Cardinal Health Case

Name: Dalong Yang

LOC Write-Up for TLA Meeting

Cardinal Health: Essential to care

As the 21st on the fortune 500, Cardinal Health is a company that helps health care providers focus on patient care while reducing costs, improves the quality and cost-effectiveness of healthcare, and increases profitability. As a well-organized company, Cardinal Health helps shipping for 60,000 locations each day. And ¼ of all medicines are shipped by the Cardinal Health every day. Moreover, the products of the Cardinal Health are used by ½ of surgery in the states. Cardinal Health China is also the first foreign-invested pharmaceutical company to be granted a distribution license by the Ministry of Commerce and State Food and Drug Administration, and the first foreign investor in China to legally distribute pharmaceuticals. From all above, we could tell that the company is like a rising star being more and more effective in the field.

There are two segments in the business of the Cardinal Health, pharmaceutical segment and medical segment. The former has helped gain revenue of $ 98 billion and the latter helped gain $ 10 billion with the margin of 4%. According to the policy of the company, the first goal is to make the best efficiency.

Based on the discipline of Lean Six Sigma, Cardinal Health tries to listen to the voice of customers, the voice of employees and the voice of process. The company has two types of customers, one is the regular consumers and the other is its suppliers. Thus it could not only focus on manufacturing. For employees, the company tries to understand them and improve the quality of their life by surveys and activities.

Cardinal Health ships products to customers in totes. Its large core customers receive hundreds of totes on a daily basis and the company has been shipping in totes for so long that it has become the status quo. For the team, understanding the needs and pain are the factors that drove them to the solution in the process.

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