Warehouse inventory cannot be a guessing game

Alvarez Bohl is a Peruvian B2B distributor that connects mass consumption brands (food, beverages, hygiene, etc.) with retailers.

As the firm delivers a wide range of goods across multiple cities in northern Peru, efficient storage, inventory control and transportation are crucial to Alvarez Bohl’s quality of service and reputation.

An overview of the Alvarez Bohl warehouse

However, most warehouse management processes remain very manual (handwritten stock records, spreadsheet-based tracking, etc.) and time-consuming.

This can lead to:

  • Outdated stock levels in the system that don’t match the physical inventory
  • Misplaced pallets and incorrect shipments to retailers
  • Issues to track batches and expiry dates.

As a consequence, Alvarez Bohl teams can struggle to respond to fluctuations in demand from retailers.

The firm may find itself in a stock-out situation when demand soars for a given product or in an overstock situation if demand drops.

In the FMCG industry, where margins are tight and volumes are high, these constant mismatches between system stocks and physical stocks can quickly translate into lost sales, retailer dissatisfaction, and higher logistics costs.

 

The smarter the warehouse, the simpler the work on the floor

Building Blocks is a Spanish startup that develops software solutions for warehouse logistics management

Its solution provides control and analysis tools for warehouse management. It also leverages AI to provide deeper insights into stock, operators, and processes.

By progressively adopting Building Blocks’ solution, Alvarez Bohl achieves new logistical capacities:

  • Real-time stock visibility

Alvarez Bohl can see exactly how many units of each product are available, which pallets are damaged, and which are near expiry. This prevents overpromising to retailers and allows quick reactions to demand spikes.

  • Automated inventory tracking

Building Blocks replaces manual counts with digital scanning and AI-based tracking, reducing human errors such as misplaced products or incorrect stock records.

  • Optimised storage

The system suggests the best locations for fast-moving products and guides warehouse operators on the most efficient picking routes, saving time and reducing labour costs.

  • AI-driven demand insights

Building Blocks analyses historical orders and current stock trends to predict which products will need replenishment soon, helping Alvarez Bohl prevent stock-outs or overstocking.

The EU-LAC Digital Accelerator helps turn a warehouse pilot into a scalable Latin American expansion

  • Service n°1: PoC Design & Prototyping

The Proof of Concept Design & Prototyping service provides a structured framework for the warehouse digitisation pilot, testing processes with clear KPIs such as inventory accuracy, receiving time, replenishment efficiency, and picking errors. 

The solution is deployed in a controlled warehouse section, allowing operators to follow structured workflows while monitoring results in real time. 

This approach quickly identifies bottlenecks or training gaps, clarifies expectations and success criteria, and validates whether the AI-powered solution improves efficiency and reduces errors before a wider rollout.

The Building Blocks team visiting the Alvarez Bohl warehouse
  • Service 2: International growth & Soft landing 

The International Growth & Soft Landing service will help Building Blocks design a strategy to expand its warehouse digitisation solution into Latin American markets by identifying:

– Entry barriers: e.g. Regulatory requirements for software and data.
– Key opportunities: e.g. Large FMCG distributors with complex logistics, warehouses struggling with manual processes.
– Best practices: e.g. Integrating with widely used regional ERP systems, and training local warehouse operators.

30% faster replenishment. 15% quicker truck processing. 10% fewer picking errors.

Alvarez Bohl
(Corporate)

Building Blocks
(Startup)

  • Full real-time inventory visibility
    100% real-time stock data, enabling faster and more accurate supply chain decisions.
  • Major efficiency gains in core warehouse processes
    – 30% improvement in replenishment efficiency (currently 6 hours),
    – 15% decrease in truck processing time (currently 40 minutes).
  • Higher picking accuracy and inventory reliability
    Real-time traceability and automated product identification to achieve a 10% reduction in picking errors (the current error rate is 2.5%).
  • Proof of scalability in a real corporate warehouse
    Demonstrate that the solution works not only in theory but in a high-volume FMCG environment with complex operations and multiple daily orders.
  • Data-backed business case
    Build a commercial case supported by measurable results such as 30% faster replenishment, 15% quicker reverse logistics, and fewer picking errors.
  • Stronger sales leverage for new clients
    Use the quantified improvements in efficiency, time savings, and error reduction as a concrete reference case to win other distributors in Latin America.

 

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Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.

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