Evaluating Warehouse Management System (WMS) and Inventory Efficiency: Evidence from the Malaysian Automotive Industry

Abstract

The increasing complexity of operations in the automotive industry has created a strong demand for effective inventory management to ensure operational efficiency and customer satisfaction. Warehouse Management Systems (WMS) are widely used to support inventory control, improve data accuracy, and enhance decision-making processes. However, ineffective WMS implementation may result in problems such as inaccurate inventory records, stockouts, and inefficient warehouse operations. Therefore, this study aims to examine the role of WMS implementation in enhancing inventory management efficiency in the automotive industry. This research adopts a quantitative approach, focusing on key WMS-related factors such as the quality of WMS implementation, real-time data availability, system integration, and inventory efficiency. Data were collected using a structured questionnaire distributed to respondents involved in warehouse and inventory operations within the automotive sector. The collected data were analyzed using statistical techniques including reliability analysis, Pearson’s correlation analysis, and regression analysis by SPSS tool. The findings reveal that the quality of WMS implementation has a significant positive impact on inventory management efficiency. In addition, real-time data availability and effective system integration were found to contribute to improved inventory efficiency, reduced stockouts, and better operational performance. Overall, the results confirm that an effective WMS plays a crucial role in enhancing inventory management efficiency. This study provides valuable insights for automotive organizations seeking to improve warehouse operations and strengthen inventory management practices through effective WMS implementation.