Eliminating complexity from supply chain; applying a greater focus to core business
A leading healthcare company wanted to increase their commitment to remote care and went about creating a remote peritoneal dialysis program to provide patients with greater access to care
The program involved the daily delivery of customized convenience packs to a patient’s home. Ordered directly through an online portal, the convenience packs are used alongside the patient’s home dialysis machine and contain items such as cleaning fluid, band aids, wipes, sponges, dressings, gauze, and tape.
The main challenge the company faced was managing the level of customization required with each convenience pack. The varying mix of components and quantities added a layer of complexity to the supply chain and resulted in the use of multiple distribution centers, high inventory, and high pick-pack-and-ship costs.
The company sought out to lower costs and reduce supply chain complexity. RRD understood an effective solution would need to sync with the client’s own system and also:
- Manage all suppliers of convenience pack components
- Maintain inventory control of all materials and manage returns
- Ensure all components and suppliers meet regulatory and quality standards
- Pack out all convenience packs and ship direct to patient’s home
In addition, RRD worked with the healthcare company to develop a monthly convenience pack based on typical monthly usage. This monthly convenience pack was offered alongside the core program and contained a standardized number of components. This simplified the supply chain model even further.
Through this strategic partnership, the healthcare company increased the flexibility of their supply chain, eliminated complexity, and reduced costs. Other benefits included:
- Reduced inventory and storage costs
- Simplified order acquisition
- Increased availability in warehouse space
- Reduced logistics costs
By working with RRD, the healthcare company was able to eliminate complexity from their renal care program supply chain and apply a greater focus to their core business. Instead of managing suppliers, inventory, logistics, quality, and pack-out, the company now uses RRD as their single point of contact for the convenience pack supply chain.