Medical Device Supply Chain Council Doherty - Welch Allyn Approved.pdfInsource versus outsource . 15...
Transcript of Medical Device Supply Chain Council Doherty - Welch Allyn Approved.pdfInsource versus outsource . 15...
Medical Device Supply Chain Council
Oct 2, 2013
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Agenda
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• Welch Allyn Overview • EME Deployment
– Objectives – Supply Chain Optimization – Implementation Plan
• NFIA Overview • NDL Overview
Company Profile
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• Founded: 1915
• Business: Global developer and manufacturer of medical devices and technologies
• Ownership: Privately-held (family-owned)
• Corporate headquarters: Skaneateles Falls, N.Y.
• Operations: Sales, service, research and development, and manufacturing facilities in more than 50 countries
• Employees: 2,400 (worldwide)
• CEO: Stephen Meyer
European Landscape Current State
Shared Service Centre
Location with infrastructure
Warehouse and Distribution
Location without infrastructure Service
Centre
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Marketing
Technical Training Centre
Sales Training
EME Deployment Objectives
• Create a co-located, highly functioning unit of key EME leadership that can effectively set and execute strategy.
• Locate the EME HQ in an area with world-class infrastructure.
• Select an EME HQ location that can enable talent access and retention.
• Implement an EME HQ location that provides a favorable business climate.
• Optimize the EME supply chain improving operational excellence and overall logistics costs.
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EME Deployment Strategy
• Ninety (90) day evaluation • Two primary work streams:
– Strategic investment decision – Supply Chain optimization
• Approach: – Defined process, roles and partnered with PwC – Key stakeholder analysis to define program objectives – Application of data rich quantitative, qualitative, and
benchmark analysis
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• Leaders in supply chain management, operations strategy, and innovation
• Specific expertise in market entry and supply chain network strategy, operating model design, and distribution and logistics for pharma / life science companies
• Leader in management consulting, tax, and accounting services
• Specific expertise in payor arena and global pharmaceutical regulations
• Deep experience in supply chain management
• Distinct capabilities in site analysis and alignment to regional strategies.
Value to Welch Allyn • 700+ global healthcare strategy consultants in
over 50 countries that develop strategies and support execution
• Global supply chain and operations strategy leader, with a strength in life sciences distribution
• Deep knowledge and understanding of local market dynamics and entry requirements in Europe
• Unmatched expertise across service areas to ensure robust, tax efficient, and flexible supply chain strategies
Management Consultants
PRTM, S&V and PwC combined firm
Consulting Partner-PwC Advisory
European Landscape Future State
Ireland
• Customer Care • Supply Chain • QA/RA
Netherlands
EME HQ • Product Training • Technical Training
Netherlands Operations Centre • Tech Support • Bench Repair • Logistics • Configuration
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Supply Chain Optimization
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Core Team
Steering Committee
Supply Chain Optimization Project Plan : 90 day schedule
define scope
gather and analyze data
Finalize recommendation
Build AS IS model and define scenarios
evaluate scenarios
17 – 21 Sep 21 Sep - 9 Oct 9 - 19 Oct 19 Oct – 9 Nov 9 – 30 Nov
Data validation
Validation data
Scenario evaluation
Scenario recommendation
Sensitivity test input validation
Validation ASIS simulated
Sensitivity
Validation of recommendation
Mid SEP Mid DEC
Scenario definition
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European SC Landscape & Scope
In scope: • Configuration activity in Ireland • Warehouse and Distribution in the Netherlands • Service activities in Germany • Insource versus outsource
Product Configuration
Inventory location
Warehouse and Distribution
Service location
Configuration location
Service Centre
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AS IS simulated
Scenario evaluation
AS IS Actual (Sep2011 –
Aug2012)
Data Collected & Validated • Transactions & Cost
information: • Inbound receipts • Outbound internal and
external shipments • 3PL volumes & costs • Inventory information
• Master Data information: • Sales Order Data • Material Types • Vendor & Customer
Master Data • Material Master Data
Scenario evaluation • 11 long list • 4 short list
• Outsource • Insource • Combination
As Is Data Modifications • Changes for AS IS data
simulation: • One time, large
orders • Go to market strategy • Insource vs.
Outsource strategy
Sensitivity and Recommendations
Sensitivity: • Changes in demand • Changes in service level • Changes in Incoterms • Economic/environmental factors
Europe Deployment Strategy Supply Chain Optimization: Evaluation Process
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Initial scenarios were evaluated along 2 dimensions:
Quantitative (60%) Qualitative (40%)
Overall results show small differences between the shortlisted scenarios
As a result the recommendations form part of a strategic direction that will evolve over time.
Europe Deployment Strategy Supply Chain Optimization: Base outcome from analysis
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Current location
Gravity region
Logistics is currently located in the gravity region (Outsourced)
Move Configuration from Ireland to the Gravity Region and co-locate with logistics (Outsourced)
Move Service Centre from Germany to the Gravity Region and co-locate with logistics (Bench Repair In -house)
Potential further co-location opportunities if EME HQ would also be located in the Gravity Region.
The evaluations show a clear preference for the options that reflect co-locating the 3 main activities
Amsterdam
Antwerp 150 kms
Belgium
Netherlands
Europe Deployment Strategy Collocation
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Goal is to outsource low complexity activities and keep complex ones in-house:
1.Segment complex configurations and complex repairs
2.Choose the best allocation in-house vs outsourced based on technical complexity
Complexity
Outsource
In-house
Conf
igur
atio
n Bench Repair
Partnership and cooperation should evolve over time towards the recommended option.
