494 Management Science and Industrial Engineering

F. Lumban Gaol et al. (Eds.)

© 2025 The Authors.
This article is published online with Open Access by IOS Press and distributed under the terms
of the Creative Commons Attribution Non-Commercial License 4.0 (CC BY-NC 4.0).
doi:10.3233/ATDE250564

Improvement of the OTIF Indexes at a

Peruvian Textile Hydrochemical SME with
Industry 4.0 and Lean Warehousing
Jasmin GILa, Hatsumi WONGa, Rosa SALASa; Jose ALVAREZa,1 and Sevilay
DEMIRKESENb
a
Universidad Peruana de Ciencias Aplicadas, Perú
b
Gebze Technical University, Turkey
ORCiD ID: Gil [Link] , Wong [Link]
0008-3489-2226 , Salas [Link] , Alvarez
[Link] and Demirkesen [Link]
8627-6328

Abstract. The Peruvian textile industry, particularly among small and medium-
sized enterprises (SMEs), faces significant challenges in achieving on-time and in-
full (OTIF) delivery, primarily due to inefficiencies in warehouse management. This
document analyzes the underlying causes of low OTIF performance in a Peruvian
chemical-textile SME, identifying key issues such as extended picking times,
disorganized workflows, and excessive employee movement. By implementing
Lean Warehousing methodologies, including 5S and Poka-Yoke, alongside radio
frequency identification (RFID) technology, we propose a comprehensive solution
aimed at enhancing operational efficiency. The proposed intervention is anticipated
to reduce picking times by 25%, cut unnecessary movements by 40%, and improve
order accuracy by 30%. A thorough root cause analysis, complemented by a
comparison with global case studies, forms the basis for this solution. The document
concludes with a recommendation for pilot testing to validate the outcomes and
assess the scalability of this approach for similar businesses.

Keywords. Lean Warehousing, Industry 4.0, RFID System, 5S, Poka Yoke,
Systematic Layout Planning (SLP), Economic Order Quantity (EOQ)

1. Introduction

The chemical-textile sector in Peru plays a crucial role in the national economy,
contributing significantly to the Gross Domestic Product (GDP) and serving as a key link
in the industrial supply chain. Small and medium-sized enterprises (SMEs) in this sector
provide essential chemicals for textile production, catering to both local markets and
exports, where Peruvian SMEs in the chemil-textile sector struggle with OTIF rates of
34.5%, far below global benchmarks of 85-95% [1, 2]. Despite their importance,
Peruvian SMEs face numerous logistical challenges that hinder their growth and
competitiveness in an increasingly globalized market [3].

1
Corresponding Author: Jose Alvarez, pciijalv@[Link]
 J. Gil et al. / Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME 495

A major issue affecting these companies is their low On-Time In-Full (OTIF)
delivery rate. This metric is a critical performance indicator in logistics, measuring a
company’s ability to fulfill customer orders on time and in full [4]. Key factors
contributing to this include inefficient warehouse management, the lack of advanced
technologies like RFID, and the reliance on manual processes.
Warehouse management in Peruvian SMEs remains heavily dependent on manual
tasks [5], including product picking, inventory control, and order preparation. Employees
spend excessive time searching for products in disorganized warehouses, leading to
delivery delays and increased error rates. These logistical inefficiencies not only drive-
up operational costs but also strain customer relationships, as clients increasingly
demand faster and more reliable service in today’s competitive environment [6].
To tackle these challenges, Lean Warehousing methodologies offer an effective
solution by optimizing logistics operations and minimizing waste. Tools such as the 5S
system and Poka Yoke have proven successful across various industries, reducing
picking times, improving warehouse organization, and lowering error rates [7].
Additionally, RFID technology, which provides real-time product tracking, significantly
enhances inventory accuracy and reduces picking errors [8]. Globally, these tools have
been successfully implemented in industries facing similar logistical issues, such as the
textile sector in Bangladesh and the chemical sector in Brazil, resulting in marked
improvements in operational efficiency and order accuracy [9].
However, in Peru, the adoption of such technologies and methodologies within
chemical-textile SMEs remains limited, primarily due to a lack of technical expertise and
financial constraints. This study aims to address these barriers by proposing a model that
integrates RFID and Lean Warehousing tools, specifically tailored to the unique
characteristics and resources of Peruvian SMEs. By adopting a scalable approach
adapted to local needs, the proposed model is expected to enhance operational efficiency,
reduce logistics costs, and significantly improve the OTIF performance of the studied
company.

