A) Introduction

Q1 (Main). Tell me about your current job role and your involvement in warehouse and inventory
operations.

Probing:
• How long have you been in this role? • What are your primary responsibilities? • How familiar are you with AI
(Artificial Intelligence), IoT (Internet of Things), or Blockchain systems?

My Answer:
I’m a Supply Chain Manager at a stationery production company in Chennai. I’ve been in this role for 3 years.
Day to day, I look after raw-material inventory, finished-goods warehousing, SKU (Stock Keeping Unit)
planning, barcode-based receiving and dispatch, logistics traceability, real-time asset tracking, and ledger
maintenance. I also coordinate with procurement, production, sales, and logistics to balance stock levels and service
levels. I’m hands-on with digital tools like ERP (Enterprise Resource Planning), WMS (Warehouse Management
System), barcode scanners, and dashboards. I’m moderately experienced with AI for demand forecasting and SKU-
level stock optimization, IoT for RFID (Radio-Frequency Identification)/GPS (Global Positioning System)
tracking, and Blockchain for traceability and document integrity.

Q2 (Main). Why did you choose this sector, and what’s your background in logistics or supply
chain?

Probing:
• What got you into this field? • How have your experiences shaped your view on technology adoption?

My Answer:
I studied Logistics and Supply Chain Management, and I’ve always enjoyed improving processes and solving
practical problems. Early roles in production planning and stores taught me the value of standard operating
procedures (SOPs) and clean master data. Seeing manual errors waste time and money pushed me toward
barcodes, WMS, and analytics. As I grew, I learned that small, phased tech steps—like starting with barcode
labels and simple dashboards—build trust and deliver quick wins. That experience shapes my adoption approach
today: pilot, measure, scale.

Q3 (Main). Can you confirm whether your operations are in a Tier-1 city, and how does this
location influence your processes and outcomes?

Probing:
• How does Chennai’s infrastructure/logistics ecosystem help or hinder you? • Do you have advantages over SMEs in
smaller cities?

My Answer:
Yes—we operate in Chennai (Tier-1). The city gives us better vendor access, port connectivity, courier
networks, and talent availability. That helps with faster spare-parts procurement, quicker service support for
scanners/servers, and shorter lead times to major customers. Challenges include higher logistics congestion at
peak hours and warehouse rentals. Overall, Chennai improves tech support, delivery speed, and project
execution compared to smaller cities.

B. INVENTORY/ WAREHOUSE PROCESS MAPPING

Q4 (Main). Walk me through your warehouse and inventory process

from start to finish.
Probing:

• How do you record incoming stock?

• How is stock moved, stored, and tracked?
• How do you manage re-ordering and replenishment?
• How is data updated (manual, barcode, RFID, IoT)?
• How often do you count stock?
• What is the process for returns/damages?
• What methods/systems are used (manual, ERP, barcoding, RFID)?
• Have you implemented a WMS?

My Answer (storytelling style):

Let me explain step by step how our warehouse and inventory system works in Chennai, right from the time goods
arrive until they are dispatched.

The process begins with purchasing. Whenever we need raw materials like paper, ink, or packaging material, we
raise a PO (Purchase Order) in our ERP (Enterprise Resource Planning) system. This purchase order is based on
calculations done by MRP (Material Requirements Planning), which looks at current stock, forecast demand, and
safety stock levels.

When the supplier sends the materials, our warehouse team receives them at the dock. At this stage, we prepare a
GRN (Goods Receipt Note). We check the quantity and quality of items. For example, for paper, we not only count
the bundles but also check if there is any moisture damage. After checking, every material gets a barcode label. This
label contains details like SKU (Stock Keeping Unit) number, description, batch number, and dates. Scanning the
barcode automatically updates the ERP and our WMS (Warehouse Management System).

Next is storage. The WMS tells us exactly which rack and bin location to keep the item. We follow the FIFO (First
In First Out) method for general materials, and FEFO (First Expired First Out) if items have an expiry date. To
make things easy, we classify items into ABC categories:

• A items (fast movers) are stored near dispatch areas.

• B items are stored in middle racks.
• C items (slow movers) are stored further away.

Every time we move an item, we scan the barcode of the location and the item, so the system knows exactly where it
is.

When production needs materials, they raise a request. Our system generates a pick list. Workers scan the bin
location, scan the SKU, and issue the right quantity. This ensures no wrong items go to the production floor.
Once production is completed, we receive finished goods. These also get SKU and lot labels. Again, the WMS
guides us where to keep them. Fast-moving finished goods are kept close to the dispatch area for quick access.

