A Lean Warehousing Approach to Improve OTIF in a Peruvian HVAC Distribution SME

Heating, Ventilation, and Air Conditioning (HVAC) systems are essential for ensuring both the habitability of buildings and regulatory compliance within the construction industry in Peru. These parameters are crucial to guarantee the efficient removal of indoor pollutants and the proper intake of outdoor air, directly impacting the health, comfort, and safety of occupants. In this context, efficient management of HVAC equipment becomes critical. This paper presents a case study of a Peruvian SME in HVAC distribution, which faced operational challenges—including disorganized storage and low traceability—that contributed to a baseline OTIF performance of 86%. To address this, we developed a three-phase Lean Warehousing model. The model's impact was validated using Discrete-Event Process Simulation (Flexsim/Arena) to ensure analytical rigor and quantify results before physical intervention. Results confirm a significant increase in OTIF performance from 86% to 96%, achieving a 10% improvement consistent with global benchmarks. Additionally, the model achieved a 5.09-minute reduction in average picking time (from 18.67 to 13.58 minutes) and a 26% decrease in aisle obstruction. These findings validate a scalable, low-cost framework that provides a Benefit/Cost ratio of 4.43, offering a roadmap for other distribution SMEs in emerging markets.