MTS Blog: Local Warehousing - MTS Cracked the Code
26% increase in revenue
42% inventory cost reduction
80% decrease in shrink
You’ve read our blog. We typically take a very professional, expository approach, and we refrain from blowing our own horn. Well, these stats need a shout out.
How does Medical Tracking Solutions (MTS) achieve these impressive numbers for medical device manufacturers? The answer is Local Warehousing, aka Forward Stocking Locations. I know, I know. Manufacturers have tried this before with little success. Sit back, relax, we’ll share the solution.
A Little Background
The idea of Local Warehousing has been around for a while. Manufacturers tried by building and staffing their own warehouses. Not only was this expensive, but there were three other problems: a broad base of infrastructure was too hard to create, the logistics for in-hospital delivery didn’t exit, and the technology used to track inventory was homegrown and not built for complex processes.
While manufacturers tried unsuccessfully to get their efforts off the ground, third-party logistics providers (3PLs) began toying with the idea. They didn’t get very far because they also didn’t have the software needed to track inventory and manage ordering and delivery processes.
The essential element that was missing and therefore precluded either the manufacturers or the 3PLs from being successful was a comprehensive inventory management software system designed for the medical device industry. With the right software solution, the idea of removing inventory from hospitals (and the trunks of some sales reps’ cars), storing it in centralized locations, and leveraging the expertise of 3PLs to distribute the product could become a reality.
MTS has the answer. We partnered with a well-respected, national 3PL with an established network of 42 strategically located distribution centers. We launched our software, iTraycer, as the critical link between the manufacturer, our 3PL partner, and the sales reps. And, the code was cracked. The combination of our partner’s warehousing space and distribution expertise and our software system creates a cohesive, effective closed-loop system.
iTraycer was specifically designed to provide real-time tracking of medical devices and biologics down to the part, lot, and serial number. With 100% visibility, the manufacturer, the distribution center, and the sales reps are all working with and acting on the same information. And, our mobile application enables sales reps to spend more time selling and less time managing inventory and paperwork.
Big, Big Benefits
There are important advantages to this new way of managing inventory for manufacturers:
- With visibility, manufacturers have greater control.
- Control leads to the ability to leverage inventory in the most effective and efficient manner.
- Manufacturers are able to level set their inventory in real-time across the country.
- Less inventory is needed, which accounts for the huge reduction in inventory costs.
- Sales reps have greater access to inventory as they tap a greater pool of resources.
- Sales reps gain back time wasted on inventory management and paperwork and spend that recovered time on increasing sales.
- More savings comes from sharing the warehousing overhead, labor costs of logistics, and delivery expenses with other manufacturers.
What Are You Waiting For?
One thing we can all agree on in the medical device world is that leaving inventory in hospitals in the hands of sales reps is a bad idea. Inventory should be under the control of the manufacturer. The partnership between MTS and our national 3PL enables manufacturers to call all the shots without having to deal with the more mundane but vital operations of warehousing, logistics, and delivery.
Local warehousing was once just a concept. Today it’s a reality. And, now that we’re all on the same page, let’s be the industry that embraces cutting-edge technology instead of the one that gets left behind.
- Jonathan Tillman, COO of Medical Tracking Solutions