medium enterprise.................................................8
To identify the main challenges faced by a SME in inventory management along with making
vital recommendations to overcome these issues and challenges.............................................10
Chapter 3: Research methodology.................................................................................................12
Chapter 4: Findings and discussion...............................................................................................15
Findings.....................................................................................................................................15
Discussion.................................................................................................................................18
Chapter 5: Conclusion and recommendation.................................................................................26
Chapter 6: Personal reflection........................................................................................................28
REFERENCES..............................................................................................................................30

Research Topic: Warehouse management and logistics for healthcare sector for
small and medium enterprises. An investigation on Small or Medium
Enterprises
Chapter 1: Introduction
Background to the study
`Warehouse management is defined as the control of day to day operations related to
warehouse, like shipping, receiving and picking of goods. In healthcare, managing the supply
chain is very complex process. The supply chain management in healthcare involves acquiring
resources, managing supplies as well as delivering products and services to providers of health
care and patients. In order to complete the process, information regarding medical products and
services and physical goods usually go through numerous independent stakeholders. However,
by promoting efficiency in supply chain, hospitals can develop substantial opportunities for cost
reduction across the organisation. In small and medium enterprises, warehouse management and
logistics and supply chain management plays crucial role. This dissertation intent to analyse
about the concept of warehouse management and logistic within in health care sector along with
impact of effective supply chain management on the cost reduction of a firm.
Research aim and objectives
The main aim of leading out current investigation, “To analyse about the concept of
warehouse management and logistic within in health care sector along with impact of effective
supply chain management on the cost reduction of a firm. A research Project on Small and
Medium enterprises.
Research Objectives
 To review about the concept of warehouse management and logistic within in health care
sector for a small and medium sized enterprise.
 To determine about the impact of effective supply chain management on the cost
reduction and operational efficiency of the Small and Medium enterprises.

 To identify the main challenges faced by a SME in inventory management along with
making vital recommendations to overcome these issues and challenges.
Rationale for selection of topic
This study is based on the title “Warehouse management and logistics for healthcare sector
for small and medium enterprises” and aims analyse the concept of warehouse management and
logistic within in health care sector with impact of effective supply chain management on the
cost reduction of a firm. The main reason behind selecting this topic to study is that it assistant at
mining the concept of supply chain management, warehouse management and logistics. Apart
from this, it also helps in gaining an understanding of impact of effective supply chain
management in operational efficiency and cost reduction of small and medium enterprises. It
helps in gaining deep insight on the topic along with determining the main challenges that are
faced by small and medium business organisations in inventory management. This study will
highly contribute in determining the ways to address the challenges in an effective way and
providing high quality services within Health Care sector.
Research questions
 What is meant by the concept of warehouse management and logistic within in health
care sector for a small and medium sized enterprise?
 What possible impact could be lead out by effective supply chain management on the
cost reduction and operational efficiency of the Small and Medium enterprises?
 What are the possible challenges faced by a SME in inventory management along with
making vital recommendations to overcome these issues and challenges?
Structure of Report
A description about the intended structure for current research project is provided below:
Chapter 1: Introduction – It would make the first section of current research project
which would tend to facilitate information about the background of study along with the set aim
and objectives. Further, rationale and significance for selection of topic is also provided and
facilitated by the first chapter of introduction.
Chapter 2: Literature review- this section of a research project comprises of analysis and
review of secondary sources of information that is vital and important to set out a base for study.
With respect to current research project use of online articles and journals would be made an
analysis of which would be provided under the head of literature review.

Chapter 3: Research Methodology- this section tends to provide information about the
research method and approaches that would be expected to be used by a researcher to perform
and carry out an investigation in a more effective and better manner. The current research work
is based on quantitative form of research method where data would be collected with the help of
both primary and secondary sources of data collection.
Chapter 4: Findings and discussion- this section would include a discussion and
analysis of the information collected through making use of research tool like questionnaire.
With respect to current investigation, analysis of collected facts would be made with the help of
pie charts and frequency table which facilitates a better and more systematic analysis and
discussion of data collected with the help of questionnaire.
Chapter 5: Conclusion and recommendation- this forms out to a vital part of a research
project which consist of overall conclusion and summarisation of key facts and results which are
observed and undertaken during an investigation. Further, valid recommendation and suggestions
also formed a part of this section which are based on the findings of research undertaken and
facilitates better ways to have improvement in supply chain management.
Chapter 6: Personal reflection- this forms out to be the last part of a research project that
is based on self-layering process and consists of an analysis about the facts and understanding
that is undertaken by a researcher during course of performing an investigation.
Chapter 2: Literature review
To review about the concept of warehouse management and logistic within in health care sector
for a small and medium sized enterprise.
As per the view point of Göleç and Karadeniz, 2020 warehouse management is the
demonstration of getting sorted out and controlling everything inside distribution centre and
ensuring everything runs in the most ideal manner conceivable. In addition to this, it has been
evaluated that warehouse management concept mainly include aspects that are mainly related to
arranging the warehouse and its inventory, proper maintenance of
equipment, Picking, packing and shipping orders, Managing new stock
coming into the facility, tracking and improving overall warehouse
performance and more. Furthermore, according to the analysis it has been
determined that, warehouse management is the focal point of assembling

