Business Services Industry

Player, coach or both? It's hard to know how much control to give up when outsourcing logistics operations. Shippers tell what works and what doesn't.(Transportation Trends)

Logistics Management (Highlands Ranch, Co.), March, 2005 by Schultz, John D.

Smith & Nephew is in the trauma business, but it doesn't want any emergencies in its distribution system. Like a lot of companies, the $5.7 billion manufacturer of medical supplies prefers to concentrate on its core competency, not on transportation or warehousing for its products, which include bio-engineered skin, surgical supplies, and burn and wound dressings.

That's why Smith & Nephew turned over U.S. distribution for its wound-care division in 1999 to APL Logistics, a third-party logistics company (3PL). APL operates a dedicated, 59,000 square-foot warehouse for wound-care products outside Atlanta. It handles approximately 450 SKUs, all of them lot-controlled and shipped on a first-in/first-out basis. Inventory turns 10 times a year, and while they're in...

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