LogiMed 2015
The Medical Device Supply Chain Report
A thought leadership report commissioned by FedEx
Executive Summary
As regulation threatens to erode the margins associated with the
manufacture of medical devices, LogiMed’s 2015 benchmark data
indicates that supply chains are being looked to as prime areas for
creating savings. In the past, it has been common practice to overstock
inventory to fill unexpected demand, lowering the average amount
of inventory turns and taking up space in partially filled warehouses.
These warehouses may also become removed from newly emerging
centers of market activity over time. The new gold standard in the
medical supply chain is a lean inventory model, with a focus on
collecting data that can allow supply chain managers to proactively
contend with market demand and shifting centers of consumption.
TABLE OF CONTENTS
Executive Summary.................................2
Additional Contributors.........................3
Key Findings..............................................4
Research Analysis
• Savings targets for supply chain
managers are the driving force behind
a reexamination of how to provide the
most effective market coverage with
the leanest possible inventory
and networks.........................................5
• Where are supply chain managers
looking to create these savings? ........6
As the pressure to create savings increases, there is movement
among manufacturers towards outsourcing non-essential
business components. As the core competencies of medical device
manufacturers do not necessarily overlap with distribution and
fulfillment, this area in particular may be outsourced in the interest of
meeting ambitious savings goals.
• Some supply chain managers are
outsourcing distribution and fulfillment
as a path to cost reduction.................7
In addition to the challenges associated with controlling inventory and
moving towards a lean inventory model, an increasing emphasis on
emerging markets, as well as the aging population of the developed
world, will put new challenges in front of supply chain managers. They
must navigate global compliance, build new distribution networks, and
create solutions that can remain reliable when the hospital is no longer
the only significant site of care both at home and abroad.
• Building a network that delivers on time,
every time............................................ 11
Improved Enterprise Resource Planning (ERP) suites, business analytics,
and logistics technologies are the tools that will assist supply chain
managers in meeting these challenges. Data will drive strategic
inventory decisions about the delivery of critical medical devices.
• Transportation management and
global compliance are other categories
that may be seeing increased levels of
outsourcing............................................8
• Improving fill rates and make to stock
lead times............................................ 10
• Increasing inventory turns in an
environment of increasing globalization
.............................................................. 12
• The aging developed world and an
increase in consumption from emerging
markets is extending the bounds of
where medical equipment must be
delivered.............................................. 13
Key Recommendations....................... 14
Appendices............................................ 15
Appendix A: Methodology.................. 15
Appendix B: Who Responded to the
Survey...................................................... 15
LogiMed.................................................. 16
FedEx.…….……………..…………………………16
WBR Digital............................................. 16
A thought leadership report commissioned by FedEx
2
Additional Contributors
In addition to the benchmark data and analysis contained in this report, several executives and industry
experts have contributed their insight via interviews. Selected quotations have been used to add context and
color to the statistical information contained in this document. Interviews centered on benchmark findings as
well as key trends identified by research.
DON LYNCH
Director, Supply
Chain
Welch Allyn Inc.
“There are several industry drivers that will impact the medical
device supply chain within the next few years. A partial list
includes global labor cost equalization, lithium battery
shipping regulations, energy prices, and medical device
registration and labeling requirements. Each of these factors
will impact the medical device supply chain in some manner.
In some cases, the impact will be considerable. These issues
can be managed, but each vendor within their respective
supply chains has a responsibility to proactively understand
how each of these factors will impact their own supply chain
and the supply chains of their vendors so that appropriate
mitigations can be implemented.”
-Don Lynch
ROB VARNER
Senior Director,
Americas
Distribution
Medtronic
“In healthcare in general, the supply chain commands a
very significant amount of spend, whether it’s around
pharmaceuticals, medical devices, or another vertical. Any
time you’ve got that big of a spending category, it’s always
going to be targeted to reduce cost, control spend, or to
analyze spend. The growing importance of supply chain is
a trend that’s been building for a while now, and I think it’s
accelerating.”
