Bill Stankiewicz Copy Healthcare Report Solution Providers

Healthcare & Life Sciences Supply Chain Report 2010

Healthcare & Life Sciences
Supply Chain Industry Report Series

Marketing Supply Chain Solutions
for Healthcare

An in-depth analysis of eyefortransport’s 2010 Executive Survey

For further details, please contact:
Emma Miller,
eyefortransport
World phone: +44 (0)207 375 7178
US Toll Free: 1 800 814 3459 Ext. 7178
Canada Toll Free: 1 866 996 1235 Ext. 7178
emiller@eft.com
Healthcare & Life Sciences Supply Chain Summit
June 29-30, 2010 – Chicago http://events.eyefortransport.com/healthcare/
1


Table of Contents

I. Introduction ............................................................................................. 4

II. Methodology and Approach ................................................................ 5

III. Profile of Respondents .......................................................................... 5

IV. Information from Solution Providers .................................................... 7

V. Conclusions ......................................................................................... 13

Business Development Opportunities in Pharma, Medical Devices &
Healthcare.................................................................................................. 14

2


List of Charts

Survey Overview & Demographics
Business Type ............................................................................................... 7
Annual Revenue ......................................................................................... 8
Major Geographic Region ......................................................................... 8

Solution Providers Charts
Customer Requirements when Outsourcing Part of
their Supply Chain ..................................................................................... 32
Difficult Issues for Customers Seeking 3PL Partners ................................ 33
Input in the Design Phase of Products .................................................... 34
Methods of Securing New Business from Pharma or
Medical Devices Companies .................................................................. 35
Methods of Marketing to Prospective Healthcare or
Life Sciences Clients .................................................................................. 35

3


I. Introduction

Healthcare supply chains are facing a unique set of changes and
upheavals in the coming months and years. Amid Healthcare Reform,
shifting legislative requirements, and a desire to expand their global
reach, pharmaceutical and medical devices manufacturers are
looking to improve and streamline their supply chain operations to
boost efficiency and slash costs.

Though traditionally behind many industries in supply chain efficiency,
healthcare is now actively seeking new and innovative ways to
improve supply chain operations to take their companies into the
future.

This shift presents a vast array of opportunities for supply chain service
and solution providers to the healthcare industry. Those companies
that have established expertise in healthcare will be especially well
positioned to benefit from the upcoming changes. Solution providers
with expertise in other industries, however, stand to gain as well by
investing in healthcare-specific infrastructure and capabilities.

This report presents the survey results from a group of executives
working for transport, logistics and supply chain service and solution
providers to the healthcare industry. It offers their perspectives on what
their healthcare customers seek in a solution provider, and shares how
they plan to market their solutions to the healthcare industry as well.

It also draws comparison with the results of the pharmaceutical and
medical devices supply chain surveys, showing where opinions are
aligned across the industry, and where they differ.

The result offers fascinating insight for any solution provider looking to
boost its position among healthcare companies.

4


II. Methodology and Approach

The survey was conducted from January - February 2010 with responses
solicited by targeted e-mail lists, select trade association memberships,
various related industry databases and other targeted methods. The
majority of respondents were senior executives representing major
companies with annual revenues of over $1 billion. No individual
responses were analyzed, but rather all responses were consolidated.

This report analyzes the specific responses from transport & logistics
solution providers who provide solutions to healthcare & life sciences
companies. To view the full responses from pharma or medical devices
supply chain executives, please view here:
http://events.eft.com/healthcare/download-report.shtml)

III. Profile of Respondents

Survey respondents represented various segments of the healthcare
and life sciences industry. Pharmaceutical manufacturers (27%),
medical devices manufacturers (26%), and transport or logistics
providers (26%) had the greatest representation. Supply chain solution
providers made up 10% of the total respondents, while other industries
represented included: Clinics, hospitals, and other healthcare providers
(4%); Pharmacies or retailers (3%); Wholesalers or distributors (2%);
Contract manufacturers (2%).

The majority of respondents (57%) represented companies whose
annual revenues exceeded $1 billion. 12% of respondents represented
companies with annual revenues between $250 million and $1 billion,
13% represented companies with annual revenues between $50 million
5


and $250 million, and 18% represented companies with annual
revenues below $50 million.

The vast majority of respondents were based in North America (46%) or
Europe (48%). 4% of respondents were based in Asia (excluding Middle
East), with 1% from the Middle East and Africa, and a further 1% from
Central or South America.

6


IV. Responses from Solution Providers

What do healthcare companies look for in a supply chain solution
provider?

The respondents representing solution providers were asked what they
think their healthcare & life sciences customers look for most when
outsourcing part of their supply chain. The majority (73%) identified
credentials and track record of working with the healthcare industry.
Facilities and equipment adequate for working with the healthcare
industry (60%) was the next most popular response, followed by visibility
and inventory management tools (41%), technology capabilities (28%),
executives with healthcare-specific training or expertise (28%), security
protocols (28%).

The results were markedly similar to the traits sought from
pharmaceutical manufacturers and medical devices manufacturers
when choosing new partners. The two exceptions being the increased
importance medical devices manufacturers placed on visibility and
inventory management tools, and the increased importance
pharmaceutical manufacturers placed on technology capabilities.
(http://events.eft.com/healthcare/download-report.shtml)

This alignment of opinions is a good sign for solution providers, and
shows that the majority are well in touch with the needs of their
healthcare & life sciences customers.

