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2
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- World’s leading supply management and healthcare information technology
company
- Fortune 18 Company
- $90 Billion in 2007 fiscal year sales
- Established in 1833
- Headquarters - San Francisco, California
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3
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- 31 Distribution Centers
- 30,000 Customers
- 1 million order lines shipped daily
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4
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- Distribution Center
- Management System
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5
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- Quality, Quality, Quality - Too many:
- In Stock Omits (Can’t Locate)
- Mispicks (Wrong Item shipped)
- Shortages (Billed, not shipped)
- Inventory management
- Accuracy poor
- Costly semi-annual physical inventories
- Cost containment
- Labor productivity low
- Supplies expense high
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6
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- Wrist mounted wireless terminals
- Extensive use of bar codes
- Re-engineered processes around mobile computing
- Heavily modified software package
- Tight integration with material handling & host systems
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7
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8
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- Timeliness of Information
- Permits real-time workflow view/management
- Continuous cycle counting
- Provides multitude of data points
- Problem resolutions queries
- Personnel - management reporting
- What if analysis
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9
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- Cost effective
- Productivity gains
- Paper/printer elimination
- Employee satisfaction
- Prevents operator mistakes & rework
- Partners compete against themselves (and others!)
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10
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- Every process is confirmed real-time
- Receipt/Putaway/Replenishment
- Picking/Staging (on the shipping dock)
- Cycle counting/physical inventory
- Everything is bar coded and scanned
- Product
- Shelf & case storage locations/ Drop zones
- Moveable units (totes, pallets, etc.)
- Documents/personnel
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11
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- Order error reductions
- In stock omits down 50%
- Mispicks & shortages down 65%
- Inventory accuracy improved
- Cycle count accuracy now 99.5%
- Physical Inventories replaced by cycle counting
- Order double checking reduced
- Productivity
- Average 8% improvement within a year
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12
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- Response time
- Need sub-second response time during picking
- Resolved by downloading trips
- Reception in narcotics vaults
- Need response time on par with other areas
- Resolved by additional, strategically placed, antennas
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13
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- Initial design - 4 months
- Build and test - 8 months
- Pilot (4 sites) - 16 months
- 5 team, 36 DC rollout - 44 months
- Total investment - $52 million
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