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The document proposes three approaches for MTC to reduce costs in its supply chain. First, it recommends moving sterilization in-house or partnering with the sterilization provider to reduce lead times and transportation costs. Second, it suggests eliminating distributors and relying mainly on 3PLs to improve stock visibility and forecasting accuracy. Third, reducing the number of warehouses could lower transportation, overhead, operational, and inventory carrying costs. Implementing changes to these three areas of sterilization, distribution, and warehousing is projected to achieve meaningful cost savings for MTC.
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Mtc case study
MTC company was facing a tax increase that reduced profits and sought to optimize other business areas to compensate. It planned to reduce supply chain costs by streamlining activities, inventory management, and establishing in-house sterilization. Long term solutions included a centralized warehouse and online ordering system. Implementing changes would require time, budget, materials and staff, and contingencies for risks like stockouts or lack of equipment knowledge.
MTC case study
This document summarizes a case study for a medical device company called MTC. It outlines the key challenges MTC faces, including technological assistance, supply chain innovation, distribution channel consolidation, and cost rationalization. It then proposes several strategies and operational changes for MTC, such as lean manufacturing, inventory management, sales and marketing changes, and evaluating mergers and acquisitions. The summary identifies the key resources, risks, and mitigation strategies required for implementing the proposed changes.
MTC Supply Optimization
The document discusses supply chain optimization opportunities for Medical Technologies Corporation to offset costs from the Affordable Care Act excise tax. Short term opportunities include changing the sales representative model. Mid-range opportunities involve optimizing distribution channels and the third-party logistics partners. Long term opportunities include adding smart kiosks and acquisitions. The proposed changes aim to reduce costs through streamlining logistics and transitioning from direct sales to increase visibility and reduce variability and costs. Risks include moving from the distributor model.
Mtc supply chain optimization
Medical Technologies Corporation is analyzing ways to optimize its supply chain to reduce costs. In the short term, it plans to remove trunk stock, make sales representatives advisors to hospitals, and automate tasks. This could reduce SG&A costs and increase sales. In the mid term, it will redefine sales roles, consider outsourcing sterilization, and introduce smart kiosks, which may further lower costs and boost sales. Long term strategies involve acquiring a tax friendly 3D printing company, growing exports to benefit from tax exemptions, and diversifying markets, which could save on transportation costs and taxes.
International Presentation[1]
The document discusses strategies for medical device acquisition and capital procurement at Johns Hopkins Hospital. It outlines the basic acquisition process and emphasizes developing an integrated, team-oriented approach. It also discusses benefits of centralized capital management, including greater negotiating power, standardization, and ability to reallocate underutilized assets across the health system. Finally, it covers strategies like life cycle management, technology assessment, remanufacturing, and considerations for purchasing remanufactured medical equipment to maximize budgets and profits.
Mtc challange for save revenue
This document outlines proposals to optimize Medical Technologies Corporation's (MTC) supply chain operations in order to save costs and compensate for a new medical device tax. Key proposals include establishing in-house sterilization, reducing inventory levels through a just-in-time approach, implementing smart kiosks and RFID tracking at hospitals, rationalizing sales commissions, and forming long-term partnerships with hospitals. These changes aim to cut costs in manufacturing, logistics, and sales in order to achieve the required 2.3% cost savings while improving customer service and positioning MTC for future growth through potential mergers and acquisitions.
Mtccasestudy pdf
This document summarizes key information about a medical device company called MTC and proposes recommendations to address its challenges. It discusses that MTC operates in the large and growing US medical device industry. Key challenges for MTC include costs from the medical device tax, technological assistance, and managing distribution channels. The recommendations propose reducing inventory, establishing strategic partnerships with hospitals, rationalizing sales commissions, conducting R&D with hospitals, and pursuing mergers and acquisitions. The document outlines resources, risks, and mitigation strategies required to implement the recommendations.
Strategy week 6
MTC needs to reduce operating costs by $142.51 to cover a new medical device tax. Currently, MTC outsources sterilization and uses branch offices, which adds delays and waste. Recommendations include bringing sterilization in-house, switching to distribution centers, selling directly to hospitals, lowering trunk inventories, and partnering with hospitals. This will reduce transportation, inventory, and processing costs while improving customer experience. An implementation schedule will transition the supply chain to reach the required cost savings.
