The folks at Zevex International, a leading contract manufacturer of innovative medical systems and devices, were concerned about the cost of their supply chain. But they were even more concerned about how long it was taking to fill orders. They didn’t like having unhappy customers. Zevex wanted better, quicker service, so they turned to DSC Logistics and got it.

Zevex had purchased a company that manufactured feeding pumps, specifically designed to fit into children’s backpacks; they knew how important it was to get this product to the end user in a timely manner. Their existing network consisted of two distribution centers, one in Texas and one in Utah, and three plant locations, Mexico, California and Illinois. All customer orders shipped via less-than-truckload (LTL) and parcel. The average distance of over 1200 miles between distribution center and customer (75 percent of their customers were located east of the Mississippi) caused their order-to-delivery cycle times to be higher than the competition’s.

DSC conducted a network model using the LogicNet network optimization tool comparing multiple configurations of the Zevex network, and selected an optimal network of three distribution centers in California, Texas and Pennsylvania.

The three DSC Logistics Centers handle Zevex’s inbound, storage and outbound. The new optimized network reduced the average weighted mileage from warehouse to customer by 62 percent to less than 480 miles, turning an average three-day LTL shipment into a one-day shipment. And, Zevex now knows exactly which SKUs are carried in which facilities. Even with significant service enhancements, Zevex’s supply chain costs were kept neutral. While costs on inbound transportation increased, costs went down on Zevex’s outbound because they’re so much closer to their customer base. So, it’s basically the same cost for faster, more efficient operations.

DSC’s network design capabilities, efficient data transfer systems, collaboration with Zevex and flexibility in the marketplace helped Zevex meet their goals. For Zevex, it was a case of two big wins—meeting customers’ increasing demands and keeping costs the same. For DSC, it was a case of our executing as well as we modeled. Not only do we say we can; we do.