UPS seeks to disrupt implantable medical device supply chain

But without manufacturer buy-in, uptake appears to be slow

UPS is rolling out several new tools in an attempt to broaden its business in the implantable medical device supply chain — a play that will require convincing device companies to move away from a sales representative delivery model.

The tools, part of a partnership with logistics companies WebOps and Baxter Planning, seek to allow better insight into surgery schedules, physician preferences and inventory management to streamline logistics planning and “final-mile” services.

The goal is to move the transport of implantable medical devices to a model where specialized fulfillment centers can coordinate delivery of surgical kits and implantable medical devices to multiple hospitals to cut down on idle inventory. But buy-in from device manufacturers appears to still be a question mark, with the existing sales representative model deeply ingrained.

UPS first announced in 2015 that it would be investing in a healthcare-compliant network of 36 cGMP-compliant field stocking locations to support implantable medical device deliveries to expand its healthcare footprint, which one company executive said is one of the company’s five core areas of focus.

David O’Leary, vice president of operations, UPS global logistics and distribution, told Healthcare Dive the goal of the distribution network was to be able to service 80% of hospitals within four hours.

“Today, in those field stocking locations, what we typically do is store these implantable medical devices for a delivery to hospitals for surgeries; it could be a one or two hour delivery for trauma surgery, or it could be a planned surgery where we are going to put it into a routed network and get it to the hospital in time,” O’Leary said.

By David Lim | HealthcareDive

Image Credit: UPS

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About Peter Coffaro 418 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

2 Comments

  1. This will fail massively. Let’s trust a computer and a random $15 per hour UPS driver with surgical coordination. They can’t even deliver a coffee maker to the correct house on Monday instead of Friday. This should go well. I’m sure surgeons will be ok with a delivery slip on the OR door.

  2. The UPS delivery model might work with procedural kits and replenishment to inventory. UPS apparently sees if they do not come up with new revenue models the “Amazon Effect” might erode more into their revenue. Ortho Device companies are looking to the UPS, FedEx, and others to assist in decreasing sales expense. The Med Device Rep today needs to be thinking how to adapt to a shift in sales models.

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