Vol 4 Third Quarter

A Message From Scott

Scott Sheldon LLC

What an exciting year for our industry—we’ve researched what 2013 did for the supply chain areas of business and are prepared for what 2014 and beyond might bring.

This quarter’s newsletter speaks to some of those “newer” items—like Omnichannel and Additive Manufacturing (3D Printing). We even purchased a 3D printer and displayed its power at LogiPharma where we printed a CT scanned brain. It’s amazing how this technology will change the landscape of the supply chain and manufacturing which we’ve explained in our Point of View.

I also wanted to mention that Scott Sheldon was honored as one of “America’s fastest-growing companies” by Inc. magazine’s “INC 5000”, placing #3362 in the country and #34 in Northeast Ohio. We are very proud to be a part of this exciting industry and thrilled with the growth we’ve experienced with our clients.

So read on about the future and enjoy the Autumn Season! —Scott Spyker, CEO/President

A Message From Scott

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“Everyone must take time to sit and watch the leaves turn.”

— Elizabeth Lawrence

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Additive Manufacturing and Supply Chain

What is additive manufacturing?

Additive manufacturing is a process that takes computer-aided designs of 3D images and converts them into a solid item. This form of “3D printing” uses an additive process, where successive layers of material are laid down in different shapes.

Implications for the Healthcare Supply ChainSourcing and Manufacturing

-Management of raw materials: Raw materials will need to be managed in smaller quantities through a greater number of “localized” shipping points.

-Material manufacturing: Expect to see an increase in demand for raw

material over finished product as customization shifts to the end user who can create products or medicine for a specific purpose or person.

Distribution-Modal shifts: Weight-to-value shipping ratios will be crucial in designing efficient distribution networks.

-Technology: Additive manufacturing itself is creating a technological revolution, but consider the impact on production location.

Costs-Imports: Additive manufacturing will shift supply demands and possibly create new source country suppliers including on-shoring in the U.S.

Our Point of View

Scott Sheldon LLC Vol 4 Third Quarter

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One Word: Omnichannel. It has taken retail by storm. It means connecting with consumers sooner with uniform messaging across all SoLoMo (Social, Local and Mobile) channels, and operating a supply chain as a well-oiled machine.

Retailers simply cannot compete solely in brick and mortar stores these days; the practice of online browsing then in-store purchasing has gained popularity. Not only is an online presence necessary but the presence demands consistency across channels, ease of use, broad range of delivery options and price comparison tools.

Earlier this month Macy’s announced that the company is dedicating a group of fall TV spots to highlight their omnichannel strategies like merchandise localization, assortment fulfillment capabilities, and mobile app features. In their press release, CMO Martine Reardon quoted, “As an omnichannel retailer, we strive to provide a seamless experience for customers who shop with us in-store, online or via mobile devices.” A seamless experience, now that is what omnichannel is all about.

Retail Relationship and the Omnichannel Supply ChainRetailers depend on manufacturers to deliver the right products on time and in the right amount. In a perfect world avoiding overflow

of inventory and achieving most accurate localization of products based on market segmentation and targeting is achieved through analytics. This is where omnichannel assumes its role. Retailers use Social and Mobile and Local communication to reach consumers based on their behaviors within the respective channel; still ensuring a seamless experience for all channels. Tracking this behavior and turning it into supply chain data is what creates the successful merchandise localization, assortment fulfillment capabilities and mobile app features Macy’s has claimed to achieve.

What does this mean for the supply chain? It means lean, transparent operations and communication; state-of-the-art, business-specific technology; and optimal distribution networks. Furthermore, from a distribution standpoint the need for agility in replenishment is apparent. Consumers want to have their cake and eat it too. What I mean is: Obviously during the winter months swimwear will make up more inventory in the Southern states than in the Northern states, yet, if a consumer in Ohio wants a bikini in December she will want it as soon as possible.

Omnichannel and ManufacturingBloomberg BusinessWeek’s article from September 18, The Retail Challenge Facing

Manufacturers, addresses the omnichannel model through a manufacturer lens. According to the article, “Research shows that consumers use smartphones in-store principally to confirm a choice or narrow down multiple options, not to make a purchase from an alternative retailer such as Amazon.” To achieve success in omnichannel the store and mobile device need to have the same look, feel, smell and taste, for the product, especially during simultaneous use. The article goes on the say that “As more chains make free Wi-Fi available to shoppers, manufacturers need to provide digital content that supports in-store decision making.”

So what’s the big data deal? Simply put, gathering information from various channels and customizing it for your needs allows for better allocation of inventory, technological communication and demand-driven distribution. Taking advantage of the market analytics can save time, money and other capital. Yes, big data, the big bad buzzword of supply chain and verticals alike, has a long way to go until it can win over the industries. Every retailer wants answers to the most complex customer intelligence and marketing strategy questions and big data makes a great case for itself. A big data use case we studied claims, “It really is all about the data. Retailers need an intense understanding of the inventory position to match with customers facing data to execute.” While we are prepared to help our customers who initiate big data we couldn’t agree more with the latter of the two statements.

Kate SchneiderSocial Media Specialist at Scott Sheldon, LLCAnd Frequent Omnichannel User

Industry Views

Scott Sheldon LLC Vol 4 Third Quarter

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Funnies

ScottSheldon News

The Healthcare Roller Coaster

INC 5000Local Firm. National Strides. Scott Sheldon is one of the Inc. 5000 fastest-growing companies in America in 2013!

“You are among some pretty impressive company—which is exactly where you belong,” quoted Ed Schurenburg, Editor in Chief at Inc. magazine in his letter announcing their placement.

For 32 years, Inc. has welcomed the fastest-growing private companies in America into a very exclusive club. Make no mistake: The Inc. 5000 was harder to get into this year than ever it its history, according to the magazine.

There’s no doubt that sweeping change in the healthcare industry is coming—and coming fast. We propose that the healthcare industry is nearly 20 years behind other major industries in facing the factors that will shape its vertex and subsequently, its vortex—poised at the very top of the hill that precedes the slope of incredible change for the industry.

In this first white paper, we’ll take an in-depth look at the factors driving this change toward regression of the healthcare industry. We’ll draw parallels with other industries that went through similar decline to expose a pattern of predictable outcomes.

Then, in parts two and three, we address in detail, the various elements of most importance to each business segment of the industry—the manufacturers, the distributors and the providers.

LogiPharma 2013The Scott Sheldon Team made their life sciences debut appearance at the supply chain management conference in September.

“Getting our name, reputation, and mostly, our ideas out there is as important as educating ourselves on the industry—LogiPharma allowed us to do both,” stated Spyker prior to the show.

Also at the show, Scott Sheldon introduced the audience to additive manufacturing and the impacts it will have on all supply chains. We brought our very own 3D printer, and gave passersby a little “peace of mind” (a brain printed with PLA plastic).

In retrospect Spyker said, “LogiPharma was a truly valuable event. We enjoyed meeting everyone, sharing our perspectives on the future of the healthcare supply chain and especially hearing yours. We welcome further discussions and feedback on predictions for the future and current industry trends.”

About LogiPharma LogiPharma calls executives to come together for the world’s premier end-to-end supply chain management conference for the life sciences industry.