A global life sciences company was challenged with high freight costs, high inventory levels and complex processes, delays due to overprocessing, and overall lack of delivery consistency. The distribution centers were not serving a strategic function, warehouse operations lacked experience, and the company as a whole lacked a corporate wide concept of operational excellence. Many products were typically on backorder, and the restructuring of several locations and systems had caused major disruption in the last six months.
- $3.7 Million in logistics cost savings over five years
- 10% Savings from current costs
- 33% Reduction in distribution centers (from six to four)