MEDICAL SUPPLIES & PPE
Personal Protective Equipment (PPE) /Medical Supplies
Personal Protection Equipment & Supplies (PPE) Zaymat has partnered with SLI Medical to deliver PPE supplies/equipment. Zaymat’s core business is distribution and logistics – that is what we do every day.
Zaymat’s President was Partner/GM of one of Ohio’s oldest logistics companies and this experience helped build the infrastructure to navigate the entire process of sourcing products both domestically and internationally by boat, sea, air, and land. Zaymat’s software systems are cloud-based, which provides real-time management with companies all around the world
Zaymat has the following in place to remain successful in the fluid PPE market:
Funding/Line of Credit Facility
Challenges companies are facing right now with sourcing PPE is access to upfront funding to purchase the equipment from suppliers. Between existing supplier relationships and an existing line of credit facility, Zaymat can deploy up to $20 million in funding to pre-pay for PPE and other supplies.
Recent examples of Zaymat’s ability to execute and fulfill PPE orders and quickly leveraging our network:
Non-Surgical Gowns and Cleveland Clinic: Within two weeks’ notice, we were able to source and deliver 500,000 level 2, non-surgical gowns. All delivered units have been from FDA-certified facilities and tested by a third-party facility based on the standards outlined by ANSI/AAMI PB70 and ASTM F2407. Federal Government Our current supplier network is fulfiling a 4-million-unit non-surgical isolation gown order for the Federal government. This was made possible through direct relationships with manufacturers overseas.
Zaymat currently works with several preferred vendors to handle international facility and product inspections, last mile logistics, and all customs related items. All our vendors have local representatives on the ground, which allows for end-to-end control of our orders.
Select Sourcing Partnerships
Zaymat’s “Teaming Agreement” model is what has created our ability to develop specialized knowledge. Since we had already formed deep relationships and knowledge in the PPE space, we were well prepared to handle the fluid client demands.
The Zaymat team and our strategic partners are familiar with several supply markets, but we have really developed a specialty around PPE and related supplies since the 2020 COVID-19 pandemic. Zaymat’s differentiation is our broad access to manufacturers and suppliers. Our primary PPE supplier, for example, has been distributing healthcare supplies for close to 10 years prior to 2020. The breadth of our network and strength of our relationships is what allows us to deliver for clients and live up to our motto of “What you need. Fast.”
Realities and Limitations of the PPE Market
When the PPE supply chain started to be affected by COVID-19, we were able quickly focus “on-time” delivery of products and supplies to our customers. We also saw how many companies and bad actors were taking advantage of the situation by price gouging and/or selling low quality products.
It was immediately clear to Zaymat that many companies were over promising and under delivering, largely because they did not understand this new “war-time” environment. There were three major shifts in the supply chain that presented problems, even for many seasoned suppliers:
Upfront financing required
Manufacturers request anywhere between 50% - 100% upfront to source product.
This combined with astronomical air freight rates at more than $12/kg that currently needs to be prepaid means the buyer has to pay for the entire product upfront. Most companies do not have access to this type of capital to place such orders.
Mismanagement of expectations
With the explosion of demand, there are a variety of trading companies, manufacturing facilities, and other brokers that have flooded into the market trying to offer PPE that is not certified or well-made. In some cases, they are even providing counterfeit paperwork.
It is a prerequisite when sourcing that you understand all the FDA, ASTM, and AAMI regulations, guidelines, and standards affecting the different types of products.
This has been the biggest issue we have seen in the market. As many states and organizations are scrambling to source PPE, they are often putting out generalized, non-specific purchase orders with the best intentions while they finalize their actual needs.
When you combine this practice with the obvious sense of urgency around COVID, you often have bad actors looking to price gouge or companies that are simply uneducated in the entire PPE procurement process.
The reality is many products with all the appropriate labeling and certifications are not available at scale in a reasonable time frame or reasonable cost. The role of a sourcing agent, especially during this fluid environment, is understanding the evolving needs of the customer and find the best products available within budget. This is not currently happening at an acceptable level.