When a customer places an order, a Sales Order (SO) is created in ERP. It goes to WMS, which generates a picking
wave. Workers then go with scanners, pick the items, pack them, and scan them into cartons. Each carton has a
shipping label, and we also generate the e-way bill as per government rules.

For returns, the process is separate. If goods come back (Return to Origin or customer return), we do a quality
check. If they are fine, we put them back into stock. If damaged, we move them to a quarantine zone and raise a debit
note if required.

To make sure stock records are always correct, we do cycle counting every week for selected SKUs and a full stock
count once in three months. If there are mismatches, I personally check if it was due to scanning mistakes, supplier
packing differences, or theft.

For replenishment, we follow the ROP (Re-order Point) method. For example, if weekly demand for a paper ream
is 1,000 units and the supplier lead time is 2 weeks, we need 2,000 units as lead-time demand. If we keep 500 as
safety stock, then the reorder point is 2,500 units. When stock falls to that point, the ERP automatically suggests
raising a PO.

So to summarize:

• We use ERP + WMS + Barcodes for most of the process.

• We use RFID (Radio Frequency Identification) and IoT sensors for high-value items and trucks.
• We rely less on manual entry, because scanning ensures accuracy.

This system gives us both real-time visibility and control over inventory.

C. DIGITAL TECHNOLOGY STACK

Q5 (Main). Which digital technologies (AI, IoT, Blockchain) are you
using? Are they vendor-bought or custom?
Probing:

• For AI: demand forecasting, stock optimization, anomaly detection?

• For IoT: sensors, RFID, GPS?
• For Blockchain: traceability, supplier verification, smart contracts?
• Which parts remain manual, and why?

My Answer (storytelling style):

We are using a mix of AI (Artificial Intelligence), IoT (Internet of Things), and Blockchain in different ways.

Starting with AI: we mainly use it for demand forecasting and stock optimization. Earlier, we used only Excel
averages, which often led to shortages or excess stock. Now, the AI model looks at past sales, seasonality (like school
season when stationery sales peak), and even external factors like holidays. Based on that, it gives us a forecast for
each SKU. It also suggests minimum and maximum stock levels and alerts us if there is a chance of stockout.
Another AI feature we use is anomaly detection. For example, if suddenly 500 units are issued at midnight, the
system raises a flag so we can check if it was a mistake or misuse.

For IoT, we use RFID tags on high-value raw materials and reusable containers. This helps us know the last seen
location. We also use GPS trackers on trucks delivering large orders. That way, both we and the customer know the
exact ETA (Estimated Time of Arrival). We also have humidity and temperature sensors in the warehouse to
protect paper quality, since moisture can damage it.

Blockchain is still at a smaller level, but we are testing it for traceability. It records every transaction like PO
(Purchase Order), GRN (Goods Receipt Note), SO (Sales Order), and ASN (Advance Shipping Notice) with a
timestamp. This means if there is any dispute—say the supplier says they delivered at a certain time but we claim
differently—we can check the blockchain record, which cannot be changed. It also helps when customers ask for the
complete history of a product batch.

In terms of implementation:

• We use vendor software for ERP and WMS, with barcode modules.
• AI forecasting and dashboards are customized by our IT team.
• Blockchain is provided by a consortium service provider.

Some activities still remain manual, like physical inspections, exception approvals, and root-cause analysis. I
believe technology should not replace human judgment in these areas.

5(SUB) HOW WELL DO THESE TECHNOLOGIES MEET YOUR OPERATIONAL NEEDS?

Overall, I would say that the technologies we use—AI (Artificial Intelligence), IoT (Internet of Things), and
Blockchain—meet our operational needs quite well, but not perfectly.

Let me explain.

How well they meet our needs:

These technologies solve our biggest pain points in warehouse and inventory management: stock mismatches,
delays, and lack of visibility. AI gives us better planning and stock optimization, IoT gives us real-time tracking, and
Blockchain gives us trust and transparency in documents. So, for day-to-day operations like forecasting, receiving,
storage, picking, and dispatch, they definitely meet our requirements.

