Challenge:

Merial Limited is a world-leading animal health company that produces pharmaceutical products and vaccines for livestock, pets and wildlife. They are on the cutting edge of product development and innovation, providing millions of doses worldwide annually to keep livestock and pets healthy.

When Merial abruptly lost their 3PL provider, they required an immediate relocation of their high volume Midwest distribution center. The challenge of creating a full logistics solution for an immediate turnaround within weeks of a fall sales promotion was presented to Jacobson Companies. Additionally, Merial proposed that Jacobson find a solution to redesign their national distribution network by the end of the year.

Solutions:

Wasting no time, the Jacobson Companies implementation began. Phase One required Jacobson Transportation to coordinate and move the Merial inventory to Des Moines, IA. Within three weeks, Jacobson Warehouse created a new regional distribution center in Ankeny, IA complete with systems, labor, and management to meet the high volume of the fall sale promotion.

Phase Two required a West Coast distribution center that Jacobson secured as a fourth party integrator. Space was laid out, systems installed, product moved, and personnel trained in a four week period. Phase Three was establishing the Memphis, TN facility as the hub of the network. All products entering the U.S. traveled through the Memphis facility. The regional distribution centers would then be stocked via transfers from Memphis.

When Merial experienced serious computer issues that disrupted their supply chain visibility, they required all distribution be completed from a single point, which was their own facility in Athens, GA. A request for assistance was made on a Saturday afternoon and a Jacobson SWAT team was immediately dispatched to Athens. By that Monday morning, Jacobson and Merial were filling all fall promotion orders from Georgia.

Five weeks later, service was resumed from Memphis and Ankeny with manual order entry. Merial’s computer issues were corrected over the next four weeks, so orders and ship confirmations were now being sent via XML. By that point, the Memphis facility was able to efficiently service the West Coast, so the California facility was no longer required, which reduced the network from four distribution centers down to three.

Over the next few years, the Jacobson-Merial team created efficiencies that opened the window for further re-design of Merial’s domestic distribution network. In October of 2006, Jacobson opened a new regional distribution center in Delano, PA and closed the Ankeny, IA and Athens, GA facilities. While improving service to the Northeast region, this reduced overlapping shipping lanes and again downsized the network from three facilities to two. At the same time, Jacobson implemented a Pick-to-Light system in both facilities that improved order processing by 25%.

Today, Jacobson has same-day processing of all orders that are received by 5:30 p.m. local time. The network will process between 4,000 and 11,000 packages per day via UPS and FedEx. Strict validated processes are in place to ensure that all biologics are packed in a manner that keep them cool throughout transit and they arrive at their veterinary clinic destination within the required temperature range. Each of the Jacobson facilities is equipped with back-up generators and redundant systems to ensure that product quality and communication is maintained through various emergency situations.

How Merial benefits from working with Jacobson Companies:

• Implementation of a two-facility national distribution network able to provide same day shipping via UPS and Fed Ex
• 100% of the domestic distribution network is handled by Jacobson which offers the flexibility to adjust the network to meet changes in the marketplace
• Seamless, transparent service that leads to prestigious recognition such as the “Outstanding Customer Service and Order Fulfillment” award from the American Veterinary Distributor Association
• State-of-the Art systems that reduce pick and pack time
• Access to Jacobson Staffing Company, which provides temporary workers for peak distribution
• Maintenance of stringent food grade warehouse standards and GMP requirements including temperature control, HazMat space, and a cooler for biologics
• Standardized procedures for Hazmat shipping of ORM-D and flammable materials
• FDA system validation