A More Cost-Efficient Way To Ship Surgical Equipment
One of the world’s leading medical device companies needed to ship a high volume of intricate and unique devices – often required the next day – out of its spinal business division in Tennessee. Unfortunately, this complex operation was facing millions of dollars in increased shipping costs, creating growing strain on the business’s bottom line.
This medical device company needed a solution to help reduce the cost of shipping and maintain its position as a global market leader.
Two factors – rising FedEx rates and dimensional weight charges – were the primary reasons the company was experiencing millions of dollars in additional freight costs in the southern United States.
Next-day surgery requirements meant that minimal change was possible in the volume, type and need for these devices and instruments.
Hughes Enterprises focused on more efficient packaging, performing a dimensional weight analysis on all corrugated shipping cartons, evaluating implant suitcases and returnable surgery totes.
Here are some examples of key changes that were recommended and then implemented:
- A surgery tote was redesigned into a smaller suitcase.
- A cold-chain package was redesigned from a frozen gel into an ambient temperature, eliminating costly supply-chain requirements.
- Technicians at Hughes Enterprises resized a cooler to match average units shipped, reducing volumetric weight by 80 percent on packages and decreasing material costs.
- Endoscopy products often were shipped one or two at a time in a package that had room for many more. A right-fit package was created to avoid dimensional charges and enhance efficiency.
Each of these changes led to significant savings in dimensional weight charges. The leading medical device company experienced annual savings of more than $3.5 million in shipping costs on just these examples.
Today, this business has a more cost-efficient shipping process for its spinal products and is positioned to maintain its leadership in the market. They now have a trusted partner in Hughes Enterprises to assist with strategic shipping and packaging questions.
If you would like to learn more about our shipping and packaging solutions, contact the experienced consultants at Hughes Enterprises today.