Patrick McCarthy, VP & GM, Supplier Solutions WaveMark, Inc. John Nolan, VP, Global Supply Chain ev3 Inc.
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1 Patrick McCarthy, VP & GM, Supplier Solutions WaveMark, Inc. John Nolan, VP, Global Supply Chain ev3 Inc.
2 Healthcare Supply Chain Environment Healthcare Challenge RFID as a Solution WaveMark RFID Inventory Management Ev3 Case Study Conclusions
3 High cost medical devices represent a growing percent of supply expenditures for hospitals Tighter regulations and shorter shelf lives for products are a growing concern for suppliers Increased fuel costs impact margin and delivery practices of physician preference items Hospitals and suppliers alike need visibility to optimize inventory levels, reduce costs and maintain regulatory compliance.
4 Inventory Accuracy, & Improved Patient Safety Quality The Challenge: Choosing the Right Technology for the Job High RFID RFID solutions enable higher quality at lower costs Low High BarCode Cost Low (Labor, Waste, Price)
5 Automated Data Collection Continuous inventory tracking with RFID enabled cabinets Accurate and automated audits, field transfers, transactions & returns with mobile device Streamlines clinical and administrative workflow Highly Accurate Inventory Certainty of product availability Self correcting system built-in audit mechanism Identifies and manages by exception Efficient Regulatory Compliance Visibility to recalled products: FDA Visibility to field inventory: Sarbanes Oxley Visibility to expired products: JCAHO
6 Company Overview Privately held corporation, founded in 2003, and headquartered in Massachusetts Leverage RFID and network technologies to solve industry specific field inventory challenges to improve cost containment, patient safety and regulatory compliance Business Model and Solutions Operates an ASP based data network serving the medical device industry (suppliers and their customers) Employ modular and mobile solutions Self correcting system with % accuracy Subscription model- no capital expense for providers; comprehensive, module based solution for suppliers
7 Focus on Healthcare WaveMark s focus and experience is rooted in providing solutions for managing high-value medical supplies Provider Solutions [Clinical Inventory Management] Supplier Solutions [Field Transactions & Inventory Mgmt]
8 How WaveMark Utilizes RFID License Plate Concept RFID tag Antenna Lot, Expiration and product ID info is stored in a database and associated to a tag ID Front of tag Back of tag Unique ID on tag RFID tag is put on all ev3 packaging before shipping to the field HF Passive RFID MHz: Worldwide ISO Standard Low cost disposable tags
9 Hospital Inventory and Usage Tracking 1. Tag product 2. Collect data 3. View information Product tagged at manufacturer or hospital Automatic and continuous inventory and usage updates Product level info: lot#, model, serial#, expirations View stock outs, room replenishments, usage, more
10 Total Field Intelligence WaveMark s use of RFID provides tracking from the point of manufacture to the point of consumption Tag It Receive It Use It Manufacturing RFID tags are placed on individual items Ship It Sales Transactions Common sales functions are now automated for field reps Mfgr places tags on packaging at time of manufacture Distribution Center All product is shipped with RFID tags Field Inventory Manage trunk and consigned stock Sold Used in a procedure Product can now be tracked to customer/rep
11 Field Inventory Tracking
12 Supply chain sophistication and visibility High Low Strategic Value Customer Value Operational Value (Supply Chain) Tier 1 Total field visibility Increased customer intimacy/partnership Increased sales & reduced time to invoice Improved demand planning/market intelligence Improved patient safety Tier 2 Better managed SKU proliferation Increased sales & reduced time to invoice Real -Time demand intelligence Tier 3 Automated field audits, transfers, transactions & returns More sales time and less administrative tasks for reps Improve Consignment practices Address SKU proliferation Address Short- Dated Product Address Counterfeiting/Gray marketing
13 Medical Device Manufacturer Mission is to be the Global Leader in Peripheral Vascular and Neurovascular Solutions Large, Diverse Customer Base Large Field Sales Force in US & Globally Large Field Inventory Trunk Stock Consignment Stock Prior State: Manual Audits, Reconciliation, & Field Sales Transactions
14 To Support Current & Future Technology Direction of: Customers Industry Company To Improve Supply Chain Productivity for: Customers Company To Increase Accuracy To Automate Sales & Field Inventory Management To Develop Foundation for Continuous Improvement
15 Aware-Total RFID is long-term, comprehensive journey On Surface RFID is product ID & data collection However-RFID leads to many short-term, longterm, functional and cross-functional benefits Our Approach Select a problem, develop a simple solution, and get started We Chose-Focused partner with bolt-on software, hardware support, and common objectives
16 Corporate Accountability: Product Visibility Improved field inventory management policies Significant reduction in field write-offs Complementary to our ERP system Ability to leverage RFID upstream in manufacturing, as well as downstream (returns processing) Platform for migration OUS Sales/Customer Service: Increased Sales, Less Admin Work Increased sales productivity reduced work for field transactions More accurate field audits- (SOX remediation) More efficient management of expirations Platform for better Sales training Improved field inventory accuracy Reduced time to reconciliation due to serialization of products and electronic pedigree Manufacturing/Distribution: Improved Planning Better demand planning-reduction in field inventory, better inventory turns Better history of each item-improved product search capability More frequent cycle counts Foundation for DC automation; Improved shipment accuracy
17 RFID is compatible with emerging healthcare solutions Supports direction of customers to better serve them Positions ev3 as industry leader in field inventory management RFID is strongly considered to be the technology of choice for UDI (Unique Device Identification) Partner with WaveMark-a leader in multiple integrated RFID solutions for healthcare providers and manufacturers
18 Establish clear goals and measurements for implementation Gain cross functional buy in Solutions must bring value and improved workflow for Sales and Customers Review and revise policies to fit the new RFID enabled paradigm Use data to drive results and improve solution
19 RFID for inventory management streamlines workflow and improves care Cost Containment-Strong ROI Improves clinical workflow Optimizes inventory levels Reduces waste Improved Patient Care/Safety Better serve the needs of customers right products at right time Efficient expiration and recall tracking Efficient Regulatory Compliance Accurate inventory counts satisfy Sarbanes Oxley requirements Proper management of short-dated products
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