UPS
Healthcare

Rest easy: UPS will safeguard your healthcare products

0713_ProctiveResponse_Article

UPS Proactive Response monitors shipments through the supply chain.

There's no room for error when it comes to getting critical pharmaceuticals, biotechnology materials or medical devices to the right place, at the right time and in the right condition. Unexpected delays or temperature fluctuations can compromise patient health and could even put your business at risk.

There's no better way to ensure your temperature-sensitive packages arrive on time and in great shape than with UPS Proactive Response.

UPS Proactive Response® provides 24/7 surveillance for these critical UPS Next Day Air® and UPS Worldwide Express® shipments from pickup to delivery. With UPS Proactive Response monitoring your most valuable shipments, and our logistics experts ready to intervene, there's no better way to ensure your packages arrive on time and in great shape. This added layer of service will reduce the threat of spoilage or time-related product loss, improve customer satisfaction and free your time so that you can do what you do best: Run your business.

How it works
Dedicated logistics experts in UPS "control towers" around the world use sophisticated technology tools that predict delays such as adverse weather conditions or customs clearance issues and then trigger a fast corrective response.

If necessary, we will step in and do whatever it takes to safeguard your shipment's contents, from refrigerating the package to replenishing dry ice. We'll promptly communicate with you about the circumstances and take action based on instructions worked out with you in advance. Following pre-established business rules, we can reroute undeliverable shipments, return them to you, hold them for pickup or put them on the next flight out.

Satisfied customers
We know that some shipments are critical. A customer might tolerate a delay when restocking 4-by-4-inch gauze pads – but high-value, temperature-sensitive products are another matter entirely. Consider that of the top three supply chain concerns noted by U.S. respondents in the UPS Pain in the (Supply) Chain study, protecting high-value shipments (product security) was behind only regulatory compliance and managing supply chain costs. Forty-seven percent of the study's global respondents put product damage or spoilage at the top of their list of concerns.

A closer look at the dollars involved can quantify the business risk involved in using a shipper that doesn't measure up. Let's say a pharmaceutical manufacturer uses a carrier with a 98 percent effective rate, but a 3 percent spoilage rate on 100 shipments per day. If each unit shipped is valued at $2,500, that's $2 million in product loss alone every year.

Lost profit from dissatisfied customers also can be significant. Say a device manufacturer needs to deliver 220 implants to hospitals for immediate use, at an average product value of $20,000. If the net profit on each unit is 25 percent, the manufacturer stands to lose $4,400 per month in net profit, or more than $52,000 per year, if the current carrier is only 97 percent effective (assuming a loss of repeat sales of 0.4 percent).

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