and store network activities since they hold the sum of the material utilized
or delivered in those cycles, from crude materials to completed products.
As per the view point of Alotaibi, Mehmood and Katib, 2020, the reason for a
warehouse management is to help guarantee that products and materials
travel through distribution centers in the most proficient and financially
savvy way. In addition to this, it has been identified that a warehouse
management handles numerous capacities that empower these
developments, including stock following, picking, getting and put away.
Furthermore, according to the analysis it has been determined that
warehouse management main purpose is to assist clients with dealing with
the satisfaction, transporting and accepting undertakings in the stockroom or
dispersion focus, for example, picking products from racks for shipment or
taking care of got merchandise. It is most important part in stock is to follow
the stock information that roll in from scanner tag peruses and radio
recurrence recognizable proof (RFID) labels and update the stock
administration module in the ERP framework to guarantee it has the most
recent data.
As per the opinions presented by Bhuvana and Arun, 2020, an incorporation
connect synchronizes the stock information that is put away in the ERP
framework and the Warehouse management. Thus, according to the analysis
it has been determined that warehouse management most important role
that assures the guarantee and a smooth and cost-effective handling of all
distribution center tasks. Furthermore, it has been determined that
warehouse management and logistic plays essential role which is related to
investigate plainly, dispassionately and adequately moving inventories in distribution centers,
regarding the accompanying advances: (a) receipt, (b) stockpiling and (c) campaign. Each and
every activity significantly decreases losses as well as organisational failures. The significance of
assessing the activity of warehouse management is identified with the progression of materials
all through the production network. In addition to this, it has been determined that warehouse
management and logistic plays essential as well as strategic role. Furthermore, they undertake

role related to ceaseless development, for administration utilization, community oriented
relationship with providers and coordination angles with transportation modes.
According to the analysis it has been identified the concept of warehouse management and
logistic in healthcare sector for small and medium scale enterprises is associated to have proper
control and monitoring of the regulation of flow of medical records and equipments from
manufacturer to patient. Healthcare supply chain management which involves obtaining
resources effectively, managing supplies and efficiently delivers goods and services to patients
as well as providers. In addition to this it has been identified in terms of logistic management is
that it is the most important aspect of supply chain management process that involves plan,
implementation and control of goods, efficient and effective flow of goods services and related
information (YARDAN, 2020). With the help of having strong warehouse and logistics
management organisation dealing in healthcare sector can assure meeting of customers or patient
requirement in most effective manner. It is essential for entities engaged in healthcare sector to
ensure that goods and materials are available in time effective manner. Thus it is essential for
them to have an efficient warehouse and logistics management system.
As per the opinion of Getel, and Arrive, 2020, It has been identified that logistic
management play a central role in healthcare sector as it allows them to effectively reduce
picking error while improving productivity. With the help of this entity engage in this sector can
conduct warehouse management activities in more effective manner. It has been identified that
due to the growing complexities is in healthcare sector by the passage of time it is essential for
entities engaged in healthcare sector to improve patient outcomes. For this, logistic and
warehouse management effectively allow entity to have efficient plan, organise and co-ordinate
the movement of goods from time to time. With the help of efficient logistic and warehouse
management organisation can develop and strong network of interconnected business and
stakeholders through which they can assure accomplishment of goals can be undertaken in
effective manner. With the help of undertaking use of efficient logistic and warehouse
management organisation can effectively plan and co-ordinate the complex transportation of
goods and can assure time effective, safely and reliable logistic management.

