Key challenges
As the foremost provider of medical technologies and supplies in Australia, boasting a wide-ranging portfolio that caters to the healthcare sector, Device Technologies has experienced rapid expansion. This growth trajectory is expected to persist in the future.
Despite the crucial role of the supply chain in driving overall performance, their distribution centers (DC) face notable challenges in both performance and capacity.
Our approach
TMX worked with the client to:
•Develop a future supply chain strategy which would drive business growth, through best-in-class service.
•Assess and recommend best in class technology solutions to resolve performance issues.
•Evaluation of DC materials handling solutions to support high service needs.
•Assess tactical opportunities to fund the transformation including DC optimization and benchmarking of freight performance.
The results
- The new supply chain operating model incorporates two new greenfield DC's servicing respective markets, with automated materials and handling solutions to improve costs and drive service differentiation.
- A set change in technology to support operations including procurement of a new warehouse management system and improved process to manage electronic trading with suppliers.
- The network transformation will lead to a 24% improvement in DC operating costs.