Reducing Lead Times at Medical Manufacturer

Medtronic Sofamor Danek cuts lead times by 42 percent with supply chain management solution

Atlanta — May 28, 2003 — Medical manufacturer Medtronic Sofamor Danek has reduced its lead times by as much as 42 percent by implementing supply chain management solutions from MAPICS, according to an announcement from the solution provider.

Memphis, Tenn.-based Medtronic Sofamor Danek develops, manufactures and distributes implants for the surgical treatment of spinal problems, as well as the instruments needed to make these products effective.

The company has sought to reduce its manufacturing lead times by achieving alignment with supply and demand and synchronization of production on a real-time, order-by-order basis. MAPICS said that Medtronic Sofamor Danek uses the provider's solutions to reduce lead times by determining where resources are under or over utilized throughout the manufacturing processes, allowing the company to make adjustments as needed.

Medtronic Sofamor Danek has reported a reduction in overtime by 44 percent, and lead times for internally manufactured products are down 42 percent. The company has also seen improvements in inventory availability, which now averages between 97 and 98 percent.

"We implemented the MAPICS supply chain management solution in one-half of the time planned and at one-half of the budgeted cost," said Dave Novotny, director of planning for Medtronic Sofamor Danek. "We saw results from our implementation very quickly and are continuing to refine our model to make further improvements."

Dick Cook, president and CEO of MAPICS, said, "This is a very unique market within manufacturing and we are committed to providing refined solutions to help organizations like Medtronic Sofamor Danek and others increase their return on investment by gaining market share, operating at peak efficiency and consistently exceeding customer expectations."

MAPICS said it is the largest global solutions provider focused exclusively on manufacturing, offering enterprise resource planning, customer relationship management and supply chain applications.