MedExpress

Design of a lean supply chain for MedTech supplies within hospitals

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Abstract

TNT is the preferred express provider of several large MedTech suppliers in Europe, delivering medical devices to hospitals with various special services. Due to competition replicating these services, TNT no longer possesses key differentiators, and is losing ground against competition. Furthermore, hospitals are innovating in their supply chain by introducing booking slots, limited opening hours and delivering at departments. Anticipation to these constraints is necessary to deliver the quality demanded by TNT’s customers. A growing number of logistical companies specialized in hospitals are offering full supply chain solutions to hospitals, leaning out their supply chain and addressing and creating these constraints. Due to the complexity of hospital supply chains, a generic solution is required for all supplies is in order create secure and transparent logistical processes. Although the supply chain aims to provide a logistical solution for all products in a hospital, specific restraints are required for medical devices. Especially the increase in lead time the generic supply chain causes is a reason for MedTech suppliers to demand their products are delivered at a departmental. The ordering process with current procurement systems of the hospital are, like the supply chain itself, generic and time consuming. To initiate a quick response from the supplier, nursing staff order products via telephone when urgently required. Furthermore, logistical processes concerning high value medical technology is often not entrusted with internal logistical personnel due to their lack of knowledge about these devices. Delivering at a department of a hospital is a complex task to perform for courier, having to cope with high levels of insufficient and inaccurate delivery information in large complex medical facilities, unavailable recipients and obstructions in access. The delivery information is highly important for a driver to find the recipient in a hospital. This information is transmitted to supplier at the moment of ordering, but is often insufficient due to the lack of knowledge of logistics with the supplier. The stream of information requires an accurate transmission of sufficient information, but instead is passed on through a large number of stakeholders making it error sensitive. Direct communication with the recipient is required to obtain the necessary delivery information. By incorporating the ordering process in the supply chain, TNT is enabled to capture accurate and complete delivery information by linking unique users to orders. Users can create an unique user account with at TNT, that captures their exact location inside a hospital and enables them to log into an application on a smartphone or website. With this application the user can execute orders, register incoming consignments, communicate with the driver, provide feedback and request delivery information. User friendly processes and barcode scanning enable in minimum 50% reduction is time spend for ordering and accepting a consignment. Furthermore, the application provides a live feed of available products and ETA of consignments. With these benefits, the application caters a trustworthy and easy to use service. Orders initiated with the application are automatically linked to an user account and therefore always equipped with sufficient delivery information. The exact information which is required for a driver to find the first drop-off location inside the hospital is pasted on partially integrated or additional routing label on the consignment. With this information an on-time and in perfect condition delivery can be executed by the driver if no discrepancies will occur. The driver is provided with an application on which the driver can rely for back-up options in case discrepancies occur during a delivery. Additional details about the first drop-off location, contact can be established with the first contact person as a first resort. If this fails, a secondary drop-off location and contact person can be approached in the same manner, providing the driver with four options to deliver the consignment despite discrepancies. As an addition, both applications establish a two-way communication between driver and recipient, informing about the delivery and enabling the user to make changes to delivery instructions. This two-way communication provides users with control and visibility in the supply chain. Investments are required for the development of user and driver applications, a print system, training for TNT drivers and training for customer service of the suppliers to facilitate this service. In return, TNT can offer their customers a high performance departmental delivery for which an additional price can be charged. In addition, TNT will save money by removing inefficient processes. Efforts are required from hospitals and suppliers to establish communication supporting the service. MedTech supplier will be provided with superior delivery service, increasing availability and therefore sales. Furthermore, MedTech suppliers can offer hospitals with a high performing departmental delivery, while eliminating or reducing cumbersome and superfluous administrative task, ultimately increasing profitability. Due to the value of hospital knowledge for express providers and the assumption that users prefer to use a single account for all orders, a quick implementation is required to stay ahead of competition. A roadmap is provided in which advice is given on the implementation of this service.

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