The case study is for the Supply Chain Management course at Coursera.

1. The Medical Devices Supply Chain Case Study
The Medical Technologies Corporation (MTC)

2. The Medical Technologies Corporation (MTC)
Problem Definition :
The newly-imposed Affordable Care Act (ACA) Medical Device Excise Tax of 2.3% of
revenue which is impacting MTC such that after taxes, 2.3% of sales translated into
over 10% reduction in MTC’s profits.
Impact:
 No one in the corporation would get their annual bonus
 lay-offs might be considered by corporation

3. The Medical Technologies Corporation (MTC)
Requirement:
To develop a cost saving plan to overcome the 10% reduction in profit due to
Affordable Care Act (ACA) Medical Device Excise Tax.
 Disastrous impact as the company is already having lower profitability
 FDA approval to sell the products
 Years of additional investment needed to become profitable
 Major impact on higher job losses

4. The Medical Technologies Corporation (MTC)
Available Details:

5. The Medical Technologies Corporation (MTC)
Available Details:

6. The Medical Technologies Corporation (MTC)
Available Details:

7. The Medical Technologies Corporation (MTC)
Available Details:

8. The Medical Technologies Corporation (MTC)
Improvement Plan
 Inventory management analysis and countermeasure actions to overcome the
deficiencies
 Advance training to surgeon on new medical kits usage so that surgeons are
familiar of kits usage and recommend MTC kits to customer
 Change in sterilization process, MTC should explore the opportunities of in-house
sterilization process or distributor sterilization which would help them cost saving
as well as productivity
 The MTC should compare the cost and benefit analysis of distributor model and
3rd party logistics model and chose the correct one that fits their business
 Use lean principles in supply chain process to eliminate the waste
 Implement the digital technology in supply chain process such as RFID tracking,
inventory digitization, better visual management in manufacturing and logistics
which will improve productivity and cost savings

9. The Medical Technologies Corporation (MTC)
Improvement Plan
 Explore newer manufacturing technologies such as 3D printing the alternative
material substitution for the medical kits
 Start looking to manufacture the devices in low cost countries which would help
to re negotiate the contract with hospitals
 Carryout the competitor analysis to understand what they do differently to stay
in market during these difficult conditions
 Revamp the current selling model and come up with a new strategic selling
model which would help to increase the sales
 Use supermarket/JIT model, kiosks structure at hospital to enhance the efficiency
The above recommendations will definitely help MTC to overcome the tax burden increase revenue
as well profits.