To strengthen the logistics operations to meet a projected export demand of 20,000 tons per month, by addressing capacity constraint, planning inefficiencies and organisational gaps, for a Viscose Fiber Manufacturing industry.
Project phases
Field visits and data gathering covered one internal warehouse and three external 3PL sites — with 80% of total volume dedicated to export. Internal warehouse capacity was at 99% utilisation, relying on paper-based inbound processes with no WMS in place.
Capacity & technology audit
Identified near-full warehouse utilisation and absence of a WMS, leading to inbound inaccuracies and limited visibility.
Operational challenges
Interviews surfaced long truck turnaround times (TTAT), export document inaccuracies causing clearance delays, and no real-time order status visibility for customers.
Analysis across the logistics network revealed structural inefficiencies in warehouse operations, planning cycles, and organisational design.
Warehouse inefficiency
External 3PL model yielded low control and high transfer costs. Internal capacity gaps stemmed from suboptimal stacking and prolonged QC holding times.
Planning skew
Significant dispatch spikes in the fourth week of each month drove up costs and reduced accuracy. Inventory DOI levels exceeded the 3× standard deviation required for a 99% service level.
Organisational layers
Existing structure had excessive layers with no dedicated focus on transport management or integrated planning functions.
Recommendations addressed network design, planning cycles, and structural changes to ensure the business can reliably meet its 20,000-ton export target.
Network optimisation
Consolidate external warehouses closer to the factory and implement SAP WM or a basic WMS to improve space utilisation and FIFO accuracy.
Integrated planning
Launch a monthly SIOP (Sales, Inventory & Operations Planning) cycle to flatten dispatch spikes and target optimised inventory levels.
Execution & structure
Adopt a TMS to reduce TTAT, establish an ad-hoc team to resolve shipping document issues, and transition to a lean SCOR-based org structure with integrated customer service and customs roles.