REGIONAL PARCEL CARRIER STRATEGIC ASSESSMENT
Cardinal Health’s non-asset based freight management business unit, OptiFreight Logistics, provides logistics solutions to hospitals, pharmacies, ambulatory surgery centers, and clinical laboratories to control and reduce their freight costs. Today, the business leverages a single national carrier to manage customers’ small parcel shipments.
The Tauber team recommended a market rollout and organizational transformation plan to launch and expand the regional carrier offering. Further, pricing and risk mitigation strategies were developed to ensure success of the regional carrier strategy. By implementing the new regional carrier strategy, OptiFreight Logistics could realize an additional $35.2M in annual gross profit with 50.7% volume growth over five years. Moreover, customers can achieve, on average, a 25.8% reduction in transit time on ground shipments. Overall, the regional carrier offering enables OptiFreight to become a comprehensive logistics solutions provider and strengthens their position as the leading freight management provider in healthcare.
Read the 2017 Cardinal Health Team Project Executive Summary in the 2017 SPOTLIGHT! book.
Atakan Tin–EGL (BSE & MSE Industrial and Operations Engineering)
Brooks Williams–Master of Supply Chain Management
Chris Mathew–Director, Same Day Services
Korey Yoo–Manager, Service Development
Luis Garcia-Guzman–College of Engineering
Jim Price–Ross School of Business
About Tauber Team Projects:
The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.