U.S. Market for Medical Device Manufacturers Shipping 2009 TABLE OF CONTENTS TABLE OF CONTENTS ............................I LIST OF FIGURES............................III LIST OF CHARTS............................V EXECUTIVE SUMMARY ........................... 1 1.1 OVERVIEW ............................. 1 1.2MEDICAL DEVICE SUPPLIER PROFILE..................... 2 1.3 CUSTOMER PROFILE .......................... 3 1.4MANUFACTURER’S PRACTICES...................... 4 1.5 CUSTOMER EXPERIENCES........................ 5 1.6 CUSTOMER SUGGESTIONS ....................... 6 RESEARCH METHODOLOGY....................... 7 2.1 RESEARCH METHODOLOGY........................ 7 SURVEY OVERVIEW ........................... 8 3.1 RESPONDENT CHARACTERISTICS ..................... 8 3.2MEDICAL DEVICE SHIPPING FROM MANUFACTURERS ............. 8 3.3MEDICAL DEVICE CUSTOMER FEEDBACK................. 9 MEDICAL DEVICE MANUFACTURERS SHIPPING SURVEY........ 10 4.1 INDUSTRY RESPONDENTS ......................... 10 4.1.1 Question 1: Choice of Carrier ..................... 10 4.1.2 Question 2: Location of Manufacturer Shipping Facility.......... 12 4.1.3 Question 3: Payment of Shipping Costs................ 13 4.1.4 Question 4: Payment for Cost of Returns ................ 14 4.1.5 Question 5: Expediting Fees..................... 15 4.1.6 Question 6: Method for Shipping Packages Over 150lb ........... 16 4.1.7 Question 7: Shipping Price Quoted to Customer.............. 17 Table of Contents © iData Research Inc., 2009 www.idataresearch.net ii 4.1.8 Question 8: Inclusion of Insurance.................... 19 4.1.9 Question 9: Shipping Discounts................... 20 4.1.10 Question 10: Customer Feedback.................... 21 MEDICAL DEVICE CUSTOMERS SHIPPING SURVEY........... 22 5.1.1 Question 1: Respondent Position.................... 22 5.1.2 Question 2: Size of Facility....................... 23 5.1.3 Question 3: Medical Device Packages Received Per Month........ 24 5.1.4 Question 4: Importance of Shipping Cost................ 26 5.1.5 Question 5: Delivery Method.................... 28 5.1.6 Question 6: Shipping Terms...................... 31 5.1.7 Question 7: Expediting Premiums .................. 34 5.1.8 Question 8: Method of Payment ..................... 35 5.1.9 Question 9: Level of Satisfaction .................... 36 5.1.10 Question 10: Handling Fees ...................... 38 5.1.11 Question 11: Discounts on Shipping Costs............... 39 5.1.12 Question 12: Discounts as an Incentive................. 41 5.1.13 Question 13: Other Desired Shipping Options............... 44 SURVEY QUESTIONS............................ 45 6.1 INDUSTRY SURVEY QUESTIONS...................... 45 6.2 CUSTOMER SURVEY QUESTIONS .................... 47 List of Figures © iData Research Inc., 2009 www.idataresearch.net iii LIST OF FIGURES EXECUTIVE SUMMARY......................... 1 Figure 1-1 Differences in Perception on Discounts in Shipping Rates, U.S., 2008 ... 1 Figure 1-2 Map of Medical Device Supplier Home States, U.S., 2008......... 2 Figure 1-3 Typical Number of Packages Received per Month, U.S., 2008 ...... 3 Figure 1-4 Parties (Manufacturers and Customers) Who are Responsible for Paying Shipping Costs of Damaged or Returned Equipment, U.S., 2008 ......... 4 Figure 1-5 Purchasing Agent Familiarity with Shipping Terms Used for Received Packages, U.S., 2008 ......................... 5 Figure 1-6 Customers Suggestions: Criteria for Applying Discounts to Shipping Charges, U.S., 2008 ........................ 6 RESEARCH METHODOLOGY....................... 7 SURVEY OVERVIEW ........................ 8 MEDICAL DEVICE MANUFACTURERS SHIPPING SURVEY........ 10 Figure 4-1 Question 1: Choice of Carrier, Manufacturers ............. 11 Figure 4-2 Question 2: Location of Manufacturer Shipping Facility ....... 12 Figure 4-3 Question 3: Payment of Shipping Costs.............. 13 Figure 4-4 Question 4: Payment for the Cost of Returns ............ 14 Figure 4-5 Question 5: Expediting Fees .................. 15 Figure 4-6 Question 6: Method for Shipping 150lb Package ............ 16 Figure 4-7 Question 7: Shipping Price Quoted to Customer .......... 18 Figure 4-8 Question 8: Inclusion of Insurance ............... 19 Figure 4-9 Question 9: Shipping Discounts ................ 20 Figure 4-10 Question 10: Customer Feedback Received by Manufacturers ...... 21 MEDICAL DEVICE CUSTOMERS SHIPPING SURVEY ............ 22 Figure 5-1 Question 1: Respondent Position, Customers ............ 22 Figure 5-2 Question 2: Size of Customer Facility ................ 23 Figure 5-3 Question 3: Endoscopy Packages Received Per Month.......... 24 Figure 5-4 Question 3: Packages Received Per Month Compared to Facility Size.. 24 List of Figures © iData Research Inc., 2009 www.idataresearch.net iv Figure 5-5 Question 4: Importance of Shipping Cost .............. 26 Figure 5-6 Question 5: Delivery Method – Ability to Select ............ 28 Figure 5-7 Question 5: Delivery Method – Most Common Option.......... 29 Figure 5-8 Question 6: Shipping Terms – Ability to Dictate ............ 31 Figure 5-9 Sample List of Commonly Used Shipping Terms within the U.S. ...... 32 Figure 5-10 Question 6: Shipping Terms – Preferred Option............ 33 Figure 5-11 Question 7: Expediting Premiums ................. 34 Figure 5-12 Question 7: Expediting Premiums – Knowledge Of.......... 34 Figure 5-13 Question 8: Method of payment ................. 35 Figure 5-14 Question 9: Level of Satisfaction ............... 36 Figure 5-15 Handling Fees ...................... 38 Figure 5-16 Handling Fees – Knowledge Of.................. 38 Figure 5-17 Question 11: Discounts on Shipping.............. 39 Figure 5-18 Question 11: Discounts on Shipping - Providers ........... 40 Figure 5-19 Question 11: Discounts on Shipping - Qualifications .......... 40 Figure 5-20 Question 12: Discounts as an Incentive ............... 41 Figure 5-21 Question 12: Discounts as an Incentive – Desired Qualification ...... 42 Figure 5-22 Question 13: Other Desired Shipping options ............ 44 SURVEY QUESTIONS ........................ 45 List of Charts © iData Research Inc., 2009 www.idataresearch.net v LIST OF CHART S EXECUTIVE SUMMARY......................... 1 RESEARCH METHODOLOGY....................... 7 SURVEY OVERVIEW ........................ 8 MEDICAL DEVICE MANUFACTURERS SHIPPING SURVEY........ 10 MEDICAL DEVICE CUSTOMERS SHIPPING SURVEY ............ 22 Chart 5-1 Question 3: Packages Received Per Month.............. 25 Chart 5-2 Question 4: Importance of the Cost of Shipping ............ 27 Chart 5-3 Question 5: Delivery Method – Most Common Option ........ 30 Chart 5-4 Question 9: Level of Satisfaction................ 37 Chart 5-5 Question 12: Discounts as an Incentive – Desired Qualification ...... 43 SURVEY QUESTIONS ........................ 45