Optimizing E-Commerce Productivity through Warehouse Management Systems: Evidence from Malaysia’s Retail Industry

Abstract

The rapid growth of e-commerce has transformed Malaysia’s retail industry, intensifying the need for efficient warehouse operations to sustain competitiveness and customer satisfaction. Warehouse Management Systems (WMS) have emerged as critical tools for optimizing logistics processes, including inventory tracking, order fulfilment, automation, cost management, and system integration. This study investigates the role of WMS in enhancing e-commerce productivity within Malaysia’s retail sector, guided by the DeLone and McLean Information System (IS) Success Model as the theoretical framework. A quantitative research design was employed, with data collected from 200 respondents representing retail businesses that actively use WMS. Structured questionnaires measured perceptions of WMS effectiveness across five independent variables—real-time data accuracy, order fulfilment, warehouse automation, cost reduction, and system integration—against the dependent variable, e-commerce efficiency. Reliability testing confirmed strong internal consistency. Descriptive analysis indicated high mean values across all variables, reflecting broad agreement on the importance of WMS functions. Pearson’s correlation analysis revealed positive and significant relationships between all independent variables and e-commerce efficiency, with system integration showing the strongest correlation. Multiple regression analysis demonstrated that the model explained 80.9% of the variance in e-commerce efficiency. Order fulfilment, cost reduction, and system integration were significant predictors, while real-time data accuracy and warehouse automation did not show significant effects. These findings suggest that integrated systems, effective cost management, and streamlined order fulfilment are the primary drivers of e-commerce productivity in Malaysia’s retail industry. The study contributes theoretically by extending the IS Success Model to logistics and retail e-commerce, and practically by offering insights for retailers and policymakers on leveraging WMS to enhance efficiency, profitability, and customer satisfaction in the digital economy.