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Procurement Challenges Faced by the Health Care Services Industry

Sep 12, 2017

The quality of health care services has significantly progressed over the past few years. The researchers and health care workers of today have found solutions for most diseases that were previously deemed untreatable. The success of improvements in care quality can be credited to the growth of the health care services market space, which includes sectors like laboratory equipment and clinical research. Impressive growth rate exhibited by the laboratory equipment and services market and the clinical research market is an indication of the progressive advancements in the health care services sector. Despite the strong growth of the health care services industry, the suppliers are facing numerous procurement challenges. Here are some top procurement challenges faced by both the sectors of the global health care services market:

Laboratory Equipment and Services MarketLaboratory Equipment

  • Generally, laboratory equipment is produced in high volumes with standard specifications. However, buyers often request for customizations in specifications to meet their specific needs, which may result in manufacturing errors as the companies struggle to meet the demands of the end users within the stipulated time frame
  • Regional suppliers usually have limited capabilities in producing specific equipment. For instance, to establish laboratories in Thailand, Malaysia, and Vietnam, the buyers need to import analytical lab equipment from India and China. Such complicated logistics significantly increases the cost of the equipment
  • Lab equipment manufacturing is a complex process, and suppliers require about 90 days of lead time. Since buyers are increasingly emphasizing on shorter lead times for ad hoc requirements, it is important to specify the requirement beforehand

Request Free SampleClinical Research MarketClinical Research

  • The procedure of developing a new drug is a costly affair and amounts to US$2.5-US$3 billion in the US market. Drug developers incur significant costs if the development process is delayed due to some reason. The additional cost is usually passed on to the final consumers, resulting in inflated drug pricing
  • The drug development process is time-consuming due to multiple phases of clinical trials. This poses a significant risk to the developer as it increases the time-to-market. The developers in the clinical research market are using real world evidence to shorten time-to-market and improve the drug efficacy
  • During the process of clinical trials, test subjects react differently to the drug. The efficacy of the drug can be measured by maintaining high-quality data and making hypothesis, conducting tests, and evaluating the data for safety and drug efficacy

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