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Mtc case study
MTC company was facing a tax increase that reduced profits and sought to optimize other business areas to compensate. It planned to reduce supply chain costs by streamlining activities, inventory management, and establishing in-house sterilization. Long term solutions included a centralized warehouse and online ordering system. Implementing changes would require time, budget, materials and staff, and contingencies for risks like stockouts or lack of equipment knowledge.
MTC case study
This document summarizes a case study for a medical device company called MTC. It outlines the key challenges MTC faces, including technological assistance, supply chain innovation, distribution channel consolidation, and cost rationalization. It then proposes several strategies and operational changes for MTC, such as lean manufacturing, inventory management, sales and marketing changes, and evaluating mergers and acquisitions. The summary identifies the key resources, risks, and mitigation strategies required for implementing the proposed changes.
MTC Supply Optimization
The document discusses supply chain optimization opportunities for Medical Technologies Corporation to offset costs from the Affordable Care Act excise tax. Short term opportunities include changing the sales representative model. Mid-range opportunities involve optimizing distribution channels and the third-party logistics partners. Long term opportunities include adding smart kiosks and acquisitions. The proposed changes aim to reduce costs through streamlining logistics and transitioning from direct sales to increase visibility and reduce variability and costs. Risks include moving from the distributor model.
Mtc supply chain optimization
Medical Technologies Corporation is analyzing ways to optimize its supply chain to reduce costs. In the short term, it plans to remove trunk stock, make sales representatives advisors to hospitals, and automate tasks. This could reduce SG&A costs and increase sales. In the mid term, it will redefine sales roles, consider outsourcing sterilization, and introduce smart kiosks, which may further lower costs and boost sales. Long term strategies involve acquiring a tax friendly 3D printing company, growing exports to benefit from tax exemptions, and diversifying markets, which could save on transportation costs and taxes.
International Presentation[1]
The document discusses strategies for medical device acquisition and capital procurement at Johns Hopkins Hospital. It outlines the basic acquisition process and emphasizes developing an integrated, team-oriented approach. It also discusses benefits of centralized capital management, including greater negotiating power, standardization, and ability to reallocate underutilized assets across the health system. Finally, it covers strategies like life cycle management, technology assessment, remanufacturing, and considerations for purchasing remanufactured medical equipment to maximize budgets and profits.
Mtc challange for save revenue
This document outlines proposals to optimize Medical Technologies Corporation's (MTC) supply chain operations in order to save costs and compensate for a new medical device tax. Key proposals include establishing in-house sterilization, reducing inventory levels through a just-in-time approach, implementing smart kiosks and RFID tracking at hospitals, rationalizing sales commissions, and forming long-term partnerships with hospitals. These changes aim to cut costs in manufacturing, logistics, and sales in order to achieve the required 2.3% cost savings while improving customer service and positioning MTC for future growth through potential mergers and acquisitions.
Mtccasestudy pdf
This document summarizes key information about a medical device company called MTC and proposes recommendations to address its challenges. It discusses that MTC operates in the large and growing US medical device industry. Key challenges for MTC include costs from the medical device tax, technological assistance, and managing distribution channels. The recommendations propose reducing inventory, establishing strategic partnerships with hospitals, rationalizing sales commissions, conducting R&D with hospitals, and pursuing mergers and acquisitions. The document outlines resources, risks, and mitigation strategies required to implement the recommendations.
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MTC needs to reduce operating costs by $142.51 to cover a new medical device tax. Currently, MTC outsources sterilization and uses branch offices, which adds delays and waste. Recommendations include bringing sterilization in-house, switching to distribution centers, selling directly to hospitals, lowering trunk inventories, and partnering with hospitals. This will reduce transportation, inventory, and processing costs while improving customer experience. An implementation schedule will transition the supply chain to reach the required cost savings.
