A Study in Success:
Custom Procedure Tray Kitting
RRD’s customer is among the world’s leading suppliers of medical devices providing a wide range of standard and custom surgical trays used by hospitals and clinics. Their tray program is aimed at optimizing components for a specified procedure to complement the surgeon’s techniques, thereby improving efficiencies and reducing waste.
Sample tray development was taking up to 90 days. Lack of supplier control and visibility, combined with uncompetitive component pricing, exacerbated matters. Increased efficiency was needed, to allow the customer to competitively compete in the marketplace. The customer required rapid project implementation with no backlog and no impact to the end-customer.
Other specific challenges included:
- Cost pressures driven by the market
- Inability to offer customization to end-users
- Inflexibility of scheduling for EO sterilization, compounded by the costs associated with testing
- Demand planning and inventory management
- Inflexible production environment
- Long lead times for product component sourcing and kitting
RRD developed a comprehensive solution to drive efficiencies, improve turnaround time and accomplish a rapid project implementation, while maintaining the highest standards of quality. Our centrally located facility has an ISO 14644-1 Class 8 cleanroom, is FDA registered, ISO 13485 accredited and cGMP/QSR compliant. A quality assurance management program ensures regulatory compliance, including maintenance of Device History Records and Device Master Records. The IT solution included the integration of our ERP system with that of our client’s.
Key aspects of the solution included:
- Centralized procurement
- Packaging and label requirement set-up design, and lot-level tracking and traceability
- Validation of a new sterilization provider, managed by RRD
- Managing the validations for sterilization, packaging and kitting process
- Rationalization of trays and Stock Keeping Units (SKU)
- Open bill of material pricing allowing for increased transparency
- Print on demand for custom procedure tray contents and instructions
- Pharmaceuticals licensing
By developing and implementing this new solution, RRD demonstrated itself as an innovative and integrated provider. Rapid project implementation was achieved in 18 weeks, with no backlog or negative impact to the customer. The customer gained control over its relationship with sub-suppliers, allowing for improved payment terms.
Capital investment has been avoided and invoices are issued only when finished product is shipped from the sterilization provider, thereby greatly improving the customer’s cash flow. The customer now has a faster turnaround time for custom procedure trays all at a lower cost. A cost savings of 5% was achieved in year one of the project and RRD was awarded customer Supplier of the Year in the second year of the contract.
Benefits of Working with RRD
RRD’s core competencies, strategic direction and vertically integrated services can help to create a unique competitive advantage with the following benefits:
- Reduced time-to-market for products with a single interface and global reach
- Reduced total supply chain cost from design through to final product delivery
- Aid in revenue generation with attractive product packaging
- Streamline global processes with enhanced planning and forecasting
Supply Chain Solutions
RRD Supply Chain Solutions is a recognized global supply chain and packaging provider that delivers value-add solutions to multiple sectors. As part of RRD (NYSE:RRD), a broad suite of capabilities is offered including packaging design and production, sourcing, kitting and fulfillment services. Solution design, systems, processes and precise project execution can help customers to constantly improve their market share, profits and speed-to-market.