Exel White Paper Examines How U.S. Healthcare Impacts Medical Device Supply Chain

WESTERVILLE, Ohio, Feb. 19, 2014 /PRNewswire-iReach/ -- A new white paper commissioned by Exel, the North American leader in contract logistics, and its sister company DHL Supply Chain, the world's leading logistics company, examines how changes to the U.S. healthcare sector are impacting supply chain models. The report, "Transformation of the U.S. Medical Device Supply Chain: An Evolution in America's Healthcare," explains what changes medical device supply chains must undergo in order to survive in today's new healthcare environment.

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America's healthcare environment is changing rapidly due to a number of factors. With the implementation of the Patient Protection and Affordable Care Act (PPACA) and a 2.3 percent federal excise tax on medical devices, medical device companies are seeking ways to cut costs to remain profitable. Shifted buyer behavior and dispersed supply chain delivery models call for improved efficiencies while maintaining high product quality. As a result of these changes, companies must reevaluate their current supply chain models to meet the demands of the industry's new environment.

"In traditional medical device supply chain models, products move directly to market from the manufacturers or distributors. That system, however, presents several challenges," said Scott Cubbler, President, Healthcare and Life Sciences – Americas, Exel. "Our research has identified potential solutions that will streamline delivery and eliminate inefficiencies."

The white paper discusses: the current state of the market; how trends impact the U.S. medical device supply chain; and what new supply chain strategies, practices and solutions are available to address these developments. According to the white paper, there are two important strategies that medical device and life science companies can implement to address these changes:

1.   Leveraging Shared Capacity. Medical device companies often ship to the same "customer clusters" as other medical device companies, causing supply chain, cost and resource redundancies. Those duplications can be eliminated by using one logistics service provider, creating a shared, multi-customer supply chain solution. This will help eliminate product downtime, cut costs for manufacturers, and make the delivery process simpler for hospitals.

2.    Collaborating Toward Lean. Better collaboration among all supply chain partners – from manufacturer to customer – will also help cut costs and improve efficiencies. For example, by communicating demand schedules, suppliers will be more apt to forecast customer needs in a timely and well-organized manner.

"In the life sciences sector, the ability for supply chains to be prompt, efficient and cost-effective is crucial," said Cubbler. "With the significant changes in the U.S. healthcare landscape, it is more difficult to maintain those characteristics, but it is not impossible. We want to help our partners find their best solution."

More information can be found in the white paper, which can be downloaded here.  Click here to learn more about Exel's life science supply chain solutions.

For more information, please contact:

Nicole Porter                                    





Gretchen Torres

Fahlgren Mortine Public Relations




About Exel

Exel is the North American leader in contract logistics, providing customer-focused solutions to a wide range of industries including automotive, consumer, retail, engineering and manufacturing, life sciences and healthcare, technology, energy and chemicals. Exel's innovative supply chain solutions, skilled people and regional coverage bring together all aspects of contract logistics in addition to a wide range of integrated, value-added and specialist services. Exel is a wholly owned entity of Deutsche Post DHL, the world's leading logistics group. For more information, visit www.exel.com.

Media Contact: Gretchen Torres, Fahlgren Mortine, 614-383-1629, Gretchen.Torres@fahlgren.com

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