Subscribe to our free, weekly email newsletter!


UPS takes steps to optimize 36 U.S.-based Field Stocking Locations for medical device sector

By Jeff Berman, Group News Editor
July 16, 2014

UPS said this week it is taking steps to optimize 36 U.S. Field Stocking Locations in order to serve the medical device sector as part of its global healthcare growth strategy.

Company officials said that the objective of this healthcare-compliant FSL network is to reduce delivery time of medical device shipments and also to augment inventory visibility. UPS defines its FSLs as strategically-located facilities designed to support time-sensitive distribution and efficient warehousing of products that help companies get products to their customers faster while better managing inventory costs, regulatory compliance and end-to-end visibility.

And they added that these 36 FSL locations will offer medical device manufacturers with access to more than 80 percent of total U.S. hospital beds within four hours, adding that they will:
-operate under the guidance of UPS’s industry-leading quality assurance and compliance program; and
-feature temperature-controlled or monitored environments and offer same-day delivery services that will enable medical device manufacturers and their field sales representatives to provide best-in-class service to their customers and better manage their inventories to gain efficiencies

UPS director, global healthcare strategy Josh Cannon told LM there were various reasons for enhancing these FSLs.

“With trends like the growing aging population and the increased need to deliver better care at a lower cost, we are working to provide healthcare companies with innovative solutions that help them better manage inventory and realize greater cost efficiencies,” he said. “With 36 cGMP-compliant field stocking locations (FSLs) in the U.S., we are able to provide medical device manufacturers with quick access to over 80 percent of hospital beds within four hours, along with end-to-end visibility of their products, which allows them to have greater control over their costs and inventories.”

Cannon pointed out that the U.S. is the largest medical device market globally, representing 38 percent of the global medical device market in 2012, according to U.S. Department of Commerce data. And Commerce says the market is set to increase to $133 billion by 2016. With that in mind,  Cannon said it made sense for UPS to optimize the U.S. FSL network to better support manufacturers in the U.S.

When asked about the biggest benefits of this news for customers, Cannon cited how there are things that impact not only medical device manufacturers but also their customers, such as hospitals and other healthcare providers.

“First, we are now able to provide manufacturers with increase speed of delivery, by utilizing our strategically located, cGMP-compliant FSLs around the country to quickly reach those who need the devices,” he said. “The solution also provides manufacturers with enhanced visibility, allowing them to track their inventory throughout the supply chain. And, finally, this contributes to better inventory management which can often realize cost efficiencies, as supply chain efficiencies are identified.”

Cannon declined to disclose the next steps for these healthcare FSLs, but he did say UPS constantly evaluates current and future needs in each region and adapts solutions to serve its customers globally.

“We also look for cross-industry solutions when available,” he said. “For example, traditionally, the UPS FSL network is often used by high-tech, telecommunications, aerospace, industrial, automotive and non-regulated medical device manufacturers. We were able to leverage and enhance this existing asset to quickly develop and implement this solution for medical device manufacturers.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

While the ongoing labor negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) ostensibly going from bad to worse, following the ILWU’s announcement late last week that it was halting negotiations from November 20 through November 30, a Congressional group last week penned a letter to PMA and ILWU leadership expressing concern over the state of the negotiations.

Article Topics

News · UPS · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA