DHL Supply Chain has launched a new service logistics solution for the medical device sector which consolidates field inventory into single locations and uses quality management systems to provide better control and traceability of valuable products.
This solution comes in response to a number of growing industry challenges, including greater demand from an aging and more active population through to increasing cost pressure from healthcare providers. These factors have led to an ever-increasing need to better manage inventory, both in the field and in hospital. The final mile solution focuses on the need for companies in the medical device sector to address the compromises between cost and availability and drive efficiencies in field inventory.
Tim Slater, CEO of DHL Supply Chain Life Sciences, says: “This solution draws on our Life Sciences expertise in managing critical lifesaving products and our global capability to organize mission critical deliveries into complex environments. It is replicable, provides high visibility of inventory both inside and outside the hospital and is fully compliant globally with the rigorous standards required. It facilitates a reduction of capital commitment for inventory through just-in-time availability to hospitals, removing the requirement for just-in-case storage of medical devices.”
In addition to better managing consigned inventory, the solution will free up medical device sales rep resource from actively manage, check and locate stock to enable more time on interacting with customers.
John Farrell, President of DHL Supply Chain, Service Logistics Solutions, commented: “We have built our expertise through successfully deploying a similar solution in the technology sector. It is ideally suited to the medical device market, where critical products are required just-in-time. We provide full stock visibility and control through pooling of consignment stocks outside of hospitals; while providing mission-critical availability of inventory on a same day basis.”
The solution utilizes an established global supply chain infrastructure that is certified to the required standards for each market. The solution is already deployed for a major global provider of medical devices in multiple countries across the world.
In addition to better managing consigned inventory and improving sales force efficiency, it also provides a platform to standardized service and quality systems; whilst at the same time enabling product returns, customer segmentation activities such as kitting and value-added services to meet local market and customer needs.