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Inside Medline’s New Model for Health Plan Order Fulfillment Spikes

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About Medline

Leading Provider of Medical-Surgical Products and Supply Chain Solutions

Medline is the largest provider of medical-surgical products and supply chain solutions serving all points of care. It helps healthcare providers manage growing complexity across the continuum of care. Through its integrated manufacturing and end-to-end supply chain network, Medline delivers reliable products and logistics performance that improve efficiency, reduce burden, and support better patient outcomes.


The Challenge

Managing Quarterly Surge Demand in Health Plan Fulfillment

At the start of each quarter, patients on many health insurance plans are given a benefit allowance to spend on select over-the-counter items — everyday things for treatment and prevention, like ibuprofen, vitamins, first-aid supplies, heating pads and compression socks.

They make their choices from a curated catalog of approved items. Their insurance carrier sends the order to Medline. Medline fills it and usually has the package at the patient’s door within a couple of days. Simple enough, right?

Except it isn’t always.

There’s a surge effect, with large numbers of orders pouring in as the quarter begins, then slowing to a more stable flow. And because these orders involve the same general selection of products over and over — only a small fraction of the roughly 335,000 items Medline distributes — the teams at Medline distribution centers have found they could be processed more efficiently during surge times. Ideally, there’d be a contained system just for these types of orders.

 

The Solution

Pick Pack Pro: Automated Fulfillment for High-Volume Orders

Medline now has that system. At the company’s high-volume distribution center in Montgomery, N.Y. — one of 45 it has in the United States — the operations team now uses what Medline calls Pick Pack Pro, an innovative combination of four separate technologies that help employees meet the needs of health plan members more efficiently.

Here’s how it works:

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Large-Scale Batch Picking with Pick Pack Pro 

Pick Pack Pro first uses Medline-developed technology to batch up to 1,100 health-plan orders together at once.

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Item Induction with tSortLift 

Employees place picked products into tSortLift, which automatically feeds them into multi-level tSort systems

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High Performance Sortation with tSort 

After induction, tSort robots route products to the correct order container. tSort can sort 50,000 items per hour to 6,000+ destinations. 

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Order Consolidation with tSort3D 

Items can also be sorted to tSort3D, which is a robotic putwall that maximizes order fulfillment while minimizing floor space and manual handling.  

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Moving Cartons Downstream with Trew Conveyors 

Completed order cartons are transported from tSort downstream via Trew conveyors.

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Carton Sizing, Lidding, and Labeling with Ranpak

The conveyors feed cartons into Ranpak machinery, where they are sized to their contents, then trimmed, lidded, and labeled.

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Delivery to Health Plan Members 

Cartons are then directed to delivery trucks for shipment to health plan members’ homes.

Medline intends to add Pick Pack Pro to more distribution centers strategically throughout the U.S., with these sites to handle fulfillment for all health-plan orders. As is the case in Montgomery, additional headcounts would be required at these locations to process the consolidated volume and handle the spikes at the start of each quarter. That would mean more job opportunities — part of Medline’s continued investment in strengthening its community presence everywhere it operates.

“When people see our operations with their own eyes and understand how seriously we take our mission to get healthcare supplies to providers and patients, it reinforces to them that Medline is a positive force in their community,” said Sean Halligan, executive vice president, supply chain. “When we go even further and create more jobs, it helps local leaders present their community as a place of growth for other businesses and families, because they can point to a company of Medline’s size and influence choosing to invest there.”

Medline’s direct “customers” for health plan allowances — the major insurance carriers who administer these plans — also recognize that Medline is going the extra mile to dependably meet the needs of their members, no matter the order volume.

“Innovations like Pick Pack Pro go a long way with health plans whose members depend on speed, consistency and reliability,” said Brad Mariam, Medline’s executive vice president of non-acute care sales. “By advancing fulfillment capabilities, Medline is helping the plans deliver benefits more efficiently — something these customers see not just as a Medline investment but an investment in them and the members they support.”

 

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