How A.M.G. Medical Ships 99% of Orders Within 48 Hours With 10% Less Inventory

The vision

A.M.G. Medical’s fulfillment model has grown more demanding. Direct orders to hospitals and patients leave less room for delay than the wholesale relationships the company built its business on.

“We have been evolving from on-the-ground B2B to a hybrid online B2B model with integrated e-commerce. In the past, we worked mainly with wholesalers that would ship products to end user hospitals and other care sites. Now we are fulfilling orders directly from hospitals and patients in their homes. With these just-in-time (JIT) inventory customers, it has become increasingly important that we fulfill and deliver orders as fast as possible with no hiccups and no headaches.”
— Jonathan Dankner, Vice President of Operations, A.M.G. Medical

That demand creates a difficult inventory equation. Approximately 90% of the products A.M.G. Medical sells have lead times of three to four months. The company needs to maintain visibility upstream to suppliers and downstream to customers, distinguish recurring contract demand from one-time spikes and fulfill orders quickly without simply carrying more stock.

Why Tecsys 

A.M.G. Medical’s partnership with Tecsys spans more than a decade, giving the two organizations a long history of adapting the technology around changing operational needs. Integrated warehouse and supply chain capabilities also give A.M.G. Medical one technology relationship across core logistics processes rather than a collection of disconnected systems and vendors. KPI Digital brings additional data and analytics expertise, along with an understanding of A.M.G. Medical’s business and experience in similar technology environments. Together, those capabilities gave A.M.G. Medical a path to build on its existing technology foundation rather than replace it as its fulfillment model became more demanding.

“Tecsys is the foundation of our digital transformation, integrating with all the different software we have in place and serving as the source of truth for our data. Integration is critical to end-to-end process automation, from the time an order is placed to when it is shipped to the customer.” — Janick Coulombe, Vice President of Finance and Administration, A.M.G. Medical

The solution

A.M.G. Medical first established its Tecsys environment in 2010, using ERP capabilities and Tecsys WMS as the operational backbone for logistics. More recently, the company moved those capabilities from on-premises infrastructure into a cloud-based Elite environment. The SaaS model reduced A.M.G. Medical’s dependence on local hardware and gave the company access to new software capabilities as they became available, rather than requiring its own IT team to install upgrades on-site.

At the same time, KPI Digital expanded the data available for analysis by integrating customer, sales, purchased third-party and financial data with A.M.G. Medical’s core operational data. That broader data foundation supports reporting and analytics across the business. Demand forecasting has become an important focus, using data on customer requirements, inventory and supplier lead times to better understand what products customers will need, in what quantities and where; A.M.G. Medical describes its demand-forecasting AI models as its most successful AI application to date.

A.M.G. Medical has also integrated a multichannel Shopify platform with its Tecsys environment as it expands online and direct fulfillment.