-Rob Varner
The Medical Device Supply Chain Report
3
Key Findings
With pressure to reduce costs, supply chain
executives are looking to streamline their distribution
networks while increasing efficiency.
Because of falling margins in the medical device space due to regulations and the
Affordable Care Act, supply chain managers are facing pressure to create savings in their
operations. The key word surrounding their efforts is efficiency; a stronger approach to
flexibility and demand management combined with more efficient shipping practices is
what will allow them to meet their savings targets.
A significant share of participating medical device
manufacturers are predicting that expansion into
emerging markets will play a role in their growth over
the next year.
In addition, the aging population of the developed
world will have its own significant impact.
Medical device manufacturers will be facing new logistics challenges related to serving
both the increasing levels of demand coming from the developing world, as well as the
demands of an aging developed world population. While global compliance and the
extension of logistics networks into new markets pose their own challenges, the aging
populations which device manufacturers serve at home will place a new emphasis on
flexibility and the ability to deliver efficiently to non-hospital sites of care.
Managing demand forecasting and creating
more flexible distribution networks are allowing
manufacturers to boost their on time delivery (OTD)
rates and inventory turns. For some, this is thanks to
a strategic movement towards outsourcing.
“ Many medical device
manufacturers have
opportunities to increase sales
in emerging markets by either
winning market share from
competitors or by creating
new demand with existing
technologies that may be new to
a region or market segment.
The challenges that can
accompany these opportunities
include new logistical or
regulatory requirements that
come along with doing business
in a market that you may
not have experience in. The
challenges can be met with
appropriate project planning
as well as effective product,
regulatory, and logistics
management.”
Don Lynch
Director, Supply Chain
Welch Allyn Inc.
Accurately predicting demand is at the heart of cost reductions around device
distribution. Since there is such slim margin for error around the delivery of vital
medical equipment, in the past medical device manufacturers have had to keep an
excess of inventory on hand to satisfy emergency demand. As technology advances
around demand forecasting, inventory turns are increasing, without negatively
impacting OTD rates. For some device manufacturers, realizing this goal has come hand
in hand with outsourced distribution networks that allow for more seamless shifts in
warehousing locations in response to the market.
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Research Analysis
Savings targets for supply chain managers are the
driving force behind a re-examination of how to
provide the most effective market coverage with
the leanest possible inventory and networks.
Cost pressures created by regulation are cutting into medical device margins, and
are forcing manufacturers to consider ways to create new savings. Distribution is
one of the areas where they see the most saving potential, as historically distribution
has been a more difficult area to optimize, with excess inventory the only real
safeguard against unpredictable demand. The savings percentages set as targets
for participating supply chain managers vary, however the majority, nearly 60%,
are aiming to reduce costs by 6% or less. Out of this number, 29% are tasked with
reducing costs between 4-6%. Another 29% of manufacturers are pursuing goals
within a 3% margin. The remaining share of the response is tasked with savings
targets of over 7%. To hit savings targets within this range, in particular for the 12%
of executives looking to save over 16% in annual costs, medical device manufacturers
will need to rethink every aspect of their supply chains from an efficiency standpoint.
“Various aspects of supply
chain costs are becoming a
larger percentage of the cost
profile for medical device
manufacturers. Costs such
as transportation, material
storage, brokerage, duties,
and supply chain overhead
can become as important as
direct labor costs for some
companies. With that shift
Chart 3: What supply chain savings targets are you currently charged with?
What supply chain savings targets are you currently charged with?
29%
29%
0-3%
4-6%
14%
16%
7-9%
10-12%
0%
13-15%
5
chain management can
become a bigger part of how
manufacturers maintain or
improve profitability.”
Don Lynch
Director, Supply Chain
Welch Allyn Inc.
12%
16+%
0
in cost structure, supply
10
15
20
25
30
The Medical Device Supply Chain Report
5
Where are supply chain managers looking to
create these savings?
Chart 4: How are you approaching those savings?