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MTC is looking to improve revenue and reduce costs to offset the Affordable Care Act's excise tax. The presentation proposes improvements in logistics, operations, planning, and sourcing. In logistics, sterilizing devices in-house rather than off-site would reduce lead times and costs. For operations, using 3PL for inventory rather than sales reps and implementing smart hospital kiosks would lower holding costs. Planning would transition to seasonal forecasting from predetermined production to decrease unnecessary output. Sourcing involves partnering with hospitals and GPOs through advantages like early technology access that create long-term contracts boosting volume and revenue planning.
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2) Storing finished goods in warehouses using inventory control systems before distribution.
3) Transporting drugs to retailers, medical stores, laboratories and customers through distribution centers.
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This document outlines proposals to optimize the supply chain of Medical Technologies Corporation (MTC) in order to save costs and compensate for a new medical device tax. Key proposals include establishing in-house sterilization, reducing inventory levels through a just-in-time approach, implementing smart kiosks and RFID tracking at hospitals, rationalizing sales commissions, and forming long-term partnerships with hospitals. These changes could reduce costs in operations, logistics, and sales to achieve the required savings while improving customer service and positioning MTC for future growth through potential mergers or acquisitions.
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MTC Supply Chain Optimization aims to identify cost saving opportunities to offset new taxes from the ACA act. Short term solutions include rationalizing sales incentives and trunk stock. Medium term involves in-house sterilization and moving to a direct distribution model using a 3PL. Long term focuses on implementing smart kiosks, RFID, and a Lean/JIT system. The proposed solutions aim to be sustainable, feasible, and match the company's objectives of cost savings. Risks include moving away from the distributor model, which can be mitigated by Lean/JIT and strategic hospital alliances.
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The document discusses supply chain management. It defines a supply chain as the system involved in moving a product from supplier to customer, including organizations, activities, and resources. It identifies five primary processes: inbound logistics, operations, outbound logistics, sales and marketing, and service. The goals of supply chain management are to understand a company's supply chain, identify bottlenecks, implement processes to deliver the right products on time, and empower people. Best-in-class supply chains aim for balance, increase demand visibility, and isolate high costs.
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The document discusses supply chain management. It defines supply chain management as applying a total systems approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer. It then describes key aspects of supply chain management including the objectives, activities involved, and tools used for managing the supply chain.
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MTC is a surgical device manufacturer that has seen a 10% reduction in net profits due to a new 2.3% tax. To offset this, MTC plans to find cost savings improvements to their supply chain. Key areas for improvement include doing sterilization in-house instead of outsourcing it, using effective forecasting methods to reduce inventory levels, and improving communication between the sales and operations departments.
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MTC is a medical device manufacturer that needs to reduce costs to offset a new excise tax. The document proposes several changes:
1. Developing internal sterilization capabilities to eliminate waste and reduce costs from outsourcing sterilization.
2. Implementing third-party logistics to improve visibility, control processes, and efficiently manage inventories and distribution.
3. Improving inventory management through better forecasting methods, eliminating trunk stock, and implementing just-in-time processes.
4. Refocusing sales reps on customer relationships rather than inventory management to reduce commission costs.
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Mtc supply chain presentation
MTC is looking to improve revenue and reduce costs to offset the Affordable Care Act's excise tax. The presentation proposes improvements in logistics, operations, planning, and sourcing. In logistics, sterilizing devices in-house rather than off-site would reduce lead times and costs. For operations, using 3PL for inventory rather than sales reps and implementing smart hospital kiosks would lower holding costs. Planning would transition to seasonal forecasting from predetermined production to decrease unnecessary output. Sourcing involves partnering with hospitals and GPOs through advantages like early technology access that create long-term contracts boosting volume and revenue planning.
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Learn how one company avoided pitfalls normally associated with forecast-driven production plans that drive up costly stock levels and result in continual rework.
By moving away from an MRP forecast “Push” to a “Pull” based approach using DDMRPII™, they were able to:
• deliver the required level of customer service with minimal stocks at minimal cost
* Reduce the number of stock-outs
* Minimize excess stocks & obsolescence
* Minimize administration, handling & transport costs
* Allow the supply chain to cope with uncertainty
and more
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Cipla is an Indian pharmaceutical company with a global presence in 170 countries. It aims to ensure access to affordable medicines. The summary discusses Cipla's supply chain management and logistics processes, including:
1) Procuring raw materials from suppliers and conducting manufacturing at its 34 plants in India.
