zimmer
ZIMMER : THE GENDER - SPECIFIC KNEE
PROBLEM STATEMENT:
In this case study, viola Hoo, summer intern student is expected to submit a report identifying the specific changes that 3M would have to make to its supply chain organization and the accompanying changes in five different areas. Viola needs to assess the feasibility of the ability of 3M to transition from a distribution network that relied on VARs ( value-added resellers ) to a ship-direct model.
3M HEALTH CARE
Executive Summary
Viola Hoo has been asked to present a report regard current 3M’s distribution system in Canada by the Kevin Higgins, the voice present of 3M Health care market.
At the beginning of this case it tells us that the major health service environment has been changed and were divided into two groups, traditional regular hospital and out- of – hospital.
70 % of the revenue of medical markets came from hospitals. Sales to hospitals were channeled through specialized distributors called VARs. VARs served around 350 hospitals in Canada.
Number of Manual orders = 3900/ month
Cost per manual order = $8.5
Total Manual order cost =$33150/ month Number of electronic orders = 1650/ month
Cost per electronic order = $8.5
Total electronic order cost =$33150/ month
The core issues in this case are, the first is hospital likely order directly from 3M. However, the currently situation is VARs taking most order from the hospital, and as the same time VARs compline the high transportation cost lead their profit shrink.
On the other hand, the daily health care product demand from Out- of – hospital has consistently increased.
In my opinion, this report must suggest how to optimize separated the responsibility of duty of the job between 3M and its VARs.
DETAILED ANALYSIS OF THE PROBLEM:
So the broad problem situation, at hand were the following
1. Innovation played a very important role in the industry and each company regularly brought new products into
PROBLEM STATEMENT:
In this case study, viola Hoo, summer intern student is expected to submit a report identifying the specific changes that 3M would have to make to its supply chain organization and the accompanying changes in five different areas. Viola needs to assess the feasibility of the ability of 3M to transition from a distribution network that relied on VARs ( value-added resellers ) to a ship-direct model.
3M HEALTH CARE
Executive Summary
Viola Hoo has been asked to present a report regard current 3M’s distribution system in Canada by the Kevin Higgins, the voice present of 3M Health care market.
At the beginning of this case it tells us that the major health service environment has been changed and were divided into two groups, traditional regular hospital and out- of – hospital.
70 % of the revenue of medical markets came from hospitals. Sales to hospitals were channeled through specialized distributors called VARs. VARs served around 350 hospitals in Canada.
Number of Manual orders = 3900/ month
Cost per manual order = $8.5
Total Manual order cost =$33150/ month Number of electronic orders = 1650/ month
Cost per electronic order = $8.5
Total electronic order cost =$33150/ month
The core issues in this case are, the first is hospital likely order directly from 3M. However, the currently situation is VARs taking most order from the hospital, and as the same time VARs compline the high transportation cost lead their profit shrink.
On the other hand, the daily health care product demand from Out- of – hospital has consistently increased.
In my opinion, this report must suggest how to optimize separated the responsibility of duty of the job between 3M and its VARs.
DETAILED ANALYSIS OF THE PROBLEM:
So the broad problem situation, at hand were the following
1. Innovation played a very important role in the industry and each company regularly brought new products into