New report shows the essential trends and challenges in medical technology logistics

What challenges and which trends can be identified in logistics? A question that is currently being dealt with by many companies in the area of medical technology – and worldwide. Distribution in the area of medical technology is about to be transformed. Cost pressure, intensifying competition, rising customer expectations, and increasing substitutability of medical products are giving new significance to logistics. This trend is also confirmed by a joint study carried out by Buck Consultants International and arvato services healthcare, which surveyed well-known companies in the area of medical technology.

The result is clear: The continued success of companies in the area of medical technology requires new, pioneering approaches.

The focus lies on shifting to distribution solutions that not only lead to cost reduction but also provide differentiation vis-à-vis the competition in the area of logistics, thereby offering potential for growth. The key to success, as the study shows, will be to identify end customers and their individual requirements in order to implement integrated supply chain solutions. Increasingly, there is a trend towards holistic solutions which include, amongst other things, customer care, financial services and customer relationship services.

In implementation, the important thing is to custom tailor the supply chain solutions and services to the products and thus to the target group and to differentiate them from the competition. In actual practice, however, such diversification is currently only found to a slight degree. Approaches based on different solutions and services for different product-market combinations are virtually nonexistent. If at all – according to the results of the study – a differentiation is made only by product group or geographical sales market.

The potential that could be exploited through cooperation along the supply chain is confirmed by the majority of companies surveyed in the course of the study and is seen as significant for the future. Leading companies in the area of supply chain management, especially in the automotive industry, are already combining their own processes and knowledge efficiently with those of their partner companies. Transparent, collaborative approaches are seen here not as a danger, but as an opportunity to generate added value. Since this potential is increasingly being recognised in the area of medical technology as well, consignment store models, supplier-driven inventories, and direct sales will play an essential role in the future. However, the efficient interlinking of internal processes and information, especially in the departments of sales and supply chain/logistics, are gaining significance for demand-oriented action in the market.

René Boerema, Director of Buck Consultants International sums up the situation: “The study shows the future challenges and trends, but also makes clear that much potential along the supply chain is currently not being exploited – or only inadequately. The medical technology sector is on the move. However, other industries have already moved significantly further, in particular in regard to ‘supply chain maturity,’ which shows that there is a lot of catching-up to do.”

Dr. Thorsten Winkelmann, President of arvato services healthcare adds: “It is becoming clear that an efficient, integrated, and above all end-customer-oriented supply chain not only leads to cost reduction but also – and this is the decisive point – is exceedingly well suited to strengthening customer loyalty and sharpening one’s profile among customers.”

In addition to the general trends and challenges, the study also provides recommendations for action and offers practical examples to illustrate solution approaches.

Starting on 2 February 2009, the report can be ordered free of charge at contact@arvato-services-healthcare.com. To facilitate fast processing of your request, please enter the key word “Study 2009” along with your complete contact data.

Interested parties can also contact Sebastian Ruckes directly at +49 (0)21 73-39 90-10 85.