MGT300 Case Study: Analyzing Logistics for Medical Devices Company

This report analyzes the logistics management of the Medical Devices Company (MDC), a European manufacturer of sophisticated medical devices. The case study identifies issues such as decreasing inventory turnover, product obsolescence, and out-of-stock situations. The report explores logistics management theories, including inbound and outbound logistics, and examines key functions like network design, procurement, order processing, material handling, transportation, inventory management, and warehousing. It proposes solutions such as improving inventory management, optimizing warehousing processes, and enhancing communication to address the company's challenges and improve its competitive edge. The report emphasizes the importance of efficient supply chain management to meet customer demands, reduce costs, and maximize profits. The assignment provides a detailed analysis of the MDC's current logistics practices and offers recommendations for future improvements.

Running head: LOGISTICS MANAGEMENT
Medical Device Company
Name of the student
Name of the university
Author note

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Executive summary
This report identifies and solve the issues of the Medical Devices Company. It includes the
theory of logistics management and supply chain as well. This report analyses within the
domain of the logistic management theories of Medical Devices Company. It also has key
function and objectives of the logistics management.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Overview of the company......................................................................................................4
Analysing the case study of issues.........................................................................................5
Logistic management theories................................................................................................6
Logistical activities classification in business functions:.......................................................6
Logistics management objectives..........................................................................................7
Key functions of logistics management.................................................................................8
Solutions for management of logistic at Medical Devices Company....................................9
Conclusion................................................................................................................................11
Reference..................................................................................................................................12

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Introduction
The management of the flow of materials and things, which assist in the
manufacturing process between two well defined point known as the point of origin and the
point of consumption is known as logistic management. Logistic management is done solely
with the aim to meet the needs and demands of the consumers as well as the corporations.
Many variables are identified as modulators on which the efficiency of the logistic
management function depends. The variables are identified as tangible goods as in tools,
equipments, materials, raw materials, semi- finished goods as well as food or other
consumable products. Logistic management basically, deals with the processes like material
handling, inventory management, flow of materials or information, warehousing, packaging,
production, manufacturing process optimization, transportation and security as well some
times (Cosimato and Troisi 2015). Logistics management within the domain of Supply chain
management deals with the planning, implementation, controlling the efficient and effective
forward as well as backward storage and movement of the materials and services, between
the point of consumption and the origin point.
The following report is an analysis of logistic management. The organization
considered for the analysis is of a manufacturer of medical equipments based in Europe. The
report addresses the issues recognized by the company of relying on a less competent logistic
management methodology, and the effects it is having on the business. The problems
recognized are dealt individually with respect to the theories of effective supply chain
management and discovering the proper ways to function, understanding the needs of the
organization (Carter, Rogers and Choi 2015). Necessary measures are proposed to the
manufacturer to take up after generating the solution of the discussed issue.

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Discussion
Overview of the company
The Medical devices company (MDC) is a creative and are successful in which wide
range of manufacturing expertise are there for sophisticated devices for the purpose of
medical used by the surgeons or doctors in the operation room. The medical devices company
distribute as well as manufactures its services and products via retailers to the customers (Noe
et al. 2017). The company product catalogue contain products that starts with the amount of
2000 euros. For individual product, prices of unit and value are provided by the medical
devices company is very expensive and the rate starts from the above mentioned rate for
several standards and are widely used by medical devices. Medical Device Company is
located in Europe where two units of manufacturing are seeing after the European market.
The first manufacturing facility is located in Ireland and another manufacturing facility is
located in Poland. Manufacturing product in these two facilities are continued to move in
downstream in the supply chain of Medical Devices Company (Fahimnia, Sarkis and
Davarzani 2015). Different products and peripherals are sold through the brand name of
Medical Device Company and in supply chain they move downstream similarly as the major
equipment’s move after being shipped in Europe to the two manufacturing facilities. From
the manufacturing unit, the entire products range decreases the supply chain by products
shipping from manufacturing facility to fifteen warehouses, which are based in Europe. These
fifteen warehouse operates intermediate victory or hub for the additional shippings of the
products to 40n warehouses, which are based near the centres of large urban across the

