Medical Devices Company: Logistics Strategy Report

This report analyzes the logistics strategy for the Medical Devices Company (MDC), focusing on improving customer satisfaction and supply chain management. The report discusses the company's background, challenges in meeting customer demands, and the need for a more robust logistics strategy. It explores key strategies such as implementing a better industrial framework, focusing on real-time product demand, aligning system goals, and prioritizing quality over quantity. The report also addresses the importance of inventory management, cost control, and the impact of healthcare supply chain dynamics on MDC's operations. The analysis provides recommendations for MDC to enhance its services, reduce inventory costs, and solidify its position in the medical supply market, ensuring long-term success and customer satisfaction in the face of evolving customer expectations and market pressures.

Running head: LOGISTICS STRATEGY
Logistics strategy for MDC in Europe
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Executive Summary
The medical devices company is quiet innovative in its actions and have been very successful in
manufacturing and supplying medical equipment which are used by the doctors. Despite of this
the company is facing hard time in meeting the requirements of the customers who wants a
complete solution of the products delivered by the company. In this report we will be doing a
detailed study of the logistic strategy which should be implemented in the company to help in the
rising problems.

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Table of Contents
Discussion............................................................................................................................3
About the company..........................................................................................................3
Logistics strategy to be followed.....................................................................................3
Conclusion...........................................................................................................................9
Reference List....................................................................................................................10

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Discussion
About the company
The Medical Devices Company was established in 2004 and was designed to meet the
purpose of focusing on the design and the development of the requirements of the various
medical and Life Science Industries (Agha et al.,2016). The various clients of the company
varies from multinationals to various individuals who have a brilliant idea. The multinational
clients generally need the extra resources and various technical education for facilitating in
accelerating the project whereas an individual who has in mind a brilliant idea for making project
does not have enough resources to deliver the desired outcomes. The company readily comes
forward to help these various kinds of clients and provide them with the resources which is
needed. The company comprises of a wide range of networks throughout the world which
contains various production and manufacturing partners who have a strong relationship with the
company for many years (Sismondo 2013). The company also has different strong groups
comprising of technical associative who contribute in the upliftment and the progress of various
projects. The in-depth understanding of the company is due to the various experience the
company has gained over the many years in the past. MDC understands the materials needed in
the medical fields and has implemented the regulatory requirements in the medical industry. The
company has been involved in developing various products starting from the prototype phase to
producing the products in mass (McKinnon 2013). This shows that the company has been quite
innovative in its thoughts and has been reliable to its targeted customers but then also there are
quite a number of areas where the company can improve.
Logistics strategy to be followed
The main aim of MDC is to give assurance in providing a better service for its customers
and to enhance a better chain supply strategy to the customers (Coimbrab 2013). In the aspect of

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supply market the supply chain is considered to be the backbone of the industry since it helps in
providing profit to the different companies associated when it is used by the customers. Some of
the best logistics supply which must be followed by MDC for providing best customer service
are:
Must implement a better industrial framework: creating a good industrial framework by a
company is very important since it helps in facilitating the good relationship between the
supplier and the company. The suppliers provide a very important role in providing the products
of different companies to the customers. It is very important for the company to make sure that
the products of the company must be available in the right time at the market which is made sure
by the suppliers. It might also be taken into account that the products must not be oversupplied
into the markets which is also facilitated by the help of good suppliers. This brings the aspect of
maintaining a good relationship with the suppliers by the company to ensure an increase in their
revenues and solidification of their sales in the market (Mangan and Lalwani 2016 ). The
company must always keep in account of the problem which will be faced by the suppliers while
making their deliveries and find a probable solutions to the problems. The company also needs to
put a continued monitoring on the performance of the suppliers and act on decreasing supply of
their products in the market.
Focusing on the aspect of real time demand of products: MDC must keep in mind the present
demand of their product sale in the market and must follow the pattern for assessing the future
demand of their product. The company must not overestimate the sale of their products in the
future since it might lead to loss of the company (Dinter 2013). Making a right calculations of
the future sale of the product will help the company in saving their cost and time in producing
the extra amount of products. Focusing on the real time demand of the product in the market will

