Assessment of Autonomous Guided Vehicle Systems for Warehouse Logistics Optimization at a Fast-Moving Consumer Goods Distribution Centre in Lagos State

Distribution centres for fast-moving consumer goods companies in Lagos State, South West Nigeria, handle high-volume order fulfilment under tight time pressures, yet warehouse logistics operations remain heavily labour-dependent, with manual forklift and trolley movement creating efficiency bottlenecks and occupational safety risks. This study assesses the technical and economic feasibility of autonomous guided vehicle systems for warehouse logistics optimization at a major FMCG distribution centre in Oregun, Lagos. A warehouse simulation model was developed using Arena Simulation Software, incorporating actual order volume data, product mix, and warehouse layout dimensions from the facility. AGV system scenarios with varying fleet sizes from 4 to 12 vehicles were simulated against the current manual forklift baseline. Simulation results indicate that an AGV fleet of 8 units achieves comparable throughput to the current 16-person forklift operator team while reducing order picking cycle time by 24 percent. A detailed technical assessment of AGV navigation technology options is provided, comparing laser SLAM, magnetic tape guidance, and vision-based navigation for suitability in the Nigerian warehouse environment, with particular attention to floor surface conditions and ambient lighting variability. A financial analysis projects a 3.2-year payback period for AGV investment based on labour cost savings and productivity gains. The study recommends a phased implementation approach and identifies workforce transition and training requirements for successful AGV integration. Keywords: autonomous guided vehicles, warehouse logistics, FMCG, simulation, Lagos State