Features I find particularly useful:

• The AI forecasting dashboard is very useful because it clearly tells us which SKUs (Stock Keeping Units)
are at risk of stockout. Earlier, we realized shortages only when it was too late. Now, we get early warnings.
• The RFID (Radio Frequency Identification) last-seen location feature saves us a lot of time when
expensive materials are misplaced. Instead of searching racks for hours, we can trace the item immediately.
• The GPS (Global Positioning System) tracking on trucks is another useful feature. Customers are happier
because they can see exactly where their delivery is and when it will arrive.
• The Blockchain timestamp on purchase and delivery documents is extremely helpful to avoid disputes with
suppliers and customers. Once it is recorded, no one can change it, so it builds trust.
Areas where the technology falls short:

• AI is not always accurate when there are sudden, unpredictable spikes in demand. For example, if a large
customer suddenly places a bulk order outside forecast, the system doesn’t catch it. In those cases, human
judgment is still needed.
• IoT RFID tags are expensive, so we cannot use them for every item. We only use them for high-value SKUs,
which means we don’t get the same visibility for cheaper items.
• Blockchain is powerful, but its effectiveness depends on all partners using it. Right now, not all of our
suppliers and customers are ready to adopt blockchain. So the benefit is limited until everyone joins the
system.

Q6 (Main). How were these technologies integrated into your processes?

Probing:

• Staged or all at once?

• Who initiated?
• Workflow/layout redesign?
• Vendor alignment?
• Pilot tests?
• ERP/WMS compatibility?

My Answer (storytelling style):

We integrated these technologies in a phased manner, not all at once, because we wanted to reduce risk and build
confidence step by step.

The initiative was started by our management team, after we faced serious issues like wrong dispatches, frequent
stock mismatches, and late deliveries. They decided we needed a more systematic and technology-driven process.

In Phase 1, we started with barcodes and the basic WMS (Warehouse Management System). This included
receiving, put-away, and picking. This step itself gave us huge improvement in accuracy.

In Phase 2, we introduced AI forecasting for our top 200 SKUs. We began small, then scaled it once we saw the
results.

In Phase 3, we brought in IoT solutions—RFID for high-value materials and GPS for trucks.

Finally, in Phase 4, we started using Blockchain for supplier and customer transactions to improve traceability and
trust.

We also made layout changes in the warehouse:

• We created one-way aisles so workers don’t block each other.

• We re-labeled racks and bins with big clear barcodes.
• We created dedicated packing stations close to the dispatch area.
Before full rollout, we always ran a pilot test. For example, for barcoding, we tested in one warehouse zone for 8
weeks. We found issues like barcode stickers peeling off or scanners not reading faded labels. Once these problems
were solved, we rolled it out across the warehouse.

Integration with ERP was done using APIs (Application Programming Interfaces). This ensured that any
movement in the WMS was automatically reflected in ERP without delay.

Overall, the phased approach helped us build trust with employees, avoid big failures, and steadily move towards a
fully digital warehouse.

D. Technology integration

Q7 (Main). How do you define and measure warehouse efficiency?

Probing:

• Speed of picking, cycle time, order fulfilment time, labour productivity?

• KPIs before and after adoption?
• Customer perception: speed/reliability?
• Did technology help or make it more complex?

My Answer (storytelling style):

For us, warehouse efficiency means how quickly and correctly we can move goods through the warehouse—from
receiving to storage to picking and dispatch.

We measure this using a few simple but powerful KPIs (Key Performance Indicators):

1. Dock-to-stock time: the time taken from when a truck arrives with goods to when those goods are available
in the system for use. Earlier, this used to take 8 hours because of paperwork and manual counting. Now, with
barcodes and WMS, it takes only 3–4 hours.
2. Picking productivity: how many order lines a worker can pick in one hour. Earlier, people walked around
searching for items, so productivity was low. Now, WMS guides them with shortest routes and exact bin
numbers, so picking speed has gone up by about 30%.
3. Order cycle time: the total time from when a Sales Order is received to when the goods are dispatched.
Technology has reduced errors and rework, so we can now dispatch faster and more reliably.
4. OTIF (On-Time In-Full): this means delivering orders on time and with the full quantity. Earlier we were at
around 90%. Now we are at 96–97%.

From the customer’s point of view, they don’t see our internal systems but they definitely notice when deliveries are
late or incomplete. After adopting technology, customer complaints about delays and shortages have gone down
significantly.

Overall, technology has simplified our work. Yes, in the beginning it looked complex because workers had to learn
scanning, dashboards, and new processes. But after training and practice, they realized it actually made their life
easier—less searching, less confusion, fewer errors.
E. E=iciency and accuracy metrics
Q8 (Main). How do you measure inventory accuracy, and how has it
changed after adopting these technologies?
Probing:

• Reconciliation frequency?
• Error rate now vs. before?
• Causes (human error, theft, system)?
• How much change is due to tech?

My Answer (storytelling style):

Inventory accuracy simply means whether the number of items in the system matches the number of items physically
lying in the warehouse.

