Logistics and Material Flow Design by Sigma Solutions
Introduction
A leading FMCG (Fast-Moving Consumer Goods) manufacturer faced rising logistics costs, warehouse inefficiencies, and inventory mismanagement—hindering its ability to meet customer demand promptly. Seeking a scalable, efficient, and compliant solution, the company partnered with Sigma Solutions for comprehensive logistics and material flow design services.
Challenges Faced
1. Inefficient Warehouse Layout & Material Flow
Disorganized storage led to longer picking times, double handling, and order dispatch delays.
2. Supply Chain Delays & Transportation Inefficiencies
High transit times and inconsistent deliveries affected lead time and vendor performance.
3. High Logistics Costs & Inventory Mismanagement
Poor inventory turnover and rising transportation and storage expenses reduced margins.
4. Lack of Real-Time Inventory Visibility
Without RFID or digital tracking, stockouts and overstocking became frequent.
5. Regulatory Compliance & Material Safety Risks
The facility lacked structured safety processes for storage, movement, and handling of raw and perishable goods.
Solution Provided by Sigma Solutions
Sigma Solutions designed and implemented an end-to-end logistics and warehouse optimization plan, enhancing speed, visibility, and cost-efficiency across the supply chain.
Implementation Process
1. Warehouse Layout Optimization & Material Handling
- Redesigned racking and storage zones using ABC analysis for faster access.
- Introduced FIFO (First-In, First-Out) for perishables and slow-moving SKUs.
- Installed ergonomic picking and pallet movement systems.
2. Supply Chain Network Optimization
- Created a multi-modal distribution strategy to balance cost and speed.
- Integrated hub-and-spoke logistics planning for regional deliveries.
- Partnered with local 3PL providers to reduce last-mile costs.
3. Cost Reduction & Budget Control
- Secured bulk transportation contracts and warehousing discounts.
- Deployed demand forecasting algorithms to reduce inventory waste.
- Switched from manual to semi-automated material handling systems.
4. Real-Time Digital Tracking System
- Installed RFID-based inventory tracking across warehouse and delivery points.
- Implemented AI-based predictive inventory management for reorder levels.
- Built a dashboard to monitor inventory turnover, transit delays, and shrinkage.
5. Regulatory Compliance & Safety Enhancements
- Conducted training on PPE, chemical safety, and safe material handling.
- Ensured compliance with Factory Act, OSHA, and warehousing safety norms.
- Created segregated zones for flammables, perishables, and high-value SKUs.
Results Achieved
30% Faster Order Fulfilment – Optimized picking and packing zones reduced dispatch time.
25% Lower Transportation Costs – Improved route planning and vendor negotiations.
100% Inventory Visibility – Digital tracking reduced stockouts and shrinkage.
Zero Safety Violations – Full regulatory compliance with enhanced safety training.
Improved Supply Chain Reliability – Coordinated vendor planning improved delivery timelines.
Conclusion & Key Takeaways
Efficient logistics and material flow design is critical for cost savings, speed, and scalability. Sigma Solutions empowered the client to improve their bottom line, streamline order fulfilment, and comply with all relevant safety and legal regulations. The result was a future-ready logistics system designed for growth and resilience.
Related Services by Sigma Solutions
- Warehouse Layout Optimization & Material Flow Planning
- Digital Inventory Tracking & AI-Powered Demand Forecasting
- Multi-Modal Logistics & Transportation Cost Reduction
- Third-Party Logistics (3PL) & Vendor Coordination
- Regulatory Compliance & Safety in Material Handling
Other Case Studies
Client Testimonial
“Sigma Solutions helped us optimize our
logistics and material flow, reducing costs while improving efficiency. Their
expertise in warehouse planning, supply chain management, and inventory
tracking made a significant impact on our operations.”