Roadmap for APAC Service & Repair Network Set

Cardinal Health acquired three medical supply businesses from Medtronic (Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency). The range of products Medtronic transferred included Medical Machinery. Unlike consumables which require only supply and product return channels, machinery supplies require maintenance support. Hence, a Service and Repair (S&R) function needed to be created to support these products.

Cardinal Health connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination and better patient management. Backed by nearly 100 years of experience, with approximately 50,000 employees in nearly 60 countries, it ranks amongst the top 25 on the Fortune 500. The company provides clinically-proven medical products and pharmaceuticals, and cost-effective solutions that enhance supply chain efficiency from hospital to home.

Cardinal also brings scaled solutions that help its customers thrive in a changing world. It helps pharmacies, hospitals and ambulatory surgery centers, clinical laboratories and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality.

The Acquisition

In 2017, Cardinal acquired three medical supplies businesses from Medtronic (Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency) for USD 6.1 billion.

The range of products Medtronic transferred included Medical Machinery. Unlike consumables which require only supply and product return channels, Machinery supplies require maintenance support. Hence, a Service and Repair (S&R) function needed to be created to support these products.

Key challenges

• Lack of experience in maintenance function
• Aggressive transaction timelines
• Implementation across 22 APAC countries
• Customization required due to different sizes and operating environments of countries.

Background

• As-is mapping of current systems, processes, infrastructure, SLAsand KPIs
• Gap identification

Considerations

• Business decision points (nodes)
• Solution attributes
• Risk identification: Commercial, Technical and Operational risks

Evaluation Matrix

• Alternative S&Roperating models:
• In-house S&R workshops
• Outsourcing to Logistics Service Provider/4PL/Master Distributor
• Outsourcing to in-country Regional Dealers
• Outsourcing to Third Party Special S&R Providers.
• Country-wise assessment parameters:
• Business objective fulfilment
• Transitional risks
• Investment needs

Solution Design

• Draft implementation roadmap
• Stakeholder inputs: Country/region PMOs, function owners, and other key stakeholders
• Gap analysis and escalation

Outcome

• Country-specific implementation roadmap
• Robust and cost-effective technical service and repair solution

• Country-wise optimal S&R model: We assessed the commercial, operational, cost, and transactional aspects to determine the optimal model for each of the 22 APAC countries.
  For some of the larger and complex countries, SKP delved deeper to offer more granular visibility. Different models were presented based on quality, cost, and timeline analysis, and this helped facilitate selection of a final model.
• Insights on IT and Supply Chain: Insights on complex functional work streams were also provided and used to facilitate decision making.
• Stakeholder inputs: Inputs from geographically scattered stakeholders were consolidated and aligned with the different models.
• Detailed roadmap: SKP provided a detailed roadmap to country specific project management teams to facilitate smooth execution to achieve the desired outcome.
• Solution alignment: Additionally, SKP also supported the client by bringing alignment to the recommended models among the relevant stakeholders scattered across geographies.

Country-wise optimal S&R model

We assessed the commercial, operational, cost, and transactional aspects to determine the optimal model for each of the 22 APAC countries. Different models were presented based on quality, cost, and timeline analysis, and this helped facilitate selection of a final model.

Insights on IT and Supply Chain

Insights on complex functional work streams were provided and used to facilitate decision-making.

Detailed roadmap

Nexdigm (SKP) provided a detailed roadmap to country-specific project management teams to facilitate smooth execution to achieve the desired outcome.

Solution alignment

Additionally, Nexdigm (SKP) also supported the client by bringing alignment to the recommended models among the relevant stakeholders scattered across geographies.