The Medical Device Company: A Logistics Management Case Study

This case study examines the logistics management of The Medical Device Company (MDC), a manufacturer and distributor of medical devices. It analyzes MDC's successful supply chain, highlighting its efficient processes from manufacturing plants in Ireland and Poland to its hub and distribution warehouses. The report explores how MDC maintains its competitive advantage through product innovation, reduced time-to-market, cost-cutting, integrated solutions, and technology integration. It assesses the suitability of MDC's logistics model for other organizations and emphasizes the importance of sustainability in its operations, including stakeholder engagement, environmental management, and life cycle analysis. The study recommends strategies for MDC to improve its services and gain a stronger market position, emphasizing the benefits of cost reduction, increased market share, and enhanced customer satisfaction.

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Executive summary
Logistics management is an essential aspect for the success of every business enterprise.
Companies should always embrace strategies that smoothen the supply chain thus increasing
efficiency, saving time and cutting down the cost involved, which in turn enhances the
profitability of the organization. This paper is a case study of The Medical Device Company
(MDC), one of manufacturers and distributors of the medical devices used in surgeon rooms. The
paper focusses on evaluating it's logistic management and how it has succeeded in its supply
chain. It also discusses the strategies that MDC can adopt to gain a competitive advantage over
other players in the industry. Besides, the report explains how MDC can embrace sustainability
and its importance to the success of this business. Further, the paper recommends the best
logistic strategy that can company can adopt to improve the existing one. Thus, this report is
important in guiding MDC increase productivity and achieve success.

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Table of Contents
Introduction......................................................................................................................................4
Why MDC has Succeeded Compared to other Companies.............................................................4
How MDC can maintain its Competitive Advantage......................................................................5
Suitability of the MDC’s Logistics to other Organizations.............................................................7
Sustainability...................................................................................................................................8
Logistics strategy that MDC can employ to improve its Services.................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The Medical Devices Company (MDC) is one of the medical devices manufacturing
company that produces and distributes various sophisticated medical devices that are used by
surgeons during operation of patients. The product range of the individual unit value of MDC’s
widely used products is 2000 Euros. MDC produces its products from two main plants located in
Europe; one in Ireland and the other in Poland. These centers have a role of manufacturing the
MDC’s products and then moves them into the supply chain of MDC.
The company manages a clear logistical supply chain process where the products are
manufactured from these two centers then shipped to the fifteen company’s hub warehouses
which are later distributed to the forty storage warehouses where the company’s sales and
distribution agents pick up the chain until it reaches all clients at various points. Therefore, the
chain is smooth and has helped the organization to manage its production process and
distribution to all the customers located in different regions.
Why MDC has Succeeded Compared to other Companies
The Medical Device Company can be considered successful in the medical device
industry. The company has grown over time and spread into many regions to serve more
customers especially in Europe. This is a proof of success for this company’s operations. The
organization’s ability to produce products which are used sensitive operation activities means the
company has incorporated quality in its production process (Jammernegg and Reiner, 2007, pp.
183-190). Manufacture and production of such products require quality bureau certification
which makes the company embrace the best quality manufacturing methods. Therefore, MDC

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has succeeded in many ways to reach and satisfy its customers' medical device located at various
places especially in Europe.
The success of The Medical Devices Company can be attributed to various aspects of the
Company’s operation. Firstly, the supply chain logistics for this company have been laid clearly,
right from the manufacturing process and its distribution until it reaches the customers. The
company utilizes its two plants that specialize in the manufacturing process, the 15 hub
warehouses that are used for temporal storage of the devices. Further, the organization utilizes
the forty stores which are used as distribution centers where the company sales people and the
distribution agents can collect the devices and complete the supply chain by reaching them to its
customers (Harmancioglu, McNally, Calantone and Durmusoglu, 2007, pp. 399-424).
In comparison to Medtech Company, a similar company that manufactures distributes
and sales the medical devices for operation room, MDC can be said to be more successful than
Medtechs. In as much as Medtechs is also one of the top companies operating in Europe and
even other parts of the world, MDC still stands to be more robust that Medtechs. This is mainly
because of its efficient operations management, especially in the supply chain. Also, in
comparing MDC with the unsuccessful company, Advance Life Sciences Company operated in
the medical industry for some time and had later on failed (Baker and Perotti, 2008). The failure
of this company is associated with its poor, inefficient supply chain in manufacture and
distribution.
How MDC can maintain its Competitive Advantage
Success in business for every industry demands for carefully embracing strategies that
help the business to gain and maintain its competitive advantage. MDC does not operate on an