2) Storing finished goods in warehouses using inventory control systems before distribution.
3) Transporting drugs to retailers, medical stores, laboratories and customers through distribution centers.
Vendor managed inventory (VMI)
Vendor managed inventory (VMI) is a process where the vendor creates replenishment orders for their customers based on daily demand information received from the customer, rather than the customer sending purchase orders. The goal of VMI is to align business objectives and streamline supply chain operations by improving inventory turns, service levels, and sales through increased information flow between suppliers and customers. VMI can benefit both customers through reduced inventory and administrative costs and fewer stockouts, and suppliers through increased sales and reduced operating costs and stronger customer relationships. Keys to successful VMI include both trading partners being committed to collaboration, using a technology platform to support VMI processes, and obtaining experienced guidance for implementation.
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This document outlines proposals to optimize the supply chain of Medical Technologies Corporation (MTC) in order to save costs and compensate for a new medical device tax. Key proposals include establishing in-house sterilization, reducing inventory levels through a just-in-time approach, implementing smart kiosks and RFID tracking at hospitals, rationalizing sales commissions, and forming long-term partnerships with hospitals. These changes could reduce costs in operations, logistics, and sales to achieve the required savings while improving customer service and positioning MTC for future growth through potential mergers or acquisitions.
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This document provides an overview of supply chain management in the Indian healthcare industry. It finds that supply chain expenses account for 25-30% of total hospital operating costs in India. Private sector hospitals dominate the market, accounting for 70% of the healthcare delivery market share. The document then analyzes and compares the key performance metrics and financials of several major Indian hospital chains, finding that Max Healthcare has the highest growth rate and strongest operating parameters. Finally, it discusses opportunities to improve supply chain management in hospitals through centralized procurement, inventory management, establishing long-term supplier contracts, and demand forecasting to reduce costs and risks of expiration and stock-outs.
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Leverage information to remove cost and time from the supply chain, while delivering better service to the end customer
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This document discusses inventory management in a supply chain. It defines inventory as physical resources held in stock for sale or transformation. Inventory systems determine appropriate inventory levels and replenishment policies. Inventory is held at various stages of production and distribution including raw materials, work-in-process, and finished goods. Maintaining inventory incurs carrying costs to store items, ordering costs to replenish stock, and shortage costs if demand cannot be met. The document examines factors that influence inventory decisions like safety stock and seasonal fluctuations, and how to balance responsiveness to customers with supply chain efficiency.
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Waste in hospitals - everywhere - is massive. Up to 50% of consumables and devices purchased are never used on a patient. Support activities are highly manual, repetitive and done by professional clinical staff...
This presentation sets out the strategic environment and discusses the development and successful implementation of a leading-edge process and supply chain solution for hospitals.
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MTC Supply Chain Optimization aims to identify cost saving opportunities to offset new taxes from the ACA act. Short term solutions include rationalizing sales incentives and trunk stock. Medium term involves in-house sterilization and moving to a direct distribution model using a 3PL. Long term focuses on implementing smart kiosks, RFID, and a Lean/JIT system. The proposed solutions aim to be sustainable, feasible, and match the company's objectives of cost savings. Risks include moving away from the distributor model, which can be mitigated by Lean/JIT and strategic hospital alliances.
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This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
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The document discusses supply chain management. It defines a supply chain as the system involved in moving a product from supplier to customer, including organizations, activities, and resources. It identifies five primary processes: inbound logistics, operations, outbound logistics, sales and marketing, and service. The goals of supply chain management are to understand a company's supply chain, identify bottlenecks, implement processes to deliver the right products on time, and empower people. Best-in-class supply chains aim for balance, increase demand visibility, and isolate high costs.
integrated material management
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The document discusses supply chain management. It defines supply chain management as applying a total systems approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer. It then describes key aspects of supply chain management including the objectives, activities involved, and tools used for managing the supply chain.
