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Case Study: What You Get from Your Logistics Analysis
A regional commercial pharmacy requested Medgistix conduct a Logistics Analysis. They were struggling to provide on-demand delivery services in an economical way, experiencing the following challenges:
- They could not retain competent delivery drivers, which placed unnecessary demands on the rest of the staff
- They struggled to manage the peaks and valleys of demand, which was driving their cost structure too high
- There was no way to track deliveries, which was causing them to use more drivers than necessary.
- They were so taxed to meet delivery demands, there was no time to set back and analyze what was happening and how to solve the problems
Action – Medgistix Logistics Analysis:
A member of the leadership team requested Medgistix conduct an analysis. Medgistix
- Brought in an experienced healthcare logistics expert, at no cost to the organization, to observe day-to-day operations, order fulfillment and use of technology
- After two weeks on site, systems data was analyzed to evaluate what and how they were doing. This information was combined with the physical observations.
What the Analysis Revealed:
- No process/systems to track orders from beginning to delivery
- Inability to fill orders on time in a consistent manner due to not managing the criticality and priority of the various orders
- Difficulty fulfilling order because delivery times and deadlines were not communicated
- Inability to forecast delivery demand, which prevented them from have an effective driver scheduling routine
- Excessive driver payroll costs due to excessive overtime hours in order to satisfy fluctuations in delivery demands
- No real sense for how much deliveries were costing them
- Created an operations plan, which outlined the most cost effective ways to provide deliveries that maximized patient care
- Created a staffing model, which was comprised of batching deliveries and creating shifts of people in order to achieve the best balance between on time deliveries and cost
- Identified a way to provide a shared web application to give visibility to all personnel about orders and statuses throughout the day
- Created a system for improving insurance reimbursements through better tracking of patient delivery paperwork
In the end, the Medgistix analysis uncovered several opportunities to improve service and achieve a lower cost structure. The commercial pharmacy engaged with Medgistix to implement all recommendations.