We check this in two ways:

• Cycle counts: every week we select a few SKUs or bins and physically count them, then compare with the
system.
• Full stock count: once every quarter, we count everything in the warehouse.

Before technology, our inventory accuracy was only around 88–90%. There were many mismatches due to manual
entries, missed records, or items kept in the wrong bin. After introducing barcodes and WMS, our accuracy has gone
up to 97–98%.

Most of the improvement comes from the rule “No scan, no move”. That means nothing is shifted without scanning.
So the system always knows the latest location and quantity.

The remaining 2–3% gap is usually due to issues like:

• Supplier sending packs with different unit-of-measure.

• Human errors during exception handling.
• Occasionally damaged items not recorded immediately.

I would say about 70–80% of the improvement came from barcodes and WMS, another 10–15% from AI anomaly
alerts, and the rest from better training of staff.

F. Operational Outcomes
Q9 (Main). What specific changes have you seen in inventory accuracy
after AI, IoT, and Blockchain?
Probing:
 • Examples of improved accuracy or reduced errors?
• How do you measure accuracy?
• Fewer stock discrepancies?

My Answer (storytelling style):

AI, IoT, and Blockchain have all helped in improving accuracy in their own ways.

• AI: By analyzing movement patterns, AI sometimes tells us if something unusual is happening. For example,
if one item is being issued too often compared to forecast, we can check if it is a mistake or misuse. This early
warning reduces discrepancies.
• IoT (RFID and GPS): RFID tags on high-value raw materials help us know the last-seen location. Earlier, if
an expensive batch of ink was misplaced, it took hours of searching. Now we can trace it instantly. Similarly,
GPS helps us track trucks, so we don’t lose track of goods in transit.
• Blockchain: The best part of blockchain is document integrity. Once a Goods Receipt Note (GRN) or
Advance Shipping Notice (ASN) is recorded on blockchain, it cannot be tampered with. This reduces
disputes with suppliers and customers and improves trust.

Overall, these technologies reduced wrong-location errors, missing items, and document mismatches.

Q10 (Main). How have these technologies influenced warehouse

efficiency?
Probing:

• Processing times?
• Order fulfilment speed?
• Labour requirement up or down?

My Answer (storytelling style):

The biggest visible impact of technology has been on speed and consistency.

• Processing times: Dock-to-stock has reduced from 8 hours to 3–4 hours. Picking and packing are 30% faster
because the system guides workers.
• Order fulfilment speed: Customers now get their orders faster and more reliably. We can handle urgent
orders without disrupting normal flow.
• Labour: Our total manpower has not reduced, but the way people work has changed. Earlier, many workers
were doing counting, searching, or correcting mistakes. Now, with scanning and WMS, they are redeployed
into roles like quality checking, exception handling, and process improvement.

So technology has not replaced people, but has made them more productive and given them better roles.

G. Factors of influence
Q11 (Main). How do environmental/external factors influence adoption?
Probing:

• Government policies/incentives?
• Market pressure/competition?
• Vendor/partner relationships?

My Answer (storytelling style):

Yes, external factors play a big role.

• Government rules: The government has been pushing for digital compliance like e-way bills and GST
filings. This forced us to adopt systems that generate correct data automatically.
• Market pressure: Our competitors started promising same-day or next-day delivery. To match this, we had to
improve our speed and accuracy through technology.
• Vendors and partners: Being in Chennai helps because technology vendors, service teams, and logistics
partners are nearby. For example, if our barcode printer fails, the vendor service engineer can come on the
same day. This makes adoption and maintenance much easier.

Q12 (Main). How have cultural factors inside your company influenced
adoption?
Probing:

• Employee willingness?
• Leaders championing?
• Fear of job loss?

My Answer (storytelling style):

Culture inside the company is very important. At first, employees were scared that scanning and automation might
take away their jobs. Some people resisted the new system and wanted to continue with the old manual methods.

But our leadership team supported the change strongly. They clearly told everyone: “No scan, no move.” This
created discipline. At the same time, we addressed the job-loss fear by reskilling people. For example, someone who
used to write entries in registers is now trained to handle scanners, check quality, or analyze small reports. This gave
them confidence and also improved their role.

We also celebrated small wins—for example, after the first month when inventory accuracy improved, we showed
the workers the result and appreciated them. Slowly, people started believing in the system and now they prefer
scanning because it makes their work easier.

Q13 (Main). How capable is your organization to adopt and maintain

digital technology?
Probing:

• Digital skills?
• Training/upskilling?
• Budget/resource limits?

