Arvind Fashions – Warehouse Optimization & Transformation

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About the Organization

Arvind Fashions Limited (AFL) is one of India’s leading branded apparel and retail companies. The company manages a strong portfolio of global and owned fashion brands including U.S. Polo Assn., Tommy Hilfiger, Calvin Klein, Arrow, and Flying Machine.

Arvind Fashions operates through a large and complex omnichannel retail network across India serving:

• Exclusive Brand Outlets (EBOs)

• Large Format Stores (LFS)

• Multi-Brand Outlets (MBOs)

• E-commerce marketplaces

• Direct-to-consumer channels

With thousands of SKUs across multiple brands, sizes, colors, and seasonal collections, the company manages a highly dynamic supply chain environment. Its central distribution warehouses play a critical role in receiving inventory from manufacturers and distributing products to retail channels across the country.

As the scale of operations increased, Arvind Fashions initiated a warehouse transformation program to optimize operations, improve throughput capacity, redesign warehouse layouts, and build a scalable infrastructure capable of supporting future growth.

Key Results

The warehouse transformation initiative delivered measurable improvements across operational performance, infrastructure optimization, and cost efficiency. Through a combination of detailed operational diagnostics, optimized warehouse design, and disciplined execution of procurement and implementation phases, the project delivered significant business impact.

30% Reduction in Capex
Through efficient warehouse layout design, optimized storage planning, and a structured RFQ and vendor evaluation process, the project achieved a 30% reduction in planned capital expenditure while ensuring the infrastructure remained scalable and aligned with operational requirements.

28% Increase in Storage Locations
The redesigned storage architecture significantly improved space utilization, enabling a 28% increase in warehouse storage locations without requiring additional warehouse footprint. This provided the client with higher storage density and improved SKU accessibility.

19% Improvement in Throughput Capacity
Process redesign, optimized material flow, and improved warehouse zoning increased the operational throughput capacity of the facility by 19%, enabling faster order processing and improved fulfillment capability.

29% Overall Efficiency Improvement
The combination of optimized layout, reduced travel distances, streamlined workflows, and better storage organization resulted in an overall warehouse efficiency improvement of 29%.

On-Time Project Delivery
The entire transformation program—from diagnostics and design to procurement and implementation—was completed on schedule and within the allocated budget, ensuring minimal disruption to ongoing warehouse operations.

These improvements have enabled Arvind Fashions to operate a more scalable, efficient, and future-ready distribution center capable of supporting growing omnichannel demand.

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Client Feedback

“I would like to thank you for your excellent efforts and commitment in assisting us in completing our mega distribution centers for our power brands in Bangalore. I would have no hesitation in recommending Hesol Consulting for any supply chain management projects.”

Prashantha S
Country Head of Operations
Arvind Fashions Limited

1. Business Challenge

• Rapid SKU proliferation due to multiple brands, sizes, and styles

• Omnichannel demand from retail stores, e-commerce, and distributors

• Inefficient warehouse layout resulting in long travel distances

• Manual processes and bottlenecks impacting throughput

• Limited visibility into cost per activity and operational productivity

Impact

• Higher fulfillment time

• Increased manpower effort

• Suboptimal space utilization

• Difficulty scaling operations for growth

Note: All the images shown below are mock representative images only.

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2. Diagnostic Study & Operational Mapping

Activities Performed

Value Stream Mapping (VSM)
Mapped the end-to-end warehouse operations flow from inbound receipt to outbound dispatch.

GEMBA Study
Observed real-time operations to capture:

• Cycle times

• Operational delays

• Process variations

• Workforce movement patterns

Throughput Study

Measured:

• Inbound processing time

• Storage time

• Picking and dispatch cycle time

Unit Economics Study

Created a financial value map to determine:

• Cost per activity

• Cost per unit handled

• Productivity benchmarks

This phase created complete visibility into operational inefficiencies and improvement opportunities.

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3. Warehouse Layout Redesign

Based on operational insights, a new optimized warehouse layout was designed.

Design Focus Areas

Storage Optimization

• Fast-moving SKU zones

• Bulk storage zones

• Pick face optimization

Traffic Flow Optimization

Using spaghetti analysis, travel paths were redesigned to reduce unnecessary movement.

Functional Zoning

Dedicated zones for:

• Inbound processing

• Storage

• Picking

• Packing

• Dispatch staging

Safety and Ergonomics

Improved aisle design, safety zones, and equipment pathways.

The result was a warehouse layout optimized for flow, productivity, and scalability.

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4. Procurement & Infrastructure Deployment

Key Activities

• Finalization of rack, bin, and material handling specifications

• Structured RFQ process for vendor selection

• Vendor evaluation using PUGH decision matrix

• Commercial negotiations and purchase order release

• Installation of storage infrastructure and equipment

The infrastructure deployment ensured the warehouse was aligned with the optimized layout and operational design.

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5. Implementation & Operational Stabilization

The final phase involved transitioning operations to the new warehouse structure.

Implementation Steps

Location Mapping

• Rack and bin coding

• Location creation in systems

• Signage and floor markings

Inventory Migration

A structured inventory transfer plan was executed including:

• Transfer sequencing

• Trip planning

• Timeline management

Operational Stabilization

• Process standardization

• Workforce training

• Lean operational tools

• Performance monitoring

This ensured a smooth transition to the optimized warehouse operations model.

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6. Transformation Impact

Key Outcomes

✔ Improved warehouse throughput capacity
✔ Reduced material movement distance
✔ Faster order fulfillment cycles
✔ Improved warehouse space utilization
✔ Higher workforce productivity
✔ Better operational visibility and cost control

The redesigned warehouse now supports scalable growth and efficient omnichannel fulfillment.