2. Literature review

The review aimed to identify various techniques that could comprehensively or

synergistically address the primary problem under study. To ensure a thorough
investigation, the methodology proposed by [10] was followed, which includes several
critical phases: approaching the topic, formulating the research question, constructing a
strategy, selecting information sources, executing the search, and organizing, managing,
and effectively utilizing the information.
In this research, the literature review was meticulously conducted using a systematic
approach, divided into distinct phases that provided a comprehensive overview of
logistics and warehouse management within the industrial sector. These five phases
facilitated the development of an effective search strategy [11] and established a robust
knowledge base, which supports the theoretical framework and research design, as
illustrated in Figure 1 with respect to the consulted authors and the tools proposed in
each phase.
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Figure 1. Authors and tools used.

The growing body of literature on warehouse management and logistics

optimization, driven by globalization and the need to enhance operational efficiency in
increasingly competitive sectors [12], was integral to this review. By analyzing the
collected literature, the approaches were categorized into three primary typologies,
offering a clear and structured view of potential solutions. This categorization not only
highlights best practices but also aids in adapting specific strategies to the unique needs
of micro and small enterprises (MSEs).
One key finding from the literature is the integration of Lean Warehousing
methodologies and advanced technologies, such as radio frequency identification (RFID),
as a strategic solution to address challenges in inventory management, order preparation,
and performance metrics like On-Time In-Full (OTIF) delivery. When properly
implemented, these tools enable companies to improve operational efficiency, optimize
resource utilization, and reduce costs. This structured review and categorization ensure
that the solutions proposed are both targeted and effective, meeting the specific logistical
needs of the MSEs studied.

2.1. How are the problems solved?

One of the main challenges in warehouse management is operational inefficiency, often

caused by disorganization, manual processes, and a lack of standardization. Lean
methodologies, particularly Lean Warehousing, offer a structured approach to eliminate
waste and optimize workflows. A cornerstone of Lean Warehousing is the 5S
methodology, which enhances workspace organization, reduces product search times,
and standardizes picking and storage processes. The five key principles of the 5S system
are: Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain
(Shitsuke) [7]. A study in the food industry demonstrated that implementing 5S in a
warehouse increased productivity by 30%, primarily by eliminating time wasted
searching for products and optimizing material layout. In the chemical-textile sector, 5S
is particularly relevant for organizing hazardous and non-hazardous materials, reducing
the risk of mishandling and improving safety protocols [13].
Standardization not only boosts efficiency but also enhances operational safety. In
environments dealing with chemicals, 5S ensures each material is stored in its designated
place, significantly reducing the risk of human error and enhancing safety standards [14].
Additionally, 5S facilitates the creation of operational standards, which streamline
employee training and improve team efficiency [15]. Poka Yoke, another key Lean tool,
is designed to minimize human errors in critical processes. Originally developed by
 J. Gil et al. / Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME 497

Toyota, Poka Yoke has been successfully adapted to various environments, including
warehouses, to prevent mistakes in product selection, labeling, and order preparation [14].
A study revealed that the use of Poka Yoke devices in an industrial warehouse reduced
picking errors by 40%, improving order accuracy and reducing returns [16]. This tool is
especially valuable in managing chemical products, where selection errors can have
serious safety and regulatory implications [17]. Implementing Poka Yoke in
workstations and picking processes ensures operators choose the correct products,
minimizing mistakes that compromise service quality and safety [18].
RFID (Radio Frequency Identification) technology has revolutionized inventory
management and logistics control. Unlike barcodes, RFID uses electronic tags that emit
radio frequency signals, captured by specialized readers, enabling real-time product
tracking and more efficient inventory management. RFID reduces inventory
management errors, improves order accuracy, and enhances stock visibility, which helps
maintain optimal inventory levels and minimizes the risk of overstock or stockouts. A
study conducted in distribution centers showed that RFID implementation improved
order accuracy by 25% and significantly reduced picking times [18]. By automating
product identification, RFID eliminates many of the errors associated with manual
inventory management, allowing employees to focus on higher-value tasks [19]. In the
chemical-textile sector, where precision is essential to comply with safety regulations
and meet customer demands, RFID provides both operational and regulatory benefits.
Real-time tracking provided by RFID optimizes inventory levels, reduces the
accumulation of obsolete or inactive products, and facilitates more efficient stock
rotation. This is particularly important in industries that handle perishable or short-cycle
products, such as specialized chemicals, which require careful management to avoid
expiration or deterioration. In sectors where safety and traceability are paramount, such
as chemical-textile, the ability to track products in real-time offers a significant
competitive advantage. Implementing RFID in a chemical warehouse not only improved
traceability but also reduced inventory management costs by 30%, allowing for more
efficient product rotation and better replenishment planning.

