Overview: Medtriox Industries produces medical devices. The company is privately owned and is headquartered in Rockford, IL. The firm is comprised of 150 people at their headquarters facility, and 500 at their manufacturing facility in Aurora, IL. Since year 2000, the company has produced different types of portable medical devices to support military and relief efforts. Since then, the company has sold their products to agencies, institutions, and health service providers in the U.S. Their new product, the Ambulet 1000, has seen tremendous growth. It is a portable compact blood analyzer which can also perform other types of lab analysis functions in the field. Last year, it generated a profit of $4.5 million with an annual expected future demand growth of 10%. The product list price is $2500 with a cost of goods sold (COGS) of about $700. The firm plans to increase the production throughput of its manufacturing facility using automation and improving its overall supply chain management processes. For the product, the firm uses three component suppliers situated in Taipei (Taiwan), Nagoya (Japan) and Butte (Montana). The product is currently packaged in 14 x 12 x 12 corrugated boxes. Medtriox’s CEO now has a long-term strategy in the next three years to globalize the company, achieve 10% annual market growth along all product lines and eventually make the company public. The sales team projects annual order quantities over the next three years of about 500 Ambulet units each from three offshore companies located in Tokyo (Japan), Santiago (Chile) and Lisbon (Portugal). Medtriox has promised delivery lead times of no more than 60 days. You are the director of supply chain and logistics for the firm. The CEO wants to solicit input from you as to what kinds of transportation and shipping capabilities the company would need to develop to sell and move these goods across the globe to the three markets. You have been asked to put together a high- level executive summary of the projected transportation and logistics strategy of the firm. Your plan should address the following: 1. Outline a strategy in each of the following areas that you would recommend regarding transportation and logistics to help the company globalize. Make sure that they are clear and actionable. For each strategy, identify 3-5 objectives that would need to be achieved to implement the strategy and clearly explain the reason for each in the context of the new product. Be sure to justify your reasons with factual information: Logistics options Transportation mode options Transportation routes Transportation costs Transportation demand planning Logistics and transportation performance management What forward-looking technologies would be used, why and where Security measures

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Overview:

Medtriox Industries produces medical devices. The company is privately owned and is headquartered in Rockford, IL. The firm is comprised of 150 people at their headquarters facility, and 500 at their manufacturing facility in Aurora, IL. Since year 2000, the company has produced different types of portable medical devices to support military and relief efforts. Since then, the company has sold their products to agencies, institutions, and health service providers in the U.S. Their new product, the Ambulet 1000, has seen tremendous growth. It is a portable compact blood analyzer which can also perform other types of lab analysis functions in the field. Last year, it generated a profit of $4.5 million with an annual expected future demand growth of 10%.

The product list price is $2500 with a cost of goods sold (COGS) of about $700. The firm plans to increase the production throughput of its manufacturing facility using automation and improving its overall supply chain management processes. For the product, the firm uses three component suppliers situated in Taipei (Taiwan), Nagoya (Japan) and Butte (Montana). The product is currently packaged in 14 x 12 x 12 corrugated boxes.

Medtriox’s CEO now has a long-term strategy in the next three years to globalize the company, achieve 10% annual market growth along all product lines and eventually make the company public. The sales team projects annual order quantities over the next three years of about 500 Ambulet units each from three offshore companies located in Tokyo (Japan), Santiago (Chile) and Lisbon (Portugal). Medtriox has promised delivery lead times of no more than 60 days.

You are the director of supply chain and logistics for the firm. The CEO wants to solicit input from you as to what kinds of transportation and shipping capabilities the company would need to develop to sell and move these goods across the globe to the three markets. You have been asked to put together a high- level executive summary of the projected transportation and logistics strategy of the firm. Your plan should address the following:

1. Outline a strategy in each of the following areas that you would recommend regarding transportation and logistics to help the company globalize. Make sure that they are clear and actionable. For each strategy, identify 3-5 objectives that would need to be achieved to implement the strategy and clearly explain the reason for each in the context of the new product.

Be sure to justify your reasons with factual information:

  1. Logistics options

  2. Transportation mode options

  3. Transportation routes

  4. Transportation costs

  5. Transportation demand planning

  6. Logistics and transportation performance management

  7. What forward-looking technologies would be used, why and where

  8. Security measures

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