UPS Increases Focus on Medical Devices

Chris Newmarker

July 15, 2014

2 Min Read
UPS Increases Focus on Medical Devices

UPS recently announced it has developed a network of "field stocking locations" (FSLs) meant to reduce delivery time of medical device shipments. The Atlanta-based logistics and shipment giant said Monday that 36 healthcare-capable FSL sites in United States will enable medical device manufacturers to have access to over 80% of hospital beds inside the country within four hours.FSLs are strategically-located facilities designed to support time-sensitive distribution and efficient warehousing, according to UPS. The healthcare-capable FSLs will operate under the guidance of UPS's quality assurance and compliance program, and feature temperature-controlled or monitored environments. They will offer same-day delivery services. UPS is apparently seeking to capitalize on medtech companies' need to squeeze out more profits amid tougher FDA regulations--not to mention U.S. health provider customers that have become increasingly cost-conscious amid the changes taking place under the Affordable Care Act."Due to an increasingly complex regulatory environment and significant cost pressures, medical device manufacturers are looking to the supply chain to lower costs through inventory reduction and enhanced visibility," John Menna, UPS vice president, global healthcare strategy said in a news release.

FSLs are strategically-located facilities designed to support time-sensitive distribution and efficient warehousing of products. UPS's FSL network helps companies get products to their customers faster while better managing inventory costs, regulatory compliance and end-to-end visibility.The 36 FSLs come on top of UPS's 46 healthcare-dedicated and compliant warehousing and distribution facilities worldwide. UPS has been engaging in an expansion of its healthcare-compliant network.

Chris Newmarker is senior editor of MPMN and Qmed. Follow him on Twitter at @newmarker.

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