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also help the company in assessing the quantity of the products which needs to be produced in
the future and also the present scenario.
Alignment of the system goals: the visions, goals and the targets of an organization must be
aligned with the supply chain system of the company which will help in enhancing their
productivity and sales across the various market where the demands will be high. The alignment
of the company goals with the supply chain of the company will be helping in achieving the
business goals of the company and will also aid in improving the supply chain system of the
company (Seroka-Stolka 2014).
Quality must be focused rather than the quantity: If a company needs to gain success in its
business then the company needs to provide best quality of services to its customers since
customers are the main revenue generators for a business. The profit which is gained from the
customers states the sustainability of the business corporation. If the customers do not depend on
the company anymore then they will not be purchasing the product from the company which will
be hampering the income of the company from the profits which the company will be gaining
from the sales of its products. The quality of the product must be maintained by a company since
it is the only quality which will be attracting the customers and will retain customer reliability on
the company (Spillan et al.,2013). The amount of products produced by the company does not
justify the sustainability of the company in the market since more products of the company will
be sold in the market depending on the customer needs and if that do not like the quality of the
products then they will be opting for other brands which. The target audiences by the company
must be kept satisfied and the company must be focusing on the quality of the product more than
anything in the world. Customer satisfaction is the main aspects in which successful company
thrives (Okorie,Tipi and Hubbard 2016).

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These are some of the best strategies which the comp any need to follow which will be resulting
in improvement of the services of the company towards its customers. This strategy will also be
helping the company to reduce the capacity if their inventory which gets jammed up due to the
storage of excessive products. As it is discussed the company must focus on the current demand
of the market and make a detailed analysis of the desired outcomes and the amount of production
the company needs in the future. Thinning out the inventory system will be helping the company
to save the money for its future innovations and the organization can use that money to provide
various other services to its customers. This will be resulting in solidifying the position of the
company in the medical supply market (Rushton,Croucher and Baker 2014). By the reduction of
the size of the company the cp0many can make a good profit out of it which will be adding to the
revenue of the company.
MDC is at present facing a lot of issues in the field of customer satisfaction as the target
customers have started to expect more from the customers. Though the quality of the products
which are produced by the company is quiet good but better products are being expected by the
hospitals who sell the products of the company (Battisti et al.,2015). The hospitals are expecting
the company to provide a complete solution in accordance to the inventory management and is
forcing the company to increase the turnover of the inventory but they are also denying to own
the inventory until the time it has been sold to the targeted customers. This brings to the urgent
need of the company to implement new and updated logistics strategies in the company policies
to counter these kinds of growing changes which might be affecting the company in the long run.
The company needs the various strategies to accommodate the various customer needs and allow
itself to get more profits from its sales (Hiles et al.,2014) (Volpatti and Yetisen 2014). The
company also needs to absorb some of the costs from the customers but that will not mean that

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the company will be taking high prices for the products provided by it the target customers. The
company needs to be innovative in its approach which will be helping it to provide better
services to its suppliers and its direct customers.
Various medical devices company like MDC has to face a lot of problems when it comes
to provide the exact product a customer needs as well as in the area of introducing new products
to the market. The company must keep in mind the pricing of the new product and how it can
accommodate to the present target audience of the company. The company has to control the
different areas which includes the manufacturing process of the product, the amount to be
produced in the first batch, the suppliers to select who can sell their new product effectively. The
company also has to bring in account the plan by which they will be advertising the product and
help it to reach the different buyers. The quality of the product must be maintained by the
company which will be justified by the customers and will be the factor which will be
determining the popularity and the sale of the product (Boulos et al., 2014). The services
provided by the suppliers to the company will also be determine the sale of the product since it is
the suppliers who will be determining whether how far the product reaches so the company
needs to discuss with the suppliers. When medical devices companies like MDC started to
reimburse the amounts of the quantities of the product and the performances of the cost the
physician practitioners and the hospitals start cutting the costs regarding healthcare (Van
Antwerp 2013) (Volpatti and Yetisen 2014). This is a major threats for the medical devices
companies since they need to accommodate the costs of the increased demand of their products.
In this case MDC needs to look into its healthcare supply chain management area. The supply
chain of an organization mainly refers to the various resources which are needed by the company
for delivering the different goods and the desired services to the customers. In the department of

