Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Value Chain Analysis of Warehouse Business Activities Associated with Global and National Approaches: A Case Study in Oman

Author(s): Noorul Shaiful Fitri Abdul Rahman, Reem Rashid Ali Al Moqbali, Nur Hazwani Karim, Martin Patrick Mcdaid

 The warehouse industry has become a more critical factor in supporting Oman logistics and supply chain management. The global initiative (Industry 4.0) and national vision (Sultanate of Oman Logistics (SOLS) 2040) have put the industry sectors under pressure. This study explores Oman’s warehouse companies’ awareness of the SOLS 2040 and their readiness to adopt Industry 4.0 technologies. Empirical research was conducted on a sample of thirty respondents from different warehouse companies in Oman by utilizing both qualitative and quantitative data incorporated with Porter’s value chain analysis. The outcome found that the level of awareness among warehouses in Oman towards Industry 4.0 is between 40-80% while about 30-60% of companies have adopted Industry 4.0 technologies into their warehouse operation. Furthermore, in achieving SOLS 2040, the level of awareness reported averaged out at just over a half. Remarkably, primary activities on Porter’s value chain analysis concluded that the most valuable area is at the receiving point, and the costliest area is within the warehouse operation process. This industry requires good planning and effective technologies to reduce cost consumption and improve warehouse qualities to remain competitive regionally and globally. 

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