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Europe. These 40 warehouses supply the medical device company sales representatives and
distribution agents to extract their inventory.
Analysing the case study of issues
A large range of challenges are experienced by the company for contributing
advancement in the technology of medical and are in competition which expands the products
range is the strategy and the components are derived for the growth of the company in
business (Kowalkowski 2015). The company identifies the issues that better service solution
are to be given are demanded by many customers (in case of hospital) with easy access to the
services. In favour to meet the customer demands, maximise the coupled productivity are
required with reduced level of stock holding in the inventory.
The different issues that are identified by the company is, a particular product
demands by indeed many consumers, however various variants of large number of particular
devices offers nearly the same features is easily available to the immediate consumers, it is
only paid for the particular product that are being used at the time of operation (Rayna and
Striukova 2016).
With increasing in competition, rivals are offering such solutions to the consumers
already with the scope of having an edge over the others. To maintain the market needs,
turnover of the inventory is problematic critical for the operations of Medical Devices
Company’s in Europe. Inventory turnover decreases yearly by 5% yearly as per company
record. Because of this, system is increasing in the inventory (Roni, Jin and Eksioglu 2015).
The issues of products obsolescence are reported by the company to rise on several of
occasions account to the conditions that are mentioned above. The issues of out of stock at
different levels along with the chain in the present years are occurring more. The company is

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require to expedite directly inventory to overcome to the customers from the manufacturing
plants.
Logistic management theories
Logistics management comprises the process of managing, planning and
implementation and effective flow and controlling the efficient to the material containing raw
materials, finished goods, progress products or just flow of relevant and facilitating
information that are important for business functions from a referred point as the rising point
of consumption (Swink et al. 2017). The whole process are implemented with the scope of
offering customer satisfaction and the requirements that meets the consumers effectively.
Logistical activities classification in business functions:
The activities of logistics or the function of logistics under an organization are
generally classified into two categories (Rushton, Croucher and Baker 2014):-
 Inbound logistics
 Outbound logistics
Inbound logistics – this logistic management section are involved for effective cost and
material of inward flow that are uninterrupted are the raw material or the work in progress
products (in the manufacturing process product advancement are needed) from the suppliers
to the manufacturing unit (Pagone, Jolly and Salonitis 2016). The management are required
to maintain continuous connection and establishment with the vendors or suppliers.
Outbound logistics – the logistic management category was mentioned as physical
distribution management or supply chain management (Saenz et al. 2015). For establishing
an efficient link it is concerned between the consumer and the effective flow of finished
goods and firm for smooth or relevant information for assuring the outbound logistics of
effective management. The management are required to manage continuous connection and

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establishment with the different channel distributors and transport operators (Nicklas et al.
2015).
Logistics management objectives
In business, logistic management are applied to achieve the following objectives:-
 Competitive edge – logistics management maintain, develops and taper the business
of a competitive edge by increasing the sales and better service are provided to the
consumers, reliable arrange and delivery rapidly, in processing the order errors are
avoided and so on.
 Effective communication system – having effective and efficient flow of information
in a sound logistic management under the system is essential. In addition, for
continuous connection with suppliers and vendors and also to address enquiries of
customer for rapid response are contributed by the logistics management in creating
effective communication system (Ding et al. 2015).
 Effective management of inventory – inventory management efficiency is
accompanied by effective logistic management. Inventory managing is the major
matter for the production management, financial management and so on to analyse
and understand the critical conditions for the industry of sound management. The
related issues for inventory management is solved by applying effective logistics
management.
 Maximizing profits and cost reduction – the objectives that are achieved with the
effective logistics management is due to the handling of material and the processes of
streamline improved by the logistic management in turn to decrease any redundant
costs from the equation. In addition economical, safe and transportation speed is
ensured. Warehousing processes of strategic optimization is applied such as quantity
or location (Karmaker and Saha 2015).

