BDF Beiersdorf
rue21
Vera Bradley
IDEXX Laboratories
Candle-lite
Crate&Barrel
Delta Faucet
Lenox
BARD
totes ISOTONER
Willow House
Smith & Nephew
Smith & Nephew
Smith & Nephew needed their distribution environment to be immune to the typical distribution bottlenecks.
The Challenge:
Smith & Nephew, a leader in the medical device industry, was experiencing significant yearly growth and knew their existing supply chain network capacity could not effectively support their long-term business plan. They needed a partner that could work within strict government constraints and still provide viable options for future growth. Their Board requested a strategic evaluation of an internal vs. out-sourced supply chain solution.
The Solution:
FORTE provided recommendations on the existing distribution model and presented a range of options from complete in-house distribution to total 3PL distribution. After a supply chain strategy evaluation with Smith & Nephew it was determined that in-house distribution, combined with better technology deployment and integration could deliver a 15% decrease in operating expenses over outsourcing operations, while minimizing risk.
The Result:
| 2.2%distribution cost as a percentage
of sales |
50%capacity increase |
The flexibility of Automation Director warehouse control system (WCS) softwareprovided levels of throughput and supply chain efficiency not easily or cost effectively obtainable in other WCS systems, especially in environments constrained by strict government and customer regulations. Smith & Nephew capitalized on their decision to keep distribution in-house and lower their distribution costs as a percentage of sales from 7% to 2.2% while increasing capacity by 50%. As a result of FORTE's supply chain consulting expertise, they could now fulfill customer orders in as little as 2 hours and showed a 15% decrease in operating expenses over outsourcing distribution operations.
FORTE provides sound business/data analysis…their recommendations are usually based on their professional judgment rather than what they perceive we want to hear."
Key Services Employed |