To determine about the impact of effective supply chain management on the cost reduction and
operational efficiency of the small and medium enterprise
As per the view point of Khorasani, Cross and Maghazei, 2020 supply chain management
have significant effect upon manufacturing in multiple number of ways from both a day by day
operational, and an essential point of view. In addition to this, it has been determined that it is a
significant part of assembling, for industry administrators and business visionaries the same.
Furthermore, it has been identified that effective supply chain management provide number of
benefits which is associated to the accessibility of information sources required for creation
cycles, controlling costs and enhancing profitability of organization manufactured items.
Furthermore, it has been underlined that in today’s modern business world there is significant
increase in complexity within supply chain management. Thus, it is essential or organizations
specially dealing in healthcare sector to have strong supply chain network.
As said by Werner-Lewandowska, 2020, it has been identified that effective supply chain
management gives perceivability from start to finish for observing the progression of data,
administrations and products from obtainment to assembling and conveyance to the end buyer.
Furthermore, according to the analysis it has been underlined that there are a few different ways
through which effective supply chain management have significant capability to reduce overhead
cost through which organization can conduct business in cost effective operations (Ketchen Jr
and Craighead, 2020). In addition to this, it has been underlined that with the help of effective
supply chain management organization can make significant improvement in inventory
management system through which company can enhance its overall profitability. Furthermore,
it has been identified that with the help of effective supply chain management organization
especially in health care sector can make their supply chain management more receptive to client
necessities and fortifies associations with your sellers and merchants. In addition to this, it has
been determined that organizations with more prominent command over their suppliers as well
as direct suppliers can significantly measures number of advantages. Furthermore, with the help
of executing standard least quality models empowers direct providers to discover and work with
optional providers that meet these measures. Moreover, measure rules can help organization
suppliers to live up to the desires for quality execution.
According to Ndubisi, Zhai and Lai, 2020, An effective administration working framework
will screen key execution pointers (KPI, for example, on-time conveyance, scrap rates and

improves, end result quality, time for objection goal, and discoveries from provider quality
appraisals. A compelling store network the board programming allows you to incorporate your
data to all your colleagues and give precise stock data to your clients. Clients today request
ongoing reaction and they need simpler admittance to your items. In the event that the
progression of data is intruded on, it can make clients desert the truck and you can lose occasions
to make deals. Furthermore, according to the analysis it has been determined that, with the
assistance of effective supply chain management organization can significantly integrate their
information with all their partners. In addition to this, they can also provide efficient and
accurate information to customers. With the help of this organization can significantly measure
seamless flow of information with partners and can further have great collaboration that will help
company to improve their business operations.
As per the view point of Thiel and Horwitz, 2020, it has been identified that with the help
of having strong supply chain management small medium enterprise can measure cost reduction
and operational efficiency in a well defined and effective manner. It has been identified that
organisation those who are engaged in health care sector have a significant responsibility to
make sure that organisation is having availability of products in time effective manner. Along
with this they are also required to ensure that organisation are not left without essential medical
products and patients are having access of potentially life-saving tool. With the help of strong
supply chain management entities within healthcare sector can assure procurement and
distribution of services and products in time effective manner. According to the analysis it has
been identified that supply chain management is having a significant importance as it enable
availability of life saving tools and equipments for other products in proper time frames.
Negligence of supply chain management can lead organisation to face unexpected losses and
disaster that can also affect productivity of company. Furthermore, more it has been underlined
that small and medium scale industries with the help of having effective supply chain
management can significantly accomplish number of task in effective manner.
Maroufkhani and et. al., 2020, said that with the help of having effective supply chain
management entities engaged in healthcare sector can ensure efficient movement of surgical,
medical and other essential products which is essential to be needed by healthcare professional.
With the assistance of having efficient supply chain management in healthcare entities can
reduce my inability among departments and can further reduced risk of uncertainty. In addition

to this it has been underlined that efficient supply chain management allow entities to achieve
targeted health outcomes by increasing investment in global health. Effective supply chain
management have positive impact upon operational efficiency and cost reduction. With the help
of taking strong supply chain management small medium enterprise can conduct their operation
in cost effective manner. Furthermore it has been underlined that with the help of efficient supply
chain management small medium enterprise ensure availability of medical products at right time
that significantly help them to reduce inventory wastage. Along with this it further allows
Babington Hospital to maximize patient care and provide them assistance and have coordination
in all departments.
According to De and et. al., 2020, efficient supply chain management also allow
organisation to minimise human errors as well as medication errors in a well-defined and
effective manner through which organisation as assure operational efficiency with effectiveness.
Thus, according to the above mentioned in analysis it has been identified that effective supply
chain management is having positive impact upon small medium enterprise as with the help of
taking advantage of the supply chain management hospital can reduce cost and can further
conduct organisational operations with more effectiveness. It allows small medium enterprise to
provide effective patient care that enhances satisfaction level of patience (Skipworth, Delbufalo
and Mena, 2020). Along with this, it helps company to effectively utilise resources, satisfy
employee and provide effective treatment to patients. Strong supply chain management make
significant improvement in health care practices through which company can enhance their brand
image in effective industrial sector.
To identify the main challenges faced by a SME in inventory management along with making
vital recommendations to overcome these issues and challenges.
According to the viewpoint of Kumar, Liu and Shan, 2020 it has been identified there are
number of challenges that can be faced by small and medium scale enterprise in inventory
management. These challenges do not affect business operation but also affect the manner in
which inventory is being managed in organisational sector. It has been identified that in today’s
competitive market place management of inventory can lead organisation to lose profitability in
number of ways. This will also lead organisation to affect satisfaction of customers. According to
the evaluation it has been identified that there are some certain inventory management challenges
that can be faced by small and medium scale enterprises. These can be in terms of inconsistent

