European logistics services for medical devices & healthcare supplies
Selling medical devices and healthcare supplies in Europe: logistics considerations for US exporters and manufacturers
Europe and its 500 million consumers are an important export market for many US companies in healthcare and medical device industries. Exporting to Europe involves regulatory items like registration of devices and compliance to EU regulations. And also commercial aspects: sell direct, sell via local distributors/ agents or built your own network in Europe?
But US exporters of medical devices and healthcare supplies also need to incorporate the logistics aspects into their European business strategy. Why? Because logistics has a big impact on your services and profitability in Europe.
Direct shipping is not a winning European business strategy
Many of our medical US customers have evolved from domestic US sales into international business transactions. These customers used to ship their European sales orders directly from the US to Europe by express, airfreight or courier services. A logic choice as most of these express providers was already used for their national US shipments.
In general, intercontinental express or courier services to Europe are a reliable and easy shipping method for US exporters with small order sizes and low order frequencies.
However, if your ambition is to grow your business in Europe, direct shipping of regular/larger orders with express or courier services is just too expensive. Sooner or later you will price yourself out of the European market. As a result it will start hurting your European bottom line and affect the business relation with your European clients in a negative way.
In that case shipping via ocean freight and outsourcing logistics/ fulfillment activities to an industry experienced European Logistics Service Provider (LSP) will be much better options. It will improve overall service and lower total supply chain costs.
An outsourced European distribution center for medical devices and supplies
Outsourcing your European logistics activities like inbound receipt, storage, online inventory management, order fulfillment, picking, testing, packing and order delivery to a European Logistics Service Provider has many advantages:
- Lowers international shipping costs p/item
- No capital investments in people, bricks and IT
- Adapt quickly to changing markets and circumstances/flexibility
- Makes your fixed costs variable (flex with order volumes)
- Extend order cut-off times for your European clients (increase daily sales turnover)
- Shortens delivery times (same day, 24-96 hours across the EU depending on destination)
- Get access to many different B2B and B2C delivery options & services
- Decreases total supply chain costs p/item
- Provides various opportunities to maximize your European customer service
- Strengthens confidence and trust in your services from your European clients
Outsourcing provides a low risk, low cost, high service opportunity to keep growing your European business without being slowed-down. Of course you need to invest time and energy into educating and building a business relation with your European Logistics Provider.
And on a long term perspective you still have the flexibility to have your own logistics distribution center(s) in Europe. Many international companies have evolved from direct shipping via outsourced logistics into having their own European logistics facilities.
Choosing the optimal location in Europe for your logistics fulfillment
For service, speed and cost-efficiency reasons ensure that your European distribution location is closely or centrally situated to your primary European target-markets.
Maastricht in the South of the Netherlands is a good location for your medical logistics activities. Maastricht is a European hotspot for many international medical and healthcare companies. Don’t forget to take other aspects into consideration as well.
No matter where your European distribution center is located, your sales offices/commercial representatives can still be located in major European business cities like Amsterdam, The Hague, Brussels, Paris, London, Vienna, Berlin or any other European city.
In international logistics one size doesn’t really fit all
If you are a small or medium sized business, choose a European LSP which fits your size: this ensures you and your customers will get the required level of attention and sufficient flexibility. Make sure your European LSP has sufficient, proven experience in medical and healthcare logistics. That will shorten education time, ensures customer service and will result in an optimal balance between costs and services. A customer focused LSP will help you to grow your European business.
Europeanize your European business activities
North American consumers are very sensible for “made in America” and service-oriented. European consumers and EU businesses are basically no different. Therefor “Europeanizing” your business on commercial, lingual, cultural, operational and logistics levels is a smart thing to consider.
A practical example: on our initiative an US medical device manufacturer has changed their US product and shipping boxes to more common EU standards. This has resulted in a 10% net saving on international shipping, storage and European shipping costs. As a result their European distributors now also need less storage space.
Europeanizing your European business activities will accelerate your growth in Europe.
Sell easier, safer and more profitable in Europe with a legal entity
Did you know you don’t need a physical European presence to sell your products to European businesses? A legal, Dutch administrative entity provides a lot of fiscal, legal, financial and commercial advantages. Including VAT deferment possibilities. Last but not least a legal European presence will also increase confidence and trust at (future) European buyers.
European logistics services for medical devices & healthcare supplies
More information on international European warehousing, fulfillment & logistics services for medical devices and healthcare supplies? Then contact us. We look forward to grow your business in Europe!
Louis Coenders, KWL European warehousing & logistics