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 Efficiency in flow of manufacturing operations – operations of flow of management
efficiency are ensured with the inbound logistics help because of offerings support to
encourage proper utilization of semi-finished materials and goods, delivery on time of
the material in the production process and different facilitating production processes.
Key functions of logistics management
The key functions identified within logistics management are as follows (Christopher
2016).
 Network design – network designing is a prime job of logistics management.
Network design is necessary in establishing the location and the material handling
equipment, number of manufacturing units, warehouses and different departments
critically on which efficiency logistical is dependent.
 Procurement – materials obtaining are the process of procurement from the suppliers
that are outside the manufacturing unit. The task are includes like order placement,
supplying sourcing, inbound transportation, negotiation, storage, inspection and
handling. Its major aim is to provide encourage to process manufacturing, from
supplies of materials timely imparting, at low cost.
 Order Processing – orders of customers are very important in logistic managing.
Activities includes in processing of order for filing, recording of orders, receiving
and handling (Seitz and Nyhuis 2015). Therefore the management is in charge of
order which is processing fast, reliable and accurate. Furthermore, to minimize the
time responsibility are maintained by the management between order of receipt and
consignment dispatch date for order of speedy processing. Any declarations in
execution may cause to serious reason for the dissatisfaction to the customers that
should be avoided finally.

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 Material handling – material handling includes raw materials handling, finished
goods or semi-finished are in and out of the warehouse, transportation and plant
(Zhang, Zhu and Lv 2017). Final products, raw materials and semi-finished goods are
to be handled properly by the management to decrease the losses because of breakage
or spoilage. Moreover, handling costs are to be minimise from the management and
also the time taken in material handling. In industries, there are three categories i.e.
partially automated, automated and mechanized or manual systems.
 Transportation – in logistic management it is the vital link within the supply chain
management and moving raw material is needed from suppliers to factory, products
of semi-finished are moving within the factory, final products are moving out of the
factory to the consumers.
 Inventory Management – management of inventory is used to decrease the working
capital amount that are being jammed in inventories, meanwhile uninterrupted
materials flow are provided to support the requirements of production. The inventory
of semi-finished, raw materials and final products are maintained by the inventory
management.
 Warehousing – storage or warehousing is the logistical job which creates utility time
from storing of goods and from the production point until the time is consumed from
the consumers. Number of warehouses and location of warehouses are required of
critical factor that are decided within the management.
Solutions for management of logistic at Medical Devices Company
Medical devices company facing difficulties because of the logistic management
incompetency and is analysed through the logistic management theories referring with the
range of providing solution that are effective to defeat the problems and necessary procedures
in incorporate to convey the firm of competitive edge.

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Availability of increasing product – software such as cloud-based are used to manage and
track inventory real time (Wu et al. 2015). The retailers have to fight for uncertain balancing
and behaviour that are unexpected from the customer and complex are aligned and long
supply chain.
There are two challenges, to serve the behaviour of customer that are unpredictable in
accounting to availability increasing and to keep it in line through the supply chain which is
very difficult features of management of supply chain to be considered by the management.
Although, as per solution, cloud computing is integrated for inventory tracking and
demand charges are feasible in the supply chain network. By this the retailers are allowed to
operate in a window of small town and the latest demand conditions are responded in real
time. From this, the retailers can accommodate easily to the seasonal trends and different
fluctuations are demanded.
Increasing inventory turnover within the domain of logistic management – inventory turnover
is the proportion of goods cost that are sold to the inventory which are average throughout the
same time-period. Strategies are applied to improve the inventory turnover within the logistic
management domain are as follows:-
 Forecasting – a serious and deep predictions bonding is done for the proper
techniques of anticipating and as per stocking, the warehouse are vital for managing
the inventory successfully. The research for predictions are based on the resources
that are available, sales trends analysis, communication between the experience
achieved and suppliers in past.
 Low stock maintain – inventory of low stock are purposely kept low for the
maximising the turnover of inventory (Chang 2016).
 Production line streamline

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 Automation – using CPQ an automated software which helps in keeping records of
things such as inventory and profiles of client in a better way (Traustadottir 2019).
Conclusion
This report provides the challenges faced information from Medical Devices
Company located in Europe that meet the situation demands in handling the supply chain and
logistics effectively. The company reports the several issue that are faced by them like
transportation, running lean, inventory, availability of product or out of stock, outdated
product and service provided to the consumer. According to logistic management theories the
issues faced by the industries are analysed and the solution of issues that are identified. It also
exercise the modern techniques and advance technology of management are suggested to
solve the issues that company is facing.

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