Case Study: Large Medical Equipment Supplying Company achieves lower distribution costs with Toll Group

Large Medical Equipment Supplying Company - Customer Case Study

Toll Group worked with a large medical equipment supplying company facing rising pressure from cheaper imports, limited warehouse space, and concerns that its distribution network was no longer cost effective while still needing to maintain service levels. Toll Group provided supply chain consultancy to review the customer’s distribution network and assess current costs and future options.

Toll Group used detailed modelling, data, and cost analysis to redesign the network, including a recommendation to move the main distribution centre closer to the port to reduce transit time and costs. The proposed network also created room for warehouse expansion and future growth, and Toll Group estimated the new freight network would be about 2% less expensive than the current one while preserving the same coverage and service levels.