End-To-End Storage & Sorting System for High-Volume, Multi-Format Cigarette Logistics

Client Introduction

As the world's largest tobacco producer and distributor, China National Tobacco Corporation (CNTC) stands as a powerhouse in the global industry, with unparalleled scale, innovation, and influence. A wholly state-owned enterprise under the Chinese government, CNTC oversees over 30% of the world’s cigarette production, serving hundreds of millions of consumers across China and beyond.

Success Story

As demand for specialized tobacco products surged, one of CNTC’s key regional distribution centers faced mounting pressure. With an expanding portfolio of SKUs—ranging from standard cigarettes to slim, medium, short, and non-standard packs—the facility struggled to balance speed, accuracy, and flexibility. Tight delivery windows and rising consumer expectations demanded a logistics system that could not only automate tasks but also anticipate and adapt to dynamic requirements.

To transform this critical node in CNTC’s supply chain, BlueSword designed and deployed an end-to-end intelligent logistics system that combined high-speed automation with predictive flexibility. The solution included:

• Inbound & outbound handled by 8 robotic palletizers (750 cases/hour per unit)

• 20 multi-layer shuttles operating across 2 aisles for buffering 7,200 cases

• 174 double-speed chains managing in-system flow

• 4 main sorting lines for standard, slim, medium & short cigarettes

• 2 specialized lines for non-standard packs

The system’s impact was immediate and measurable:

• Peak throughput of 25,000 cartons per hour—a new benchmark for the industry.

• Unmatched resilience, with real-time adjustments to fluctuating demand and product mixes.

• Future-ready scalability, allowing CNTC to integrate new SKUs or volume spikes without retrofitting.

Beyond raw speed, the facility now operates with smarter precision, reducing errors and waste while meeting aggressive delivery targets. For CNTC, this project wasn’t just about upgrading machinery—it was about embedding agility at scale into the backbone of their logistics network.