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Case Study: Cardinal Health Cuts Inventory Holdings to Identify $2.8M in Savings

By Toby Brzoznowski  August 5, 2015

With several different teams using several different supply chain modeling tools across the enterprise, it was challenging for Cardinal Health to get an accurate picture of their current network. The healthcare services companies delivers medical products and pharmaceuticals to upwards of 100,000 locations every day and knew they could be conducting business more efficiently. However, without even the ability to get an accurate view, the prospect of identifying opportunities for improvements of savings was a daunting task.

Upon selecting LLamasoft to serve as an all-in-one supply chain modeling platform, Cardinal Health was able to identify some impressive results, including:

  • Cut inventory holdings by $2.8 million in one DC, $1.9 million in the second DC
  • Saved $430,000 on inventory carrying costs
  • Reduced transportation costs by $276,000

To learn more about how Cardinal Health utilized LLamasoft modeling technology to achieve these huge savings, check out this recently published benefit case study by James Cooke, Principal Analyst of Nucleus Research.