SHERIDAN, WYOMING – November 10, 2024 – Baxter, a leading name in the medtech industry, is taking bold steps to transform its supply chain, ensuring that life-saving products reach patients quickly and reliably. In the wake of the COVID-19 pandemic, which exposed vulnerabilities in global supply chains across all sectors, Baxter is investing heavily in innovation to build a more resilient and efficient system.
"COVID-19 made clear that the supply chain innovations we are implementing are essential to maintaining resiliency of our product supply," said Jim Borzi, senior vice president and chief supply chain officer at Baxter. "We have assessed every aspect of the supply chain ecosystem, created a plan A, B and C should unfortunate disruptions occur, and reimagined seemingly small details. This continuous practice improves our ability to deliver lifesaving and life-sustaining products to our customers and the patients they serve.
AI and Machine Learning: Optimizing Operations
Baxter is embracing the power of artificial intelligence (AI) and machine learning (ML) to optimize its manufacturing processes. "Baxter's digital transformation includes our manufacturing facilities, where we are investing in technologies all along the process, from production to inspection and quality testing," explains A.K. Karan, Baxter's global senior director of digital transformation. "Together, these investments help get our products to customers reliably so they can provide the best care possible to patients."
One example is the use of ML and sensors to monitor machine conditions, such as temperature and vibration levels. This proactive approach allows technicians to address potential issues before equipment fails, maximizing production and minimizing downtime.
"In an initial pilot executed at select Baxter sites, we avoided approximately 500 hours of unplanned machine downtime from over 40 alerts in a short time span. This number of machine hours equates to approximately 7 million units of production, so Baxter can positively affect the lives of about 10,000 patients," notes Tim Marini, site director at Baxter's North Carolina manufacturing facility. "As the program expands, we expect this number will continue to grow."
Additionally, Baxter is implementing AI-enabled robots and smart vision systems in its quality assurance process. These systems can detect product inconsistencies with greater speed and accuracy than human inspection, allowing for faster intervention and improved quality control.
Strengthening the Supply Chain Network
Baxter recognizes the critical importance of a robust manufacturing and fulfillment network, especially for urgent healthcare needs. The company consistently ships over one million units of IV fluids in the U.S. every day, thanks to its five strategically located manufacturing plants in North America.
"One of Baxter's highest volume business areas is IV fluids," explains Lee Ann Schuette, vice president of global solutions at Baxter. "The ability to consistently deliver IV fluids rests on our five manufacturing plants that are all located in North America."
Beyond manufacturing, Baxter has invested over $1 billion in U.S. manufacturing improvements in the last five years and has built a strong distribution network, including six mega distribution centers and 38 total distribution centers. This extensive network ensures that products can be delivered quickly and efficiently to customers across the country.
Furthermore, Baxter leverages its global manufacturing footprint to mitigate supply disruptions caused by unforeseen events, such as natural disasters.
Dynamic Transportation and Logistics
Baxter understands that visibility and transparency in the supply chain are crucial for customer satisfaction. To this end, the company has implemented a digital supply chain platform that provides real-time tracking and management of product movement.
"Where is my box?" At the most basic level, visibility to where products are and when they will arrive is critical to customer satisfaction. This is especially true for Baxter's portfolio of products that help save and sustain lives.
This "Control Tower" view of integrated data allows Baxter to optimize logistics, reduce freight costs, improve lead times, and ultimately enhance customer satisfaction.
Baxter's commitment to supply chain innovation ensures that patients receive the critical medical products they need when they need them most. By embracing technology, strengthening its network, and prioritizing efficiency, Baxter is building a more resilient and responsive healthcare supply chain for the future.