Here’s How Medtronic and CEVA Logistics Aim to Offer World-class Distribution Services with New Distribution Centre in Holland
Effective healthcare delivery critically depends on a supply chain and logistics set-up that’s reliable and flexible enough to guarantee vital resources are always on hand. A new distribution centre in Holland developed by Medtronic and CEVA Logistics aims to achieve that – and more.
Like in any other industry, the healthcare supply chain involves arranging for the acquisition of products and services and monitoring their path from origin to destination. But medical device supply logistics differs from the process in other sectors, as successfully acquiring these resources can be a matter of life or death.
Medtronic, a global leader in medical technology, and CEVA Logistics, a leader in supply chain management, have been at the forefront of medical device logistics and technological development for some time now. Founded in 1949 as a medical equipment repair shop, Medtronic has since grown to be a leading developer of several technologies over the years – including implantable mechanical devices and drug and biologic delivery devices. These technologies currently assist healthcare providers in treating nearly 40 medical conditions.
CEVA Logistics is one of the world’s leading non-asset-based supply chain management companies, designing and implementing industry-leading solutions in both freight management and contract logistics. With some 58,000 employees working in 10 regional clusters around the globe, the company serves both general business and the specialist needs of the automotive, consumer & retail, energy, healthcare, industrial & aerospace, and technology sectors.
Supply chain optimisation is set to be a hot topic at LogiMed 2019, taking place this October at the NHow Rotterdam, Rotterdam, Netherlands.
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A World-class Distribution Centre
Working in partnership, Medtronic and CEVA Logistics chose the Netherlands as the setting for their new distribution centre. With a sophisticated logistics network already in place, the country provides the ideal infrastructure for companies looking to expand in Europe. In the Inbound Logistics’ 2018 Global Logistics Guide, Holland achieved a 10 out of 10 rating, for its strong infrastructure and pro-business climate.
The site for the new distribution centre is in Heerlen, an area known for its cluster of medical logistics companies. From this base of operations, Medtronic’s medical devices and equipment – such as surgical instruments, implantables, and patient monitoring systems – will make their way to healthcare providers across the continent.
Sikko Zoer, Vice President Customer Care and Supply Chain of Medtronic EMEA said, “From our distribution centre, we can reach 15,000 different hospitals in Europe and more areas within 24 hours,” – a clear advantage for healthcare facilities facing the problems associated with overnight shipping.
Built by WDP, the distribution centre is also delivering benefits at the local level. In addition to the more than 1,000 employees currently working at Medtronic’s Centre of Excellence in Heerlen (Medtronic’s European headquarters), 300 employees will work at CEVA Logistics in the distribution centre, which is located directly opposite. This makes the two companies the largest commercial employer in the region.
CEVA Logistics assumes an active role in managing the new distribution centre. Site Manager David Serarols explains: “CEVA takes care of the reception, storage, order picking, packing, and shipping of medical device orders placed by European wholesalers and hospitals. This includes things like surgical kits, medical devices such as neurostimulators and pacemakers, and all the spare parts that go with them.”
Operating conditions at the new logistics hub are maintained to high standards. In accordance with the pharmaceutical industry’s regulatory requirements, the distribution centre is a temperature-controlled warehouse employing safety procedures and systems to maintain the temperature of certain products at all times.
Construction of the facility also followed energy-efficient design principles, said Serarols: “WDP helped CEVA to make the new DC [Distribution Centre] energy-efficient. We looked for sustainable solutions together with WDP’s high-level project and facility managers. We paid extra attention to the insulation of the site, the roof construction, the ventilation system, and sustainable heating whereby we need as little fossil fuel as possible. WDP recently installed solar panels on the roof to make maximum use of green energy.”
Providing for the Future
Future-proofing is also a factor in the layout and usage of the new distribution centre, said Serarols. “There are now four 12,500-m² units in use, totalling 50.000 m2. And that’s only half of the total site because there is enough expansion capacity foreseen to double the current DC [distribution centre]. Medtronic has been growing tremendously in recent years and volumes are rising noticeably. So, it wouldn’t surprise me if we start using the entire available capacity, 100.000 m2, within the next five years.”
Bart Beeks, Executive Vice President of CEVA Logistics Benelux echoes this sentiment and expresses optimism for the years ahead. “This new distribution centre will enable us to offer world-class logistics services, now and in the future. It underscores our logistics expertise in the healthcare sector.”
Discover more about the biggest trends in the medtech supply chain this year at the LogiMed event.
Make sure that you download the agenda today to gain more insights!