As the nuances of logistics and supply chain management in healthcare become increasingly complex, it grows more challenging every year for companies to manage fulfilling orders themselves. If you’re struggling to keep up with fulfillment, it’s time to consider how you could benefit from 3PL healthcare logistics.
Perhaps you think healthcare logistics are too expensive for your budget. Or maybe you’re afraid you’ll lose control over your product. However, implementing the right 3PL service can actually:
- Help you find ways to run distribution efficiently to save money.
- Ensure customers have a consistent, positive brand experience.
- Free up your staff to focus on product development and business growth.
This all sounds great, but the prospect of starting the search may seem overwhelming. That’s why we’ve put together a simple guide to help you. Make sure to ask these five questions to ensure you end up with the right logistics solution for your company.
Consider What You Need From Professional Medical Fulfillment
Before asking the specific questions related to medical device fulfillment services, healthcare logistics, and healthcare compliance, it’s important to (1) determine what you’re looking for in a 3PL, and (2) understand their logistics philosophy. You know the intricacies of your product better than anyone else. So before searching, start by asking your team what type of handling it needs, then think about the 3PL.
Perhaps your products need to be stored and shipped at certain temperatures. Or if you’re doing medical device logistics solutions, your product will likely require special handling to meet strict FDA regulations. These factors will ultimately determine the qualifications you’re looking for in a partner.
Next, consider what goals you’re looking to achieve. Do you want to create a certain type of shipping experience for consumers? Or are you looking to integrate an inventory system that can handle your chain’s complexity? Maybe you just want to streamline your distribution to reduce costs. Since you’re outsourcing the work, now is the time to ask for those improvements while you get to know the 3PL healthcare logistics provider.
Attention to Culture Shifts
When we say cultural shifts, we mean understanding the 3PL’s philosophy on aligning their culture (i.e. way of managing) with the supply chain process in light of an industry’s new challenges.
One important trait to look out for is flexibility. The 3PL’s supply chain process must be flexible enough to accommodate changes in the global supply chain and create new solutions that can support the ever-evolving landscape of healthcare.
Managing constant changes in regulatory compliance, product complexity, points of care, warehousing, and transportation can prove difficult on your own. Your prospective 3PL’s healthcare supply chain should be nimble and adaptive enough to face disruption.
1. Are They Familiar with Bulk Medical Supplies?
From everyday operations to handling a crisis — like shipping medical supplies during times of crisis — having an efficient healthcare logistics program can be life or death in certain circumstances. When outsourcing your healthcare logistics, it’s important to make sure your provider meets several core competencies. Ask if they have:
- Contingency plans for any potential threats or supply chain issues.
- Proper licensing and insurance to cover the delivery process.
- A documentation system that uses technology to monitor product temps, location, and signatures.
One benefit of working with a group experienced in 3PL healthcare logistics is that they already understand the healthcare supply chain. You can rest assured knowing their facilities and employees are up-to-date with regulations and are familiar with handling medical supplies.
2. Do They Have Compliance Certifications?
Given how regulated the healthcare industry is, compliance is everything. Make sure you take time to learn if your potential provider has all the right legal qualifications.
FDA Registered
It’s important to hire someone who understands handling, storing, packing, and shipping your sensitive product in compliance with government regulations. Your provider should be a registered partner with the Food and Drug Administration (FDA).
This is especially relevant if you’re looking for medical device order fulfillment. Only FDA-registered providers can offer 3PL services for medical devices. Without these qualifications, a 3PL cannot legally handle Class I and II medical devices.
CGMP Compliant
CGMP (Current Good Manufacturing Practice) regulations are put in place by the FDA to ensure high-quality standards are met. These practices make sure food, beverages, cosmetics, pharmaceuticals, dietary supplements, and medical devices are handled correctly in warehouses. Plus, CGMP requires the implementation of processes to keep the warehouse clean, well-controlled, and pest-free.
Hazardous Materials Certified
It’s important to make sure the team handling your product is trained and certified to handle hazardous materials. That way they can quickly and appropriately respond to any accidents.
You want to find a team trained in the following:
- Code of Federal Regulations (49 CFR)
- International Air Transport Association (IATA)
- International Maritime Dangerous Goods (IMDG)
- Classes 2,3,9 (including lithium batteries)
3. How Does Their Fulfillment Distribution Center Operate?
Now that you know what credentials your potential partner has, it’s time to ask the same questions you’d ask of a regular 3PL provider. Make sure to learn:
- If they can fulfill e-commerce orders.
- What items they can and can’t handle.
- Which areas they can ship to and timelines for delivery.
- How they integrate technology to manage inventory.
Also, take time to learn about their inventory management process. Aside from technology, learn what procedures they use to rotate products. Find out if they use LIFO (last-in-first-out), FIFO (first-in-first-out), or FEFO (first-expired-first-out).
4. Do They Offer Reverse Logistics?
Another crucial question you should ask is if the 3PL’s healthcare logistics execution includes reverse logistics. Customer satisfaction is always a primary concern, especially for healthcare and medical customers. Plus, reverse logistics only keeps growing in importance.
A reverse logistics program deals with handling product or batch recalls and customer returns. It’s important that your provider can handle returned inventory properly, whether it’s disposed of or reused.
5. What Are Their Shipping Capabilities?
Can the 3PL actually get your items from their fulfillment center to your customers? Since healthcare logistics can differ from normal logistics, it’s important to understand their logistics solutions.
Once you’ve confirmed the 3PL you’re looking to partner with is an FDA registered facility, CGMP compliant, and a HAZMAT certified shipper able to properly store, track, and handle your inventory, the next step is to understand their shipping process. Below are two of the most crucial questions to ask your 3PL regarding their shipping capabilities:
- What are my transportation options? The 3PL must have the ground transportation necessary to deliver to your customers. Be sure to ask how many 18-wheelers they have at their disposal. Also, ask about their backup transportation. For instance, if one of the larger fleet vehicles becomes inoperable, ask if they have vans that can handle smaller shipments, or even if they have partnerships that allow for the use of ocean, rail, or air freight shipping options.
- What is their average on-time arrival rate? You should also ask about their on-time arrival rates, as well as incident reports (if that data is available). Timely delivery is one of the most important traits a consumer looks for in a business, so it’s important you partner with a 3PL capable of reaching a national demographic quickly. It’s also important to have the confidence that your products will arrive to your customers in perfect condition.
3PL Healthcare Logistics and Risk Mitigation
At the heart of it, the questions in this blog are here to help you find a 3PL that can contribute to your business’s growth with as little risk as possible. The truth is, delays and disruptions are common in the world of supply chain management.
No matter the amount of preparation and communication, unforeseen events that disrupt a supply chain have and will continue to occur. That’s why risk mitigation is one of the more important components of 3PL healthcare logistics. By utilizing third-party partnerships and seamless fulfillment technology, a seasoned 3PL can manage delays, disruptions, and damaged goods much more effectively than a healthcare provider handling their own fulfillment.
Our experienced team is familiar with healthcare logistics and ready to assist you. Contact us today to learn more about how we can help your business!
This blog was originally published on May 5, 2020. It was updated on March 29, 2022.