Case Study

Conquering the Chaos of a Decentralized Medical Device Supply Chain

The MNX Way

  • One of the world’s leading medical device manufacturers faced a barrier to growth in the U.S.: a decentralized supply chain.
  • The result was poor visibility, lost efficiency and higher costs. The  manufacturer needed a stronger, more reliable supply chain.
  • MNX Managed Transportation designed a precision logistics solution for outsourcing employee courier management—as well as closing service gaps and handling hot-shot deliveries on demand.
  • Today, the MNX solution supports the manufacturer’s market growth by making product deliveries more reliable and efficient, while lowering costs 15-20%.

 

It was a major barrier to market growth—and the current solution wasn’t working. One of the world’s leading manufacturers of orthopedic and spinal medical devices wanted to scale up and expand sales in the United States, but progress was limited by a decentralized supply chain.

The company operated regional depots and forward stocking locations (FSL) across the U.S. and employed drivers at each location to support local distribution. Fluctuating demand resulted in some drivers sitting around with no work on low-volume days and clocking overtime hours on days when demand surged.

The ability to grow market share was further limited by the ability to hire new drivers and on-board them into the nationwide distribution model. And in areas where employee drivers were not available, the manufacturer had to manage a large network of contract couriers with varying performance standards and processes.

The result: poor visibility, lost efficiency and higher costs. To expand U.S. distribution, this manufacturer needed a stronger, more reliable supply chain.

 

Making the complex, simple

The company required a precision logistics solution, combining the right expertise, technology and strategic partnerships with local couriers. Outsourcing this task to the MNX Managed Transportation Solutions was the answer—offering the reliability, efficiency and cost containment that the manufacturer needed to help drive market growth.

The MNX Managed Transportation Solutions team designed a flexible solution to streamline all three delivery challenges:

  1. Managing their employee driver network: MNX does it all, including processing orders, dispatching couriers, monitoring delivery, training drivers and ensuring they’re in compliance.
  2. Closing the service gaps: Where the manufacturer doesn’t have any employee driver coverage—or simply needs extra support—MNX steps in with our Dedicated Ground courier service. We have couriers that are 100% dedicated to delivering the manufacturer’s products.
  3. Providing hot-shot service: When there’s an emergency surgery or other urgent need, our On-Demand Ground couriers provide supplemental support to make sure the surgical kits are delivered on time.

 

Outsourcing a complete, end-to-end supply chain solution

Today, the supply chain is simpler: all orders are managed through a central portal with full visibility of every shipment. Logistics spend is more predictable as well: by having a national agreement and consistent rate structure, the manufacturer can peg logistics costs to sales volume.

There are many other benefits as well:

  • MNX eliminates the manufacturer’s liability of managing a fleet and drivers.
  • MNX also streamlines vendor management. Instead of managing multiple vendor relationships, the manufacturer only works with MNX. This results in more consistent driver/agent performance, professional driver appearance and operational standards.
  • Full redundancy allows for uninterrupted service and maintains business continuity for the manufacturer.
  • Through route optimization, economies of scale and elimination of fixed costs, MNX has reduced the manufacturer’s total logistics spend by 15-20%.

Now, the manufacturer can focus on developing the devices that improve quality of life. And we focus on delivering them at the right place at the right time—every time.