Distribution

Challenge:

Dukal offers a wide variety of specialty patient care, wound care and disposable apparel such as examination gowns, shoes, face masks and caps. As Dukal’s business grew, their distribution facilities exceeded capacity and their order cycle times increased due to off-site storage needs. Located in Long Island, Dukal imported all products from China through the Port of Newark. As a national supplier, they incurred high shipping costs and transit times to points outside of the northeastern United States.

Approach:

OHL worked through several distribution center network models before determining that the most efficient solution was a single distribution site centrally located in Tennessee utilizing the port of Long Beach. This eliminated the need for off site storage and led to more efficient warehouse management.

Value:

By moving its warehouse to a strategically located distribution center, Dukal gained a more central location to conduct its distribution operations. Ocean freight, product in-transit times from suppliers and overall order cycle time has decreased. In addition, OHL is conducting operations in a flexible environment adjusting the labor and space burden as needed to maintain the most efficient and cost effective supply chain.

Return on Investment:

Dukal and OHL have worked together to reduce inbound and outbound transportation charges and maintain control of distribution expenses while decreasing order receipt to ship times. Shipping accuracy has improved from 97.17% to 99.40%.and inventory accuracy has increased to nearly 100%. Through a gain share program, metrics have been established to encourage both Dukal and OHL to continually improve efficiencies and service levels.