bill stankiewicz copy healthcare report solution providers

Healthcare & Life Sciences Supply Chain Report 2010

Healthcare & Life Sciences Supply Chain Summit

June 29-30, 2010 – Chicago http://events.eyefortransport.com/healthcare/

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Healthcare & Life Sciences

Supply Chain Industry Report Series

Marketing Supply Chain Solutions

for Healthcare

An in-depth analysis of eyefortransport’s 2010 Executive Survey

For further details, please contact:

Emma Miller,

eyefortransport

World phone: +44 (0)207 375 7178

US Toll Free: 1 800 814 3459 Ext. 7178 Canada Toll Free: 1 866 996 1235 Ext. 7178

[email protected]




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Table of Contents

I. Introduction ............................................................................................. 4

II. Methodology and Approach ................................................................ 5

III. Profile of Respondents .......................................................................... 5

IV. Information from Solution Providers .................................................... 7

V. Conclusions ......................................................................................... 13

Business Development Opportunities in Pharma, Medical Devices &

Healthcare.................................................................................................. 14




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List of Charts

Survey Overview & Demographics

Business Type ............................................................................................... 7

Annual Revenue ......................................................................................... 8

Major Geographic Region ......................................................................... 8

Solution Providers Charts

Customer Requirements when Outsourcing Part of

their Supply Chain ..................................................................................... 32

Difficult Issues for Customers Seeking 3PL Partners ................................ 33

Input in the Design Phase of Products .................................................... 34

Methods of Securing New Business from Pharma or

Medical Devices Companies .................................................................. 35

Methods of Marketing to Prospective Healthcare or

Life Sciences Clients .................................................................................. 35




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I. Introduction

Healthcare supply chains are facing a unique set of changes and

upheavals in the coming months and years. Amid Healthcare Reform,

shifting legislative requirements, and a desire to expand their global

reach, pharmaceutical and medical devices manufacturers are

looking to improve and streamline their supply chain operations to boost efficiency and slash costs.

Though traditionally behind many industries in supply chain efficiency,

healthcare is now actively seeking new and innovative ways to

improve supply chain operations to take their companies into the

future.

This shift presents a vast array of opportunities for supply chain service

and solution providers to the healthcare industry. Those companies

that have established expertise in healthcare will be especially well

positioned to benefit from the upcoming changes. Solution providers

with expertise in other industries, however, stand to gain as well by investing in healthcare-specific infrastructure and capabilities.

This report presents the survey results from a group of executives

working for transport, logistics and supply chain service and solution

providers to the healthcare industry. It offers their perspectives on what

their healthcare customers seek in a solution provider, and shares how

they plan to market their solutions to the healthcare industry as well.

It also draws comparison with the results of the pharmaceutical and

medical devices supply chain surveys, showing where opinions are

aligned across the industry, and where they differ.

The result offers fascinating insight for any solution provider looking to

boost its position among healthcare companies.




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II. Methodology and Approach

The survey was conducted from January - February 2010 with responses

solicited by targeted e-mail lists, select trade association memberships,

various related industry databases and other targeted methods. The

majority of respondents were senior executives representing major

companies with annual revenues of over $1 billion. No individual

responses were analyzed, but rather all responses were consolidated.

This report analyzes the specific responses from transport & logistics

solution providers who provide solutions to healthcare & life sciences

companies. To view the full responses from pharma or medical devices

supply chain executives, please view here: http://events.eft.com/healthcare/download-report.shtml)

III. Profile of Respondents Survey respondents represented various segments of the healthcare

and life sciences industry. Pharmaceutical manufacturers (27%), medical devices manufacturers (26%), and transport or logistics

providers (26%) had the greatest representation. Supply chain solution

providers made up 10% of the total respondents, while other industries

represented included: Clinics, hospitals, and other healthcare providers

(4%); Pharmacies or retailers (3%); Wholesalers or distributors (2%); Contract manufacturers (2%).

The majority of respondents (57%) represented companies whose

annual revenues exceeded $1 billion. 12% of respondents represented

companies with annual revenues between $250 million and $1 billion, 13% represented companies with annual revenues between $50 million




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and $250 million, and 18% represented companies with annual

revenues below $50 million.

The vast majority of respondents were based in North America (46%) or Europe (48%). 4% of respondents were based in Asia (excluding Middle

East), with 1% from the Middle East and Africa, and a further 1% from

Central or South America.




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IV. Responses from Solution Providers

What do healthcare companies look for in a supply chain solution

provider?

The respondents representing solution providers were asked what they

think their healthcare & life sciences customers look for most when

outsourcing part of their supply chain. The majority (73%) identified

credentials and track record of working with the healthcare industry.

Facilities and equipment adequate for working with the healthcare

industry (60%) was the next most popular response, followed by visibility

and inventory management tools (41%), technology capabilities (28%),

executives with healthcare-specific training or expertise (28%), security

protocols (28%).

The results were markedly similar to the traits sought from

pharmaceutical manufacturers and medical devices manufacturers

when choosing new partners. The two exceptions being the increased

importance medical devices manufacturers placed on visibility and

inventory management tools, and the increased importance

pharmaceutical manufacturers placed on technology capabilities.

(http://events.eft.com/healthcare/download-report.shtml)

This alignment of opinions is a good sign for solution providers, and

shows that the majority are well in touch with the needs of their

healthcare & life sciences customers.




