The effects of material handling as a cost driver in the supply chain. Case of Cross Country Containers
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The study aimed at investigating the effects of material handling as a cost driver in the supply chain. The costs of material handling are increasing due to types of material handling system used at the organization. These material handling systems leads to some costs of maintaining the equipment especially in mechanical handling system where forklifts are used and they need fuel and being serviced. In manual material handling compensation costs increase due to accidents that happen at work. The trend of costs has shown that manual material handling system is causing these costs to increase. Hence the study seeks to find out whether material handling system causes costs to increase or there are other factors. The study made use of primary data and this was obtained from Cross Country Containers. In order to meet the set objectives, the research made use of linear regression method. The dependent variables were distance, experience, training, manual handling system, mechanical handling system and automated handling system. From the regression results it shows that there is a positive relationship between material handling systems and material handling costs. As such the conclusion drawn is that the company under study should focus much on manual handling systems to reduce manual handling costs. Recommendations are that policy makers should ensure that standard load, normal working hours, enforce shift break for employees, employ competent people and minimize distance travelled whilst carrying materials manually. The results also show that there is a negative relationship between employee competency and material handling costs. The conclusion is that organizations should focus on training employees and employing staff with experience in material handling. Safety and health department should ensure that safety signs are put in place so as to reduce accidents at work. As such the Occupational health and safety ought to carry on implementing policy like reducing working hours, recruit young labor force, employ competent personnel, regulate individual load weight and impose shift breaks.
- Department of Economics