Background:
A public health organization faced challenges with its existing warehouse operations, including suboptimal space utilization, outdated Standard Operating Procedures (SOPs), and low annual audit accuracy, averaging 79%.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- Outdated SOPs: Procedures lacked standardization, leading to errors and inconsistencies in daily operations.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:
- Inventory Overhaul: Conducted a comprehensive inventory count, re-tagged items, and established a baseline for accuracy improvement.
- Updated SOPs: Developed and implemented new procedures for receiving, tracking, and issuing materials.
- Space Optimization: Designed a new floorplan that improved storage density by 30%, increasing accessibility and workflow efficiency.
- Procurement Optimization: Introduced bulk purchasing strategies to leverage buying power, achieving significant cost savings.
- Emergency Response Program: Developed a rapid response framework for inventory readiness during public health emergencies.
Results:
- Audit Accuracy: Increased to 97% over two years.
- Space Utilization: Improved by 30%, freeing up 1,200 square feet for additional storage.
- Cost Savings: Procurement optimizations resulted in $150,000 in annual savings.
- Efficiency Gains: Reduced inventory retrieval times by 40%, significantly enhancing operational productivity.
