"We've managed our growth by partnering with UPS Healthcare as a one-stop shop solution, as opposed to working with multiple logistics partners," says Raj Saroya, Director of Operations at Drive Medical Canada. "We've seen savings, and improved space utilization, product availability, and customer service."
The Challenge
Drive Medical Canada Inc. manufactures and distributes durable medical equipment - hospital beds, bathroom safety devices, mobility devices, and many other products that support the independence and life quality of seniors and others with physical challenges.
"We bend metal and mold plastic," says Robert Lanc, Vice President of Canadian Commercial Product Management for Drive. "But at our essence, we enhance the lives of the people we touch."
Founded in 2000, Drive manufactures most inventory in China, with other manufacturing in the United Kingdom, Germany France, and Romania. Its products are shipped to providers, dealers, and distributors. A dependable supply chain, fast and fluid, is critical to success.
"It's especially true in Canada," says Raj Saroya, Director of Operations at Drive. "Canada is unique and presents geographic and climate challenges to transportation. Tailored solutions are needed to stay ahead of the curve and fulfill our customer needs.
Before November 2019, Drive Canada managed its own logistics. Company leaders contracted with a hodgepodge of 3PL carriers, haggling contracts for each and dealing with separate technology systems, scheduling, delays, and operations.
Instead of spending time growing market share and satisfying customers, Drive's leaders were increasingly forced to focus attention on a challenging supply chain network with all its unsynchronized moving parts.
"Our shipments range from 400-pound beds to a single long-handled shoe horn that can be on the same truck," says Lanc. "We needed a logistics partner with the ability to mix and match, that diversity, and the ability to coordinate delivery to any location with minimal complication – a critical component of our success."
The Solution
Enter UPS Healthcare and its transportation management solutions.
Drive already had a relationship with UPS, which handled ocean containers coming into Canada at Burlington, along with some other logistics. The carrier knew Drive's challenges.
In 2019, UPS Healthcare proposed a logistics Rx that would benefit Drive, its customers, and their patients. With transportation management, UPS Healthcare would arrange every phase of Drive Canada's delivery and distribution … and optimize every nickel Drive spends on transportation.
"With UPS Healthcare helping plan and optimize transportation everywhere in Canada, Drive enjoys reduced costs, faster delivery time, and higher customer satisfaction." says Chris Dunn, VP Canada Logistics, UPS Healthcare.
UPS Healthcare transportation experts can help customers negotiate bids, design inbound and outbound transportation management plans, reconcile invoices from partner carriers, and integrate operations of transportation and warehouse/distribution centers. These solutions support shipping customers that:
- Want to focus on core business
- Want less complication managing globalized manufacturing
- Want better warehouse efficiency
- Want to reduce logistics costs
- Want more space for manufacturing and storage
"We've saved a lot of time going to UPS Healthcare as a one-stop shop, as opposed to working with multiple partners," says Saroya. "We've improved customer service, and we've seen savings."
The Results
Free of the distractions of logistics, Drive focused on growth and customer satisfaction.
The results are impressive.
Drive's facility space requirements have mushroomed, necessitating storage upgrades to a current 130,000 square feet. Sales have increased in 14 major categories of durable medical equipment.
And customer satisfaction?
"That's the name of the game in our business," says Lanc. "Our orders have been much less problematic with UPS Healthcare transportation management. There's no gap any more between customer expectations and our performance."
Saroya says a supply chain that can handle growth and match a company's commitment to customers is the key to success in Drive's business. "We can adapt to changing markets conditions efficiently and effectively," he says. "Without that, a supply chain can be a heavy anchor weighing you down."
Lanc adds that, "It can also take the focus away from what's really important. We are not just shipping a box, but an essential medical device that allows independence and safety.
