ICD Europe

background
Many organisations talk of 'supply chain management' and 'just-in-time' purchasing. But if their procedures go astray, does it really matter? For hospitals and healthcare organisations, the answer is a resounding 'yes' (and we don't have to point out why).
One of the leading developers of ICDs (Implantable Cardioverter-Defibrillators) and other related therapies recognised that their current supply chain - which comprised local warehouses and distribution solutions, and multiple logistics suppliers - was inefficient. Not only in terms of cost, but also because it did not provide them with the service levels and controls that their business demands. Hence their search began for an integrated pan-European logistics and distribution system.

customer requirements
For their pan-European supply chain, the company defined the following requirements:

To reduce the number of suppliers (ideally to just one) to cover the whole of Europe

Significantly reducing costs of inventory holding, inventory financing and products exceeding their expiry date

Ability to receive and process orders - and provide invoice information - electronically

Commitment to a service level agreement, which reflected the vital importance - and the need for timely delivery - of its medical equipment

A true partnership approach, based on mutual and continuous development

TNT's solution
In designing the solution for this customer, TNT placed great emphasis on providing a structure that offered full visibility and control over the complete supply chain. A dedicated multi-lingual European support desk was set up to monitor all distribution flows and to respond to any enquiries from our customer's national sales offices.

As time is crucial in the delivery process, all delivery points (mainly hospitals) were reviewed, and special arrangements made where necessary. Local warehouses were grasinglely closed and product inventory has been centralised in a European distribution centre, with direct deliveries to the hospitals. In addition, TNT's IT solution ensured that all order information could be received electronically, and that labels (for distribution) could be produced automatically by scanning each package's barcode.

Working closely with the customer, TNT also custom-developed and implemented a packaging method to ensure a smooth and efficient distribution process.

On a monthly basis, management teams from TNT and from the customer's organisation now meet to review business trends and performance, and to discuss and agree new initiatives - in line with the latest IT developments, the introduction of new countries, and so forth - to further develop the relationship.

benefits
For the customer, the TNT solution offered real visibility on the complete delivery process, and valuable insights into related performance levels.

Dealing with one logistics partner for the whole of Europe meant a huge time saving for the management team, which is now able to devote its focus to development (rather than daily operations). And because the customer's national sales offices now have direct access to TNT's European support desk, they're able to respond more quickly and effectively to the demands of their own 'end user' customers. Inventory costs have been reduced through a significant reduction of inventory in the order pipeline.

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