Healthcare Third Party Logistics Operations Overhaul: From Errors to Excellence
How Leverage stabilized a healthcare distribution campus through hands-on leadership, stronger operating controls, and restored order accuracy within 90 days.
≤90 DAYS
To surpass contractual order-accuracy KPI
50%
Reduction in rework labor
$10K/YR
Annual material waste eliminated
Client
U.S.-based third-party logistics provider
Sector
Healthcare logistics
Location
Memphis, TN
Scope
Multi-building warehouse operations turnaround
Services
Warehouse & Distribution; Supply Chain Optimization
Service failures exposed deeper operating gaps.
A U.S.-based 3PL operating a Memphis distribution campus for medical device and pharmaceutical manufacturers faced mounting customer complaints, returns, and inconsistent warehouse performance. A flagship medical device account was operating at 98% order accuracy against a 99% contractual target.
Leadership turnover, heavy reliance on temporary labor, uneven training, and inconsistent inventory controls had compounded the issues. Leverage was engaged to provide interim operational leadership and hands-on support to stabilize service, strengthen daily execution, and address preventable cost and revenue leakage.
What stood in the way, and what we were asked to deliver.
What stood in the way
-
Below-target service performance
Order errors and complaints put contractual commitments and customer confidence at risk. -
Leadership and labor instability
Roughly half the workforce was temporary, with inconsistent training and limited management accountability. -
Weak warehouse controls
Gaps in cycle counting, staging, labeling, and hold-stock segregation created rework and shipment risk. -
Cost and revenue leakage
Avoidable waste, unbilled services, and outdated contract terms weakened profitability.
What we were asked to deliver
-
Restore reliable customer service
Meet contractual order-accuracy requirements and reduce complaints to restore customer confidence. -
Stabilize staffing and leadership
Build stable leadership and a trained workforce to support more consistent operations. -
Improve inventory and outbound controls
Standardize inventory, staging, labeling, and quality practices to prevent errors. -
Reduce cost and protect revenue
Reduce rework and waste while improving billing discipline and contract visibility.
Rebuilding warehouse performance through hands-on leadership.
Leverage paired interim operational leadership with practical process redesign, workforce development, and commercial reviews to restore discipline across the operation.
Operating leadership and management cadence
Provided interim operational leadership, assessed site management responsibilities, and established daily huddles and cross-functional reviews. Introduced clearer accountability and KPI visibility to guide decisions and track service recovery.
Workforce optimization and training
Advanced a shift toward a more permanent workforce and limited temporary assignments in inventory and warehouse-system roles. Developed role-specific training and a train-the-trainer framework to reinforce consistent execution.
Inventory and outbound quality controls
Shifted cycle-count ownership to operations, introduced daily audits, and improved the segregation of held inventory. Standardized staging, signage, and pallet identification to reduce shipping errors and strengthen visibility.
Technology and commercial accountability
Improved packaging and labeling procedures around automated verification while addressing warehouse-system process gaps. Introduced account-level KPI tracking, billing controls, and contract reviews to surface revenue opportunities and improve accountability.
Leverage brought operating leadership onto the warehouse floor, replacing reactive problem-solving with the routines and controls needed to restore customer confidence and deliver measurable performance gains.
What the client got.
Order accuracy and service restored
Order accuracy surpassed the contractual KPI within 90 days, and customer complaint backlogs were cleared. The operation regained more dependable service for its healthcare customers.
Inventory performance strengthened
Inventory accuracy exceeded its KPI while adjustments declined significantly. Clearer ownership and daily audits improved ongoing control.
Rework and material waste reduced
Rework labor fell 50%, and unnecessary material waste was eliminated, saving approximately $10,000 per year. These improvements reduced avoidable operating costs.
Commercial controls and continuity improved
Added billable items and tighter cost controls improved revenue visibility and reduced commercial risk. A more consistent operating rhythm strengthened leadership accountability and continuity.
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