Skip to main content

Lean Transformation: Doubling Distribution Capacity for a Medical Technology Leader While Reducing Costs

Lean Transformation: Doubling Distribution Capacity for a Medical Technology Leader While Reducing Costs

CHALLENGE

A rapidly growing market leader in the non-alcoholic beverage sector sought to enhance its operating margin while maintaining its

CHALLENGE

A global medical technology company in Gainesville, Florida sought to improve receiving capacity by 20% amid a costly product recall, emphasizing both cost reduction and quality assurance for its orthopedic surgical products. Crosby Row facilitated a Lean Conversion and Kaizen Workshop, focusing on optimizing operations while maintaining the variable workforce. Within six months, the company achieved a 100% capacity improvement, ensuring better efficiency and meeting growing demands.

OUR ROLE

  • More capacity regarding their distribution operation
  • A more Lean-focused distribution operation  
  • Higher productivity (lower cost) per FTE 
  • Elimination of waste within their business processes 

SOLUTIONS

  • Conducted 3-4 weeks of data analysis to identify the operational bottlenecks and area for opportunity. The primary bottleneck was a costly and ill placed conveyor, inhibiting distribution flow 
  • Identified 17 unique opportunities with cost savings over $150K+ even with consulting costs included 
  • Engaged line operators, supervisors and site leaders to ensure consensus and change management was appropriately conveyed 
  • Executed a 6-month sustainment plan to ensure new business processes took root and personnel were able to sustain increased capacity numbers
  • Completed all physical layout and process changes within 2 weeks with no significant customer delays and keep consulting costs low for the Private Equity client
  • Implemented the CROS Operating Playbook that included optimized process flows, new standard work, visual management and daily management to drive productivity increases and connect management and front-line operators

OUTCOME

  • 100% increase in domestic inbound capacity (units per hour)
  • 48% improvement in order fill rate leading to reduced lead times to critical customers (patients)
  • 16.4% improvement in identification in sterilized product defects 
  • $153,535 in cost avoidance primarily related to temporary labor, scrapped product and packaging material

Keep Reading

Interim Controller: Strengthening Compliance and Audit Readiness for a Public CompanyCase StudyFinance & Accounting

Interim Controller: Strengthening Compliance and Audit Readiness for a Public Company

Read More
CTO: Post-acquisition Support – From Carve-Out to Integration in 60 DaysCase StudyFinance & Accounting

CTO: Post-acquisition Support – From Carve-Out to Integration in 60 Days

Read More
Interim CFO: Financial Transformation Amid Leadership ChangeCase StudyFinance & Accounting

Interim CFO: Financial Transformation Amid Leadership Change

Read More
Interim CFO: Leading a Successful Chapter 11 Restructuring and RecapitalizationCase StudyFinance & Accounting

Interim CFO: Leading a Successful Chapter 11 Restructuring and Recapitalization

Read More

ETONIEN is the force multiplier behind portfolio company success.

Work With Us