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Selected Case

published: 12 Jan 2005

  • Topic: Operations
  • Industry: Medical Devices
  • Region: Europe

Abstract:
The case documents the evolving characteristics of the contact lens market, driven by rapid technological innovation. The introduction of disposable contact lenses has transformed this business from a low-volume high-margin market space to a high-volume low-margin one. This transformation necessitated a drastically new supply chain solution, which would significantly reduce manufacturing and distribution costs while preserving the close relationships CIBA Vision enjoyed with the health care professionals in the local markets.

Pedagogical Objectives:
The objective of the case is to introduce the Eurologistics initiative CIBA Vision has implemented in mid-1990's to achieve both goals. Special emphasis is placed on the economies of scale in the back office (for efficiency in cost reduction), on the economies of scope in the front office (for effectiveness in customer service), and on project rollout (for employee buy-in).

Keywords:
Supply Chain Management, Logistics and Distribution, Customer Relationship Management, Medical Devices


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