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Health & Personal Care Company Doubles Warehouse Productivity and Reduces Labor 60%

Company Increases Productivity by 2X and Reduces Labor Requirements by 60% with RDS Warehouse Automation

Company Profile

United Medco is a national wholesaler and distributor specializing in support and full-service warehouse order fulfillment deliveries of over the counter (OTC) pharmaceutical and wellness products to major medical insurance companies.

Challenge

Growth and an expanded product offering had obsoleted United Medco’s paper-based picking operation. “Our sales growth had greatly surpassed our operational throughput,” said Richard Langnas, founder and CEO. “We were bursting at the seams and could no longer keep up with our daily order volume.”

United Medco selected the Numina Group to work with Medco’s team and perform a warehouse operations audit and engineering study to determine the best layout, software, and hardware combination for current and future growth.

Learn More About Numina Warehouse Design Consulting

Results

With Numina’s warehouse automation solution, United Medco achieved the following:

  • Gained a 2X boost in order throughput with existing staff.
  • 60% lower temporary staff costs; eliminated the need for 100 temporary workers.
  • Increased pick rates to 300 lines per operator per hour.
  • 99.8+% order accuracy due to barcode scan validation and automated shipment weight verification for QC.
  • 60% faster order fulfillment
  • Real-time inventory tracking.
  • Increased employee satisfaction.
  • Ability to absorb surges in order volumes without adding staff.
  • Rapid ROI.

See the benefits below in this short video of United Medco’s operations:

Solution and Approach

Warehouse Design Study

Based on the study results, the team determined a pick-to-light system managed by Numina’s Real-time Distribution Software (RDS™) Warehouse Execution and Control System (WES-WCS) would deliver the most efficiency and rapid return on investment.

The engineering study also provided the optimal product slotting layout to further speed up fulfillment. The new workflow placed the high-movers in a fast-picking zone at the front of the conveyor system, with multiple picking zones on dual sides of it to increase productivity.

Warehouse Technology Review & Selection

Numina Group designed an optimized zone routing pick-to-conveyor system incorporating a pick-to-light system with hands-free barcode scan validation to replace Medco’s manual, paper-based picking process.

RDS WES-WCS manages and controls the entire system from order start, picking, packing, labeling and final carrier sorting. RDS has minimized extra walking and accelerated order fulfillment by bringing all the products together in one location.

Result: Faster Picking, Fewer Steps

Previously, orders were individually picked and packed as discrete orders by operators who walked throughout the warehouse to pick products. The Numina pick-to-light system has minimized extra walking and accelerated order fulfillment by bringing all the products together in one location.

All picking, packing, shipping, and quality control activities now occur along an automated conveyorized system, with all work directed by RDS WES-WCS and the pick-to-light process. Employees now work as a team with assigned tasks in zones along the conveyor, walking far less than they previously did to individually pick orders.

“Before we had the RDS system, our staff was walking 10 to 15 miles a day to pick orders. Now they work within a ten-foot space, and they’re much happier. Their feet thank them every day,” said Kyle Tuers, Warehouse Manager.

A Scalable Solution for Future Growth

According to United Medco’s CFO William Cuervo, the pick-to-light system has significantly boosted productivity and simplified employee training, a big plus in a tight labor market.

Langnas added, “I’m confident that United Medco can readily respond as demand grows. The manner and speed in which the Numina system works to pick, pack, and ship orders is clean, neat, and efficient.”

Learn More about How RDS Delivers Measurable Results for United Medco

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