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Why do healthcare companies have trouble finding solution providers?

The respondents representing solution providers were asked which

issues they think cause their healthcare & life sciences customers the

most difficulty when looking for 3PL partners. The majority (60%) identified 3PLs lacking healthcare-specific capabilities. 3PLs lacking

adequate facilities or equipment (57%) was the other notable

response, with less popular responses being 3PLs lacking adequate

accreditation/ licensing (27%), high cost (23%), 3PLs lacking adequate

technology (22%), executives at 3PLs are inexperienced in pharma (21%), 3PLs unable to provide adequate visibility (19%), 3PLs lacking

adequate security protocols (18%), and 3PLs unable to provide fast

enough delivery times (17%).

The results varied to the responses from pharmaceutical manufacturers

and medical devices manufacturers. Although 3PLs lacking

healthcare-specific capabilities was the most difficult issue for

pharmaceutical manufacturers and medical devices manufacturers,

solution providers overestimated the importance to them 3PLs lacking

adequate facilities or equipment. Solution providers also slightly

underestimated the importance of high cost, executives at 3PLs are

inexperienced in pharma, and 3PLs unable to provide adequate

visibility.

The concern for both providers and end users regarding healthcare-specific expertise presents a key area of potential improvement for




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service and solution providers. As the survey results make clear,

recruiting staff with specific expertise, as well as training for current staff

could be a significant boost towards better serving healthcare and life

sciences customers.

Do your healthcare customers involve you in the design phase?

Contract manufacturers were asked if their pharma or medical devices

customers involve them in the design phase of their product

development. 24% said that they were given input by pharmaceutical manufacturers, while 26% said that they were given input by medical

devices manufacturers. Similar numbers were also seen between

pharmaceutical manufacturers (50%) and medical devices

manufacturers (54%) not sharing input.




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What do you do to secure new business from healthcare clients?

Another question asked of solution providers was how their companies

position themselves to secure new business from pharma or medical

devices companies. Investing in facilities and equipment to meet

healthcare industry needs (56%), boosting visibility and tracking technologies (51%), and training or recruiting staff with healthcare-

specific expertise (47%) were the most notable responses. Less popular

choices were dedicating resources to keeping up on healthcare

legislation changes (30%) and actively seeking or renewing licenses

and accreditation (23%).




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How do you market your solutions to healthcare clients?

Solution providers were also asked how their companies will market

themselves to prospective healthcare or life sciences clients in the next

year. Travelling to one-on-one sales meetings was the only method

that was selected as a top priority by the majority of respondents. Lead generation campaigns and brand awareness campaigns were

largely seen as very important, while hosting internal events,

roundtables or networking sessions, research and publishing,

conference & trade show exhibition, and speaking at conferences,

were largely seen as being somewhat important.




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V. Conclusions

As the results show, many supply chain service and solution providers to

the healthcare industry are aligned with their customers in terms of

priorities and key issues. However, there are many areas for

improvement and growth.

Specifically, the results show clear room for improvement among

solution providers with regard to investing in healthcare-specific

expertise and infrastructure. Any company looking to gain a stronger

foothold among healthcare companies should clearly assess its

specific capabilities and invest where necessary to make up for any

shortfalls.

Traditional face-to-face contact remains the favorite choice when

building business with new healthcare clients, as competition remains

fierce.

When taken in conjunction with responses from pharmaceutical and

medical devices supply chain executives, the results present a

significant window of opportunity for solution providers looking to

branch into the healthcare & life sciences industry.

_________________________________________________________________

To view the medical devices or pharmaceuticals specific reports,

please visit the link below:

http://events.eft.com/healthcare/download-report.shtml




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Want to meet Healthcare Supply Chain

Executives?

The survey results and issues presented in this report will form the

foundation of discussion at this year’s Healthcare & Life Sciences Supply Chain Summit, June 29-30 in Chicago.

Focussed on Achieving a Globalized Strategy for Your Healthcare

Supply Chain the Summit will bring together an exclusive, high-level

group of senior supply chain executives from top pharma, medical

devices and other healthcare companies.

Confirmed companies include Abbott Laboratories, Medtronic, Pfizer,

GE Healthcare, Purdue Pharma, Alcon Laboratories, Johnson & Johnson

Novartis, Baxter Medical Devices, Eli Lilly, BSN Medical, Myriad

Pharmaceuticals, Rexam Healthcare, Covidien, Sisters of Mercy, and

GS1 will discuss and debate the key issues facing your supply chain this year.

Join these top executives over 2 days and benefit from: ♦ Guaranteed one2one meetings – select delegates from the

list, and we arrange guaranteed meetings for you ♦ Top-level branding – get your company, your solutions and

your sales executives in front of top-level decision-makers

♦ Tell us who to invite – give us a list of your prospective key clients in healthcare, and we’ll invite them to attend for free!

Download the Prices & Packages

♦ For more information on crafting the ideal package

to suit your needs, download the sponsorship &

thought leadership information now

Download online:

http://events.eft.com/healthcare/sponsor-and-

exhibit.shtml

Or contact Toby Spencer: [email protected]; 1-800-814-3459 ext. 7168 or +44 (0)207 375 7168

bill stankiewicz copy healthcare report solution providers

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