syk dhl life_sciences presentation_final

Supply Chain Trends and Expectations

1

Who is Stryker ?

2

3

“Enhance Your Communication Around Order Status, Adjustments

or Changes”

“You Are Hard To Do Business With”

“Strong Connection At Professional Level, But SYK Not Recognized As Strongly At Administrative Level”

“ We Need Help Reducing Our Supply Chain Costs”

What Are Our Customers Saying

“I need to know when my products

will arrive”

Challenges in Asia Pacific Market

• High growth and complexity with varying maturity • Consider Japan / Australia vs India and China • Differences in infrastructure

• Significant differences in what customers want • Preferences for consignment vs delivery before surgery • Direct Customer Engagements vs a distributor approach • Need to provide surgery assistance?

• Vast geographic spread with significant local variances • Different tier cities within a country • Local delivery requirements / State taxes / documentation

5

Challenges in Asia Pacific Regulatory and Trade Compliance

• Variances in regulations unlike in US or Europe • Country-specific importation and product requirements.

Customs Requirements • Customs can be inconsistent in determination • Country of Origin interpretation sometimes an issue (especially

China)

6

Is Asia Pacific alone?

7

Regulatory Impacts in the Supply Chain

Unpredictable product registration approval leadtime across APAC

• Varies from between 3 months to 2 years • Impacts on inventory requirements in order to fulfill customer needs

ASEAN countries are in different stages of medical device regulation implementation towards ASEAN harmonization.

• Restricts ability to move inventory around the region due to unharmonized regulatory requirements eg labeling

8

9

Expectations from a Service Provider • One integrated end to end service • Sharing of best-in-class practices from other

industry sectors • Share best practices around geographic

trends and opportunities • Actively suggest options to leverage free trade

agreements • Engagement with government to drive clearer

guidelines / policies • Actively notify clients of changes and practical

implications • Ability to invest in class leading technologies

10