Healthcare company finds significant budget savings after consolidation and retrofit of distribution operations.

Company

This company is a global and diversified healthcare leader that discovers, develops, and distributes therapeutic solutions for patients’ needs. Its core strengths in the healthcare field include seven growth platforms: diabetes solutions, human vaccines, innovative drugs, rare diseases, consumer healthcare, and animal health.

Challenge

After several acquisitions, the benefits of consolidating the distribution operations of multiple business units into three regional distribution centers was initiated. The consolidation required the retrofit or replacement of existing buildings, racking, pick module, conveyor systems, and expanded hazmat storage areas. The retrofits included one facility reset, one facility expansion, and one facility relocation and upfit to achieve regional distribution consolidation.

Tompkins International's Role
  • Developed the consolidated  storage and picking requirements and capacity analysis of multiple peak periods for each separate business unit and product lines (e.g., controlled room temperature, refrigerated, frozen, and hazardous materials).
  • Evaluated and accessed new site of multiple Brownfield/Spec facilities for the West distribution center relocation.
  • Developed concept to functional layouts for the receiving, storage, picking and shipping of product, including pushback rack, pick tunnels, and pick modules. These layouts incorporated existing rack and conveyor when possible to minimize the cost in retrofitting buildings. The re-use/repurposing of existing equipment and rapid deployment to transition business units was unique by site.
  • Developed functional bid specifications that were used to solicit equipment bids from various vendors, including facility expansion, coolers, pick modules, fire protection, lighting, conveyor, and rack.
The Results
  • Three distribution centers were implemented successfully in less than a year.
  • Significant budget savings were achieved by re-purposing on-site equipment (including new leased space).
  • All five business units were consolidated into the regional solution without impact to customers during the transition.
About the Author
Tompkins International Staff
Tompkins International Staff