Global expansion for healthcare manufacturers – without growing pains


If you’re a healthcare manufacturer that hasn’t yet expanded into overseas markets, you could be missing your greatest chance to grow your business.

Export opportunities for U.S. healthcare manufacturers have never been greater. From Latin America to Asia Pacific, a combination of rising human longevity and government healthcare reforms is catalyzing an increasing demand for quality healthcare services. According to a 2012 report by Global Industry Analysts, greater competition and penetration in developing markets will fuel rapid market growth, driving the value of the global private healthcare market to US$5 trillion by 2018.

If you're serious about taking advantage of new global opportunities, you will need a solid and scalable international supply chain to reliably meet your unique needs from end to end, every time.

So if demand exists and you have the products to satisfy it, what's holding you back from growth overseas? For many manufacturers, the answer is "plenty."

Exporting can be complicated. The UPS 2012 Pain in the (Supply) Chain survey found that while three-quarters of respondents had tapped into new global markets in the 18 months preceding the survey, more than half identified country regulations as the top barrier to global expansion. For example, you not only have to ensure your product complies with regulations in the countries of manufacture and destination, you must also meet the regulatory requirements of the countries it passes through or it risks being deemed ineffectual – or worse.

Selling products overseas may demand a supply chain with deep international reach, which can ensure your products always meet complex and constantly changing regulatory requirements. This may require cold-chain transportation to protect your product's integrity in transit, and a reliable network in the destination country to move your product to its last stop.

You may have concerns about capital, supply chain partners and even customs clearance. And let's face it: Who has the time? Your resources, after all, may be better spent on R&D than on trying to raise capital for a new overseas supply chain facility.

Export services you need
If you're serious about taking advantage of new global opportunities, you will need a solid and scalable international supply chain to reliably meet your unique needs from end to end, every time.

UPS can meet your needs – however complex – with:

  • Less capital-intensive market access via a global footprint of 37 healthcare compliant multi-client distribution facilities
  • Multimodal cold-chain transportation capabilities to facilitate international package, air freight and ocean transportation
  • The capability to geographically stage your product close to consumption markets around the world
  • Licensed facilities that meet federal and local regulatory requirements and which are equipped to provide storage for everything from temperature-sensitive to high-value products
  • Temperature-sensitive transportation solutions, which meet regulatory compliance requirements and provide audit trails for all product movements
  • An integrated global visibility system to let you better manage your inventory across the globe
  • Global trade compliance tools such as UPS TradeAbility®, a suite of tools that makes exporting easy and helps avoid fines or sanctions
    1. Export License Detector – Constantly updated data provides best available export license information to speed the export process
    2. Harmonizer – Quick access to country-specific tariff codes from a single, reliable source can save time and effort better spent on other tasks
    3. Landed Cost Estimator – Forecast net profitability and provide better customer service by estimating the complete cost of international shipments, including duties, customs fees, and taxes
    4. International Forms – Keep up with ever-changing international laws and regulations and get online access to the appropriate essential international shipping forms
    5. Denied Party Screener – Let UPS check U.S. and international databases to ensure your recipient is a lawful recipient of exported products
  • Expert shipping staff in destination countries who ensure your product arrives locally at the right time, in the right location and in the right condition
  • Value-added services such as relabeling and repackaging products for new markets

Backing for your business
Because expanding businesses can quickly outgrow their customer service and financial management systems, UPS also offers its healthcare customers a range of scalable business solutions that allow them to integrate individual business elements – or entire business functions.

For example, customers may choose to integrate financial management elements such as invoicing, collecting funds from customers, providing customer service and managing chargebacks.

Alternatively, UPS's end-to-end Order to Cash® service, available in the United States, can provide a comprehensive-sales management solution that UPS administers, so you don't have to. UPS creates a customized website featuring your company's branding from which your customers can view product and place orders. UPS then manages the fulfillment of the orders, collects funds, manages chargebacks and delivers the proceeds directly to you.

UPS continues to be focused on implementing the world's most comprehensive healthcare system, with a global network of 37 dedicated healthcare facilities and nearly 6 million square feet of distribution space. Every day, UPS provides U.S. companies with opportunities to reach new markets and grow beyond borders, leveraging our expertise and global investment in our global healthcare transportation network so that our customers can continue the activities that brought them so far in the first place: researching and developing new products, and marketing them to new customers. Learn more at our healthcare solutions page.


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