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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:

  1. They could not retain competent delivery drivers, which placed unnecessary demands on the rest of the staff
  2. They struggled to manage the peaks and valleys of demand, which was driving their cost structure too high
  3. There was no way to track deliveries, which was causing them to use more drivers than necessary.
  4. 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

  1. 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
  2. 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:

  1. No process/systems to track orders from beginning to delivery
  2. Inability to fill orders on time in a consistent manner due to not managing the criticality and priority of the various orders
  3. Difficulty fulfilling order because delivery times and deadlines were not communicated
  4. Inability to forecast delivery demand, which prevented them from have an effective driver scheduling routine
  5. Excessive driver payroll costs due to excessive overtime hours in order to satisfy fluctuations in delivery demands
  6. No real sense for how much deliveries were costing them

Medgistix Recommendations:

  1. Created an operations plan, which outlined the most cost effective ways to provide deliveries that maximized patient care
  2. 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
  3. Identified a way to provide a shared web application to give visibility to all personnel about orders and statuses throughout the day
  4. 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.