7


Why do healthcare companies have trouble finding solution providers?

The respondents representing solution providers were asked which
issues they think cause their healthcare & life sciences customers the
most difficulty when looking for 3PL partners. The majority (60%)
identified 3PLs lacking healthcare-specific capabilities. 3PLs lacking
adequate facilities or equipment (57%) was the other notable
response, with less popular responses being 3PLs lacking adequate
accreditation/ licensing (27%), high cost (23%), 3PLs lacking adequate
technology (22%), executives at 3PLs are inexperienced in pharma
(21%), 3PLs unable to provide adequate visibility (19%), 3PLs lacking
adequate security protocols (18%), and 3PLs unable to provide fast
enough delivery times (17%).

The results varied to the responses from pharmaceutical manufacturers
and medical devices manufacturers. Although 3PLs lacking
healthcare-specific capabilities was the most difficult issue for
pharmaceutical manufacturers and medical devices manufacturers,
solution providers overestimated the importance to them 3PLs lacking
adequate facilities or equipment. Solution providers also slightly
underestimated the importance of high cost, executives at 3PLs are
inexperienced in pharma, and 3PLs unable to provide adequate
visibility.

The concern for both providers and end users regarding healthcare-
specific expertise presents a key area of potential improvement for

8


service and solution providers. As the survey results make clear,
recruiting staff with specific expertise, as well as training for current staff
could be a significant boost towards better serving healthcare and life
sciences customers.

Do your healthcare customers involve you in the design phase?

Contract manufacturers were asked if their pharma or medical devices
customers involve them in the design phase of their product
development. 24% said that they were given input by pharmaceutical
manufacturers, while 26% said that they were given input by medical
devices manufacturers. Similar numbers were also seen between
pharmaceutical manufacturers (50%) and medical devices
manufacturers (54%) not sharing input.

9


What do you do to secure new business from healthcare clients?

Another question asked of solution providers was how their companies
position themselves to secure new business from pharma or medical
devices companies. Investing in facilities and equipment to meet
healthcare industry needs (56%), boosting visibility and tracking
technologies (51%), and training or recruiting staff with healthcare-
specific expertise (47%) were the most notable responses. Less popular
choices were dedicating resources to keeping up on healthcare
legislation changes (30%) and actively seeking or renewing licenses
and accreditation (23%).

10


How do you market your solutions to healthcare clients?

Solution providers were also asked how their companies will market
themselves to prospective healthcare or life sciences clients in the next
year. Travelling to one-on-one sales meetings was the only method
that was selected as a top priority by the majority of respondents.
Lead generation campaigns and brand awareness campaigns were
largely seen as very important, while hosting internal events,
roundtables or networking sessions, research and publishing,
conference & trade show exhibition, and speaking at conferences,
were largely seen as being somewhat important.

11


12


V. Conclusions

As the results show, many supply chain service and solution providers to
the healthcare industry are aligned with their customers in terms of
priorities and key issues. However, there are many areas for
improvement and growth.

Specifically, the results show clear room for improvement among
solution providers with regard to investing in healthcare-specific
expertise and infrastructure. Any company looking to gain a stronger
foothold among healthcare companies should clearly assess its
specific capabilities and invest where necessary to make up for any
shortfalls.

Traditional face-to-face contact remains the favorite choice when
building business with new healthcare clients, as competition remains
fierce.

When taken in conjunction with responses from pharmaceutical and
medical devices supply chain executives, the results present a
significant window of opportunity for solution providers looking to
branch into the healthcare & life sciences industry.

_________________________________________________________________

To view the medical devices or pharmaceuticals specific reports,
please visit the link below:

http://events.eft.com/healthcare/download-report.shtml

13


Want to meet Healthcare Supply Chain
Executives?
The survey results and issues presented in this report will form the
foundation of discussion at this year’s Healthcare & Life Sciences
Supply Chain Summit, June 29-30 in Chicago.

Focussed on Achieving a Globalized Strategy for Your Healthcare
Supply Chain the Summit will bring together an exclusive, high-level
group of senior supply chain executives from top pharma, medical
devices and other healthcare companies.

Confirmed companies include Abbott Laboratories, Medtronic, Pfizer,
GE Healthcare, Purdue Pharma, Alcon Laboratories, Johnson & Johnson
Novartis, Baxter Medical Devices, Eli Lilly, BSN Medical, Myriad
Pharmaceuticals, Rexam Healthcare, Covidien, Sisters of Mercy, and
GS1 will discuss and debate the key issues facing your supply chain this
year.

Join these top executives over 2 days and benefit from:
♦ Guaranteed one2one meetings – select delegates from the
list, and we arrange guaranteed meetings for you
♦ Top-level branding – get your company, your solutions and
your sales executives in front of top-level decision-makers
♦ Tell us who to invite – give us a list of your prospective key
clients in healthcare, and we’ll invite them to attend for free!

Download the Prices & Packages
♦ For more information on crafting the ideal package
to suit your needs, download the sponsorship &
thought leadership information now

Download online:
http://events.eft.com/healthcare/sponsor-and-
exhibit.shtml

Or contact Toby Spencer: tspencer@eft.com; 1-800-814-
3459 ext. 7168 or +44 (0)207 375 7168

14

Bill Stankiewicz Copy Healthcare Report Solution Providers

Recommended

Recommended

More Related Content

More from BillStankiewicz

More from BillStankiewicz (20)

Bill Stankiewicz Copy Healthcare Report Solution Providers