Optimizing Inventory Management in the Medical Devices Market Space
About the Client
The client is a global medical devices manufacturer, headquartered in Georgia in the United States. The company employs over 5000 individuals.
The Business Challenge: The client, a leading medical devices manufacturer wanted to leverage SpendEdge’s inventory management strategy to improve medical equipment sales. The company did not want to lose a sale because they didn’t have enough inventory to fill an order. Moreover, they realized that constant inventory issues, such as frequent backorders, can drive customers to other suppliers entirely. By leveraging an inventory management system, the medical devices manufacturer wanted to create an efficient inventory control system that tracks the products the company has in stock and also forecasts how long the supplies will last based on sales activities. Also, with the aid of SpendEdge’s inventory management system, the medical devices manufacturer wanted to drive cost and efficiency improvements in their manufacturing supply chain. Also, their aim was to enhance medical equipment sales, reduce raw material and packaging material inventories in the factories and the finished goods inventories in their distribution centers.
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Solutions Delivered: The inventory management solution offered by SpendEdge helped the client analyze the customer behavior and gain insights into the buying patterns, seasonal demand, and location-based factors. Moreover, the solution also offered an accurate picture of the requirements of the customers and kept quantities of products on hand to avoid out-of-stock issues. The solution also assisted the medical devices company to segment the products based on customer demands ranging from high-value, moderate-value, and low-value. With the help of our inventory management solution, the medical devices manufacturer was able to minimize the cost of inventory while maximizing supply chain efficiency in a timely manner. Additionally, our solutions also assisted the client in monitoring and control, stock-flow analysis, and issue resolution. Altogether, our inventory management strategy also helped the client to increase sales of medical devices and develop a more organized warehouse by improving the accuracy of inventory orders.
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Challenges faced by Manufacturers of Medical Devices
Players in the medical devices manufacturing industry will witness growth opportunities in developing markets, and with the growing importance of surgical equipment and medical devices in modern healthcare, medical equipment sales are expected to increase. Globally, manufacturers medical devices are shifting from a transaction-based approach to an approach that includes concentrating on creating value for practitioners, providers, payers, and patients by offering surgical instruments and medical devices that are highly cost-effective, innovative, and speaks volumes about the product quality. Furthermore, sales of medical devices are expected to grow by leaps and bounds owing to the rising aging population, increasing health concerns, and sky-rocketing health care costs.
In emerging markets, medical devices and surgical equipment are often looked down as cost drivers for limited budget hospitals, although they offer long-term cost-saving opportunities, create effective healthcare practices, and offer improved patient outcomes. Despite the trends and developments, medical devices companies must take the necessary steps to overcome the challenges pertaining to product quality, regulatory compliance, and data security among several others.
Moreover, the existing consigned model of medical equipment sales has resulted in expensive excess inventory. This is a major detriment to the current healthcare climate where medical devices manufacturers are facing increased cost pressures. As a result, device manufacturers are looking for ways to optimize logistics to reduce costs and increase profits. Integrated logistics solutions and inventory management system can help companies streamline their supply chain, gain control of inventory, enhance medical equipment sales, and improve their bottom line.
Businesses who actively manage their inventory, report a 50% reduction in lead times. Want to leverage our inventory management solution for your business? Contact us today!
Why Inventory Management is Important?
Maintaining appropriate inventory levels is crucial for businesses, as too much inventory can be costly. By implementing a good inventory management system, organizations can increase their overall efficiency and productivity, and enhance medical equipment sales. Similar to supply and demand, a reliable inventory management system helps firms in reducing the liabilities and losses created by overstock. Moreover, an inventory management system also offers the benefit of streamlining operations across the supply chain network and improving the overall sales of medical devices.
The inventory management system is critical for companies in the medical devices industry, who maintain three types of inventory: raw material, works in process, and finished goods. If you run out of an essential ingredient or medical equipment stocks, production will halt, which can be extremely costly. If you don’t have a supply of finished goods on hand to fill orders as they come in, you risk losing customers. Thus, staying on top of inventory management techniques is essential if you’re to keep the line running and keep products moving out the door.
Stay steps ahead of the game and always have the right amount of products on hand by making decisions based on inventory trends. Get in touch today!