Business Challenge

Client's operating expense was growing faster than revenue, there was a steady decline in gross margin for three consecutive years, and order fulfillment was below customer expectations.

Alaris Solution

• Developed and implemented Sales and Operations Planning process, including a supply chain scorecard and communication tools encompassing sales, marketing, planning, production, transportation, and distribution functions.
• Optimized inventory levels across 90+ distribution points in North America through SKU rationalization and inventory level reductions.
• Optimized central warehouse layout, considering throughput, inventory requirements, equipment capabilities/utilization, workflow and travel time.
• Defined WMS requirements and evaluated fit of three potential WMS providers.

Results

• Identified 10% inventory reduction opportunity across distribution points.
• Achieved 50% + reduction in transfer costs between distribution points as compared to previous year.
• Identified 30% savings opportunity in warehouse labor costs through short-term process improvement and layout redesign.