72%
71%
Streamlining the supply chain
Reduced transportation costs
or increased efficiency
46%
41%
Reducing material
purchase costs
Reduced warehousing costs
or increased efficiency
Headcount reductions
Other (please specify)
11%
9%
“There’s a lot of integration
related to acquisition and
consolidation going on right
now in the industry. For any
company that is part of a
consolidation or merger
acquisition effort - and there
have been several in the
healthcare space - that’s
going to dominate the next
12 months and the next 24
When it comes to how the supply chain managers studied are actually planning on
0
10
20
30
40
50
60
70
80
creating the savings they need to hit their goals, the relatively even weight they give
to their primary and secondary priorities is reflective of the large scale evaluation and
analysis of supply chain efforts required to create major savings. Streamlining supply
chains and reducing transportation costs while increasing efficiency were placed
as top priorities by 72% and 71% of respondents, respectively. Reducing material
purchase costs and reducing warehousing expenses while increasing efficiency both
occupied the second tier of priority, with 46% and 41% of supply chain managers
indicating they considered these important components of their strategies. Only 11%
of managers reported that they would be reducing their headcounts. Downsizing,
while not a preferred method of creating savings, seems to still be on the table in the
event that quotas cannot be fully hit through revisiting inefficient practices.
page 6 chart (was pie)
Where do you currently have the most significant business issues?
41%
37%
months, and Medtronic
is certainly one of those
companies. We’re consumed
by integrating our acquisition
properly. There’s a lot of that
type of activity going on and
that’s going to really dominate
a lot of the landscape in the
next 12 months.”
Rob Varner
Senior Director,
Americas Distribution
Medtronic
Other
Manufacturing
related
41%
Distribution
related
In
of where
lie in managing
actual business processes, there is
0 terms10
20 the difficulties
30
40
50
close to an even split between manufacturing and distribution related issues, with
37% and 41% of the responses stating that that was the largest challenge, respectively.
A careful balancing act is required in order to keep costs down while preserving the
overall functionality of the business.
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Some supply chain managers are outsourcing
distribution and fulfillment as a path to cost reduction.
A significant share of supply chain managers currently outsource part of their
distribution and order fulfillment, with 43% reporting that they are engaged in
partially outsourced programs. Another 14% have fully outsourced their distribution
and fulfillment. The benefits of outsourcing can include a more flexible network
of warehouses, as well as reduction of wasted space through shared tenancy.
Forty-three percent of managers reported that they do not outsource any of their
distribution and fulfillment operations. The benefits of this approach include a
higher degree of control on end-to-end processes, as well as potentially greater
transparency in the shipping process. The drawback to this approach is that
companies are forced to think more strategically about where they place their
warehouses as they are more heavily invested in the management of each one. In
the next 12 months, another third of supply chain managers who do not currently
outsource are planning a transition to at least a partially outsourced setup.
Do you outsource your distribution and order fulfillment?
Chart 5: Do you outsource your distribution and order fulfillment?
14%
43%
Yes, all of it
No
43%
Yes, partially
In terms of the relative satisfaction of those who have outsourced, the majority
of supply chain managers are either pleased with the performance of their
programs, or very satisfied. A quarter reported that they were slightly unsatisfied
with the results of their outsourced distribution programs, although none of the
respondents qualified their programs as failures, pointing to a generalized trend
towards outsourcing in situations where benefits to the bottom line can be attained
without sacrificing core competencies within the organization.
If you Chart
do outsource,
how successful has it been on a scale of 1 to 4?
6: If you do outsource, how successful has it been on a scale of 1 to4?
(1 = not successful, 4 = very successful)
1 0%
Rob Varner
Senior Director, Americas
Distribution
Medtronic
25%
2
“We are huge advocates of
outsourcing delivery and
fulfillment with our key vendors.
