Partnership : Reaching for High Standards It used to be that B . Braun shipped more than 75 % of the product it sold direct to customers from 36 warehouses located across the country . Motivated by customer expectations that product be delivered in no less than 24 to 48 hours , if not the same day ( what Koehler calls “ the Amazon mentality ”), the company decided to close its warehouses and enter into an agreement with a company whose expertise is the healthcare supply chain .

Removing boxes of product from our warehouses to thousands of end-user customers is not attainable with the scope and breadth of items we sell ,” says Tim Cokkinias , vice president of channel management at B . Braun .

Things like backhauls , an idea that came out of “ top-to-top ” meetings between senior leaders of both companies about how to get more product into Medline ’ s network and minimize the occurrence of backorders . “ Our goal , essentially , was to tighten up the supply chain so that we can deliver product to customers on a daily basis ,” Koehler says .

Backhauls : A Win-Win Medline operates the largest owned transportation fleet of any healthcare product distributor in the U . S . Called MedTrans , the fleet continues to grow and diversify to meet the distribution needs of Medline ’ s portfolio of 300,000 + products .

Because Medline ’ s warehouse and distribution network is so vast , the company is able to swing by one of B . Braun ’ s three manufacturing warehouses — one in Daytona Beach , FL , one in Breinigsville , PA , and one in

“ We wanted to be able to ship truckloads of large orders from our plants whenever and wherever possible . To do this , you ’ ve got to have a strong and collaborative relationship with a distributor — one that allows us to dig into things that take the redundant costs out of healthcare .”

— Tim Cokkinias , vice president of channel management , B . Braun

Ontario , CA — and transport product to its own warehouses . Instead of trucks returning to their place of origin empty , Medline is picking up product and going back with a full load to stock in its warehouses . “ We win , they win , and the end user wins ,” Cokkinias says .

“ It was an opportunity to do something outside the norm ,” says Joe McNamara , senior manager of vendor relations at Medline . “ It started in Irvine , where we have two distribution centers and were already driving by their facility , and then expanded to Daytona Beach , where we saw an opportunity to help them on the East Coast . It happened organically , and it worked effortlessly . Both sides have seen a dramatic improvement in getting product to the customer in an efficient and timely manner .”

Today B . Braun is running 12 backhaul lanes with Medline and will be adding three more next quarter . “ Most people only want to backhaul if it ’ s 20 or 30 miles ,” Cokkinias says . “ Because of the density and size of its network , Medline is willing to look at any and all lanes , which makes a big difference .”

Especially since COVID , the transportation industry has become very constrained and challenged , with large players exiting the market and capacity continuing to shrink . “ Medline has taken away the worry that a carrier may not show up because they ’ re going out of business or can ’ t get drivers anymore ,” says Mike Carney , director of North America logistics for B . Braun . “ When B . Braun product goes out the door on a Medline truck , it means it should be available to the customer within 24 to 48 hours . It meets the standard for delivery set by Amazon .”

IV Solutions : Building Resiliency Backhauling has been especially crucial in the movement of IV solutions , which are problematic in that they ’ re inexpensive , yet heavy and cumbersome . A $ 24 case can weigh as much as 50 pounds , resulting in high percent-to-ship costs . It ’ s also a product category plagued by shortages .

In addition to backhauling , under its Supply Resiliency Program , Medline keeps an additional 15 days of inventory on hand for more than 50 of B . Braun ’ s highest running fluid items . The program has signifi-

pounds of medical supplies delivered in 2023 cantly reduced backorder occurrences in the past year , and B . Braun is now looking to expand its resiliency arrangement with Medline to other high-use , high-velocity items that customers need on a daily basis . “ What we ’ re doing here is focusing on the supply chain located closest to the end users ,” Cokkinias explains .

Collaboration : Paving the Way for the Future All of this and more is not to say that things were rosy right from the start . As a medical products manufacturer , Medline isn ’ t just a B . Braun distributor , it ’ s also a competitor . That took getting used to and created tension at times , everyone involved agrees .

The relationship steadily warmed and reached a turning point during COVID , when both manufacturing and the supply chain were experiencing undue constraints . “ When there ’ s a shortage and nothing that can be done , you end up having to figure out some way to allocate the product ,” Cokkinias says . “ Medline excels at creating buffers against any kind of backorder or supply issue . In investing the time and resources needed to take care of the end user the best way possible , they also take care of us .”

It ’ s the kind of partnership , B . Braun leaders say , that bodes well for the future of both companies . “ What we learned we can achieve through collaboration during a crisis , we can continue to do every day ,” Koehler says . “ There are opportunities that go far beyond backhauling , and whether it ’ s us going to Medline or them coming to us , I know we ’ ll come up with the right solution together .”

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