# Medical Device Drop Shipping: An Answer to Your Distribution Woes

> Discover the benefits of drop ship fulfillment for medical device companies. Save on inventory costs and streamline order fulfillment.

Source: https://lso-inc.com/news/medical-device-drop-shipping-an-answer-to-your-distribution-woes/

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NewsMarch 14, 2024

Drop Ship Fulfillment is a [supply chain](https://lso-inc.com/services/fulfillment-distribution/services/supply-chain-management/) technique wherein the Medical Device Company does not keep any stock/inventory, but transfers complete responsibility for Order Fulfillment to the contract manufacturer. Under this scenario, it is the contract manufacturer that handles both Inventory Management and  [Shipping](https://lso-inc.com/services/fulfillment-distribution/) of products to the end-user.

Building a medical device distribution business / system generally takes a great deal of capital. A large portion of this start-up capital is in the gathering of inventory. It is difficult to accurately predict exact figures for the consumer’s demand. This means that at any time excess inventory / merchandise may be sitting on your shelves for a long period of time, which is money out of your pocket that you are not redeeming.  Drop Ship Fulfillment is a cost effective and efficient solution to drastically reduce the Medical Device Company’s Inventory and Shipping costs. Here are some advantages to having drop shipping for your business:

-   Saves you the large investment of building your own inventory.
-   Reduction in expenses incurred for shipping,  Inventory Management, Human resources, Facility(s) / Warehouse and other resources
-   Eliminates duplication of effort as only one warehouse will pick, pack and ship the product thereby reducing costs in the supply chain.
-   You don’t have to keep a regular inventory, you can get specialty and fast moving products to your inventory list instantly

Full-service Medical Device Contract Manufacturers such as LSO Inc. offer their clients Drop Ship Fulfillment. The following are standard Drop Shipping policies and procedures at LSO:

-   48-hour fulfillment (on most items)
-   Regular inventory availability updates
-   Multiple order consolidation
-   Branded packing slip (included with each shipment)
-   Overnight or next day shipping (upon request)
-   Support shipping via UPS, FedEx, DHL, and USPS as well as selected LTL carriers
-   Daily monitoring and control of specific order fulfillment
-   Assembly
-   Item substitutions
-   Direct-to-supplier returns
-   Fill rate measurements
-   Shared view of data

Ultimately each Medical Device Company must decide for itself, whether the advantages of Drop Shipping far outweigh the risk of outsourcing the process to a third party.  What is of reassurance to these companies though is that Drop Shipping is by and large a ‘transparent’ process and as such is highly conducive for outsourcing.

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## Ship faster with fewer vendors

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