Historically, we developed
core competency in fulfillment
out of necessity over time,
but Medtronic is not focused
on being the best fulfillment
company, and realistically that’s
not where we want to spend
our energy and our dollars. We
do it out of necessity because
we’ve historically been able to
do it more cost-effectively and
reduce some of our regulatory
compliance risk by doing it
ourselves. Now, we’re working
with our key strategic allies
to help them be in a position
to meet all of our needs from
a fulfillment perspective. Our
philosophy is to outsource
basically everything aside
from the processes that have
the highest regulatory and
quality risks, those things we
like to do ourselves to reduce
that risk. I think that some
solutions providers need to up
their game in the healthcare
space, and they’re all working
towards that end, but, as they
get more confident in healthcare
fulfillment, we absolutely favor
outsourcing.”
48%
3
27%
4
0
10
20
30
40
50
The Medical Device Supply Chain Report
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If you do not currently outsource, do you plan to outsource
distribution and order fulfillment in the next 12 months?
Chart 7: If you do not currently outsource, do you plan to outsource distribu:on
and order fulfillment in the next 12 months?
8%
Yes, all of it
“Decisions to outsource delivery,
fulfillment, and transportation
management should be based
25%
67%
Yes, partially
on value propositions and
basic economics. To select an
outsourced service provider,
the provider has to be able to
No
create a value proposition that
is better than what companies
can manage internally.
There are many aspects of
logistics management that
manufacturers are not able to
Transportation management and global compliance
are other categories that may be seeing increased
levels of outsourcing.
While a robust share of supply chain managers do not outsource their transportation
management, more than half are currently outsourcing at least some of their
processes, with a full 27% outsourcing the entirety of their transportation
management operations. Satisfaction levels for these services seem to fall in line with
those of outsourced distribution and fulfillment, with the exception being that 2% of
managers reported that their outsourced programs were not successful.
manage at a lower cost than
a logistics service provider. In
those cases, it makes sense to
outsource.“
Don Lynch
Director, Supply Chain
Welch Allyn Inc.
Do you outsource
transportation
management?
Chart 8:your
Do you outsource
your transporta:on management?
27%
Yes, all of it
50%
No
23%
Yes, partially
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If you do outsource transportation management, how successful has
Chart 9: If you do outsource transportation management
it been
on a scale of 1 to 4? (1 = not successful, 4 = very successful)
1
2%
25%
2
48%
3
25%
4
0
10
20
30
40
50
Global trade compliance is an area where outsourcing rates are lower than in the
areas previously discussed, with 80% of participating managers not outsourcing in this
area. The larger share of those who do outsource only outsource partially, leaving just
8% of respondents who fully outsource in this area. This could be reflective of the fact
that global compliance is a nuanced issue, subject to frequent changes, and therefore
a valuable competency to build within organizations. In turn, those organizations
that were actively involved in compliance outsourcing reported generally lower rates
of satisfaction than were attributed to other outsourcing programs, with 11% of
respondents calling these efforts unsuccessful.
Do you outsource your global trade compliance?
Chart 10 Do you outsource your global trade compliance?
8%
Yes, all of it
12%
Yes, partially
80%
No
If you do outsource global trade compliance, how successful has it
If you do outsource global trade compliance
beenChart
on a11:scale
of 1 to 4? (1 = not successful, 4 = very successful)
1
11%
Rob Varner
Senior Director, Americas
Distribution
Medtronic
21%
2
“The aging population will
place more emphasis on
serving alternative sites of care,
depending on what’s space
you’re serving. For Medtronic,
as far as aging population
goes, in the developed markets
it really doesn’t change the
model we have in place. We’ve
been experiencing the aging
population, and more people
are getting spinal or orthopedic
procedures, or cardiac devices as
a couple of examples. We don’t
really see a change in doing
it out of a hospital setting per
se, but if you go into markets
like India where a lot of the
hospital infrastructure either
doesn’t exist or there’s a lot of
people in more remote areas,
there is opportunity around a
scenario where people will have
to come to clinics or other care
sites where they will need to be
evaluated and/ or actually have
procedures occur in areas that
are remote from hospitals. So for
us, serving the aging population
within less-developed markets
is where that opportunity exists,
but in the developed market, we
still see the biggest impact in the
hospital or outpatient surgery
setting.”
47%
3
21%
4
0
10
20
30
40
50
The Medical Device Supply Chain Report
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Improving fill rates and make to stock lead times.
