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STRYKER OSTEOSYNTHESIS: Achieving Operational and Supply Chain Excellence
Technology Category
- Analytics & Modeling - Real Time Analytics
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Healthcare & Hospitals
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- System Integration
The Challenge
Stryker Osteosynthesis, a provider of reconstructive, trauma and spinal products in the medical technology industry, was facing challenges in managing its supply chain. The company was struggling with high expectations from customers requiring 24/7 service levels on practically all product offerings, volatility in demand, aligning supply to demand in an ever-changing supply chain, and ensuring suppliers have timely visibility of requirements. The company was also facing issues with inventory quality and delays in product availability. Without strong supply chain visibility, Stryker was unable to optimize its operational effectiveness and efficiencies. The company was experiencing the bullwhip effect, which stems from incorrect forecasts and created additional supply chain challenges. Stryker’s operational efficiency suffered from inconsistent inbound/outbound performance and manufacturing loads, hindering the company’s ability to operate a stable, uniform-capacity load required for optimized process efficiencies.
About The Customer
Stryker Osteosynthesis is a division of Stryker Corporation and a provider of reconstructive, trauma and spinal products in the medical technology industry. Since 1941, Stryker has grown to a position of global leadership in the $35.6 billion orthopedic market, providing a range of products that improve medical professionals’ and patients’ lives in more than 120 countries. Orthopedic disease and trauma affect millions of people each year and through state-of-the-art products, simplified surgical techniques and improved hospital efficiencies, Stryker is developing cost-effective solutions and improving people’s lives worldwide.
The Solution
Stryker decided to focus more on the company’s suppliers and distribution centers and less on its branches and the end customers. The company evaluated several prospective Vendor Managed Inventory (VMI) tools, and ultimately decided that partnering with TradeBeam and its i-Supply inventory management solution was the best choice due to its real-time visibility and single tool/view offering. In 2006, Stryker deployed TradeBeam’s i-Supply solution among three production sites, two in Germany and one in Switzerland. These production sites started together with Stryker’s distribution center in Japan, enabling the distribution center to use just one VMI tool to collaborate with the three production sites. Stryker went live with i-Supply with its first supplier in 2007 and added two more suppliers by the year’s end.
Operational Impact
Quantitative Benefit
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