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healthcare the supply chain segment is considered to be very complex and difficult process to
perform. The management of healthcare supply management includes the various substances
which needs to be gathered, managing the supplies of the product, delivering the good quality
goods to the customers and finally delivering the best products and the best services to the
hospitals and the targeted customers so that they opt for the product of the company over the
other products. For completing the process the products of the company needs to passed through
the various number of stakeholders, the manufacturers too needs to review the product, the
insurance companies which are associated with the company needs to review the products as
well, the hospitals who use the products, the different groups who purchase the product from the
organizing and various regulatory agencies associated with the organization. By the help of
promoting healthcare supply management chain the company can save a lot of money on their
annual costs which will be added to their revenue (Vanovermeire et al.,2014). Supply chain
management basically states the upstream and downstream development of the relationship
between the manufacturer of a product and the customer where the manufacturer provides a
better product to the customer and also providing profit to the suppliers associated with the
organization. The hospitals mainly takes care of the supply chain and the delivery model which
is posing a threat for the medical devices company in the present time. In the healthcare supply
chain management the process starts at time when a product is manufactured and then it is
delivered to the distribution center from where the product is taken by the suppliers who
introduce the product to the various hospitals who propose to either buy the whole inventory
directly from the manufacturer or from the suppliers. The purchase of the product can also be
done by the help of a group who purchases the product and sells it to different hospitals on behalf
of the organization (Ruddenklau,Roberts and Green 2017). These medical products and devices

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are then sent to the inventory of the hospitals who uses it to send it to the patients and medical
stores when it is needed. The main aim of the organization is to take care that the supply of the
products must never be compromised and the customers are never left without the product they
seek to buy which will help in ensuring customer satisfaction. This is the aspect where the
logistic management strategies need to be applied by the company for coping with these kind of
problems. The company has to make sure that a patient must not be left without equipment
especially when they will be suffering from life threating diseases (Volpatti and Yetisen 2014).
When a supply chain administration is not aligned with an organization it leads to inefficient
management of the visions and goals of the organization which will be affecting the company’s
tenure as well as its significance in the industry.
Conclusion
We can conclude the report by saying that MDC needs to the various logistic strategy
which will be helping the company in improving its marketing strategy and increase its sales and
will also help in decreasing the inventory counts. The company has made its stand in the global
market but it just needs to solidify its position by overcoming the problems which it has been
facing lately in the marketing department.

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Reference List
Agha, R.A., Fowler, A.J., Saeta, A., Barai, I., Rajmohan, S., Orgill, D.P., Afifi, R., Al-Ahmadi,
R., Albrecht, J., Alsawadi, A. and Aronson, J., 2016. The SCARE statement: consensus-based
surgical case report guidelines. International Journal of Surgery, 34, pp.180-186.
Battisti, W.P., Wager, E., Baltzer, L., Bridges, D., Cairns, A., Carswell, C.I., Citrome, L., Gurr,
J.A., Mooney, L.A., Moore, B.J. and Peña, T., 2015. Good publication practice for
communicating company-sponsored medical research: GPP3. Annals of Internal Medicine,
163(6), pp.461-464.
Boulos, M.N.K., Brewer, A.C., Karimkhani, C., Buller, D.B. and Dellavalle, R.P., 2014. Mobile
medical and health apps: state of the art, concerns, regulatory control and certification. Online
journal of public health informatics, 5(3), p.229.
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Coimbra, E.A., 2013. Kaizen in logistics and supply chains. New York, NY: McGraw-Hill
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Dinter, B., 2013. Success factors for information logistics strategy—An empirical investigation.
Decision Support Systems, 54(3), pp.1207-1218.
Hiles, M.C., Patel, U.H., Shah, B. and McAlexander, C.S., Cook Biotech Inc, 2014. Medical
devices and methods useful for applying bolster material. U.S. Patent 8,920,443.
Mangan, J. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley
& Sons.

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McKinnon, A.C., 2013. Starry-eyed: journal rankings and the future of logistics research.
International Journal of Physical Distribution & Logistics Management, 43(1), pp.6-17.
Okorie, C., Tipi, N. and Hubbard, N., 2016. Analysis of the potential contribution of value-
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Ruddenklau, D.I., Roberts, P.C. and Green, A.E., Ethicon Endo Surgery LLC, 2017. Medical
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Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
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Seroka-Stolka, O., 2014. The development of green logistics for implementation sustainable
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Sismondo, S., 2013. Key opinion leaders and the corruption of medical knowledge: what the
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Spillan, J.E., McGinnis, M.A., Kara, A. and Liu Yi, G., 2013. A comparison of the effect of
logistic strategy and logistics integration on firm competitiveness in the USA and China. The
International Journal of Logistics Management, 24(2), pp.153-179.
Van Antwerp, W.P., Medtronic Minimed Inc, 2013. Methods and compositions for the inhibition
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Vanovermeire, C., Sörensen, K., Van Breedam, A., Vannieuwenhuyse, B. and Verstrepen, S.,
2014. Horizontal logistics collaboration: decreasing costs through flexibility and an adequate