OPERATIONS ANALYSIS

Systagenix - Operations Analysis

Table of Content

Introduction3

Systagenix Wound Management System3

Business Strategy4

Operational Strategy4

Manufacturing, Supply and Distribution6

SYSTAGENIX's process flow7

Product Availability9

Routing Decisions and the Cost of Doing Business9

Network Routes, Equipment Availability9

Shipping and Receiving Facility Constraints10

Reducing Workload by Using Automation and Control10

International Transportation11

Analysis and Recommendation11

References13

Systagenix - Operations Analysis

Introduction

Systagenix Wound Management (Systagenix) is a medical device company engaged in developing wound care solutions. The company's products are useful to promote wound healing, maintain moist wound healing environment and control bacteria. The company provides solutions for the treatment of various infected tissue types including Necrotic Tissue, Fibrinous Tissue, Granulation Tissue, and Epithelial tissue, Dry Tissue, Moist Tissue, Wet Tissue and Infected Tissue. The company manufactures its products at its production facility in Gargave, the UK. It is headquartered in North Yorkshire, the UK.

Systagenix Wound Management System

Wound Management business offers a range of products from initial wound bed preparation through to full wound closure. These products are targeted at chronic wounds associated with the older population, such as pressure sores and venous leg ulcers. There are also products for the treatment of wounds such as burns and invasive surgery that impact the wider population. Systagenix Wound Management business has its global headquarters in Hull, England and its North American headquarters in St Petersburg, Florida. The products are manufactured at facilities in Hull and Gilberdyke, England, Suzhou in China, and also by third party manufacturers around the world.

Business Strategy

Systagenix Wound Management's strategy is to be customer-led and invest for growth by focusing on high growth, high value segments, in particular exudates and infection management, through improved wound bed preparation, moist and active healing and penetration of the NPWT market. There has been a continued focus on operational efficiency and excellence. Since 2007, efficiency improvements have been delivered through various projects including support function consolidation, outsourcing of manufacturing to low cost suppliers, distribution rationalisation projects and the start of manufacturing in Suzhou, China. An aligned approach across the GBU is designed to ensure that our employees are developed and work on common objectives to deliver consistent execution of the Group's plan.

Operational Strategy

Systagenix's customers are the providers of medical and surgical services worldwide. In certain parts of the world, including the UK, much of Continental Europe, Canada and Japan, these are largely government organisations funded by tax revenues. In the US, the Group's major customers are public and private hospitals, which receive revenue from private health insurance and government reimbursement programmes. Medicare is the major source of reimbursement in the US, for knee and hip reconstruction procedures and for wound healing treatment regimes (Collin, 2006, 418). Competition exists among healthcare providers to gain patients on the basis of quality, service and price. Providers are under pressure to reduce the total cost of healthcare delivery. There has been some consolidation in the Group's customer base, as well as amongst the Group's competitors, and these trends are expected to continue in the long term (Craighead, 2007, 131).

Systagenix competes against both specialised and multinational corporations, including some with greater ...