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MTC is a surgical device manufacturer that has seen a 10% reduction in net profits due to a new 2.3% tax. To offset this, MTC plans to find cost savings improvements to their supply chain. Key areas for improvement include doing sterilization in-house instead of outsourcing it, using effective forecasting methods to reduce inventory levels, and improving communication between the sales and operations departments.
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MTC is a medical device manufacturer that needs to reduce costs to offset a new excise tax. The document proposes several changes:
1. Developing internal sterilization capabilities to eliminate waste and reduce costs from outsourcing sterilization.
2. Implementing third-party logistics to improve visibility, control processes, and efficiently manage inventories and distribution.
3. Improving inventory management through better forecasting methods, eliminating trunk stock, and implementing just-in-time processes.
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Medical Technology Corporation plans to overcome challenges posed by the Medical Device Excise Tax through supply chain innovations over the short, mid, and long term. In the short term, MTC will remove trunk stock and change sales representatives' roles. Mid-term plans include eliminating branch offices and switching to third-party logistics providers. Long-term goals involve insourcing sterilization and acquiring a 3D printing company to reduce costs and improve customer relationships. MTC aims to streamline operations through initiatives like smart kiosks, customer relationship management systems, and forecasting method changes. The proposals seek to lower touch points and transportation expenses while enhancing production flexibility, customer service, and export growth.
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The document proposes several operational changes at MTC to reduce costs and offset a new 2.3% medical device tax. It suggests reducing manufacturing lot sizes and inventory levels, moving to in-house sterilization, utilizing a 3PL model over distributors, reducing the sales rep role and implementing hospital kiosks to control inventory. Long-term, an acquisition could lower corporate tax rates through an international tax inversion. The changes aim to streamline operations, lower transportation and inventory costs, cut sterilization times and realize annual savings exceeding $136 million to offset the new tax.
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The document discusses a nuclear pharmacy's Tc-99m conservation program aimed at reducing decay of the radioactive material and increasing availability for patients. It highlights current issues with significant decay occurring after delivery to customers and doses being delivered with higher activity levels than contractually specified. The program will charge customers for pre-calibrations over 6 hours and for doses with activity levels above contractual limits. It is estimated to generate $6 million annually in additional revenue by valuing the conserved material at current prices. The document outlines communication and implementation plans for sales representatives and pharmacy managers to introduce the changes to customers by September 2009.
Supply chain management strategy
The document summarizes MTC's proposed three-step strategy to overcome financial impacts from the ACA Medical Device Excise Tax. The short-term strategy is to transition fully to distributor setup, eliminate stock from loaner offices and sales vehicles, and close 50% of loaner offices. The mid-term strategy is to streamline logistics by shipping directly from sterilization to distributors. The long-term strategy is to implement self-service kiosks in hospitals to reduce stock through just-in-time fulfillment. The proposed actions are estimated to save $414,000 in 2015 and $135,000 in 2016 by optimizing supply chain and creating strategic hospital partnerships.
MTC presentation.pdf
The document analyzes strategic supply chain improvements for Medical Technologies Corporation to offset losses from an excise tax. It proposes in-house sterilization to reduce costs, limiting sales representatives' roles, eliminating branch offices and trunk stock to streamline inventory, implementing forecasting techniques with lower fluctuation, using smart kiosks and 3D manufacturing for visibility and flexibility, and adapting lean techniques like just-in-time to reduce inventory levels and costs. The changes aim to lower prices and costs while increasing demand, revenue, quality control and customer satisfaction. Initial investments and skilled labor are needed for the proposed upgrades.
Supply Chain Management
This presentation includes notes collected from various sources from internet during my study journey with regard to the topic Supply Chain Management
MTC Supply Chain Analysis & Opportunities
Medical Technologies Corporation (MTC) proposes optimizing its supply chain to reduce costs by 5% and offset a 2.3% medical device tax. It would move sterilization in-house, use distributors for delivery, manage sales representatives differently, partner strategically with hospitals, and develop 3D printing. This would decrease expenses by $143 million annually and increase net income by 8.6% compared to the previous year. A phased timeline was provided to implement changes in logistics, operations, sales, sourcing, and technology across 2015. Risks and contingencies were also outlined.
