Distribution Network Redesign for Academic Healthcare Institution

Home Distribution Network Redesign for Academic Healthcare Institution

Distribution Network Redesign Academic Healthcare Institution

The client is one of the largest academic institutions in the U.S., specializing in advanced biomedical research and graduate-level education in healthcare and the life sciences. It operates multiple patient care facilities, including nationally ranked hospitals.

Project Objectives/Challenges

This large, diversified academic organization needed a system-wide internal distribution network redesign. Distribution activities from all of the academic organization campus locations had been localized to each campus, and the client wanted all campuses to work together collectively to define efficiencies, reduce street truck volume, standardize operations, and capitalize on volume discounts.

What Sedlak Did

Reviewed all existing shipping/distribution processes and considered any additional shipping requirements and improvements for each campus.

Evaluated the costs and benefits of several alternative methods for acquisition of these services while identifying existing opportunities to consolidate and streamline the existing multiple and independent distribution networks.

Performed extensive analysis on current state and potential future state design(s).

Results

The client was given a best-in-class internal logistics solution represented by normalized distribution models.

Sedlak provided a cost-effective and efficient program for inbound and outbound mail and parcel shipments while maintaining high standards of quality and service.

A detailed implementation plan reduced operating costs and improved processes for all inbound/outbound shipment at all campuses.

Our recommendations included a plan to consolidate delivery activity, prioritize operation business, utilize an extended fleet for peak situations, and progress toward sustainability goals through substantial fleet mileage reductions.

We recommended warehouse operations improvements and related material handling infrastructure that allowed the academic organization to take on additional parcel volume.

Overall, recommendations were projected to achieve over $1 million in operating cost savings.

What can Sedlak do for YOU?

Contact Us Today

Explore Other Success Stories

Centralized Distribution for AboutHealth

AboutHealth engaged Sedlak to identify potential opportunities for the AboutHealth owners to consolidate the distribution of their medical supplies.

Consolidation Strategy for avantor

VWR International, now avantor, is a global laboratory supply and distribution company who reached out to us for assistance in developing an appropriate facility concept and material handling solutions design for combined operations in a new greenfield distribution center. Our design for the facility layout and operations plan maximized the effectiveness of the proposed material handling system and included a two-stage implementation plan that balanced investment with planned growth.

Supply Chain Strategy for Vitacost

Our client, Vitacost.com, an e-commerce company that sells vitamins and supplements, had a west facility not performing as expected. Not only did we deliver an improvement plan for their west facility, but we offered a project management plan, including a timeline, budget and vendor for their Midwest facility as well.

ERP/WMS Solution for Optimal

Sedlak assisted in the requirements development, cost and benefit evaluation, vendor selection and implementation project management of a new ERP/WMS system for The Palm Tree Group, now Optimal. Our team managed the successful, on-time and on-budget implementation of Palm Tree Group’s entire information support systems, including full integration, volume, stress testing and user acceptance testing prior to readiness assessment and go-live.

Process Flow Workshop for Regional Healthcare System

Our client, a regional healthcare system, needed a supply chain strategy to optimize their cash flow, reduce and manage their inventory, improve their point of use replenishment, optimize their FTE and clean up their MMIS. Our recommendations, after a lengthy assessment of their supply chain, could potentially save the company a $120K cash flow improvement and a savings of hundreds of thousands of dollars per year.

Supply Chain Configuration for Perrigo

Sedlak recommended an optimum network configuration to Perrigo, a distributor of pharmaceuticals and nutritional products, identifying the best flow of products throughout multiple facilities within their network and providing them with a sensitivity analysis of solutions to increase their understanding of the impact other possible acquisitions and changes might have on their business.

Facility Expansion for PEL Supply

Needing optimization of its distribution network, PEL Supply turned to Sedlak. We recommended operational enhancements focused on improved throughput, service and costs and provided a facility expansion plan providing optimal size, layout and equipment with specifications and bid packages for the building, material handling equipment and systems and documents outlining supporting IT systems and technologies.

Distribution Network Redesign for Academic Healthcare Institution

Sedlak made recommendations to our client, one of the largest academic institutions in the U.S., specializing in advanced biomedical research and graduate-level education in healthcare and the life sciences, which were projected to achieve or $1 million in operating cost savings.

Optimizing Last Mile Delivery for Academic Healthcare Institution

Sedlak's analyses and recommendations for our client, a large academic institution, dramatically reduced their need for new transportation vehicles and delayed the necessary capital expenditure for the smaller number of vehicles that were eventually required.

Distribution Strategy for GlaxoSmithKline

We recommended a preferred 3-DC option and a preferred 4-DC Option to a multinational pharmaceutical, biologics, vaccine and consumer healthcare company, each equally reducing transportation expenses. In addition, we recommended network options that maintained targeted service levels for both.

Distribution Network Model for Blood Donation

Sedlak reduced distribution network costs by 30% for a large provider of blood and blood products and then supported the alignment of the organization and four of their affiliates to the new integrated distribution approach.