Meditech Case Study
GLOBAL SUPPLY CHAIN MANAGEMENT
Case Study: Meditech Surgical
Agenda g
Market d Company overview M k t and C i Problem analysis Main issues Suggested solutions Q&A
2
Market overview
Invasive surgical trends I i i lt d Market created in early 80’s, rapidly growing and promising Old instruments gradually updated and replaced with introduction of new endoscopic ones ones.
3
Company overview p y
Major key l M j / k player i endoscopic surgical i t in d i i l instrument t market and used to achieve phenomenon success in the short time Competition centered on product innovations, customer services and cost Sales strategies: push to surgeons, material managers and hospitals Vertical and functional organisation Distribution channel: domestic dealers and the int’l affiliates
4
Problem analysis y
Distribution
Internal Operation
Production planning
Operation
5
Distribution network
Downstream supply chain
6
Internal Operation p
Upstream supply chain
7
Production planning p g
Weekly schedule
8
Production planning p g
Daily packaging schedule
PULL
PUSH
9
Main issues
1. 1
Poor service for supplying new products after introduction:
Production capacity is insufficient to the order flooding -> panic ordering Delivery service is poor, which is fatal to heath care industry Inventory level is high and inefficiency.
2. Inaccuracy forecast, unable to predict the demand and y , p
poor performance of information management system
Data is not tracked Demand information is not kept Slow process to transfer data in hard copy into computer
3. Operation problems
1st class sales force but unmatched level in other department Poor planning activities Organisation structure
10
Problem analysis y
Distribution
Poor service level for supplying new products
Internal Operation
Manual processing Long l d lead-time
Production planning
Inaccurate forecast, unable to
Case Study: Meditech Surgical
Agenda g
Market d Company overview M k t and C i Problem analysis Main issues Suggested solutions Q&A
2
Market overview
Invasive surgical trends I i i lt d Market created in early 80’s, rapidly growing and promising Old instruments gradually updated and replaced with introduction of new endoscopic ones ones.
3
Company overview p y
Major key l M j / k player i endoscopic surgical i t in d i i l instrument t market and used to achieve phenomenon success in the short time Competition centered on product innovations, customer services and cost Sales strategies: push to surgeons, material managers and hospitals Vertical and functional organisation Distribution channel: domestic dealers and the int’l affiliates
4
Problem analysis y
Distribution
Internal Operation
Production planning
Operation
5
Distribution network
Downstream supply chain
6
Internal Operation p
Upstream supply chain
7
Production planning p g
Weekly schedule
8
Production planning p g
Daily packaging schedule
PULL
PUSH
9
Main issues
1. 1
Poor service for supplying new products after introduction:
Production capacity is insufficient to the order flooding -> panic ordering Delivery service is poor, which is fatal to heath care industry Inventory level is high and inefficiency.
2. Inaccuracy forecast, unable to predict the demand and y , p
poor performance of information management system
Data is not tracked Demand information is not kept Slow process to transfer data in hard copy into computer
3. Operation problems
1st class sales force but unmatched level in other department Poor planning activities Organisation structure
10
Problem analysis y
Distribution
Poor service level for supplying new products
Internal Operation
Manual processing Long l d lead-time
Production planning
Inaccurate forecast, unable to