The Right 3PL provider Increased Same-Day Shipments for Medical Supply Manufacturer 3.6 Times

Situation

A major medical supply manufacturer was trying to transition their logistics and shipment operations to an external 3rd-party provider while experiencing heavy process overlap, inbound order discontinuities and exceptions, and production flow obstruction from space constraints due to the shipment and manufacturing activities in the same facilities.

Alan provided operational excellence (OpEx) mentoring and coaching at several levels to quickly improve and optimize the customer's value stream during his engagement.

Actions

Alan found several opportunities to improve the internal process flows, created an open RFP to find the best logistics provider, rapidly grew their outbound distribution network, and cut order-to-shipment times after identifying several root causes and process waste on Gemba walks with the customer's internal staff.

Alan also instated the following after finding several process exceptions:

  • Recommended updated systems and services to best fit their warehouse management systems and enterprise resource planning.
  • Created new SOPs between ordering, shipment, and customer service to avoid mishandled kaizen events and resulting mis-shipments.
  • Created a system with awarded 3PL provider by adding a 3-site warehousing solution for future expansion.

Results

Alan generated results over the course of their contract—they experienced an over 9X reduction in average times between orders and shipments, a 3.6X increase in same-day shipments, and drastically reduced costs through the awarded 3PL provider drastically reducing facility overlap between shipment and production while freeing space for the customer's manufacturing operations.

The original contract was 24 months. The process improvement objectives were completed in 18 months after which the customer expanded the contract to assist other customer locations.

Return on Investment

  • 9X decrease in order-to-shipment times
  • 6X increase in same-day order shipments
  • Increased communication between ordering, production, and shipment teams decreasing costs

Project Details

Client Skills Required: OpEx understanding and deployment, SOP (standard operation procedure) development, lean, root cause analysis, process mapping, value stream mapping, 5 Why, waste walks, Gemba walks, time studies, program management, cross-functional team leadership, KPI development, stakeholder collaboration, Agile process management, JIT procurement, spaghetti maps, RFP development

Contract Length: 24 months initially; completed in 18 months and expanded to other sites.

Manufacturing Insights Magazine named MetaExperts one of 2020’s Top 10 Lean Manufacturing Solutions Provider

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