How CJ Logistics America took a Fortune 20 healthcare customer from network modeling to a fully operational East Coast distribution center, on time and on budget.
CJ Logistics America handles branded and private-label medical and surgical devices and consumables for a Fortune 20 healthcare customer. As the business grew and the need to diversify inbound port locations increased, the customer set out to expand operations and asked us to identify the optimal network options through data-driven network modeling.
Working in close collaboration with the customer, CJ Logistics America ran a full network analysis and identified an optimal site for a new distribution center served by an East Coast port. In the initial analysis phase, we gathered daily transactional data sets and the customer's specific requirements, then used industry-leading design software to determine the best geographic location based on transportation, warehouse, and inventory costs. From there, we recommended an exact build location, weighing available real estate, local wages, regulations, and incentive credits.
Based on our analysis, the customer asked us to bring the solution to life. We managed the complete operational start-up: construction, building design and layout, rack installation, capital procurement, Rx and medical device licensing, IT systems and hardware setup, and full staffing.
The Results
Locating the inbound warehouse closer to the customer's East Coast distribution centers improved transit times and delivered approximately 12% in transportation savings. The East Coast port also lowered inventory carrying costs and opened up additional space for future product launches. Just as important, it strengthened business continuity, giving the customer a reliable alternative when congestion or closures hit other ports. CJ Logistics America delivered the entire project on time and on budget.
Improved transit time
~12% transportation savings
On time and on budget delivery