Estimating the Intensity of Cargo Flows in Warehouses by Applying Guanxi Principles

Abstract

Proper supply chain management helps to ensure business continuity considering the increased importance of globalization. Logistics processes play an important role in keeping the supply chain running smoothly, and warehouse management is one of the most important logistics activities. The movement of freight flows in the supply chain poses many challenges to the arrangement of sustainable processes at the international level. The stopping of these flows at warehouses and/or terminals temporarily and/or for longer periods of time is yet another challenge. In this respect, a number of analyses and studies have been conducted in the scientific literature to identify the most serious and frequent problems: lack of planning of work activities, partial accounting of the work performed, lack of timely accounting of the internal movement of goods within the warehouse, absence of a spare-parts management system, etc. On the other hand, warehousing processes have been analysed to identify certain efficiency gaps in freight flows within warehouses; thus, this article addresses this problem by applying guanxi principles. Using guanxi theory and practice to test various assumptions for efficient freight flow movement in warehouses, a study was conducted using quantitative and qualitative methods and expert judgment. Based on the results of the conducted empirical studies, guanxi philosophy can be concluded to have an impact on the efficient management of warehouse processes when goods are removed from a warehouse over 365 days with an annual daily loading flow rate of 103,490 t/m and a loading density of 280 kg/m3. This indicates that the application of guanxi principles is important, which reflects the intensity of the logistics processes of cargo flows and transport dynamics between guanxi and warehouse optimization.