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island but in a context where there exist other players offering the medical devices, at the same
time the industry is changing so fast, shifting to complex product designs (Liao and Hu, 2007,
pp. 402-411). Thus, there is a need for the company to make efforts that will help it gain an
advantage over others in the industry. This can be best implemented through optimizing the time
and cutting down the costs to the market in the process of product development (Parajogo, 2007,
pp. 69-83).
There are various aspects of MDC that can help it gain competitive advantage, all lying
on the factor reduction of time to market and cost cutting. Firstly, to gain competitive advantage,
MDC must consider product innovation. Nowadays, the success of businesses lies within product
creativity and innovation (Jusoh and Parnell, 2008, pp. 5-31). There is a need for continuous
improvement of the medical devices that the company produces so that they can continuously
meet the changing consumer needs. MDC should have strategies to help it stay innovative, which
is a key driver for remaining gaining and sustaining competitive advantage over others in the
sector (Stock, Boyer and Harmon, 2010, pp. 32-41).
MDC also needs to reduce time to market. The medical industry is sensitive and full of
emergencies; there are many cases where certain surgery devices are required within the shortest
time possible. Thus, MDC should put in place the strategies that can help it deliver the
customer’s orders of devices within the shortest time possible. This can be implemented through
increasing the number of store distribution and many others (Menachof, Gibson, Hanna and
Whiteing, 2009, pp. 145-165). Also, MDC should consider efficient device development and
cost cutting measures to gain a competitive advantage over others. The products of MDC are
expensive with a unit product costing at 2000 Euros which is expensive in the medical device

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market. Thus, the organization should come up with strategies that will help it cut down the unit
cost of products but at the same time retaining the quality (Evanschitzky, Baumgaarth, Hubbard
and Armstrong, 2007, pp. 411-415).
Besides, MDC should consider integrated solutions as a way to gain a competitive
advantage over other players in the industry. The integrated solution will increase the satisfaction
level of the customers and also cut down the costs. When MDC considers these factors in the
most efficient manner possible, the company is likely to get a competitive advantage over other
players in the market. Also, MDC needs to integrate technology in its strategies to gain a
competitive advantage over other players in the industry. Currently, all companies in different
sectors are embracing the latest technology in their operations for efficiency and cost cutting.
Thus, MDC should also integrate technology in its competitive strategic endeavors for success
(Bernon, Upperton, Bastl and Cullen, 2013, pp. 586-608).
Suitability of the MDC’s Logistics to other Organizations
MDC has its logistics operations in place covering most aspects of the company. The
organization’s logistic map starts with device manufacturing plants in Ireland and Porlant, which
specifically serves the role of device production. The company then stores the medical devices in
the 15 hubs distributed Europe, where they are later transported to the 40 distribution warehouses
owed by this company. The sales agent, distributors and other people involved are then able to
work with these forty MDC distribution stores. It is from these stores that the medical devices
can reach most of the customers from different locations (Dibrell, Craig, and Neubaum, 2014,
pp. 2000-2007).

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The logistics management approach of MDC is recommendable for the adoption with
other medical device company. The logistics allow production of sufficient devices through the
two plants located in different places. The integration of the storage hubs in the logistics is
critical for an efficient coordination of output and sales of the products. The hubs provide
temporary storage of the devices and also gives room for further testing and improvements where
necessary (Mentzer, Myers and Stank, 2007). The distribution warehouse is also evenly
distributed to reach more clients. However, it is important for any company adopting this logistic
management strategy of MDC to consider its improvement to reduce the time taken to deliver
products to the market (PATH, 2009). The shipping approach of MDC takes long and is not
flexible thus reducing the customer satisfaction level.
Sustainability
Sustainability refers to organization’s corporate sustainability, management of social and
financial demands of people, environment among others that are coordinated to ensure the
business’ responsible, ethical and continuous success. Businesses manage these activities in a
way that directly or indirectly ensures the continuity of the business operations for a long time to
help the forth coming generations. Business sustainability is one of the aspects that organizations
work towards achieving since it increases the organization’s profitability and longevity. The
bottom line of business sustainability is embodied in context, environmental, social and
economic demands of the business organization. Therefore, sustainability is critical to the
success and longevity of MDC thus; the company needs to incorporate these sustainability
activities in its operation (Hull and Rothenberg, 2008, pp. 781-789).

