Medline

Project Background

Medline manufactures and distributes more than 100,000 medical products, encompassing medical-surgical items and one of the largest textile lines in the industry. The company maintains 29 distribution centers to deliver products to its health care customers where and when they need them. In 2002, Medline began implementing a new warehouse management system across its distribution centers and planned the expansion of one of its largest facilities. The company enlisted the expertise of Peach State to: 1) develop standardized, cost effective operating strategies and DC designs that would accommodate continued market growth and 2) prepare a facility specific conceptual layout for expanding their Southwest DC.

Project Objectives

  • Determine the most effective order fulfillment methodologies for processing various customer order types (e.g., parcel vs. truck orders).
  • Develop the appropriate aisle configurations, operating strategies, material flows, zoning and functional requirements for reserve storage, forward picking and replenishment, inbound/outbound staging, dock doors, and other processing areas.
  • Define facility specific design requirements for material handling systems, storage sub-systems, processing and other functional areas for the Southwest DC expansion.
  • Evaluate the best combination of space, labor, operating methods, equipment, and layout design to maximize return on the expanded Southwest DC.

Solution Benefits

  • Reduced Operating Costs – The recommended order fulfillment and slotting strategies offered Medline the opportunity to reduce operating expenses at its largest facility by $133,000 annually; comparable savings were projected for other facilities.
  • Decreased Capital Expense – By leveraging reliable manual processes to increase productivity, automated material handling system investments were not required for the expanded DC and capital needed for lift equipment was reduced by $265,000.
  • Maximized Space Utilization – By using combination of single and double deep rack structures, Medline was able to maximize the warehouse footprint while reducing operating expenses.