2.2. Comparison with similar problems found in the Literature Review

Industries facing similar logistical challenges as Peruvian chemical-textile SMEs have

successfully implemented advanced technologies like RFID and Lean Warehousing
methodologies to optimize their operations. These solutions have proven effective in
sectors that depend on efficient inventory management and precise logistics to meet
OTIF (On-Time In-Full) delivery standards [20]. Below are relevant international case
studies that provide valuable insights for the Peruvian context.
A study in Bangladesh's textile industry, which is heavily reliant on textile exports,
highlighted issues similar to those faced by Peru, such as the lack of automation in
inventory management and picking processes, resulting in operational inefficiencies and
high logistical costs [21]. The implementation of Lean Warehousing and RFID in
Bangladesh led to a 35% increase in OTIF rates, a 20% reduction in picking times, and
a significant decrease in order preparation errors [5]. These results illustrate that such
technologies can optimize operations even in emerging economies with limited resources
and high competition. The relevance of the Bangladesh case for Peru lies in the shared
logistical challenges. Both countries' textile and chemical companies rely on manual
processes and outdated inventory systems, which create inefficiencies in warehouse and
supply chain management [1]. The success of RFID and Lean Warehousing in
498 J. Gil et al. / Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME

Bangladesh demonstrates that substantial improvements in productivity and delivery

standards are achievable, even in resource-constrained environments. This success can
be replicated in Peruvian chemical-textile SMEs.
In Europe, countries with advanced industrial sectors have integrated RFID and
Lean tools to address similar logistical challenges. The COVID-19 pandemic exposed
the fragility of supply chains, prompting many companies to adopt RFID for better
inventory visibility and control [22]. In the chemical and textile industries of Italy and
France, RFID improved order accuracy, reduced storage costs by 15%, and accelerated
logistical processes. These advancements increased resilience to disruptions, ensuring
more timely and accurate deliveries. This case is particularly relevant for Peruvian SMEs,
as it underscores the importance of solid logistical infrastructure, especially in times of
crisis. European companies that adopted RFID and Lean Warehousing during the
pandemic mitigated the effects of the crisis, while those relying on manual processes
suffered significant losses. This highlights the urgent need for Peruvian SMEs to
embrace advanced technologies to ensure robust and flexible operations.
In Brazil, a country with logistical challenges similar to Peru, the adoption of
advanced technologies and Lean tools has been successful in key industrial sectors. A
Brazilian textile company that implemented RFID and the 5S methodology improved
warehouse organization, reduced picking errors by 40%, and increased operational
efficiency by 25% [23]. This combination allowed the company to optimize logistics,
meet delivery deadlines, reduce operational costs, and enhance its global competitiveness.
Brazil’s experience is highly relevant to Peruvian SMEs due to similarities in economic
structures and logistical challenges. Both countries rely heavily on manual processes and
outdated warehouse management systems. Brazil’s success demonstrates that, even with
limited resources, adopting RFID and Lean methodologies can significantly improve
logistical operations and competitiveness.
In Mexico, the chemical industry has begun to adopt RFID to improve product
traceability and comply with international regulations on hazardous substances [24]. The
implementation of RFID in chemical product warehouses improved traceability by 50%,
reduced order preparation errors, facilitated regulatory compliance, and decreased the
risk of accidents.
In summary, the reviewed international case studies reveal that integrating RFID
and Lean Warehousing is highly effective in addressing the logistical challenges faced
by industries similar to Peru’s chemical-textile sector. Evidence from Bangladesh, Brazil,
Europe, and Mexico shows that these solutions not only improve operational efficiency
and reduce costs but also enhance compliance with safety regulations and increase supply
chain resilience against global disruptions. These insights can be directly applied to the
Peruvian context, where SMEs in the chemical-textile sector have a prime opportunity
to adopt these technologies, transforming their operations and improving their
competitiveness both locally and internationally [25].

