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In-Region Postponement Simplifies Starter Kit Production | Life Sciences

Person dressed for exercise, sitting on the ground checking fitness app on smartphone

A digital health and wellness company benefits from single interface solution

CHALLENGE

This fast-growing digital health company manages a connected ecosystem of cellular devices, continuous monitors, health coaches, and real-time health insights delivered through a digital app. 

Welcome packs and starter kits for new users contained blood glucose monitoring devices, reagents, test strips, and other associated materials used for quantitative measurement of blood glucose levels. The company sourced and packed out all welcome packs in China, before shipping to a distribution center in North America. As the operation grew, a number of challenges arose:

  • New tariffs 
  • Risks from unstable relations with China 
  • Shipping complexities
  • Lack of flexibility when demand surges
  • Perception of non-domestically produced goods

The global pandemic (COVID-19) also brought to light the vulnerability of the company’s international supply chain model.  

SOLUTION

The RRD solutions team developed a hybrid model incorporating in-region postponement to help overcome these challenges. Instead of shipping finished goods from China, RRD’s HIPAA-compliant facilities in Mexico and the Midwest handled the kitting, device configuration, and pack out of their starter kits and refill packs.

The solution also included procurement of kit components, the printing of all starter kit print materials, labeling, and management of the logistics of the welcome and refill packs. 

RESULTS

RRD took over as the single interface for the starter kit supply chain. This control tower approach provides the client with complete visibility into their starter kit supply chain. The result? 

Supply chain complexities were greatly reduced. Further benefits associated with RRD’s in-region postponement solution:

  • Increased flexibility and ability to react to changes in demand
  • Shipping refill and replacement kits from RRD’s facilities reduced turnaround times and costs
  • Avoidance of expensive and inflexible finished goods inventories
  • End-to-end visibility of welcome pack orders
  • Removal of tariffs and any perceptions people may have about goods made in China