Logistics Management Analysis for Medical Devices Company

This report analyzes the logistics management practices of the Medical Devices Company (MDC), a European-based manufacturer of medical equipment. The report identifies challenges such as increasing customer demands, inventory issues, and competition. It then delves into relevant theories of supply chain and logistics management, including inbound and outbound logistics, and key functions like warehousing, network design, and transportation. The analysis examines MDC's operational issues, proposing solutions based on the identified theories to improve efficiency and customer satisfaction. The report highlights the importance of effective communication, inventory management, and strategic planning for MDC's continued success in the competitive medical device market. The report concludes with recommendations for future improvements and emphasizes the need for adapting to technological advancements and customer expectations.

Running head: LOGISTICS MANAGEMENT
Logistics Management
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Executive Summary
The following report is an analysis report on logistic management at Medical Devices
Company. The following report identifies the issues at Medical Devices Company analyses it
under the domain of theories of logistic management. The report details out the theories of
supply chain and logistics management as well. Furthermore, to the discussion, the solution to
the identified issue are provided based on the proposed theories.
Table of Content

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s
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Overview of the company............................................................................................................4
Analyzing the issues in the case study.........................................................................................5
Theories on logistic management................................................................................................6
Solution for logistic management at Medical Devices Company.............................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
In generalized terms of business managing the flow of things between a point identified
as the point of origin and a point which is identified as the point of consumption, all done with
the scope of meeting the requirements of the consumers and the corporations is known as logistic
management. For managing, the logistics the variables that needs to be take care of is tangible
goods like equipments, materials and supplies as well as food products or other consumable
items. For the physical items, mostly it deals with involves the integration of material handling,
inventory, flow of information, packaging, warehousing, production, transportation and security
as well at times. Logistics management within the scope of Supply chain management is
concerned about the planning, implementation, controlling the efficient and effective forward as
well as backward storage and movement of the goods and services, between the point of origin
and the consumption point.
The following report is an analysis of logistic management. The case considered is of a
manufacturer of medical equipments and devices based in Europe. The report addresses the
problems identified by the company of having a less competent logistic and supply chain
management methodology, and the effects it have in the business efficiency. The problems
identified are addressed individually relating to the theories of effective supply chain
management and finding out the correct ways to function, suiting the needs of the company.
Necessary actions are suggested to the company to take up after arriving at the solution of the
discussed problems to maintain its success trait in the future.

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Discussion
Overview of the company
The Medical Device Company or MDC is mainly making business in the world of
manufacturing medical equipment and the equipment are being used worldwide surgeons and
doctors while operating a patient. The medical devices company manages the manufacturing
along with the distribution processes of its products and services to the consumers through
retailers. The price of products that are in the catalogue of the company is starting from 2000
euros. The main reason behind such a high cost in product is the high operating costs for the
medicine and equipment. The Medical Device Company is based in Europe and serve the
European market with two manufacturing facilities. One of the plants is based in Ireland while
the second manufacturing unit is based in Poland. Products that are being manufactured in the
Poland and Ireland is adding more values to the market value of the company and is increasing
the supply chain management. Apart from the direct selling of the products, some other products
are also being sold under the brand name of MDC. The main aim of the company is to increase
the communication among the manufacturing hub and delivery centers and the fifteen warehouse
of the Company are mainly located in Europe. These fifteen warehouse acts as intermediate
inventory or hub for further shipping the products to approximate forty warehouses, which are
situated mostly in vicinity to large urban centers across entire Europe. These forty warehouses
feed the distribution agents and sales representatives of Medical Device Company to draw their
inventory.
Analysis of the case study
The challenges faced by the company to stay ahead in the market is due the factors like
advancement in the field of medical technology and the need of expanding the product range,

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which is a strategy to drive the business growth of the company as well. The problems identified
by the company is mainly arising from the customer perspectives (hospitals in this case) are
expecting better service. They are demanding easy access to the services offered. In order to
minimize the competition level within the business environment, the company sought to increase
the productivity of the company and maintain low price stocks are actually building the base of
the market scenario.
Many consumers are demanding for a specific product, which may not be available.
However, a variety of other variants of the products offering almost the same features may be
available readily to the consumers in urgent case. Even though the prices are paid only for
products actually used during the operation. This is stressing situation for the management to
cope up with.
With increasing competition, many competitors are offering such solution to the
customers already to keep an edge over rivals. In order to increase the level of competition one
of the major strategy that has been taken by the Company is to reduce the stock of inventory or
to minimize the inventory turnover. The company minimized about 5% decrease in inventory
stocks yearly and it is almost a record within this industry. Some of major reasons that has been
found out for the unnecessary increase in the inventory are discussed. Previously the products of
the company was becoming obsolete quickly and as the requirement of the hospitals were
continuously changing thus the inventory was increasing. Apart from this, the company was also
facing the crisis of running of stocks at various stages and the supply chain was facing tough
problems.

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Theories on logistic management
It is the main responsibility of logistics department to plan for the product launch,
marketing of the products and managing the operation of units. However, the team is also
responsible for monitoring the progress report of the whole process, finished products and other
relevant information that will definitely help in the business function. This actually helps the
company in identifying their customer base and efficient suppliers base that will definitely
increase the development of the supply of MDC. The company is investing heavily on the
customer satisfaction that will increase their profit in the long run.
Classification of the Logistical Activities in business functions:
The logistical activities is broadly classified into two categories namely
 Inbound logistics
 Outbound logistics
Outbound Logistics- This part of the logistics management is often termed as physical
distribution management. The objective is to set up an effective link between the firm and the
suppliers for smooth and uninterrupted flow of goods and information between them. This way
the effectiveness of the operation is ensured. It is responsibility of the management to develop
and maintain a smooth relationship with the transport department and other departments that
actually helps in shipping of products (Hiremath, Sahu and Tiwari 2013).
Inbound Logistics- It is also the responsibility of the logistics department to maintain the flow
of resources into the business and in order to indulge the development of better quality of
products, the team of Inbound Logistics is mainly need to increase their power of monitoring of
the raw materials to the finished products. The main department of inbound logistics is to bring

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up better relationship with the vendors so that efficient supply of the products to the store can be
optimized. (Lai and Cheng 2016).

