Subscribe to our free, weekly email newsletter!


After pilot program, slotting solution takes flight

Rolled out in 18 months, software helps distributor improve productivity by 35%.
By Josh Bond, Associate Editor
October 22, 2011

The 5,100 employees and 55 distribution centers of Owens & Minor allow it to provide medical and surgical supplies to more than 4,500 hospitals, integrated healthcare systems, alternate care locations and government agencies across the country. A few years back, the company recognized a need to upgrade its systems and solutions, as well as practices within the distribution centers.

“We were manually slotting the top 500 SKUs based on the frequency of picks,” says Charlie Winnagle, director of corporate operations at O&M. “This was difficult to keep current. At best, we updated annually.”

The company piloted a slotting solution at one of its facilities and according to Winnagle, “The results were incredible.” The site saw a 17% pick-up in productivity after adopting the slotting plan, and moved forward with a company-wide rollout.

The 18-month rollout required consideration of things like x/y axis, rack placement and slot size by type (bulk, handstack and small bin). This system allowed operations to create an active data map of each DC.

“We managed training the trainers, IT integration, capturing data for maps, and everything else in the time we wanted,” says Winnagle.

Following implementation in all facilities, productivity has improved by 35%. “Not all of the improvement can be attributed to the software,” says Winnagle. “However, we recognize that it played a pivotal role.”

Karma Logistics
651-631-8622
http://www.karma-logistics-inc.com

More Technology Coverage

More from Modern’s 2012 Casebook

About the Author

image
Josh Bond
Associate Editor

Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce.


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

The prolonged operating hours of automated distribution operations leave limited time for maintenance. For tightly-scheduled fulfillment operations, unplanned downtime not only cuts into slim profit margins, it jeopardizes future business and customer loyalty. Download this complimentary white paper to learn five mission-critical benefits of implementing a resident maintenance program.

Debut of Pharma EXPO plays crucial role in increase.



© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA