How North Mississippi Health Services saves $8 million a year with self-distribution
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Reduction of backorders
Reduction in total mis-picks
Fill rate
Customer: North Mississippi Health Services (NMHS)
Industry: Healthcare
Location: Mississippi, United States
Scope: Self-distribution of medical supplies to six acute care hospitals, clinics, nursing homes and school health centers across two states, buying direct from manufacturers instead of through distributors
Tecsys solutions: Warehouse Management System (WMS) for healthcare
About NMHS
Like most hospitals, North Mississippi Health Services wanted better margins and more efficient operations. With supply chain as hospitals’ second-largest expense after labor, it was the natural place to start. NMHS moved to self-distribution, buying in bulk directly from manufacturers and managing its own inventory with Tecsys’ healthcare WMS. The change saves NMHS $8 million a year and lifted its fill rate to 99.98%, without adding staff.