IDEXX Laboratories, Inc., the global market leader in diagnostics and information technology solutions for animal health and water and milk quality, wanted a scientific approach to its distribution operations.
The Challenge
IDEXX helps more than 50,000 veterinary practices worldwide advance medical care, improve staff productivity and increase practice profitability with an integrated portfolio of pet-side diagnostic tests, point-of-care instruments, reference laboratory services, digital radiography, and practice management solutions.
The existing semi-automated processes in the Memphis, TN distribution center routed totes past every picking location to get to the right location and required substantial operator movement between zones. Orders were picked from three different zones - frozen, refrigerated and ambient.
The result was that orders were picked and often packed in three different shipping cartons to the same customer. The majority of orders were also comprised of a single line and single unit which required a different packing process than multi-line orders.
IDEXX knew there were better options to its layout of the current system and looked for a partner who understood their business, could reduce their overall costs and put in place a best-in-class pick and pack solution.
The Solution
Together, the IDEXX and FORTE teams designed a new automated material handling system with two separate packing areas: one for single-zone orders and the remaining stations for multiple-zone orders.
FORTE implemented its conveyer software control system, Automation Director, which communicates directly with IDEXX’s current SAP-WM module.
Automation Director provided IDEXX with the flexibility to consolidate orders that crossed multiple zones into one shipping container.
FORTE also recommended a tote return conveyor to replace a labor-intensive stacking and manual movement of the empty totes in the facility to reduce manual tote handling by operations staff and keep the pick and pack process flowing.
The Result
With the help of FORTE’s supply chain consulting, distribution center design and material handling automation services, IDEXX is experiencing dramatically improved efficiency, increasing lines picked and packed per hour by 30%.
In addition to a 6% reduction in outbound packages, monthly freight costs have been reduced by more than $35,000 and order accuracy was improved.
Customer satisfaction has improved by reducing the number of packages arriving at its customers’ doors, showing IDEXX cares about the environment and reducing its carbon foot print.