Supply chain Management strategy – MTC

PERSUASIVE PRESENTATION
BY
V V PHANIDHARA SETTY
Medical Technologies Corporation (MTC)

 Headquarters: Collegeville, Pennsylvania

 Medical device manufacturing company
 Essential healthcare products in many hospital surgical departments
 Products carrying high price tags vulnerable to economic downturns
 The Affordable Care Act (ACA) implemented an excise tax on medical devices (2.3% of
revenues)
 Expected to drag down average industry profit margins,(8.8% of revenue in 2015)
 The surgical devices that the firm sells puts them squarely into the focus of this tax, and
after taxes, 2.3% of sales translated into over10% reduction in MTC's profits
Logistics at MTC
Logistics at MTC

 The process flow from inbound to outbound, all is managed by conveyor belt for effective
operation. After manufactured the product is stocked in inventory and then when customer
is demanded for product, the product is delivered to customer from warehouse to
customer by mode of transport. The location involved in the all process include,
manufacturing plant to warehouse and then ware house to MTC customer spot.
 The change is made by supply more volume, so that we can manufacture more product for
cheaper price, and that will give smooth relationship between customer and supplier.
Logistics at MTC

 To improve the change one supplier has to follow 7 R's such as

right(place,product,time,customer,location,condition.price), so that the lead time of
process is reduce and supplier will get higher profits.

 Yes, i think by following the 7 R's the supply chain order and delivery will be in smooth
manner, every supply chain objective is to maintain good customer satisfaction and also
long customer retention in order to gain more positive finance in the form of positive cash
flow to supplier.
Operations at MTC

Some of the pro's are,

1. Quicker response time, by reducing the lead time
2. Decreased risk of shortages, because of stock on hand inventory.
3. Quick Replenishment
Some of the con's are,
1.Risk of inventory becoming obsolete
2.Risk of item not selling due to excess stock in inventory
3.Higher storage cost or inventory holding cost
Planning at MTC

 From the previous page the graphical representation of bar chart gives entire process
detail in the year 2013, MTC starting investment is high from the graph say 120000 in the
month of January, but their production is just around 30000, also they shipped around
15000 units and the ending was peak compared to starting that is their profit is just above
the initial investment say 130000. So every month the initial investment is on an average
around 120000 to 140000 and the volume of production are on an average 20000 to 50000
units, and the shipping is around 10000 to 50000 units. Finally their profit in each year is
around 130000 and the peak in the month of September is 140000.
Planning at MTC

 From the previous page the graphical representation of bar chart gives entire process
detail in the year 2014, MTC starting investment is high from the graph say 130000 in the
month of January, but their production is just around 30000, also they shipped around
25000 units and the ending was peak compared to starting that is their profit is just above
the initial investment say 130000. So every month the initial investment is on an average
around 120000 to 150000 and the volume of production are on an average 30000 to 60000
units, and the shipping is around 10000 to 60000 units. Finally their profit in each year is
around 130000 and the peak in the month of September is 150000.
Planning at MTC

 MTC forecast in the year 2013 is Naive Forecast of the

process(starting,production,shipped,ending) what forecast they carried last month record,
continued with same amount of forecast in current month and that is carried out for
months from January to December. so this forecast does not give as much as profit to
MTC.
 MTC forecast in the year 2014 is Cumulative Forecast of the process
(starting.production,shipped,ending) what they carried previous month record, continued
with difference in forecast that is taking the past month record adding it in current month
for better output in overall process. so this forecast does give as much as profit to MTC.
Planning at MTC

 MTC forecast in the year 2013 is Naive Forecast of the

process(starting,production,shipped,ending) what forecast they carried last month record,
continued with same amount of forecast in current month and that is carried out for months
from January to December. so this forecast does not give as much as profit to MTC.. MTC
forecast in the year 2014 is Cumulative Forecast of the process
(starting.production,shipped,ending) what they carried previous month record, continued
with difference in forecast that is taking the past month record adding it in current month
for better output in overall process, so this forecast does give as much as profit to MTC.
From the above forecast I would suggest MTC can make a proper production layout with
Enterprise Resource Planning software and can eliminate the unwanted move and
unwanted cost, also by doing this with implementing all forecast techniques and finding the
best method with accuracy and precision also fulfill their production plan in a better way
Sourcing at MTC

 MTCstrategicsuppliershouldbe,3PL such as 3rd party logistics

 Sales personals
 Transportation
 MTC can believe their key strategic supplier should act following things, Quick response
time in delivery
 Increase in mutual trust
 Quality products
Sourcing at MTC

 Strategic partner who should strive and work for MTC objectives and goals, Strategic
partner should focus on supply chain, sourcing, strategic planning etc
 They can allocate bonus or incentives to strategic partner because they are integral part of
MTC objectives.
 They can increase the order of purchase with less price.
 They can assure the policies and statement of MTC withStrategic partners to tie up for
longer span.
Sourcing at MTC

 MTC can make the sterilization agents, solution with little purchase of raw materials. so it
can reduce the overall cost of off-site sterilization.
 MTC can make the in-house for better access the safety of medical equipment
 MTC overall operation cost is reduced by using make-buy analysis
Thank You