Conclusions. How to optimize your. Medtec Supply Chain in Europe
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1 Conclusions How to optimize your Medtec Supply Chain in Europe Gerard Kuijs CEO Archicom Consultants + Architects + Engineers 1 Summary BCI For Medtech companies The Netherlands / Belgian area still turns out to be a favourable logistics hotspot: Closeness to integrator hubs Closeness to markets Favourable outbound transportation costs In order to make the right location decision: take into account the whole supply chain picture: Facility costs are 5-8% of operational costs Transportation costs are the driver: >60% of operational costs Johan Beukema Buck Consultants International 2 Archicom. Bright Ideas, Smart Design. 1
2 Summary BCI Outstanding performance Limburg benchmarked in several business cases with 19 other European locations 3 Summary CEVA Understand the customer requirements per PMC (Product Market Combination) Look for synergy potential transport (inbound, outbound) Look for synergy potential warehousing (e.g. campus model) Martin Gouda CEVA 4 Archicom. Bright Ideas, Smart Design. 2
3 Summary DHL Your customers are becoming even more concerned about their supply chain Inventory management can provide a competitive advantage Change can be driven by your customer or yourself Jonathan Blamey DHL 5 Summary TNT Innovation through knowledge sharing: consolidation of feeding activities centralising inventory at EDC Direct Express Concepts, later cut-off times transport (logistics) is not a commodity but a differentiator industry specific solutions Improve efficiencies to face increased costs (fuel surcharge, ) Limburg Strategic position matches with TNT strategic locations Mirko Mueller TNT 6 Archicom. Bright Ideas, Smart Design. 3
4 Summary TNT Amsterdam Rotterdam Antwerp Eindhoven Düsseldorf Brussels Maastricht Cologne Liege 7 Summary ev3 ev3 has achieved maximum performance level, based on it s company volume, Improvements can only be achieved by distribution integration with other Medtec companies ev3 is positioned correctly, due to: location EDC both for in- and outbound physical location of Medtec peers distance to main markets / Economic banana distance to Integrator hubs tax and VAT system of The Netherlands New players on the market benefit immediately from existing logistics infrastructure Erik Kremer ev3 8 Archicom. Bright Ideas, Smart Design. 4
5 Summary ev3 9 Summary PricewaterhouseCoopers Reduced corporate income tax 25,5 % generous tax loss carry-forward and grouping provisions article 23 provides a VAT exemption on imported products AEO certification will speed up the supply chain Stan Bierings PWC 10 Archicom. Bright Ideas, Smart Design. 5
6 Summary Medtronic The Medtech Market is changing: health care costs continue to rise patients become more involved in their Health Care decisions increase usage of competitive biddings from sellers-market to more buyers-market restructuring of Health Care supply chain supply chain becomes a competitive weapon Sikko Zoer Medtronic 11 Summary of conclusions The Medtec Market is changing and the supply chain becomes a competitive weapon The Limburg region has the best papers to fulfill the Medtec market demands: efficient inbound Sea and Airfreight warehousing in Limburg located on distribution gravity point tax and cost efficient operation superb outbound transport modalities latest order entry time next day delivery lowest overall supply chain cost at maximum service level most international region of Europe excellent shared service centre facilities 12 Archicom. Bright Ideas, Smart Design. 6
7 How to optimize your Medtec SC? Shared Service Physical Distribution concept: MedTec Trilandis Target companies: Primary: medical, biomedical, pharmaceutical, med-disposables Secondary: production & assembly, high tech components, spare parts, repairs, etcetera Common operational factors: Warehousing, logistics and parcel distribution Single stock point and high service level Pan European distribution of high valuable / low volume products Shared services: Common Pan European distribution contracts with carriers Labour pool, combined HRM services and capacity exchange Facility services, security and stock space exchange 13 Medtec Trilandis Logistic Park Netherlands Maastricht Heerlen Germany Belgium Liège, France, Luxemburg 14 Archicom. Bright Ideas, Smart Design. 7
8 Trilandis Location Heerlen Heerlen Belgium Germany 15 Phase 2 Phase 1 16 Archicom. Bright Ideas, Smart Design. 8
9 MedTec Trilandis General Concept Available facilities: Office units m2 GFA Warehouse units m2 GFA VAL area s m2 GFA Multi purpose Mezzanine s m2 GFA Total Project contains approx: m2 narrow / wide aisle pallet storage m2 packing / order preparing / expedition space m2 mezzanine for office or storage function m2 VAL space m2 office space 500 parking places Archicom. Bright Ideas, Smart Design. 9
10 Multifunctional Warehouse facilities Storage height (free span) 10,6 m, 6 pallet levels of 1.8 m Multi level shelve system, lean lifts applicable Floor & column grid specified for both narrow / wide aisle operation 8 loading docks + levelers / unit 2 doors on ground level / unit VAL facilities Four individual VAL areas available suitable for: order picking, packing, repair, returns, etcetera Mezzanine floors Each warehouse equipped with mezzanine floors suitable for: small item storage, customizing, assembling, repair, offices, etc Archicom. Bright Ideas, Smart Design. 10
11 Project services and security: ESFR K14 sprinkler system, FM compliant Guarded site, sliding gates, bar fencing, automatic barriers Fence electronic guarded, camera system on site Building / site Access control Burglary alarm system prepared Eco standards: Building thermal isolated above latest building code standards Energy efficient mechanical building services installations Solid state heating system by radiant panels to avoid dust airflow and dust spread Val space conditioned, cooled and air balanced on over pressure Energy saving high frequency fluorescence light Archicom. Bright Ideas, Smart Design. 11
12 Medtec specific items: High level fire safety by applied materials and compartment sizes Structure, walls, roof construction all prefab concrete High quality finishing meeting Medtec product / market standards All walls and ceilings of working area s white coated compliant to standards as FM / HACCP / GMP / TAPA / AEO Modular and expandable layout Separated passenger and truck traffic Development status: Start construction planned October 2008 First phase ready approx autumn 2009 Second phase ready spring Archicom. Bright Ideas, Smart Design. 12
13 25 26 Archicom. Bright Ideas, Smart Design. 13
14 27 28 Archicom. Bright Ideas, Smart Design. 14
15 29 Archicom Consultants + Architects + Engineers Science Park Eindhoven Ekkersrijt 5001, 5692 EB Son P.O. Box 1328, 5602 BH Eindhoven The Netherlands t. +31 (0) f. +31 (0) info@archicom.nl 30 Archicom. Bright Ideas, Smart Design. 15
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