tracking, it is the manner in which organisation control and monitor flow of goods and services.
While on the other hand inaccurate data is also the major challenge that can affect inventory
management system of small and medium enterprises. Furthermore, more it has been identified
that consumer demand is constantly changing that can create challenges in front of small and
medium scale enterprises to compensate changing demands. All these challenges affect the
manner in which small and medium scale enterprise are managing inventory.
In addition to this, according to the analysis it has been determined that, small scale and
medium enterprise can also face the challenge of supply chain complexity managing warehouse
space, in sufficient order management, evolving packaging, increasing competition, expanding
product portfolio, overstocking inventory, lack of expertise and poor communication. In
addition, it has been identified that in effective process and outdated product planning is also the
major challenges that can affect as small scale and medium enterprise inventory management
system. In addition to this it has been identified that with the help of some effective measures
organizations like small and medium enterprise can overcome the issues and challenges in
effective manner. For this they can take advantage of centralised tracking in order to undertake
the advantage of software to have accurate and automatic inventory updates with the help of real-
time data backup.
According to the opinions presented by Dai and et. al., 2020, SME can also take advantage
of transparent performance, stock auditing, demand forecasting and software to replace manual
inventory documentation. Furthermore, it has been underlined that with the help of optimising
space with the help of inventory management system organisation can have the feature to
optimise storage space and inventory. In addition to this it has been identified that with the help
of taking use of multi-location warehousing, leverage lead times and reducing human errors is
also one of the most effective measure that will allow company to reduce errors in inventory
management. Furthermore, SME is also recommended to undertake use of dashboard
collaboration productivity tools and regularly update platform to cloud in inventory management
in order to have efficient inventory management. Thus with the help of emphasizing upon the
above-mentioned recommendation SME can effectively overcome the issues and challenges of
inventory management in best effective manner and conduct efficient operations. Thus, it is
recommended to SME to effectively emphasise upon all the given recommended measures in
order to have strong and effective inventory control. This will lead entity to conduct their

operations in time effective manner through which they can further ensure long term
sustainability in respective industrial segment. In addition to this, it has been determined that
these recommendations will lead entity to conduct business operations in cost effective manner
through which they can further maximise their overall profitability in a well define and effective
manner.
Chapter 3: Research methodology
The proposed set of research methodology comprises of:
Research Philosophy - The philosophy of research is the belief of the way information is
gathered regarding a specific phenomenon and is analysed and utilised. There are two significant
philosophies used by researchers named as positivism philosophy and interpretivism philosophy.
The positivism philosophy is any system which can finds itself to experience data and exclude
metaphysical speculations. Whereas, interpretivism philosophy is rely on principle that states
that investigator performs particular role in social world observation.
Justification – In this present study, the use of positivism philosophy is suggested for
current investigation as it is more systematic and practical in nature. Apart from this, it assists
researcher in performing the study systematically.
Research approach – Research approach is procedure that involves some steps of broad
assumptions two descriptive methods of collecting, analysing and interpreting data. Inductive
research approach and deductive approach are the two key methods utilised by investigator.
Inductive reasoning initiates with observations and then theories are proposed towards end of the
process of research as a result of observation. Whereas, approach is related to developing the
hypothesis on the basis of existing theory.
Justification - In this particular study, use of deductive approach is more suitable as it
facilitates better scanning and testing of numeric facts. In addition to this, as this investigation is
quantitative in nature, deductive approach is more appropriate to use.
Research strategy - Research strategy is a plan to perform the research systematically. It
directs a researcher in planning, implementing and monitoring the study and therefore, offers
high level direction to the researcher. Different strategies of research include quantitative survey,
case study research, experimental research, action oriented research, systematic literature review,
qualitative interview etc.