Chart 12: What are your fill rates?
50
What are your fill rates?
43%
40
28%
30
20
10
0
5%
4%
85% or less
11%
9%
86 – 88%
89 – 91% 92 – 94% 95 – 97% 98 – 100%
In the medical device manufacturing industry, managing lean inventory is a delicate challenge, which has historically caused
manufacturers to err on the side of overstocking to meet unexpected demand. Thanks to the advent of stronger demand
planning software and big data, this problem is progressively being dealt with, as reflected by the 71% of supply chain managers
who report fill rates above 95%, although there is still room for manufacturers to improve around this critical metric.
Chart 14: What is your make -‐to-‐stock lead time
What is your make-­to-­stock lead time?
1 Day
0%
9%
2 Days
3%
4%
3 Days
4 Days
5 Days
6 Days
0%
6%
15%
7–14 Days
47%
More than 14 days
16%
Not applicable
0
10
20
A make-to-stock inventory approach requires a careful attunement to customer demand, and in the case of medical devices
which are used to save lives, even more so. Forty-seven percent of supply chain managers report a make-to-stock lead time of
greater than fourteen days, although 9% have achieved a lead time of just two days. As ERP systems evolve to better capture vital
business information, and siloes of data are united to create a more accurate picture of customer demands, more companies can
take steps to bring down their lead time and improve their fill rates in order to protect their margins.
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Building a network that delivers on time, every time.
How on-time is your delivery? (i.e., number of items delivered on
time divided by total number of items ordered.)
Chart 13: How on time is your delivery?
31% 32%
35
30
25
19%
20
15
10
5
0
10%
5%
3%
85% or less
86 – 88%
89 – 91% 92 – 94% 95 – 97% 98 – 100%
With on-time delivery standing as a critical metric for medical device logistics,
minimizing error in the delivery process is a high priority. Thirty-two percent of
managers report that they have brought their on-time delivery (OTD) rates up to the
level of 98-100%, a robust share of the total response. A further 31% of managers fall
into the 95-97% range, the second largest share of the responses. A smaller share,
19%, fall just below the 95% range, with significant drop-off occurring from that point,
no doubt given the heavy importance OTD rates carry for manufacturers.
What percentage of your inventory becomes obsolete or is
lost/damaged?
Chart 16: What percentage of your inventory becomes obsolete or is lost/damaged?
0-­5
6-10
11-15
16-20
21-25
26-30
31+
8%
5%
0%
1%
3%
30%
53%
“We are working on how to better
get our arms around all the
inventory we have in circulation.
The whole med device space has
way too much inventory, and
this problem places emphasis
on more sophisticated field
inventory management models,
as well as 3PLs providing
healthcare compliant services
and facilities to help the device
industry better manage their
field based inventories. You’re
going to continue to see a lot
more with that, and I think
you’re certainly going to see a
lot more strategic alliances and
more multi-party cooperation.
Historically, manufacturers
have been working on projects,
integrators have been working
on their own projects, and
hospitals may or may not
been a part of that picture, but
now you’re seeing a lot more
collaborative efforts between
all the parties involved to put
together and develop solutions.”
Rob Varner
Senior Director, Americas
Distribution
Medtronic
0
10
20
30
40
50
60
In terms of preserving inventory from loss and damage, as well as obsolescence, 53%
of supply chain managers studied report that they are operating with a margin under
5%. As inventory tracking is further enabled through stronger management tools,
businesses become better equipped to avoid accidental loss. Demand forecasting is
a tool that will better enable device manufacturers to avoid having their equipment
become outmoded, a major concern should inventory no longer be able to be sold
due to insufficient demand.
The Medical Device Supply Chain Report
11
Increasing inventory turns in an environment of
increasing globalization.
What is your total inventory turns level?
20%
Chart 15: What is your total inventory turns level?
