Efficiency in logistics processes and internal logistics

The customer

The customer is a leading manufacturer of electronic equipment, specialising in the production of components for the telecommunications sector. With a workforce of over 300 employees and an international customer network, the company manages a wide range of products with complex production cycles and highly articulated internal logistics. Effective logistics management is crucial to ensure on-time deliveries and to maintain a competitive advantage in the market.

The customer’s need

The company needed to address some logistical inefficiencies that were negatively impacting production and customer service. Specifically, the problems included excessive material handling times between production departments, difficulties in tracking inventory in the warehouse, and delays in internal deliveries, which were slowing down production progress. These inefficiencies also led to an increase in operating costs and a reduction in the ability to respond quickly to market demands, with a 3.4 per cent non-compliance rate.

Solution provided

To address the company’s logistical challenges, we started the project with an in-depth analysis phase. The first step was to map the internal logistics flows using the Value Stream Mapping (VSM) method. This technique allowed us to identify bottlenecks along the material path, highlighting the most critical steps where the greatest waste of time and resources was occurring. In parallel, we carried out a detailed analysis of the warehouse space, focusing on aspects such as accessibility of materials, distances travelled by operators and frequency of use of items.

Based on this, we proceeded with a complete overhaul of the warehouse layout. Spaces were reorganised to minimise handling distances, with a new classification of materials prioritising high turnover items. Storage areas were redesigned to improve ergonomics and facilitate picking and storage operations, minimising time lost in searching and moving.

To further optimise the handling of high turnover codes, we created a ‘supermarket‘. The supermarket was designed to contain only the most frequently used materials, organised in a systematic and easily accessible manner. The introduction of the supermarket simplified stock management, ensuring that critical materials were always available in adequate quantities and ready for use. This drastically reduced delays due to shortages of essential materials and improved the fluidity of production processes.

To synchronise material flows with departmental needs, we introduced a Kanban system in the various lines for small and high-rotating material. This system, based on visual signalling and physical tags, has enabled optimal management of supply requests, avoiding both unnecessary accumulations in the production departments and the risk of interruptions due to lack of supplies.

Finally, we provided dedicated training sessions for operators and warehouse managers to ensure that all team members were aligned with the new processes and technologies introduced. This accompanying phase was essential to ensure a smooth transition and to consolidate good practices, creating a corporate culture focused on efficiency and continuous improvement.

The integrated approach has thus transformed the company’s internal logistics, making it leaner, faster and more reliable.

Benefits obtained

The implemented solutions have significantly improved the efficiency of internal logistics operations. Thanks to the new warehouse layout, the average time required for picking and handling materials has been drastically reduced. The Kanban system has eliminated delays in internal deliveries, facilitating a continuous flow of materials to the production departments. In addition, the digitisation of logistics flows has enabled movements to be tracked accurately, reducing errors and improving coordination between teams.

Results