Abstract
This paper aims to evaluate the effect of Muda (waste) practices on warehouse efficiency within third-party logistics providers (hereafter: 3PLs) operations using Data Envelopment Analysis (hereafter: DEA). The study employs a quantitative method to evaluate the impact of Lean (Muda) practices on warehouse efficiency within 3PL operations. A descriptive and correlational design is used, integrating DEA for efficiency calculation and regression analyses to assess the relationships between Lean practices and performance metrics. Data collection involved structured questionnaires. The study found significant variations in efficiency among the decision-making units (hereafter: DMUs), with a few achieving optimal performance (100%) while many showed inefficiencies below 50%, highlighting substantial room for improvement. Regression analysis confirmed a strong positive correlation between total waste reduction practices with operational efficiency (R2 = 0.894, p < 0.001). Among specific stages, waste reduction practices at Put-away, Picking, and Dispatching significantly improved efficiency, while Receiving practices had no meaningful impact. The originality of this study is in its integration of DEA and regression analysis for comprehensively assessing the impact of stage-specific waste reduction practices on 3PL operational efficiency in Jordan, a region with limited prior research.