The Challenge
Our client, a distributor of natural health products to grocery, pharmacy, nutrition and health club outlets nationally, required a more reliable, accurate and cost-effective logistics service provider.

One of its key challenges was maintaining visibility of its product in the supply chain, including capturing lot codes and expiry dates, to avoid issues related to product obsolescence and also to satisfy its customers’ need for information.

	The Solution

Through an RFP process, SCI Logistics was awarded the contract by demonstrating a superior ability to provide online visibility to such critical items as order status, inventory aging, and expiration dates. We were the only 3PL able to integrate service through our facilities in western and eastern Canada, significantly reducing costs and improving response time.

We developed a single-source solution that leverages our WMS and service capabilities. We began by conducting a thorough needs analysis that resulted in the creation of a new set of standard operating procedures. Facility layout requirements were documented including space requirements, forward pick locations, overflow storage and pick methodology to support maximum productivity. Good Manufacturing Process (GMP) requirements were reviewed and implemented in the facility.

The solution also featured a process that captures the data at time of receipt and prints bar-coded product labels that are then applied to each case. Electronic capture of information at time of receipt leads to more accurate reporting and reduced risk of inventory obsolescence.

Additional features of the SCI Logistics solution:

• RF technology that eliminated all paper-based warehouse functions, improving productivity and accuracy
• Inbound product receipt labelling for Lot Code and Expiry Date, enabling improved tracking of inventory in the warehouse
• Forward pick locations organized according to pick frequency with commonly attached product directly above or beside high movers to reduce walk time, which improved productivity.
• With the implementation of expiry date capture at the point of receipt, we enabled the FIFO process by closest expiry date.
• Customized reporting was developed to warn the client when certain lots were nearing the end of their warehouse shelf life, allowing the client to push that particular product and reduce waste.
• New returns processes were implemented, reducing the returns cycle time by several days

	The Results

The results for our client have been exceptional. With the SCI Logistics solution, our client has:

• Reduced freight costs by 15% through consolidated rate negotiation and rate shopping technology.
• Improved customer service response from 48 hours to less than 4 hours.
• Improved fill rate to 99.72%
• Improved inventory accuracy to 99.72%
• Improved on-time order fulfillment to 100%