Supply Chain Management final presentation -- Jesús Enrique Russo

1. DEVELOPING A
SUPPLY CHAIN FOR
MTC
Jesús Enrique Russo

2. REPEAL THE MEDICAL
DEVICE ACT
MTC (Medical Technologies Corporation) is surgical device
manufacturer and seller, located in Collegeville,
Pennsylvania.
Currently, MTC has been imposed with a 2,3% tax of
revenue. This tax, has brought an impact of 10% reduction
of MTC’s net profits.
Our goal will be to find some cost saving improvements to
offset this new 2.3% tax.
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3. EXECUTIVE SUMMARY
Key Points:
• Sterilization should be made in-House.
• Effective forecast methods should be used.
• MTC sales representatives should create effective
Communications with Hospitals.
• Keep a minimal of trunk inventory.
• MTC products should have high quality and being
distinctive.
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4. EXECUTIVE SUMMARY
Resources:
MTC Should do sterilization in-house. Production planning
should be reviewed, in order to decrease inventory. Sales
department and operations department should work
together regarding to find a WIN-WIN situation for the
commissions.
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5. AREAS OF
IMPROVEMENT

6. CURRENT FLOWCHART AT MTC
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7. LOGISTICS
STERILIZATION
PROCESS
Remove the off-site sterilization
third party because it will be
done by MTC.
Other changes
Remove Central Distribution
Center in order to supply
directly to the hospitals.
- Remove third-party sales
representatives.
New outbound
product flow
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8. OPERATIONS
Trunk Inventory
Trunk stock increases visibility in
the field, providing better customer
service and staying on top of
deliveries.
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9. PLANNING
Seasonal Products
MTC are producing and selling
seasonal products. The
production plans needs to
change in order to fulfill the
seasonal product
Standard & Specialized
Materials
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80% of MTC's surgical kits are
standard, these kits must be
produced according to our
forecast. The other 20%
(specialized kits) must be
produce on demand, MTC need
to avoid output gaps.

10. SOURCING
STRATEGIC SUPPLIER
1.Short term Realignment of sales representative
functions ,supply chain optimization through inhouse
sterilization and office reduction.
2.Mid term Introduce RFID methodology for inventory
management with smart kiosks.
3.Long-Term Migrating to a shared supply chain model
with collaboration towards a lean and forward
stocking locations(FSL).
INITIAVES
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1. Enable greater collaboration among all
trading partners in the devices supply chain
manufacturers , their customers and the
third-party logistics providers that support
them.
2, Integrating electronic systems with
Enterprise Resource Planning systems like
Oracle or SAP.
3. Innovate new products.
4. Focusing on automation to enable ease
of customer service.

11. RISKS
- MTC has never done sterilization processes before, therefore:
1.New process not currently performed inhouse Mitigate through
detailed planning, infrastructure and personnel development.
2.High initial cost of investment: Mitigate by quicker delivery to
customers by saving on transportation and better quality of
sterilization. Generate additional revenue through higher sales
and achieve lower costs due to elimination of continuous
transportation costs. 3.Direct Regulatory impact on sterilization
Mitigation by staying of all requirements from regulators like US
department of health and human services. Having periodic self
assessment and the independent audits.
- Keeping Truck inventory: Lack of tools to control trunk stock,
impaired expiry control & administration and workflow
challenges.
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12. THANK YOU
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