Higher Accuracy, Faster Dispatch: An FMCG Brand Success Story

Introduction: When We Saw the Problem Before It Became a Crisis

As one of India’s leading FMCG brands continued to grow, we at IP Integrated Services Pvt Ltd (IPISPL) were closely managing their warehouse operations on the ground. Month after month, SKU complexity increased, volumes rose, and peak seasons became more demanding. We began to notice a recurring pattern.

Every time the peak season arrived, space became a constraint.

It was not because the warehouse was too small, but because it was not designed to use vertical space efficiently. Storage height was underutilised, material handling became congested, and operational pressure increased during high-volume periods. It was clear to us that this was not an execution issue. It was a structural and layout challenge within the existing warehouse.

Expanding the warehouse footprint was neither practical nor necessary. What was needed was a smarter way to use the space that already existed.

Drawing from our on-ground experience and understanding of FMCG supply chains, IPISPL took the initiative to rethink the warehouse design. We observed that even today, many FMCG warehouses in India do not leverage vertical storage effectively. This insight became the starting point for an internal innovation effort.

This case study traces how IPISPL proactively identified the problem, studied its root causes, invested in focused research, and redesigned the existing FMCG warehouse using innovative vertical storage and system-led processes. The outcome was a more stable, accurate, and scalable operation that could handle growth without expanding the facility.

IPISPL’s Objective: Redesigning the FMCG Brand Warehouse for What Was Coming Next

The objective of IPISPL was clear. The warehouse needed to perform at a higher level without expanding its physical footprint.

The objective, therefore, was to optimize vertical storage space and improve material handling efficiency within the existing FMCG warehouse. This redesign needed to support growing SKU complexity, higher throughput, and a measurable reduction in handling and storage-related damages.

Rather than reacting only when pressure peaked, IPISPL aimed to create a warehouse model that could absorb seasonal surges smoothly, maintain operational discipline, and scale reliably over time. The intent was to ensure that space, processes, and systems worked together, so the warehouse remained stable even as business volumes grew.

This objective became the foundation for every decision that followed, from research and design to system implementation and execution.

Looking Deeper: Understanding the Root Causes

Instead of jumping to quick fixes, IPISPL began by observing how the warehouse actually functioned.

The assessment revealed that the problem was not a lack of space or manpower. The real issues lay in design gaps and missing system controls.

Raw Material Challenges

Raw materials entered the warehouse without batch identifiers. There was no way to track ageing, no visibility into consumption sequence, and no system-level enforcement of FIFO. Once material was stored, it became difficult to ensure it was picked in the right order.

Finished Goods Challenges

Finished goods did carry batch codes, but those codes were not enforced during picking. There was no scanning or verification at the warehouse level. Pickers selected pallets based on convenience rather than FIFO, leading to mix-ups, delays, and inventory discrepancies.

Without digital controls, FIFO depended entirely on manual discipline, which became unreliable at scale.

The Turning Point: Research Before Redesign

IPISPL recognized that solving these issues required more than rearranging racks or adding software. It needed a solution grounded in real FMCG operating conditions.

A 12-month applied research initiative was undertaken to design a customised, high-strength Nestainer-based vertical storage solution, specifically tailored to FMCG product characteristics.

The research focused on practical questions:

• How do mixed FMCG cartons behave under vertical load?

• How can stability be ensured across multiple stacking heights?

• Can accessibility be improved for both material handling equipment and manual pickers?

• How can safety compliance be strengthened while increasing density?

• Can the design support rapid deployment during seasonal spikes?

• Is it possible to reliably support 2 to 3 tier vertical storage?

This research phase ensured the final solution would work on the ground, not just on paper.

The Solution: Redesigning Space, Systems, and Discipline

Based on the findings, IPISPL implemented a three-part solution addressing infrastructure, systems, and process control.

1. Vertical Space Optimisation

The warehouse was redesigned using Nestainer-based vertical storage, allowing the facility to make full use of its height.

Storage utilization increased significantly within the same footprint. The redesigned layout improved aisle movement, reduced congestion, and enabled safer handling of higher volumes. Overall, vertical storage optimization delivered substantially higher capacity without physical expansion.

Handling and storage-related box damages, which were previously high, reduced by 35 to 45 percent, driven by better load stability and reduced rehandling.

2. System-Driven FIFO and Batch Management

To address FIFO failures, IPISPL deployed its WMS solution to bring discipline into daily operations.

For raw materials, the system auto-generated unique batch codes inward. Barcodes were printed and applied immediately, and each batch was mapped to dedicated locations.

For finished goods, FIFO enforcement became system-led. Picklists were generated based on batch sequence, barcode scanning was made mandatory during picking and dispatch, and wrong-batch selections were automatically blocked.

Manual judgment was replaced with system control.

3. Real-Time Visibility and Process Automation

The warehouse transitioned from manual tracking to 100 percent system-led operations.

Supervisors gained live visibility of both raw material and finished goods movement. Ageing reports, batch-wise dashboards, and alerts enabled proactive decision-making. Traceability became end-to-end, from inward to dispatch.

The Results: A More Controlled and Efficient Warehouse

Once the redesigned storage system and WMS-driven processes were fully implemented, the impact became visible across day-to-day operations.

Space utilisation improved significantly within the existing warehouse footprint. Where vertical usage earlier plateaued at around 60 percent, the redesigned layout enabled much higher storage density without adding new space. This allowed the warehouse to comfortably support higher volumes and SKU complexity within the same area.

Handling and storage-related damages, which had earlier been a persistent issue, reduced by 35 to 45 percent. Better stackability, improved load stability, and smoother material movement played a key role in lowering carton damage during storage and handling.

On-time delivery performance remained stable at 98 percent, even as throughput increased. This indicated that the changes improved internal control without disrupting outbound service levels.

Inventory accuracy reached and consistently held at 99.99 percent, supported by system-driven batch management and enforced FIFO across both raw materials and finished goods. Manual dependencies reduced sharply, and stock visibility improved at every stage.

Per-box cost efficiency also saw a meaningful improvement. With a better warehouse layout and smoother process flow, operational costs per box reduced by 25 to 30 percent, reflecting gains in productivity and reduced rework.

Overall, the warehouse moved from a reactive setup to a controlled, predictable operation, capable of handling higher volumes with greater accuracy and lower operational stress.

Safety and Compliance: Strengthened Alongside Scale

As volumes increased, safety systems were reinforced through regular training, inspections, audits, and mock drills. CCTV monitoring, risk assessments, and near-miss reporting ensured that higher efficiency did not come at the cost of safety or compliance.

Conclusion: When Observation Leads to Innovation

This case study reinforces a simple but often overlooked truth in FMCG warehousing. Most challenges are not solved by adding more space, but by understanding how existing space is used.

At IPISPL, the turning point came from observation. We noticed that every peak season brought the same struggle. Space shortages, congestion, and rising damage levels. By studying root causes, investing time in applied research, and redesigning vertical storage and system controls, we transformed the existing warehouse into a stable, scalable operation.

The outcome was clear. Better space utilization, stronger FIFO compliance, lower damages, and consistent accuracy without expanding the footprint.

If your FMCG warehouse struggles during peak seasons, IPISPL can help redesign and optimize it through practical, research-driven innovation. Let us help you unlock capacity where you already operate.

Email: customerservice@ipispl.in

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