Improvement of the OTIF Indexes at a Peruvian Textile Hydrochemical SME with Industry 4.0 and Lean Warehousing

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. © 2025 Elsevier B.V., All rights reserved.