3 Supply Chain Contingency Planning Tips for Medical Device Companies
Scott Hothem • July 16, 2014
The recent months have brought some intense weather to all corners of our country. From the “Polar Vortex” last winter to violent tornadoes across the Midwest to Hurricane Arthur, each new day and week holds something new and potentially challenging. The only thing constant about weather is change. Theses volatile climate patterns unfortunately bring more than wind, snow, rain and lightning. Unfortunately these events cause a spike in emergency room and hospital visits. There have already been 41 tornado fatalities in 2014, according to NOAA. In fact during the Polar Vortex, Modernhealthcare.com reported that hospitals in Detroit brought in additional staff on multiple occasions to treat ER patients.
To make things more challenging, these additional visits and demands on hospital staffs and medical groups are often coupled with constraints on resources and accessibility. Over the 4th of July weekend, Hurricane Arthur left over 40,000 people with power and even caused a part of North Carolina Hwy. 12 to buckle on Hatteras Island. Last winter’s frigid temperatures and precipitation forced numerous surgeries and procedures to be rescheduled or cancelled. While organizations have contingency plans and redundancies in place to account for these scenarios, what back up strategy is there to account for supply chain complications?
The timely and precise demands that define medical device logistics needs to be maintained, especially in times of great need. Investing the time, energy and resources into contingency planning is like buying insurance. Hopefully you’ll never need it, but having the plans and process in place when these challenges arise can be the difference between life and death. These 3 elements can be implemented into your medical device supply chain, allowing your organization to persevere in the most difficult times.
- Be pre-emptive: While weather plays a major role in the disruption of services and the addition of constraints on resources, there are many other factors that could disrupt your supply chain. Manmade disasters, business decisions and governmental factors, just to name a few. However by having a finger on the pulse of what is happening around your organization can allow you to forecast possible problems. Notifying the key logistical partners that make up your supply chain is key. Ensure everyone is on the same page and ready to find answer to potential questions.
- Increase your essential supplies: To combat any lags or disruptions to your supply chain, having an abundance of the most necessary and important supplies stocked and accessible is crucial. Any device that you’ve been without in a similar situation should be maintained at a higher level to prevent a recurrence. While your bottom line is still a major consideration, you don’t have to throw your inventory management plan out of whack, but you do need to account for any delays.
- Supplier audits: This is a key element in maintaining visibility. Understanding and seeing the process your logistic partners leverage, and more importantly the results, can show the imperative steps to protect it in an emergency, as well as where other resources can be pulled to create a lean, agile fulfillment plan when necessary.
Supply chain contingency is a key element within your overall strategy. Identifying and responding to potential risks can mitigate a substantial threat to not only your operations, but your community. In an Inbound Logistics survey, 73% of participating companies claimed to have experienced a supply chain disruption. 32% of those said it took over 1 month to recover. Working closely with your supply chain personnel and partners is a critical step in preparing for the worst. With a focus on visibility and a track record of results, Barrett Distribution Centers has the technology, man-power and resources to play a key role in your contingency planning.
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Ecommerce brands should consider outsourcing fulfillment to a third-party logistics provider (3PL) when order volume, inventory complexity, or operational demands begin to exceed their internal capabilities . A 3PL can provide the warehouse space, technology, labor, and transportation expertise needed to support growth without requiring brands to build their own fulfillment infrastructure. For growing businesses, the decision often comes down to whether managing fulfillment internally is still the most efficient use of time and resources. Key Takeaways Increasing order volume can make in-house fulfillment difficult to manage. Inventory inaccuracies and shipping delays may signal operational limitations. A 3PL provides access to established warehouse infrastructure and fulfillment technology. Outsourcing can help brands expand into new sales channels and geographic markets. Barrett Distribution supports B2B and B2C fulfillment through its national warehouse network. 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Omnichannel 3PL providers like Barrett support direct-to-consumer fulfillment alongside B2B and retail distribution. How long does it take to transition to a 3PL? Implementation timelines vary based on inventory complexity, integrations, operational requirements, and facility readiness. A structured onboarding process helps establish expectations before launch. Does Barrett Distribution offer ecommerce fulfillment? Yes. Barrett provides ecommerce fulfillment, warehousing, inventory management, transportation services, and omnichannel distribution solutions. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.
Every order tells a story. Some reveal which products are gaining momentum, others expose seasonal purchasing habits, and a sudden shift in demand may signal an opportunity that a brand has yet to fully recognize. Inside a fulfillment center, those patterns carry enormous significance. They influence staffing decisions, inventory placement, transportation planning, and the ability to deliver on customer expectations. Yet collecting information and putting it to meaningful use are two very different disciplines. At Barrett Distribution Centers, data analytics plays an important role in connecting the daily realities of warehouse operations with the broader ambitions of the brands they serve. Turning Information Into Better Decisions Consider the planning required before a busy sales period. A brand anticipates increased demand, but the warehouse must translate that expectation into practical decisions about labor, inventory, and order processing. Jordan Johnsen of Barrett's data analytics team identifies forecasting as one of the most valuable applications of operational data. “The better labor plan we have, the better we're going to make sure we have the right people in the right place to get that product out the door.” Historical order patterns, anticipated promotions, and seasonal fluctuations help inform those preparations. Barrett also monitors employee productivity to better understand how work progresses throughout the facility. Together, these insights allow teams to approach fulfillment with greater precision, allocating resources according to the demands of the operation rather than relying exclusively on assumptions. The Numbers Can Strengthen the Partnership Data also has a less obvious application: improving communication between a brand and its fulfillment provider. Disagreements about performance, capacity, or costs can become difficult to resolve when each party approaches the conversation with different assumptions. Johnsen believes shared information creates a more productive foundation. “If two smart people get together and we're looking at the same data, we're going to come to somewhat the same conclusions.” His perspective reflects a commitment to transparency, including the willingness to examine information that may reveal shortcomings. A meaningful business review should accomplish more than celebrate favorable metrics. Examining unexpected results, identifying their causes, and agreeing on a course of action can strengthen the relationship between a brand and its 3PL.
