A medical supply company in Seattle
manufactures and then rents a device for the practical teaching of traumatic
surgical procedures. Their primary customers are hospitals and paramedic
training centers. A few of the logistics issues identified that had an
adverse affect were:
- Rented product requires round trip
management
- Two waybills per shipment
- Reliance on the user of the product to follow return instructions
- Tracking and Monitoring of product delivery and subsequent product
pick-up
- Special labeling procedures
- High costs due to inflexible carrier service
levels
- Lack of attention by the carrier due to
small size of the account
- Growth of company in combination with
inefficiencies in current logistics process resulted in need to budget for
increased staff levels.
- Inefficient payables reconciliation with the
carrier
Schock Solutions made recommendations that
addressed these and other current issues, plus provided a roadmap for handling
future growth. Upon acceptance of many of the recommendations a process
was then initiated to determine and hire a logistics company whose style and
capabilities best matched the needs of the client.
Without deviating from their current process,
but through a greater reliance on their logistics provider as a partner, this
client cut 40% off their monthly transportation bill, implemented a billing
process that reduced payment procedures from three hours to twenty minutes,
and cut the need for at least one employee out of their budget.
Additionally with the logistics roles and responsibilities clearly defined and
benchmarks for service in place, the clients customers are happy because they
no longer have to worry about the logistics aspect of the product.
Schock Solutions provided a simple, efficient
solution that will save this client a minimum of $60,000 in just the first
year of this plan. Additionally this process is portable, so as the
client implements their sales efforts on a global basis, the cost of logistics
implementation is minimal, resulting in a larger return of revenue.