Transforming a public health warehouse for accuracy and efficiency

Background

A public health organization faced challenges with its existing warehouse operations, including suboptimal space utilization, outdated standard operating procedures, and low annual audit accuracy, averaging 79%. The organization sought PMM’s expertise to improve their processes, increase accuracy, and optimize procurement operations.

Challenges

• Audit accuracy. Inconsistent inventory practices led to audit discrepancies, with accuracy levels falling well below the desired threshold.
• Space utilization. Poorly organized storage layouts resulted in wasted space and inefficiencies.
• Outdated SOPs. Procedures lacked standardization, leading to errors and inconsistencies in daily operations.
• Procurement inefficiencies. The absence of strategic procurement processes reduced cost savings opportunities.

Solutions implemented

1. Inventory overhaul. Conducted a comprehensive inventory count, re-tagged items, and established a baseline for accuracy improvement.
2. Updated SOPs. Developed and implemented new procedures for receiving, tracking and issuing materials.
3. Space optimization. Designed a new floorplan that improved storage density by 30%, increasing accessibility and workflow efficiency.
4. Procurement optimization. Introduced bulk purchasing strategies to leverage buying power, achieving significant cost savings.
5. Emergency response program. Developed a rapid response framework for inventory readiness during public health emergencies.

Results

Audit accuracy

97%

Increased from 79% over two years.

Space utilization

30%

Improved, freeing up 1,200 square feet for additional storage.

Cost savings

$150K

Annual savings from procurement optimization.

Efficiency gains

40%

Reduction in inventory retrieval times.