Relationship between logistic service and maintenance costs of warehouses

Abstract

PurposeThe purpose of this paper is to prove that maintenance cost of warehouses is correlated to the performance of the logistic business, together with other relevant operational factors.Design/methodology/approachThe relationships between indicators of logistic service level performance are examined using a linear regression analysis of a dataset collected from a number of distribution facilities operated by a leading global freight provider throughout Italy.FindingsExpenditures in building maintenance contribute to improve the punctuality of deliveries with resulting improved quality of customer service.Research limitations/implicationsFurther research may gainfully generalise the model by examining other geographical areas and longer observation periods.Practical implicationsIt is suggested that logistic buildings have to be maintained not only to preserve the functional and economic value of the asset, but also to strengthen the competitive advantage of the logistic business.Originality/valueThe business performance is very likely to be influenced not only by variables related to the business process, but also by non‐operational factors, such as warehouse building performance.