3. Methodology

The study employed a mixed-methods approach, combining quantitative and qualitative

techniques to analyze logistical inefficiencies within a Peruvian SME in the chemical-
textile sector. The research was divided into several phases aimed at identifying the root
causes of operational shortcomings and proposing solutions grounded in advanced
technologies and Lean Warehousing principles.
 J. Gil et al. / Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME 499

3.1. Phase 1: Collection and analysis of quantitative data

Historical data from 2022-2023 on key logistics performance indicators were gathered,
focusing on:
 OTIF Compliance Rate: The company’s ability to fulfill orders on time and
in full.
 Picking Times: The time required to locate and retrieve products from the
warehouse.
 Inventory Accuracy: The consistency between recorded inventory and actual
stock levels.
 Order Preparation Error Frequency: The occurrence of errors during
product selection and preparation.
These data were obtained from the company’s internal records, including inventory
and order fulfillment reports. Descriptive statistics were used to assess the variability and
consistency in picking times and inventory accuracy. Additionally, correlation analysis
was conducted between inventory errors and delivery delays to identify patterns of
inefficiency and critical problem areas in logistics operations.

3.2. Phase 2: Qualitative study through semi-structures interviews

To complement the quantitative findings, a qualitative study was conducted to gather

insights from key personnel involved in logistics operations. Semi-structured interviews
were held with warehouse staff, supervisors, and supply chain managers, covering the
following themes:
 Perceptions of warehouse organization and layout.
 Challenges due to the lack of automation in inventory management.
 The impact of picking errors on customer satisfaction.
 Difficulties in the picking and inventory handling processes.
 Opinions on the feasibility and potential benefits of implementing technological
improvements.
The interviews were transcribed and analyzed using thematic analysis, identifying
recurring themes and common viewpoints regarding the root causes of inefficiency. This
qualitative analysis provided a deeper, more contextual understanding of the operational
issues and complemented the quantitative data.

3.3. Phase 3: Time and motions study

A time and motion study were conducted to pinpoint inefficiencies by measuring the
duration of key activities and quantifying non-value-added movements during order
preparation. The procedure included:
 Direct Observation: Task times for picking and order preparation were
recorded using stopwatches, and the distances covered by operators were
documented.
 Analysis of Unnecessary Movements: Non-essential activities, such as
excessive walking caused by inventory disorganization or the need to backtrack
due to picking errors, were identified and categorized.
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 Productivity Benchmarking: The observed times were compared with

industry benchmarks to highlight productivity gaps and establish targets for
improving operational efficiency and product selection accuracy.

3.4. Phase 4: Comparative review and global cases

To validate the proposed solutions and contextualize the findings, a comparative review
of international case studies was conducted. These cases involved the implementation of
RFID technologies and Lean Warehousing tools in industries facing similar logistical
challenges. The review focused on textile and chemical companies in Bangladesh [26],
Brazil [1], and Europe [5].
This review offered valuable insights into how similar sectors successfully
optimized their logistics operations through the adoption of RFID and Lean
methodologies, providing a practical framework for adapting these solutions to the
Peruvian context.

4. Results of the problem analysis

4.1. Case study

The selected SME, a key supplier of chemical textile products in the local market for
over a decade, serves both small and large textile companies. However, it has been facing
growing logistical challenges due to inefficiencies in warehouse management and order
preparation. The main issues include prolonged order preparation times, a high rate of
product selection errors, and a lack of real-time inventory visibility, leading to frequent
delivery delays. These issues have adversely affected customer satisfaction and the
company’s competitiveness. With an OTIF compliance rate of 68%, which is below the
industry average, this study aims to identify the root causes of these inefficiencies and
propose solutions to improve logistical processes.

4.2. Service process

The company's service process encompasses all stages from order receipt to the delivery
of chemical textile products. The key phases are:
 Order Receipt: Orders are received electronically or manually and recorded in
the inventory system.
 Availability Verification: Staff manually check product availability, relying
on periodic inventory updates.
 Picking: Once stock is confirmed, products are retrieved, often from a
disorganized warehouse, which extends picking times.
 Packing and Labeling: Collected products are packed and labeled for delivery.
Orders are also reviewed at this stage to prevent selection errors or shortages.
 Dispatch and Delivery: Finally, products are shipped to customers, though
delivery is often delayed due to picking errors or preparation inefficiencies.
This process contains several critical points, particularly in the availability
verification and picking phases, where errors and a lack of standardization contribute to
delays and operational inefficiencies.
 J. Gil et al. / Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME 501

