Five advantages of the multi-tenant warehousing model for healthcare manufacturers
January 13, 2017
Between the Affordable Care Act (ACA) and global pricing pressures, healthcare manufacturers are being pushed to improve efficiency throughout their organizations. One of the focal points of those efforts has become the current healthcare supply chain model. To help drive improved efficiency and expand access to top-tier technology and talent, FedEx Supply Chain developed a multi-tenant warehousing solution specifically for manufacturers of healthcare products.
The multi-tenant warehousing solution allows multiple companies to share a facility, while retaining operational autonomy. Small and medium-sized healthcare manufacturers can leverage the multi-tenant warehousing solution to drive better efficiency in their supply chain, in addition to taking advantage of the following five benefits:
- Reduced fixed overhead costs
The benefits of working through the multi-tenant warehousing solution come with measurable cost savings — with the most obvious being less fixed overhead. In a typical multi-tenant agreement, companies only pay for the space they use and the labor required to process their orders. If you operate your own warehousing operation, the cost of rent and labor become fixed — whether or not the space is fully utilized, or your employees have sufficient order volume to process. In addition, the multi-tenant model eliminates the need for the upfront capital investments required for constructing warehouse space in compliance with good manufacturing practice (GMP).
- Access to top-tier technology platforms
Another big expense for any logistics operation is technology, including systems for warehouse management, quality management, and transportation management. The costs of implementing and maintaining technology are significant — but those costs become a shared expense in a multi-tenant warehouse environment. Multi-tenant warehousing often enables companies to gain access to best-in-class technology that they may not be able to justify financially on their own.
- Network optimization analyses
By working with FedEx Supply Chain, distribution and transportation can be optimized in the multi-tenant environment. Our strategic multi-tenant operations and shared transportation options provide access to an existing healthcare distribution network. So, regardless of a company’s own location, the multi-tenant model provides a simple and cost-effective way to leverage an existing infrastructure. At FedEx Supply Chain, we also provide integrated transportation services for inbound and outbound shipment management to further optimize transportation operations. And, our specialized experience with healthcare will help to ensure products are handled properly — with quality and in compliance.
- Access to regulatory expertise and a highly trained workforce
In the healthcare industry, regulatory compliance is a constant concern. Having proper licensing for storing and handling pharmaceutical products and medical devices takes specialized knowledge, equipment and training. FedEx Supply Chain has an established track record of operational excellence in the healthcare industry. Through the multi-tenant warehousing solution, we provide the required subject matter expertise, in addition to established standard operating procedures (SOPs) and quality assurance (QA) protocols. We also offer the benefit of other value-added services — like contract packaging, kitting and relabeling.
- Scalability for growth and flexibility for seasonality
Many companies also experience seasonal impacts in their supply chain. These swings in demand can cause dramatic fluctuations in volumes. The multi-tenant warehousing model can help with seasonal upticks in volume by providing flexible workforce solutions to ensure consistent service quality. It can also offer long-term scalability for accommodating the sustained growth of your business by helping you through difficult transition periods following mergers and acquisitions. In summary, the model aligns variable costs to your demand curves — yielding a more optimized financial model without sacrificing service quality.
Providing supply chain solutions for healthcare products
At FedEx Supply Chain, we see healthcare logistics from a holistic view, allowing us to provide best-in-class, tailored solutions. By leveraging the multi-tenant solution, healthcare manufacturers can reduce the large upfront investment required for establishing a dedicated, GMP-compliant facility. To provide the most value to our customers, we drive continuous improvement that consistently leads to cost reductions, increased efficiencies and improved productivity — without compromising quality, regulatory compliance or patient care.