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A business organization that adopts sustainable operation must adhere to the sustainable
development. Usually, sustainable development is the kind that can meet the existing needs at the
moment without any form of compromise to interfere with the future generation's process to
address their needs. Therefore, if a given development is sustainable, then it must balance and
address the three most important aspects of sustainability. The development must have economic
efficiency factors such as innovation, productivity, and prosperity. At the same time, the
development should also meet the social balance regarding the poverty, health, and well-being of
people, the human rights and the community (Sharfman and Fernando, 2008, pp. 569-592).
Besides, the same development must be environmentally accountable regarding climate change,
biodiversity, and land use. Such a development that meets all the three leading sustainable
aspects is considered sustainable.
MDC can adopt and maintain sustainability in various ways. Through stakeholder's
engagement, the company can learn more from their customers, employees, and community to
embrace sustainability. Environmental management systems play a major role in incorporating
the environmental efficiency into the corporate culture for sustainability. Also, MDC can adopt
the reporting and disclosure strategies for its attaining of sustainability. The company should
have a way to measure and control the sustainable practices. Besides a life cycle analysis is
critical for the success of the business since it helps to systematically analyze the social and
environmental impacts thus increasing sustainability in the business (Margolis, Elfenbein and
Walsh, 2009).
Sustainability is critical in the business enterprise since it helps the company to reap
arrange of benefits. When well adapted, sustainability greatly helps a company to cut down

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operational costs. For example, when MDC employs eco-friendly technologies, it will contribute
to reducing waste in energy and other resources, and besides, it will save people's time thus
saving money in long run. Cost saving is essential for the success and growth of a given
company and in increasing customer satisfaction level (Skrinjar and Trkman, 2013, pp. 48-60).
Sustainability also has a benefit of boosting market share. When a company has efficient
operations, that are eco-friendly, it builds its good reputation thus attracting more customers
which in turn increases the profitability of the organization. Also, the reputation attracts the
attention of the press and investors who may help the business grow to another level. Besides,
the sustainable business also attracts and retains employees. This can be a right approach for the
company to attract the best skills in the market which in turns helps the company positively.
Happy employees are usually better thus, increasing the performance of the organization.
Logistics strategy that MDC can employ to improve its Services
MDC has a responsibility of providing the best service to its customers with an efficient
supply chain which usually acts a backbone for supplying the medical devices to the customers.
To provide an effective supply chain, I recommend the following policies for MDC's adoption.
Firstly, MDC needs to have a good industrial framework for efficiency. This entails creating the
right relationship with the suppliers through listening and addressing their grievances to ensure
that they continuously supply to the company and also provide it in time. This will make the
chain more efficient due to a steady timely supply of all the inputs (Halldorsson, Kotzab,
Mikkola and Skjott-Larsen, 2007, pp. 284-296).
Also, as a recommendation, MDC should develop policies that help it understand the real
time demand of their customers. This helps reduce the cases where the company produces more

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medical devices than the purchase ability of the existing market (CSCMP, 2013). The policy will
help MDC reduce wastages, cut down the cost and save time thus increasing efficiency. Besides,
as a recommendation, MDC should focus more on producing the quality rather than quantity. It
is important for the organization to consider quality to be a priority over quantity. Best quality
helps customers derive more value from the devices which makes them more satisfied with the
products. Satisfaction of clients is the key to the profitability and growth of the company
(Koulikoff-Souviron and Harrison, 2007, pp. 8-27).
The recommended best way to implement these lucrative policies for MDC's supply
chain is in alignment with system goals. The company needs to prioritize incorporation of these
aspects in its business aims and objectives. This is efficient and creates a healthy culture in the
organization (Fawcett and Waller, 2011, pp. 1-5). Corporate culture is one of the key aspects that
MDC should use to deliver the best products with little efforts. The policies should align with the
mission, vision, objectives and key strategies thus incorporating them in the culture of the
company (Easterby-Smith, Thorpe and Jackson, 2008).
In summary, in my opinion, the above strategy is the best for adoption by MDC. The
strategy takes care of provision product improvement to customers. The strategy plays a vital
role in reducing the inventory thus increasing the productivity of the organization. Also, unlike
the previous logistics strategy of MDC where there were issues with balancing customer demand
with production, this approach solves this by targeting the current demand rather than the future
product demand. Therefore, it is clear that this strategy will significantly reduce the inventory
system of MDC which is critical for saving money and cutting down the cost for the company
thus increasing the profitability, productivity, and sustainability of the organization.

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Conclusion
In conclusion, logistic management is a critical aspect of consideration for the success of
a given business organization. Adoption of the efficient supply chain will help the organization
to reduce costs and make more profit thus greatly determines the success of companies in a given
sector. Also, it is important for every business enterprise to adopt strategies that will help it gain
a competitive advantage over others. This helps the company stand competition in the market
and retain its profitability. Cost cutting, quality, time and efficiency are the key areas of
considerations by the company that wants to gain a competitive advantage over others thus
helping the company to stay on top over others.
Besides, for efficient business operations, the company needs to consider sustainability
which is the ability to carry out current business without affecting the future generations’ social
life, economic life, and natural resources. Sustainability profits the company in many ways
including ensuring the longevity of the business and also increased the profitability of the
enterprise. Also, efficient business operations demand a better logistic management system. An
effective supply chain is critical to the success of a given business. A good supply chain should
be cheaper, time-saving, efficiency and maintain quality. This is essential for giving companies a
competitive advantage, improve profitability and sustainability.