Medical Device Manufacturer


CHALLENGE

The client is a leading manufacturer of medical devices and markets its products directly and through distributors to hospitals and medical centers in the Americas, Europe, Asia, and Australia. Neovia Distribution Services became this client’s partner in 2009, providing distribution and warehousing services through a Neovia-owned and managed 250,000 square-foot facility in Pennsylvania.

Neovia identified opportunities and provided solutions to improve their cash to cash cycle time by:

  • Decreasing Work In Process (WIP)
  • Balancing labor force
  • Reducing transportation overruns
  • Consolidating facilities
  • Lowering inventory carrying costs

 

SOLUTION

The Neovia solution looked holistically at the client’s distribution and warehousing network. Prior to our involvement, the client handled distribution activity from two locations to service their clients worldwide - one supporting overflow volume and
one manufacturing site.

The Neovia approach consolidated the distribution of both facilities into a centralized start-up Neovia managed facility. The Neovia facility was sourced to optimize distribution and transportation specifically to meet current and future product line requirements.

 

RESULTS

The solution accomplished the client’s cost containment and consolidation objectives. Savings were realized through a reduction in the number of warehouses, transportation optimization, and reduced inventory carrying costs. Supply chain velocity and visibility gave the client and their customers confidence in delivery schedules.

The transition of the activity and implementation of Red Prairie WMS was completed on a tight timeline of less than four months, to avoid any impact on the level of service to the client’s customers.

  • Annual volume of 34,000 pallets pertaining to 82 SKUs
  • Daily inbound volume of 5 trailers (18-21 pallets per trailer)
  • 4,850 pallet locations required, including location for quarantined product
  • Adherence to FDA storage requirements
  • Environmental controls monitored daily

 

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