4.3. Identified problem

The primary issue identified is inefficiency in the picking process and inventory
management, which leads to a high number of order preparation errors and significant
delivery delays. Key symptoms of these inefficiencies include:
 Prolonged Picking Times: Staff spend excessive time locating and retrieving
products, lengthening the overall preparation cycle.
 Warehouse Disorganization: Poor warehouse layout forces employees to
travel long distances, increasing time and physical effort.
 Order Preparation Errors: The reliance on manual processes, without
automation, results in frequent product selection errors, leading to incorrect or
incomplete deliveries.
 Lack of Real-Time Inventory Visibility: The absence of automation causes
discrepancies between actual stock and recorded inventory, hindering timely
order fulfillment.
These inefficiencies have reduced the OTIF compliance rate to 68%, negatively
impacting customer satisfaction and increasing operational costs.

4.4. Root case analysis

Using the Ishikawa diagram, the root cause analysis identified several key factors
contributing to operational inefficiencies, grouped into the following categories:
 Methods: The lack of standardized procedures for picking and storage creates
variability in performance and results.
 Operative Staff: Insufficient training for warehouse staff leads to unnecessary
movements and frequent product selection errors.
 Materials: Disorganized product placement and inadequate signage force staff
to cover long distances, increasing collection times.
 Technology: The absence of advanced technological tools, such as RFID, limits
real-time inventory management and results in discrepancies between recorded
and actual stock.
 Environment: The warehouse layout is not optimized for efficient workflows,
causing unnecessary movements and extended order preparation times.

Figure 2. Ishikawa Diagram

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The analysis concluded that the lack of process standardization and technological
tools are the primary drivers of operational inefficiencies, leading to increased errors and
unproductive work cycles. To support this conclusion and systematically identify the
root causes, the Ishikawa diagram was utilized during the ACR (Cause-Root Analysis)
process, as shown in Figure 2.

4.5. Findings

The main findings from the case study analysis are as follows:
 Excessive Picking Times: Average picking times are 54% higher than the
industry standard, significantly increasing operational costs and causing
delivery delays. To support this finding and provide a clearer understanding of
how the process is currently carried out, a Process Analysis Diagram (DAP) of
the picking operation was included, as shown in Figure 3.
 Warehouse Disorganization: The lack of a logical product arrangement leads
to 40% more unnecessary movements than necessary.
 High Error Rate: Due to the reliance on manual processes and the absence of
automation, the error rate in order preparation is 16.7%, negatively impacting
customer satisfaction and supply chain efficiency.
 Lack of Real-Time Visibility: Without a real-time inventory management
system, discrepancies between recorded and actual stock lead to incomplete or
canceled orders.
 Impact on OTIF: Logistical inefficiencies have resulted in an OTIF
compliance rate of 68%, well below industry standards, further undermining the
company’s competitiveness.

Figure 3. Picking process activity sheet

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5. Innovative proposal

To address the logistical and operational challenges faced by the SME, it is proposed to
integrate advanced identification and tracking technologies alongside Lean Warehousing
tools. This will streamline warehouse organization, reduce picking times, and enhance
order accuracy. The proposal is structured around three key approaches:

5.1. Implementation of RFID technology and layout redesign using Systematic Layout
Planning (SLP)

A layout redesign, using SLP techniques, will optimize the workflow and arrangement
of products in the warehouse. The objectives of the redesign are:
 Minimize Movements: The new layout will organize products in a logical,
efficient manner to reduce the distance staff must travel to collect items.
 High-Turnover Zones: Specific areas will be created for frequently requested
products, reducing picking times and simplifying product replenishment.
With this reconfiguration, picking times are expected to decrease by 30%, and
workflow efficiency within the warehouse will be significantly improved.
On the other hand, the introduction of an RFID system will automate inventory
management, providing real-time visibility of products and optimizing the picking
process. The main features include:
 RFID Tags: Each product will be equipped with an RFID chip, enabling real-
time tracking of its exact location, eliminating manual searching.
 Management Software Interface: Integrated software will connect to the
RFID system, providing up-to-date inventory information, facilitating order
planning, and preventing stock shortages or overages.
The expected benefits include a 25% reduction in picking times, a 40% decrease in
product selection errors, and a 30% improvement in inventory accuracy.

