Case Study -3PL Review/Consumer Health Care
A global manufacturer of consumer and health care products used four different 3PLs to regionally distribute product. Each 3PL carried the corporation’s entire product line. The customers included health care distributors, health care facilities, as well as national chain stores. Because of differences in regional volume and customer mix, each facility had unique issues.
The objective of the study was to evaluate the effectiveness of the operations and identify improvements that would result in shared savings.
- Research, identify, and document elements of the facilities including (but not limited to) the following categories:
- Mechanical storage and handling systems
- Information systems
- Labor and space requirements
- Dock throughput
- Fine tune the operations to reduce cost by:
- Applying appropriate technology
- Improve client/3PL information flow to improve inventory and space utilization planning and Promotion/New Product t flow
- Apply unbiased analysis to resolve differences in expectations of the two parties
Over an extended period, several operational change were made both by the 3PL and the client to improve distribution processes, communication and product identification that resulted in significant saving for both parties