My Answer (storytelling style):

Our company is not a very large organization, but we are capable of adopting technology because we follow a step-
by-step approach.

We created a core team with a warehouse lead, an IT analyst, and a supply chain planner. This team is responsible
for running the systems and training other employees.

We also conduct training sessions for new workers where they practice scanning and using the WMS. We keep
SOPs (Standard Operating Procedures) printed and displayed near work areas.

Budget is always a challenge for SMEs. We solved this by phasing investments. First, we spent on barcode labels and
scanners, which gave us quick returns. Later, we invested in IoT and AI. Finally, we tried blockchain in partnership
with a consortium, which reduced the cost.

So our capability comes from clear focus, phased spending, and continuous training.

H. CHALLENGES FACED AND ENABLERS FOR THE ADOPTION

Q14 (Main). What challenges did you face in adopting and sustaining
these technologies?
Probing:

• City-specific issues?
• Technical/integration difficulties?
• Employee resistance?
• Financial constraints?

My Answer (storytelling style):

We faced many challenges along the way.

• City-specific issues: In Chennai, traffic is a big problem. Sometimes delivery of spare parts or service
engineers is delayed. During festival season, couriers get overloaded and there are delays.
• Technical issues: In the beginning, barcode labels were of poor quality and faded quickly, making scanners
fail. Also, our master data had mistakes in unit-of-measure, which caused confusion.
• Employee resistance: Some workers didn’t like the “no scan, no move” rule. We had to coach them and
show how the system actually reduced their effort.
• Finance: As a small company, we had to carefully plan our investments. We couldn’t buy everything at once.
We balanced the number of scanners, printers, and software modules with the actual return on investment.
Q15 (Main). What factors helped adoption?
Probing:

• Leadership support?
• Alignment with business needs?
• Vendor/consultant help?
• Successful pilots?

My Answer (storytelling style):

Several things helped us succeed:

• Our leadership strongly supported the project. They didn’t allow shortcuts and insisted on following the
system.
• The technology was aligned to our real business needs—we had problems like stock mismatches and late
dispatches, and the system solved those directly.
• Vendors gave us quick support whenever we faced issues like printer settings or API integration.
• We always started with a pilot project. For example, we tested RFID on a small set of materials first. When it
worked well, we expanded.

I. RECOMMENDATIONS

Q16 (Main). Does proximity to suppliers, customers, or ports affect

inventory accuracy and efficiency?
My Answer (storytelling style):
Yes, location plays an important role. Because we are in Chennai, we are close to both suppliers and the port. This
means raw materials arrive faster, so we don’t have to keep very high safety stock. That reduces errors and holding
costs. Similarly, because customers are closer, we can plan dispatches better. Shorter lead times reduce last-minute
rushes, which are often the cause of mistakes. So proximity improves both accuracy and efficiency.

Q17 (Main). Looking back, what would you do differently in the adoption
process?
Probing:

• Different starting technology?

• Longer pilot?
• Involve more stakeholders?
My Answer (storytelling style):
If I could go back, I would do three things differently:

1. Clean master data earlier—like unit-of-measure, pack sizes, and supplier codes. Many of our initial errors
came from dirty data.
2. Pilot longer for barcode labels. Some labels faded in heat and humidity, which caused scanning issues. If we
had tested longer, we would have solved this earlier.
3. Involve finance and sales teams earlier. If they were involved from the beginning, min-max stock levels and
service-level targets would have been aligned better.

Q18 (Main). What advice would you give to other SMEs adopting AI,
IoT, and Blockchain in warehouse operations (India context)?
Probing:

• Best practices?
• Where to begin if new?
• Considering financial/resource constraints, what’s best for them now?

My Answer (storytelling style):

My advice to other SMEs is very practical:

1. Start small with barcodes and WMS. Don’t jump directly into advanced technology. Barcodes and WMS
alone will solve 70% of your problems.
2. Clean your data first. Make sure SKU masters, unit-of-measure, and locations are correct. Without clean
data, no technology will work.
3. Pilot before scaling. Always test on a small zone or top 100 SKUs. Show success, then expand.
4. Add advanced tech layer by layer. Use AI for demand forecasting and replenishment, IoT for tracking high-
value items and trucks, and Blockchain only when your partners are ready.
5. Train your employees. Short, repeated training sessions with hands-on practice are better than long theory
sessions.
6. Leverage your location. In Tier-1 cities like Chennai, take advantage of vendor support and faster service.
Negotiate SLAs (Service Level Agreements) with vendors for quick turnaround.