Case Study:  Supply Chain - Physician's Office

Situation and Objective

  • Voice of the Customer surveys reflect concern with product availability, shipping errors, and damages

  • 40% annual customer churn

  • 50% of customers order fewer than 3 items each month

  • 4% market share – a distant 3rd place

Approach

  • Educate sales and operational teams on “voice of the customer” results to drive case for change

  • Rationalize product offering based on customer data and sales force input

  • Replicate lean six sigma to reduce warehouse errors

  • Consolidate DC network to increase forecast accuracy and reduce operational complexity and costs

  • Plan roll out timing and communicate to customers and internal stakeholders

Results and benefits

  • Improved fill rates from 84% to 98% on average, and greater than30% in some markets

  • Reduced DC “forced transfers” from 15% to 1% of orders

  • Reduced warehouse errors by nearly 20%

  • Delivered 25% fewer boxes, reducing costs and customer confusion

  • Increased sales $12M in 9 months