A warehouse is more than just a place to store goods but also creates a time utility gap between production and consumption that is important in the development of trade and commerce. Malaysia has a high aspiration to be the most popular gateway in Asia. However, Malaysia Productivity Corporation has claimed that particularly in efficiency and productivity aspects, the warehouse industry is less incline to innovate and make improvement to increase. There are ten failure factors that had been identified during literature survey affecting to the warehouse operations efficiency. Therefore, this study intends to analyse and select the main failure factors that mostly affecting the warehouse operations efficiency. A Fuzzy Analytic Hierarchy Process (FAHP) technique has been used in this study to calculate the weight value of each variable through a pair-wise comparison method. The finding highlighted the four main failure factors which are ‘equipment’, ‘environment concern’, ‘special handling consideration’ and ‘human factor’ that influence directly to the warehouse operations efficiency. This paper has contributed to a new knowledge of complex warehouse operation area with recommendations action that shall be taken to manage the possible risk in future, which will also contribute to achieve the government goals.

This paper suggests a specific model that could efficiently improve the interaction and the interface between WMS(Warehouse Management System) terminal and PDA terminal through real time processing in manufacturing shop. The proposed model shows that the new method can more efficiently perform to reduce processing time for shipping and receiving, compared with the current approach. As a result of the certain test among the main server, WMS system, and PDA terminal, it is noted in case of the new proposed system that the effects of proposed model are as follows: (a) While the receiving lead time for carrying by the current method was 2 hours, the receiving lead time by the new method was 20 minutes. (b) While the shipping lead time for carrying by the current method was 1 hours, the shipping lead time by the new method was 15 minutes. (c) While the inventory rate of accuracy by the current method was 85%, the inventory rate of accuracy by the new method was 98%.