26 May Improving the post-pandemic medical device supply chain
The medical device industry has grown at an astounding rate in recent decades. From minor aches and pains to life-threatening diseases, new devices and techniques have been developed to treat a wide range of medical conditions and ailments.
Simultaneously, the medical device supply chain has become an essential component of the healthcare system, acting as a vital link between patient needs and the medical available to meet those needs.
However, the medical device supply chain is not without its difficulties: natural disasters, conflicts, and other unexpected disruptions can all cause major disruptions, with nothing testing supply chain resilience more than the COVID-19 pandemic.
The pandemic highlighted a critical weaknesses in supply chain management strategy within the industry, and the need to be better prepared to mitigate supply chain risks and develop contingency plans to support medical device distribution.
The timing of the pandemic also came at a time when medical device suppliers were already dealing with challenges around labelling, packaging and regulation.
So what is the state of the medical device supply chain – and how do you overcome these obstacles?
Supply chain issues
Ever-growing compliance practices and regulations
Depending on your location and export destinations, medical devices can be subject to strict FDA, CE or local medical device regulations. These apply to every step of the manufacturing process from design and testing to storing, shipping and labelling. It has been exacerbated by the ongoing transition from MDD to MDR within the EU, and UKCA marking following the UK’s departure from the EU following Brexit.
Supply chain maintenance
Medical device maintenance and the associated logistics are part of the supply chain process, whether serviced in the field or shipped back to the manufacturer for repair and review. This often comes with high costs from third party suppliers.
Analog to digital systems transitions
Financing new digital systems that require significant capital and time investments – and could mean further security and compliance regulations – act as a deterrent to replacing inefficient and unsustainable manual processes.
When it comes to managing product recalls, adverse events and formal complaints at speed, a significant supply-chain technology deficit can make your supply chain vulnerable.
How to improve supply chain performance
Invest in supply chain management solutions
These will improve the visibility and ability to plan for supply chain disruptions, such as in-house logistics management, supply chain management software, and third-party logistics providers. Some companies have partnered with logistics providers to manage their supply chains and have improved their ability to respond and recover from supply chain disruptions. Other companies are investing in their own logistics infrastructure, such as truck loading and unloading facilities, to improve their ability to respond to supply chain disruptions in a timely manner, without having to rely on third parties to help manage their supply chains.
Embrace data analytics and machine learning for planning and performance
Use data analytics to predict demand for a product and adjust manufacturing schedules to avoid fluctuations in the supply chain, giving you the opportunity to accurately review forecasts versus demand.
Analysing performance data will allow you to streamline and segment your supply chain and identify inefficient processes across your operations.
Alleviate supply chain volatility with a diversified supplier base
Working with different suppliers enables flexibility, which allows you to respond to changing market trends and customer demands – driving quality customer service.
It will not only help prevent backorders, but also ensures you meet with demand in case of supply shortage – and encourages a creative approach in how you communicate with your suppliers.
Ortho Consulting Group helps companies orthopaedic and spine companies build and strengthen their global sales channels from inception to exit. To find out more about how we can help your business, please get in touch via here.
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