Exploring Warehouse Automation's Impact on Customer Satisfaction in Last-Mile Delivery

Kalu Agwu Kalu’s Research Explores Impact of Warehouse Automation on Customer Satisfaction

Kalu Agwu Kalu, a master's student in Business Management, specialising in Logistics and Trade at Wittenborg, has completed a comprehensive thesis examining the role of warehouse automation in shaping customer experiences during last-mile delivery. His research compared the impact of automated, semi-automated and manual warehousing systems on customer satisfaction, with a focus on package delivery efficiency and service quality.

Why the Topic Matters

Kalu chose this topic because he believes that understanding the relationship between warehouse automation and customer satisfaction in last-mile delivery is vital for businesses aiming to improve operational efficiency.  

“I believe that this research would contribute to a nuanced understanding of how warehouse automation influences the experiential aspects of last-mile delivery in the package delivery industry. It will offer insights to last-mile delivery companies on how to optimise their operations and improve customer satisfaction based on diverse automation strategies.”  

His goal was to explore how varying levels of automation in warehousing affect customers' overall delivery experiences, providing guidance for logistics companies.

Research Methodology

To investigate this topic, Kalu used a mixed-method approach, combining quantitative surveys and qualitative interviews. The surveys provided a broad view of customer satisfaction, while the interviews allowed deeper insights into the operational processes and views of key industry figures, including warehouse managers, operations managers, logistics experts and order processing managers. He interviewed eight participants from both Nigeria and the Netherlands.

“The interviews covered topics such as how warehouse automation has influenced day-to-day operations, the challenges in implementing automation, how automation contributes to customer satisfaction in terms of timely deliveries, and overall service quality. The customer survey aimed to identify which factors most influence the delivery experience and where companies should focus their improvement efforts.”

Main Findings

Kalu’s research identified three primary factors influencing customers’ last-mile delivery experience: timely delivery, convenience and the condition of the package upon arrival. These factors were essential to customer satisfaction in both countries.

A key finding was that customers in the Netherlands, where automated warehousing is integrated with agile last-mile delivery, reported slightly higher satisfaction than their counterparts in Nigeria, where semi-automated or manual systems were used. “When automated warehousing works alongside agile last-mile delivery, customers were generally more satisfied. However, even with semi-automated or manual systems, when paired with agile last-mile delivery, companies could still provide a positive customer experience,” Kalu noted.

This suggests that while fully automated systems offer benefits, the combination of efficient last-mile strategies with semi-automated or manual systems can also deliver positive results if last-mile processes are optimised.

The Role of Automation and Scalability

Another significant finding was that warehouse automation plays a crucial role in scalability. Automated systems allow businesses to adapt quickly to fluctuating customer demands, improving efficiency and accuracy in order processing. Kalu stressed that scalability is particularly important in the logistics and warehousing industries, where order volumes and customer expectations often vary.

“These technologies enable companies like DHL to adapt their warehouse operations to changing customer demands and market dynamics while maintaining high service quality,” Kalu explained. “However, warehouse automation is not a one-size-fits-all solution. For it to have a wider impact on customer satisfaction, it must continue to evolve, addressing factors like cost, ease of use and adaptability.”

Looking Ahead

Kalu is currently working in Canada with a consumer goods manufacturing company, where he plans to apply the insights gained from his research to improve the company’s logistics and distribution operations. “The knowledge gained from this study will empower me to propose solutions to improve logistics and distribution efficiency,” he shared.  

In the long term, Kalu aspires to establish his own logistics firm with international reach, focusing on innovative and scalable solutions for global delivery challenges.

Advice for Future Students

Kalu has some valuable advice for Wittenborg students starting their own research journeys. “Adequate planning is key. Choose a topic that you are passionate about and comfortable researching. You will face challenges along the way, but be prepared to adapt quickly. The process may not unfold exactly as you imagined, but stay determined and courageous – you will get to the finish line.”

Reflecting on Thesis Journey

One of the most enjoyable aspects of writing his thesis, according to Kalu, was conducting interviews with key players in the logistics industry.  

“It provided me with practical insights from different perspectives and countries,” he said. Kalu also expressed his gratitude for the support he received during his academic journey, particularly from his supervisor, Dr George Bosire.  

WUP 17/02/2024 
by Erene Roux 
©WUAS Press