20
16%
16%
15
10
18%
12%
9% 9%
5
0
“I believe the single biggest
opportunity to improve inventory
management within medical
device supply chains is seamless
demand signaling. Creating
end-to-end demand signals
throughout the entire supply
chain coupled with value streams
designed to minimize all forms of
waste will allow manufacturers
and distributors to monitor and
respond to consumption by
patients. This type of visibility
and integration can make
the industry more effective at
managing individual segments of
the supply chain.”
Don Lynch
Director, Supply Chain
Welch Allyn Inc.
N/A
0-1
1.1-1.5
1.6-2
2.1-2.5
2.6-3
>3.1
Inventory turns serve as an indicator of demand and how quickly a company is able
to sell out their stock of products, therefore, increasing the number of average turns
plays a part in building the effectiveness of an organization in profit generation. Out
of all the metrics included in this report, average inventory turns was the most spread
out in terms of response distribution. While 18% reported an average of over 3.1, this
was not a significantly larger or smaller share than that boasted by any other range,
with each of the seven options holding at least 9% of the response. While the rate of
inventory turns can vary depending on the nature of the equipment being produced,
in general it seems that medical device manufacturers are spread out in their ability
to predict and serve demand. With a greater ability to make-to-stock, inventory can
be sold and replenished fully on a much more frequent basis. This is part of a bigger
picture that includes data driven demand planning and better inventory management.
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The aging developed world and an increase in
consumption from emerging markets is extending
the bounds of where medical equipment must be
delivered. With a shift away from the hospital to
alternative points of care comes an increased level
of complexity in fulfillment.
Do you expect your business to expand more into Emerging Markets
in the next 12 months?
9%
Chart 17: Do you expect your business to expand
Not sure
11%
No
36%
Yes, by a lot
44%
Yes, by a little
There is no denying the importance of the developing world’s impact on healthcare
consumption, and medical device manufacturers are aware that these markets, along
with an increasingly elderly developed world population, will place great emphasis
on meeting demand in areas far removed from a typical hospital setting. Thirty-six
percent of medical device manufacturers are planning on large-scale expansion into
emerging markets within the next 12 months, with an additional 44% expanding
on a smaller scale. Nine percent were unsure, and just 11% of manufacturers were
definitely not planning to expand into these markets in the coming year.
Do you think the aging developed world population will impact your
business over the next 12 months?
Chart 19: Do you think the aging developed world population
29%
Yes, by a lot
43%
Yes, by a little
15%
13%
No
Not Sure
0
10
20
30
40
50
The aging population of the developed world means that medical device manufacturers
will have to adapt to changing sites of care as home based healthcare becomes more
common, and anticipate the needs of a more elderly patient base. Twenty-nine percent
of survey respondents indicated that this demographic shift would greatly affect their
business, with a further 43% reporting it would somewhat impact them. This will also
play out in foreign markets, where non-hospital sites may be even more prevalent due
to a lack of infrastructure and more widely distributed populations.
“Some of the greatest
opportunities offered in
emerging markets are based
on the fact that there’s such a
large growing middle class in
a lot of those countries. Some
companies define emerging
markets differently, but for
Medtronic, we think of India and
China, but also Brazil, all of Latin
America, and the Middle East.
There are more people that are
getting more access to health
care, so that’s where the growth
opportunity is. A lot of the
population has been penetrated
in the developed market, so as
the developing world creates
new markets, that provides some
exciting new opportunities.“
Rob Varner
Senior Director, Americas
Distribution
Medtronic
“The aging population has the
potential to increase healthcare
consumption, resulting in
increased demand for existing
products. The challenge of
increased demand for existing
products can be met by
accurately predicting demand
levels so that supply chains can
be planned appropriately.
The increased demand from
an aging population may also
put more pressure on existing
healthcare delivery channels to
reduce their costs. This could
create the need to innovate and
develop new products that can
help healthcare providers lower
their costs.”
Don Lynch
Director, Supply Chain
Welch Allyn Inc.
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13
Key Recommendations
Become more strategic through better capturing
and understanding data.
As the importance of data-driven insight grows, companies should look to better capture
data through stronger, fully integrated solutions designed to secure the level of data
necessary to make decisions. These can bring information across business functions into
a more unified, and therefore useful, picture. Anticipating demand in terms of volume as
well as by location are critical to protecting margins.
