EXECUTIVE BIO

Kevin received his B.A. from the University of North Dakota and MBA from Boston University. Kevin is a member of the Healthcare Transparency Institute, Strategic Marketplace Initiative, National Minority Supplier Development Committee, Institute for Supply Management and sits on multiple advisory boards in the medical device industry.

Enhanced visibility via AI & ML

“To start building our supply chain of the future, we mapped our product lines to identify which ones are considered critical to healthcare,” Nelson explains. “These are products that the healthcare industry has deemed essential to care for the patients, and if they aren’t on the market, there’ll be a problem around meeting basic or routine healthcare needs.”

BD identified over a hundred different product lines that are critical to healthcare. Nelson and his team conducted an assessment on every product line, looking at every item in the bills of materials and ensured remediation is in place for the critical high-risk materials.

“A product line may have a few items in the bill of materials, or it may have a few hundred items. We do an assessment on every item in that bill of materials and on every supplier, to see where potential risks are.”

BD creates a composite score that allows them to plot product lines to see which ones are in a high-risk quadrant.

“We can take that back to our business units and work with them to create mitigation plans to dual source, adjust inventory levels, and/or regionally source some of the material or components.”

90%

As part of the work to de-risk high-priority products, BD uses discovery technology that employs AI and machine learning ML to map subtier supply chains for critical products and leveraged that visibility to uncover hidden risks in its suppliers’ extended supply chains.

“During COVID-19, 80% of BD’s supply chain disruptions didn’t come from our direct suppliers,” Nelson adds. “They came from our suppliers’ suppliers or even three or four levels down the chain. Unless you have mapped your entire supply chain and employ very sophisticated technology, it is very hard to know how a disruption at a third or fourth-tier supplier will impact your product.”

An example of the payoff of this work was a recent paper strike in Finland. Because BD mapped the supply chain, the procurement team knew that pulp from Finland was used in medical grade labels the company uses and that there were very few alternate suppliers. BD received early warning signals from the risk intelligence partner along with the visibility to understand the issue early on, work with its partners to find alternate sources and secure inventory of labels well in advance of other companies or industries that would be vying for the same label stock.