Building A Better Distribution Model To Accomodate Rapid Growth

This customer is a global leader in the development, manufacture and marketing of molecular diagnostic tests that can help assess a patient's risk for disease, assist in the diagnosis of diseases and help physicians determine what therapies or treatments are appropriate for a given patient.

Improving service cost management

With a primary distribution operation located on the West Coast and a demand center on the East Coast, this manufacturer was experiencing rising transportation costs and extended transit times related to shipping consumable products to their final destinations. Combined with rapid company growth, this issue was quickly becoming a significant business risk that had the potential to inhibit future expansion. Because the company’s inventory also included temperature-sensitive products with specific handling and storage requirements, no ordinary “off the shelf” logistics solution would work.

In addition, the company needed to implement a service parts distribution model that could provide more timely and accurate information about critical test equipment —
ultimately leading to improved customer service and more effective service cost management.

Achieving efficiencies

After working extensively with the company's senior leaders to understand current business and future strategies, FedEx SupplyChain proposed moving the distribution of the company’s compounds and consumables to the FedEx ISO 13485-certified Global Distribution Center (GDC) in Memphis, Tenn.