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Objectives of Logistics Management
The objective of logistic management in business are identified as the following
(Pondiuni.edu.in 2019)
 Efficiency in flow of Manufacturing Operations.- The responsibility of the inbound
logistics will be to ensure the development of the business through the incorporation of
high quality of process. Now in order to ensure the development of resources, it is
important to bring high class of raw materials that will develop new and advanced level
of medical equipment. It is also their responsibility to ensure the timely delivery of the
products. The production of process will be able to highlight the involvement of resource
that will increase the base of customer to increase.
 Competitive Edge- Through the use of logistics management it is required to bring in
high quality of resources and it has been seen that provision of better services to the
customers will automatically increase the base of customers. The lack of competition is
highly important for any business to grow as the company will be able to bring control on
the pricing of the products that will definitely help the company to indulge better
position.
 Effective management of inventory - In order to manage the level of inventory, the
logistics department of the MDC is aiming to manage the products in an efficient manner.
Through the development of management in inventory, the logistics department need to
identify the demand of the economy and the customers. The supply chain management of
the MDC will be mainly aiming to clear the problems in the inventory in order to ensure
the smoothness in the future.

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 Maximizing profits and cost reduction- Another important contribution of the logistics
department of MDC department is to minimize the cost of operation and increase the rate
of profit that will increase the development of high quality of resources so that the
production can be done using advanced level of technologies. Now in order to introduce
the economic activities and the production quality of MDC in manufacturing medical
equipment.
 Effective communication system- It is important for the logistics department to bring in
high level of communication among all the departments so that future growth of the
company can be understand well in advance. Now in order to bring in high rate of
communication of the business it is important for the development of the business high
and effective level of communication among the managers.
Key functions of Logistics Management
Following are the important functions identified for logistic management (Rushton,
Croucher and Baker 2014)
 Warehousing- Maintaining the warehousing will obviously look for the development of
company and the overall resource identification will be possible and in order to indulge
the development of resources and in order to indulge the development of economic
activities. Through the improvement in the supply chain management using robotics in
the warehouse will definitely help in the improvement of resource making abilities of the
company and better quality of resources can be felt.
 Network Design: Design of the network through the activities of logistics management
will be crucial for the development of business as more number of customers will be able
to come in the business and the business will grow if they can serve more amount of

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customers. Now in order to bring in high level of network design will help in identifying
the demand of their products even in the remote location.
 Material Handling- processes include handling of raw-materials, semi-finished jobs or
final products in and out of plant, warehouses and transportation terminals. Management
must see to handling of the raw-materials, semi-finished goods and final products
carefully to minimize any loss due to damage or breakage. Further to this, management
should reduce the handling costs and the time taken in material handling. In industries, it
is divided into three categories, automated, semi-automated and mechanized systems.
 Transportation- it is the essential link in the logistic management within the scope of
supply chain management and is required for the flow of raw material from vendors to
plant, moving partially- finished products in the plant, moving finished products out of
the facility to the customers.
 Order Processing: Orders from Customers are important input in managing logistic.
Processing of the order includes functions like receiving, handling and recording of
orders. The management is accountable for accurate, fast and reliable processing of
orders. Further to this, management hold the responsibility to reduce the time between
dispatch date of the consignment and date of receiving for fast processing of the order.
Any delay in execution can result to serious reasons for dissatisfaction of consumers;
which must be ultimately avoided.
 Procurement- the job of obtaining materials from vendors outside the manufacturing
plant. It enlists the jobs such as supply sourcing, ordering, negotiation, inbound logistics,
inspection, handling and storing. The main purpose is to provide support to the
production process, by delivering timely supplies of materials, at the lowest possible cost.

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 Inventory Management- Is done to reduce the amount of working capital being blocked
in inventories; at the same time providing a continuous flow of materials to meet the
requirements of production. The management monitors the inventory of final products,
raw materials and partially finished goods.
Solution for logistic management at Medical Devices Company
The problem faced by Medical Devices Company due to incompetent logistic
management is analyzed by relating to the theories of logistic management for providing
effective solution to the problems and incorporate necessary measures to deliver competitive
edge to the organization.
Increasing availability of the product- the use of cloud-based software for managing and real
time tracking of inventory. The retailers have responsibility balancing the unexpected behaviour
of the customer and integrate it with the long and complex supply chain.
These challenges, coping with the unpredictable market behaviour demands increased
availability of products and keeping it aligned with the supply chain is a very challenging facet
of supply chain management to be solved by the management.
However, as a solution, the use of cloud computing for monitoring inventory, and
address the changing demands in the supply chain network is feasible. This allows the reseller to
function effectively in a minor window and respond to the latest requirements in real time. With
this, the resellers can easily accustom to seasonal trends and other irregularities in demands (Qu
et al. 2016).
Increasing inventory turnover under the domain of logistic management- inventory turnover
is the ratio of price of goods sold to the mean inventory over the same period. Following are few
strategies for improving the inventory turnover under the span of logistic management