Purolator USA Assists Medical Device Manufacturers in Managing Logistics Costs

JERICHO, NY – January 26, 2009 -- Purolator USA, a leading provider of logistics services to the medical device industry, recently announced an initiative to help its medical device customers manage rising transportation and delivery costs. Like most U.S. manufacturers, the medical device industry has been affected by the nation’s economic downturn, and faces significant challenges in meeting rigid delivery schedules in the face of mounting business costs.

Purolator USA provides logistics solutions for shipments traveling between the United States and Canada, and also for shipments originating in Canada destined to the United States. The company is widely recognized for its expertise in cross border regulatory issues through Purolator Trade Solutions, and for its high level of customer service. Every Purolator customer is assigned a client relations representative, who understands each customer’s shipping needs and can tailor and monitor an individualized logistics plan as the need arises.

“The medical device industry is unique in that many of its products are shipped ‘high priority,’ and timely delivery can literally be a matter of life and death,” said Purolator USA Director of Sales, John Jensen. “While we have services that enable our medical device clients to meet these critical delivery needs, for other, non-urgent shipments, Purolator USA can help device manufacturers rethink their shipping plans, and better manage their logistics costs while still delivering the level of service required to their clients.

“In fact, we have instructed our sales team that priority number one is to reach out to customers that may be struggling, and provide them with more cost efficient and cost effective transportation solutions,” Jensen added.

Reevaluating shipping modes is an obvious place to look for cost savings. Air transportation incurs significantly higher costs than ground transportation. And within the ground transportation category, there are several service levels to choose from. “Businesses need to prioritize their shipments, and use air service for critical, time sensitive parcels,” Jensen said. “Customers can save as much as 50 percent by using ground service over air. With the majority of the Canadian population and business centers lying within 100 miles of the US border, many shipments moving by ground can be delivered next day without incurring the significantly higher expenses associated with shipping exclusively by air”. Jensen added that Purolator USA works with its medical device clients to design custom tailored delivery programs, using both ground and air services to meet the delivery commitments made to their Canadian based customers.

Another way that medical device manufacturers can control logistics costs is by streamlining the border crossing process. While the medical device industry faces a much more stringent regulatory process than most industries, the regulatory process does not have to be a costly and time-consuming obstacle. Purolator USA provides a team of trade specialists who are experts in regulatory compliance. This understanding of the trade process ensures that logistics plans take into consideration the many “short cuts” offered by the U.S. and Canadian governments to facilitate trade between the two countries. These trade incentives often mean reduced tariffs and associated duties, which can also reduce border crossing wait times.

The medical device industry generated $75.6 billion in revenues during 2007, and that figure is expected to increase by roughly nine percent this year. While demand for medical device products will remain strong, the need will grow for logistics providers that can transport those goods in a smart, timely and cost-efficient manner.

Manufacturers interested in learning more about how to control logistics costs can access a new Purolator USA white paper, “Flexibility and Creativity are Keys to Managing Logistics Costs.” This paper offers discussion about several cost-saving options.

Manufacturers can also learn more about Purolator USA’s services at www.purolatorusa.com.