MWI Veterinary Supply keeps your pets healthy with a little help from IBS
With revenue breaking 500 million U.S. dollars (420 million euros), this small-town supplier of veterinary supplies is flexing its muscles as a big-time distributor.
MWI Veterinary Supply understands the critical role cutting-edge technology plays in success. With customers scattered across the United States placing thousands of orders each day, efficiency is vital.
MWI is based in the Northwestern U.S. city of Meridian, Idaho, in a state known for its trout fishing, agriculture and beautiful scenery. The animal health products supplier had its start with a small-town veterinarian who became fed up at the skyrocketing drug costs of the 1970s.
Thirty years later, MWI has cemented its place as a powerhouse wholesale distributor now shipping thousands of animal health products to more than half of all veterinary practices in the U.S.
What a vet needs
MWI offers more than 12,000 products sourced from 400 vendors to more than 14,500 veterinary practices nationwide ‐ all from 10 distribution centers and five call centers stretching from California to Pennsylvania.
The company sells pharmaceuticals, vaccines, diagnostics, veterinary pet food, and just about anything else imaginable, to the companion and production animal markets. MWI also offers customers a variety of services such as online ordering, pharmacy fulfillment, Inventory Management, equipment procurement consultation and special order fulfillment. It's simple ‐ if a veterinarian needs it, MWI can supply it, with a bit of help.
The IBS system is the center of our business. If the system wasn't available, we would not be able to operate.
Jim Hay
Chief Information Officer
MWI Veterinary Supply
Efficiency is key
MWI began using IBS Enterprise software, IBS ENTERPRISE, in 1993 and upgraded in 2004. The state-of-the-art information system enables the distributor to stay competitive by adapting to changing customer needs.
The system centralizes critical functions, such as accounting, inventory management, sales and order fulfillment. The software allows MWI to manage growth and performance on a daily basis. With a mind-boggling 370,000 square feet (34,374 square meters) ‐ or the size of six soccer fields ‐ of warehouse space, including call center and pharmacy, 12,000 products, and some 100,000 orders placed each month ‐ efficiency is key.
"The one big advantage we have with IBS software is that we can modify it to meet the needs of our business," says Chief Information Officer Jim Hay. "It is important that we have that flexibility so that we can work with our suppliers."
Automated order fulfillment
When an Internet or phone order is placed, the company's tailored IBS software works its magic. The customer's order is routed by the IBS system to the distribution center that carries the products and is closest to the customer. A pick ticket is printed in the warehouse where the order is quickly filled with help of location codes on the printout.
"The IBS system has been extremely useful," he explains. "We put through a huge number of orders very efficiently. I think it helped that we have an up-to-date (IBS) system."
Business is booming
MWI growth has rocketed since its modest beginning. Hay says he has seen incredible growth since the mid-90s. "We have been growing at over 20 percent annually for the last 10 years," he says. "This has been happening in an industry that has been growing at a much smaller growth rate. The IBS system is the center of our business. If the system wasn't available, we would not be able to operate."
MWI went public last year and its stock has risen nearly 60 percent since. The company now has total revenue topping 500 million U.S. dollars (420 million euros) annually. Hay says it is hard to tell how much money the software has saved the company, but adds, "it has been a very reasonable cost" and was "well worth it."
Down the road
MWI expects strong demand for years to come. In order to meet any upcoming challenges and to continue to streamline its distribution system, Hay says MWI is considering using the IBS Warehouse Management solution.
"We are obviously committed to IBS," he says. "It has made a significant impact. We just upgraded and have every intention of taking advantage of the latest features of the new software." Hay says MWI is going to keep doing what it does best. "The recipe for success is excellent customer service at very competitive prices."
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