Global Healthcare Company*

“Not Your Average Operation”

Customer said: Help us help ourselves. We know there are operational efficiencies to be found but we just can’t spare the internal resources right now.

The engineers at Scott Sheldon said: We can do that.

Project Background:

Our client is a global healthcare company that also serves as a major third-party logistics group within the healthcare industry. They knew they needed to invest in a full operational process and layout assessment but struggled with how to assign the internal resources to the task without sacrificing productivity elsewhere. This prevented them from evaluating their current operations in order to make improvements to drive future benefits.

They asked a team from Scott Sheldon to bring their expertise in operations and facilities to the project.

We conducted an assessment of their business and operational performance and identified many opportunities for improvement at their major distribution center. With our Operational Tune-Up, we were able to provide solid recommendations in a very short time-frame.

The “Ah Ha” moment:

In this project, the moment came with an observation and review of the company’s storage metrics; the warehouse was overflowing with inventory. Ninety seven to 100% of locations were full and inbound product was bottlenecked, waiting put-away. This constrained the receiving area and caused outbound stock outs. The operation also lacked a systematic method with which to monitor inbound versus outbound volumes; operational efficiencies and fulfillment were negatively impacted. Plus, the largest customer they supported at the site—representing 82% of revenue—was operating at a reduced profitability.

The Action:

The Scott Sheldon team evaluated all operational areas, including Process, Technology, Layout and Financial, against industry-standard benchmarks, then provided a prioritized roadmap with 10 key recommendations to evaluate the financial and operational performance of the business.

Result:

Our recommendations were projected to yield a savings of $1.5 million in operating costs for key areas in both variable and fixed costs. This client has been implementing recommended changes over the last few months and reports that they are already experiencing an increase in overall operating efficiency and profitability per customer.

We Get It.

*Due to confidentiality, we do not disclose the names of healthcare companies

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