Consider outsourcing in areas that are preventing
your company from achieving a proactive approach to
meeting market demands, and to create cost savings.
When flexibility is paramount, it can make sense to adopt solutions that allow for quicker
changes in response to the market. As companies attempt to lean down, outsourcing
distribution and fulfillment, as well as the processes that go along with them on a global
scale, can become more attractive options.
Anticipate what emerging markets and an aging
developed world demographic will mean in terms of
your supply chain.
Entering developing markets, as well as navigating to alternative sites of care
domestically, will put new challenges in front of medical device manufacturers.
Maintaining the efficacy of distribution on a global scale requires an understanding
of complicated compliance requirements, while serving a population in domestic and
emerging markets that is outside of the hospital adds emphasis to the flexibility and
transparency of networks. Consider what solutions will provide the farthest reach in both
of theses areas, while making room for adaptability in response to shifting requirements.
The Medical Device Supply Chain Report
“The biggest challenge we have
serving developing markets is
from a supply chain standpoint.
The supply chain networks,
distribution networks, and
infrastructure to serve these
markets are currently lacking.
There’s a lot of work that needs
to be done to accommodate the
future growth that’s coming. If
Medtronic is going to expand
our sales and presence in
these emerging markets, we
need a supply chain network
that can support that. Another
opportunity is that a lot of
pharmaceutical and med
device companies are selling to
distributors, and over the next
several years, most of them
are working to go more and
more direct into these emerging
markets.”
Rob Varner
Senior Director, Americas
Distribution
Medtronic
14
Appendices
Appendix A: Methodology
The results analyzed in this report were gathered from responses to an on-site
benchmarking survey delivered at LogiMed 2015, and prepared by event producer Sara
Mueller. 81 executives responded to the survey. Interviews with sources were conducted
after survey data was compiled, and centered on discussion of benchmark results.
Appendix B: Who Responded to the Survey
What is your annual revenue?
Chart 1: What is your annual revenue?
7%
$16+ Billion
What product category best describes
your company?
Chart 2: What product category best describes your company?
7% Diagnostics
17% $6 – 15.9 Billion
31% Medical/Surgical Supply
26% $1 – 5.9 Billion
18% Implantables
9%$500 – $999 Million
32% $
1 – $499 Million
5%
$500K -­$999K
4%
Less than $500K
14%Hardware, including orthopedics and instrumentation
2% Laboratory equipment/supplies
10% Services
3% Software
15% Other
A thought leadership report commissioned by FedEx
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LogiMed is a senior-level, peer-driven conference where medical device supply chain
executives benchmark and optimize their global end-to-end supply chains in a highly
collaborative environment.
LogiMed launched in 2011 in Europe to high acclaim. Its first run in the USA in 2014
was a huge success: 160 supply chain executives gathered in San Diego to network,
benchmark, and debate best practices. Over half of the attendees were from medical
device manufacturers, making LogiMed USA the largest gathering of med device
manufacturers in North America.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad
portfolio of transportation, e-commerce and business services. With annual revenues
of $47 billion, the company offers integrated business applications through operating
companies competing collectively and managed collaboratively, under the respected
FedEx brand. Consistently ranked among the world’s most admired and trusted
employers, FedEx inspires its more than 325,000 team members to remain “absolutely,
positively” focused on safety, the highest ethical and professional standards and the
needs of their customers and communities. For more information, go to news.fedex.com.
WBR Digital, connects solution providers to their target audiences with year-round
online branding and engagement lead generation campaigns. We are a team of content
specialists, marketers, and advisors with a passion for powerful marketing. We believe
in demand generation with a creative twist. We believe in the power of content to
engage audiences. And we believe in campaigns that deliver results.
The Medical Device Supply Chain Report
FedEx Contact
John B. Jasper
Global Supply Chain Solutions
& Market Development
FedEx Services
901-434-8337
Media Contact
Andrew Greissman
646-200-7950
digital.wbresearch.com
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