How Stryker Maintains Continuity and Connectivity in the New Era of Global Standards and Mandates
Since 1941, Stryker Corp. has
developed innovative products to improve patients’ lives and push the
boundaries of healthcare.
Primarily, their focus is on surgical devices, but
throughout their lifespan, Stryker has maintained success in a range of medical
fields, such as orthopaedics, neurotechnology, and spinal care. In fact, Stryker’s revenue
for 2018 topped $13.60 billion, while employing over 33,000 people
across the globe. Needless to say, building steady profits and remaining
competitive in advanced disciplines doesn’t come from hard work alone. Instead,
it comes from a transformative strategy of upholding global standards and
mandates as times change.
In a fast-paced world of connectivity and changing
regulations, Stryker has been able to adapt and prepare for the future.
Staying Connected in
the New Era of Supply Chain Management
With up to 65% of a company’s products
and services value coming from suppliers, one of the biggest challenges of
today is sharing data with all parties to keep people informed.
Data is the one resource that can impact success on all
fronts—the overall quality of products and services, delivery and cost
parameters, customer service and satisfaction, and above all, increasing profitability.
With that in mind, supply chain leaders are at the helm of these areas by
controlling costs through maintaining a variety of potential hindrances. For
example, issues regarding weather, transportation delays, financial problems,
quality mishaps, and supplier finances all contribute to supply interruptions.
As a result, progress suffers and leads to a lack of efficiency and a cycle of
constant hurdles.
However, Stryker recognizes the importance of transparency
within their supply chain and makes it a point to collaborate with suppliers to
create better visibility and predictions for future success.
They achieve this by…
•
Cost optimizations through product life-cycle
management, direct sourcing, shared services, indirect spend, global ERP
systems, plant network optimization, and shared services
•
Creating a master resource plan to share with
suppliers based on demand signals and meeting a supply plan 24 months in
advance
•
Using capacity plans to identify potential
bottlenecks and risks to supply, as well as making recommendations for
mitigation of future supply demands
•
Understanding demand volatility to set
appropriate inventory levels and meet supply chain lead times
•
Conducting financial evaluations of supply plans
and weighing product availability against supply costs to ensure investments
are in line with operational targets and end-goals
•
Tracking the success of supply plans with full
organization and production scheduling to ensure a streamlined supply chain
•
Analyzing KPIs for capacity utilization and
supply plan attainment, while upkeeping a master-data table for all parties
involved and having constant communication with all parties through daily and
weekly updates
Stryker’s Approach to
Maintaining Global Standards
According to Ivan Lai, the Senior Director of Stryker’s
neurovascular global supply chain, the
two biggest challenges facing their supply chain include:
1.
Consignment/field inventory
2.
Capacity flexibility and responsiveness
To solve these issues and maintain high global
standards, Stryker optimizes existing systems and fuses them with data insights
and full transparency among different parties. This approach cannot be stressed
enough—companies must support team members with trust and strategic
partnerships, rather than pigeon-holing them into transactional positions that
only allow insight into a particular field.
Upholding global demand and finding success means being proactive with cost reductions, navigating and anticipating risks, and most of all, striving for innovation at every turn.
Medical supply chain connectivity is set to be a hot topic at LogiMed 2019, taking place in March at the Rancho Bernardo Inn, San Diego, CA.
Download the agenda today for more information and insights.