LLamasoft benefit case study: Cardinal Health

Cardinal Health deployed LLamasoft’s supply design tool to evaluate the makeup of its distribution network and find ways to reduce inventory, transportation and labor costs while improving service to its customers. On the initial project in which Cardinal Health used the LLamasoft solution, Nucleus Research found that the health care provider received positive financial results by combining freight runs to two regional distribution centers (DCs) as the modeling predicted.

– 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