A decision-making framework for determinants of an organisation’s readiness for smart warehouse

Abstract

Demanding, competitive business dynamics drive organisations to continually evaluate and adopt automation in their structural setups, particularly warehouses, for growth and profitability. Industry 4.0 technologies are revolutionising warehouse operations, resulting in cost savings, increased efficiency, and a more environmentally friendly approach for businesses. The readiness of organisations to adopt these technologies is evaluated with the help of hard and soft determinants selected through a theoretical framework of Technology–Organisation-Environment (TOE). In this study, a unique method is used that combines the Modified Delphi method, content validity for scale validation, expert opinion consensus tests for agreement, ranking determinants using the Best Worst Method (BWM), and rank validation through sensitivity analysis for warehousing industry experts and organisations. Warehouse service providers who convert their warehouses into smart modes to serve fast-moving consumer goods companies in Tier-2 cities are chosen for the structural framework. Results present the role of the ‘operational efficiency of technology’, ‘top management’, ‘employee’s education’, and ‘technical background’ as the most effective driving determinants. This research provides valuable information to researchers and managers trying to upgrade their warehouse into a smart warehouse.