Logistics Network Review

Supplier of Medical Equipment

Background & Brief

The client provides a “one stop shop” for the provision of medical equipment direct to service users based on contracts with local health authorities. The client operates out of 11 service centres and receives goods from third parties and from a sister company. At each of the service centres, as well as a stockholding of all items required for supply into the local area there is also a decontamination and repair activity to enable returned products to be re-used. It is a contractual obligation that some inventory must be held in the locality of each contract. SCALA was asked to review whether there was a justification for a central warehouse.

Project Approach

  • A detailed business immersion exercise was undertaken to establish a close understanding of the current business , its logistics arrangements & operating performance and its future growth plans
  • Data was collected and cleansed, skus reviewed, warehouse optimisation assessed, impact of sku rationalisation considered, decon/repair options assessed and transport implications reviewed
  • High level modelling & evaluation of a number of options were undertaken with a recommendation.
  • A recommendation was provided with fully supporting and very detailed rationale, together with cost and operating benefits, change management implications and clear next steps
  • Benefits & Results

  • The modelling & evaluation recommended a new logistics network with cost savings of over one million pounds and furthermore allowing some new activities to be carried out at existing facilities
  • The evaluation provided clear next steps.
  • Final Outcome

    The client contact is presenting the proposals to the Board with his endorsement.
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