Given the outsourcing objectives success is dependant on having the right partner. An RFP at the start of the implementation needs to clarify the capabilities of potential partners on all 3 activities.
Europe Deployment Strategy Insource versus outsource
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EME Deployment Strategy Operations Centre
Improve Operational Efficiencies
Collocate distribution, service and product
configuration
Achieve Critical Mass Establish Strategic Partnerships
Create World Class Infrastructure
Improve Customer Experience
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EME Operations Centre
Europe Deployment Strategy Implementation Plan
• Process • System • Organisation • Communication
Confirmation of provider
Change management
Detailed solution SC
RFQ/Contract :
- Logistics - Config - Bench Repair
Migrate Bench Repair
Migrate Configuration
Quick Win tracks
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Move Logistics
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
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Welch Allyn Netherlands Landscape
Two locations with ~35 employees • EME HQ in Leiden
– EME senior management team and NL commercial team
– Product and Sales Training Centre – Technical Training Centre – Customer Experience Centre
• EME Ops Centre in Tilburg – Product repair – Technical support – Warehouse and distribution – Product configuration
EME HQ
Ops Centre
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Strategic Partnerships Netherlands
• Welch Allyn partnered with two (2) key institutions as we established a greater presence in the NL – Netherlands Foreign Investment Agency – Holland International Distribution Council
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The government authority for promoting and assisting foreign investment in the Netherlands Established in 1978 Operational unit of the Dutch Ministry of Economic Affairs NFIA HQ in The Hague, 21 NFIA offices abroad Close collaboration with broad network of domestic partners, as well as with
Dutch Embassies, consulates-general and other organizations representing the Dutch government abroad Total staff: approx. 95 worldwide
About the NFIA
About NFIA
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Set up preliminary in-person meetings and provide up-to-date, personalized information Offer personal guidance and counseling, starting in the country of origin Arrange contacts with relevant business partners, government authorities, a variety of
Dutch networks and service suppliers, and other relevant contacts Organize customized fact-finding trips together with network of regional economic
development partners Support preservation and further enhancement of a favorable Dutch investment climate Present concrete solutions that simplify and optimize establishment in the Netherlands Provide matchmaking assistance for foreign technology companies seeking
European partners Offer tailor-made support by NFIA agri-food and chemical industry specialists Deliver advocacy towards national and EU governments
NFIA support from A to Z
About NFIA
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Technology Matchmaking Service (TMS) with NL Innovation Logistics Matchmaking Service (with NDL/HIDC) Tax ruling practice for large foreign investors
(with Tax Inspectorate and Ministry of Finance) Knowledge Migrant Facility for new foreign investors
(with IND) Orange Carpet Visa Facility
(with relevant consular departments)
Special NFIA services
About NFIA
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The Hague London Istanbul New York Boston Atlanta Chicago San Francisco São Paulo Dubai Tel Aviv
New Delhi Mumbai Tokyo Osaka Seoul Taipei Shanghai Beijing Guangzhou Singapore Kuala Lumpur
NFIA worldwide
About NFIA
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Priority sectors
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Agri-food Horticulture High Tech Systems and Materials (HTSM) Energy Logistics Creative industries Life sciences & Health Chemicals Water Headquarters ICT: Ditigal Gateway
Priority sectors for the Dutch economy
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25+ years of experience
Private, not for profit organization representing 400 members
Founded by the Dutch logistics industry in 1987
Ministry of Economic Affairs
Unique position within Europe
3 traveling ambassadors
APAC, MEA & Turkey
Europe, East US/Canada
Mid West & West US/Canada, Brazil
In close cooperation with the NFIA
LSP
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How we can support…
Promotion of the Netherlands as “The Logistics Gateway to the European market”
Advisory role to Intl companies in setting up or re-structuring their European Supply Chain (all complimentary and confidential)
Covering multiple industries (Life Sciences)
Logistics partner selection
Organize Customized Fact Finding visits to the Netherlands
Stimulating research and innovation
Raise public and political support for the logistics industry, provide input for governmental bodies
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Why focus on Life Sciences?
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Trend: Going Global Sooner
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Going Global Sooner - Implication
Smaller firms need expert advice on operating global supply chains
Your potential customers are greater in number and smaller in size
They will have greater dependence on your local expertise and capabilities
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Logistics are at the intersection
Hospitals want: Just in time Ready access to expensive and
vital technology Low inventory costs Knowledgeable ‘sales’ people who
are not ‘selling’ Appropriate utilization Lowest possible price Standardization High patient outcomes
Manufactures want: Somebody to take title and
position of the product Sales growth Sales people who sell Maximum utilization Highest possible price License to sell High patient outcomes
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and Supply Chain contributes…
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1. Gateway into the EU market for intercontinental sea and air freight
2. Dutch Logistics industry equals USD 50 Billion (8% GDP)
3. Orchestrator of European sustainable supply chains: the Dutch represent 0.25% of the worlds population and 1% of global production, but facilitates 3.7% of global trade!
Logistics in the Netherlands
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Logistics Hotspots 2013
1. Venlo 2. West Brabant 3. Tilburg – Waalwijk 4. Port of Rotterdam 5. Eindhoven 6. Schiphol 7. Maasvlakte 8. Tiel – Geldermalsen 9. Arnhem – Nijmegen 10. Twente
Logistics in the Netherlands
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NDL/HIDC – Holland International Distribution Council Eric Willems Sr Manager Supply Chain Solutions USA & Canada & Brazil E: [email protected] I: www.hidc.nl C: +31 6 23 7292 51 Address: Louis Pasteurlaan 6 2719 EE Zoetermeer The Netherlands
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