Notes
Slide Show
Outline
1
Acumaxtm
2
Background
  • 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
3
Pharmaceutical Distribution
  • 31 Distribution Centers
  • 30,000 Customers
  • 1 million order lines shipped daily
4
Acumaxtm Plus
  • Distribution Center
  •  Management System
5
Key Project Drivers
  • 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
6
The Solution - Acumaxtm
  • 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
7
Symbol Wearable System
8
Acumax Wireless Benefits
  • 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
9
Acumax Wireless Benefits cont.’
  • Cost effective
    • Productivity gains
    • Paper/printer elimination
  • Employee satisfaction
    • Prevents operator mistakes & rework
    • Partners compete against themselves (and others!)
10
Acumax - How it Works
  • 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
11
Acumax Benefits
  • 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
12
Acumax Wireless Issues
  • 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
13
Projects Statistics
  • 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