Strategic Sourcing Analysis Helps a Leading Durable Medical Equipment Client Automate Processes and Take Advantage of New Market Opportunities
Overview of the Medical Equipment Industry: The durable medical equipment industry is one of the major segments of the healthcare sector that is driven by rapid technological innovations. The unprecedented growth in innovative and improved technologies has resulted in the development of state-of-the-art durable medical equipment, which has acted as a catalyst for the growth […]READ MORE >>
Overview of the Medical Equipment Industry:
The durable medical equipment industry is one of the major segments of the healthcare sector that is driven by rapid technological innovations. The unprecedented growth in innovative and improved technologies has resulted in the development of state-of-the-art durable medical equipment, which has acted as a catalyst for the growth of the healthcare industry. The rapidly growing demand for home healthcare services is a major contributor to the growth of the global durable medical equipment market. Moreover, the exponential growth in home healthcare services is likely to grow in the coming years; thereby, facilitating the use of durable medical equipment.
The Business Challenge and Journey:
The client, a well-known durable medical equipment manufacturer, was looking at leveraging solutions for strategic sourcing. The client was facing issues related to the way spend information is gathered, analyzed, and factored into their procurement processes. Also, since the instability of their supply chain had increased their risks while conducting business operations, concerns were being raised on the continuity of service delivery operations. They were also looking at automating their business processes to enhance their overall efficiency.
Moreover, the company’s supply chain management executives recognized the tremendous scope in implementing strategic sourcing analysis to minimize the impact of supply chain risks on profitability. As such, they were looking at reducing the company’s risk profile by implementing strategies to maximize their financial gains. Strategic sourcing analysis forms an essential part of a supply chain governance system to ensure risks are identified in the entire value chain and mitigated to deliver financial goals.
To identify challenges in the supply chain activities, the strategic sourcing analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the healthcare industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage strategic sourcing analysis?
Strategic sourcing analysis follows a systematic approach that continually monitors and re-assesses the purchasing behavior of an organization. Several leading firms have a buying strategy in place that helps them identify their spending patterns, but many still lack the understanding of their data or a comprehensive strategic approach to sourcing. The benefits of strategic sourcing are not just limited to small cost savings. It also offers other non-financial advantages such a robust spend management capabilities.
Fundamental questions answered in this strategic sourcing analysis study include:
SpendEdge’s strategic sourcing analysis solutions offered relevant insights that helped the client to develop effective strategies to streamline their procurement processes. It also assisted the client in consolidating their purchasing power to secure the best value available in the marketplace. Moreover, the strategic sourcing analysis solution offered detailed insights that helped the durable medical devices manufacturer with the day-to-day management of the supply chain activities. Also, it assisted the client in gathering data to make better-informed decisions. It also enabled them to automate processes and take advantage of new opportunities and changing market factors.
Factors promoting the growth of durable medical equipment market include:
- Technology and product innovations: The rapid advances in technology have increased the dependence on medical equipment to assist healthcare service providers with diagnosis and treatment. Moreover, the improvements in healthcare services will facilitate the treatment of various diseases; thereby, attracting more investors in the durable medical equipment sector.
- Increasing competition: The entry of several private healthcare service providers in the healthcare industry spurs healthy competition for existing players and also offers several growth opportunities.
- New healthcare delivery models: There is an increasing focus on shifting care out of hospitals and into the community. Also, patient pathways are increasingly being modified with the help of powerful analytical tools to obtain better outcomes with lesser with lesser investments.
As the role of durable medical equipment in the practice of healthcare services is increasing, leading healthcare service providers are working on improving their product offerings through innovative designs and product offerings. Nevertheless, the adoption of new durable medical equipment continues to grow both in capability and numbers.
To know more about our strategic sourcing analysis solution