5.2. Application of 5S and Poka Yoke

The combination of 5S methodology and Poka Yoke will enhance warehouse

organization by standardizing processes and eliminating unnecessary movements. The
5S principles (Sort, Set in Order, Shine, Standardize, Sustain) will be applied as follows:
 Product Classification: Items will be organized based on usage frequency,
with high-demand products placed in easily accessible areas to reduce travel
times.
 Space Organization: A redesigned warehouse layout with clear signage and
designated picking routes will improve both speed and accuracy of operations.
 Process Standardization: Standard operating procedures will be established
for each phase of the logistics process, minimizing variations and errors.
To ensure proper implementation and continuous improvement, a 5S audit format
was used to assess the current conditions of the warehouse, as shown in Figure 4.
Implementing 5S and Poka Yoke is projected to reduce picking times by 40% and
unnecessary movements, resulting in optimized overall warehouse efficiency.
Additionally, by applying visual standards to each workstation, warehouse organization
is expected to improve by 50%.
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Figure 4. Audit format.

5.3. Application of Economic Order Quantity

To further enhance inventory management, the EOQ model will be applied to optimize
order quantities and reduce holding and ordering costs. This model is particularly useful
for balancing inventory costs and ensuring the availability of stock without overstocking.
The EOQ approach involves the following steps:
 Order Quantity Optimization: By calculating the optimal order quantity
using EOQ, the company can minimize the total costs of inventory, including
ordering and holding costs.
 Replenishment Schedule: The EOQ model will help determine the ideal
frequency of orders, ensuring that stock levels are maintained without incurring
excess inventory.
 Demand Forecasting Integration: By integrating EOQ with demand
forecasting tools, the company can predict future needs more accurately,
ensuring that stock levels align with anticipated demand fluctuations.}
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Figure 5. EOQ Dashboard

To support the implementation of this model and improve decision-making, a visual

EOQ dashboard was developed, as shown in Figure 5. This dashboard presents key
inventory metrics in a clear and accessible format, facilitating cost analysis and
operational planning.
The implementation of EOQ is expected to lead to a 20% reduction in inventory
costs, a 15% improvement in stock availability, and a 25% decrease in stockouts, leading
to more consistent and reliable order fulfillment.

6. Conclusions

The analysis of the logistics operations of the SME dedicated to the commercialization
of chemical textile products reveals that the primary inefficiency lies in inventory
management and order preparation. This is evident in the low OTIF (On-Time, In-Full)
compliance rate, which negatively impacts the company’s competitiveness and its ability
to meet market demand.
Root cause analysis identified that these inefficiencies stem from the lack of
automation and process standardization. The absence of advanced technologies, such as
an RFID system and a standardized warehouse management approach, contributes to
prolonged picking times, frequent product selection errors, and disorganized storage
space. These factors result in higher operational costs, increased delivery errors, and
diminished customer satisfaction, ultimately threatening the company’s sustainability.
To address these challenges, an innovative solution is proposed, combining the
implementation of RFID technology with Lean Warehousing tools like the 5S
methodology and Systematic Layout Planning (SLP). RFID will enhance real-time
inventory management, reducing errors in product collection, while the 5S methodology
will streamline warehouse organization and workflows. Additionally, redesigning the
warehouse layout using SLP will minimize unnecessary movements and significantly
reduce order preparation times.
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Future studies should consider incorporating IoT and AI to address operational

inefficiencies. IoT can enable real-time tracking of inventory, automate stock updates,
and optimize replenishment schedules. This technology allows better visibility of
product locations, reducing picking errors and non-value-added movements. AI, on the
other hand, can analyze operational data to predict demand patterns, optimize warehouse
layouts, and recommend process improvements.
However, the adoption of these technologies in SMEs faces challenges such as
limited budgets, the need for skilled personnel, and high initial implementation costs.
For resource-constrained SMEs, future research should focus on scalable, cost-effective
solutions such as hybrid models combining IoT and AI with Lean methodologies.
In conclusion, the integration of advanced technological solutions and operational
optimization tools presents a significant opportunity to enhance logistics performance
and reduce operational costs. The proposed approach is scalable and adaptable to the
company’s future needs, ensuring sustained improvements in competitiveness and
responsiveness to market demands. These enhancements will position the company more
firmly in the chemical-textile sector, increasing its operational efficiency and its ability
to consistently satisfy customer requirements with greater accuracy and reliability.

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