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"The Distribution Systems Strategy that Waterstone put together is our operational blueprint." - Vice President, Distribution Operations

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This company is a $10 billion full-service wholesaler of pharmaceuticals, hospital supplies, and other healthcare products. The company had experienced explosive revenue growth, due in part to new acquisitions. But efforts to control costs, maintain service levels, and improve profitability were fragmented across the organization.
Executive Summary

Business Strategy

In 1996, the company tapped Waterstone Consulting's distribution and logistics expertise, engaging the firm to help define their Distribution Systems Strategy (DSS). Waterstone quickly determined the primary objectives of the DSS Project:

• Identify the key business objectives to be supported by Distribution Operations
  
• Identify the projects required to support these objectives
  
• Define the requirements, timelines, and dependencies for the execution of these projects

Technology Strategy

Waterstone Consulting helped the company identify their Strategic Priorities:

• Reduce controllable expenses
• Improve Asset Utilization
• Increase Service Performance
• Improve Profitability

The consulting firm identified the initiatives that supported each priority. Among these initiatives were Supply Chain Integration, Inventory Management, Reverse Logistics, Customer Management and Process Measurement.
Waterstone Consulting drove the DSS to completion by defining the projects, their dependencies, and the timelines that would allow them to achieve their goals.

Project Approach

Cross-functional, process-oriented initiatives, such as DSS, require coordinated support and participation across multiple departments. Waterstone Consulting's approach to first understand all aspects of the client environment proved critical in managing this effort.

Project Success

The DSS is the blueprint to help the them identify their most active customers, most active products, and best performing vendors. It demonstrates how their suppliers can help manage inventory levels and improve responsiveness to end-consumer demand. It also charts the course for additional strategic improvements in the supply chain.

EXECUTIVE SUMMARY

Industry: Wholesale Distribution	Benefit: Activate cost-control initiatives across the organization Enhance supply-chain management Improve profitability
Solution: Distribution Systems Strategy	Key Initiatives: Customer Segmentation Vendor/Customer Performance measurements Pipeline Visibility Vendor Managed Inventory (VMI) Inventory Control Transportation Management