Improving Cross-Docking Efficiency in Four Key Areas
The document discusses how retailers can improve the efficiency of cross-docking operations in four key areas: advanced shipment notifications, barcodes, warehouse management systems, and material handling systems. It provides recommendations for how retailers can better integrate these areas to streamline receiving processes, reduce costs, and improve supply chain visibility and accuracy through more automated systems and data sharing between retailers and suppliers. Specific opportunities discussed include implementing accurate ASNs, barcoded labeling of all items, pre-receiving based on ASN data, automated conveyor-based receiving, and integrating warehouse IT systems like WMS with material handling equipment.
Supply chain managemen1
The document discusses supply chain management and how it has evolved over time. It describes how globalization, technology, and other factors have impacted businesses and their supply chains. Modern supply chain management approaches aim to serve customers with high quality goods and services at low costs by fostering long-term partnerships between organizations across the supply chain.
Managerial economics-CVP Analysis and AC,TC, MC cost curves
This document discusses cost-volume-profit (CVP) analysis and cost curves. It begins by defining CVP analysis as a technique for studying the relationship between costs, volume, and profit. It then outlines the assumptions of CVP analysis and describes three techniques: contribution analysis, profit-volume ratio analysis, and break-even analysis. The document also discusses average cost (AC), total cost (TC), and marginal cost (MC) curves in both the short-run and long-run, explaining how they are related and their different shapes.
White Paper - Distribution Network Optimization
This document discusses optimization of oil and gas distribution networks through merging operations from acquisitions or partnerships. It describes challenges like complexity from multiple facilities, products, customers and transport modes. The authors propose a 3-stage approach using optimization tools to model scenarios and identify cost savings. A case study details applying this to a joint venture merging Shell and Cosan's Brazilian operations, streamlining the network and increasing profits despite limited volume growth. The optimized network provided clearer supply zones, lowest cost terminals per customer, and evaluated investment returns from new assets.
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Mtc
- 1. MTC COST SAVING PROPOSAL BY: REEM NADY
- 2. MTC CURRENT FINANCIAL SITUATION • MTC is a company with a significant growth rate over the years. • The company’s net profit decreased due to newly enforced taxes. • The company’s Supply Chain is required to cut some costs. • In the following slides I will highlight some areas of improvement in the Supply Chain that can have some cost saving effect.
- 3. MTC CURRENT LOGISTICS SITUATION • MTC uses off-site sterilization for its products. • 3PL distributors are used to transfer the product from and to the off-site sterilization base. • The products get delivered to hospitals through distributors or 3PLs (2 main downstream distribution channels).
- 4. FIRST COST SAVING APPROACH: STERILIZATION • I think that the first approach MTC should pursue is doing something about the off-site sterilization, by either moving it inhouse or partnering up with the sterilization provider. • This will benefit MTC as follows: A. Reducing the lead time of delivery to customers (time is cost). B. Reduce cost of 3PL transportation from and to the sterilization site.
- 5. SECOND COST SAVING APPROACH: DISTRIBUTORS • I think MTC needs to eliminates the distributors downstream channel and mainly depend on 3PLs in distributing their products. • This will benefit MTC in the following: A. Increase MTC’s visibility over its stock movement and turnover (better stock visibility will lead to higher turnover and less cost in holding inventory). B. Make the sales forecast more indicative and reliable, hence no over/out of stock situations (both are cost effective).
- 6. THIRD COST SAVING APPROACH: WAREHOUSES • One of the most efficient Supply Chain approaches to cost saving is reducing the number of warehouses that operate. • This will have huge impact on MTC as follows: A. Reduced 3PL cost of transportation to different warehouses. B. Reduced overhead cost of workers and employees. C. Reduced operational and rental fees. D. Reduced inventory accumulation points.
- 7. CONCLUSION • To conclude, MTC has 3 major axis to work on for cost saving: 1) Sterilization. 2) Distributors. 3) Warehouses.