Supply Market Intelligence Helps a Medical Devices Manufacturer Drive Higher Efficiency and Savings
Overview of the Medical Devices Industry The global medical devices industry typically includes durable medical equipment such as hospital supplies and medical devices that are utilized in cardiovascular, orthopedics, wound care, neurology, endoscopy, minimally invasive surgeries, audiology, anesthesia, respiratory, gynecology ophthalmology, aesthetics, and urology sectors. Over the past few years, the medical devices industry is […]READ MORE >>
Overview of the Medical Devices Industry
The global medical devices industry typically includes durable medical equipment such as hospital supplies and medical devices that are utilized in cardiovascular, orthopedics, wound care, neurology, endoscopy, minimally invasive surgeries, audiology, anesthesia, respiratory, gynecology ophthalmology, aesthetics, and urology sectors. Over the past few years, the medical devices industry is moving away from an input-based approach to a value-and outcome-based approach. This is to provide best-in-class benefits to a broad set of population. The growth of the medical devices industry is primarily driven by increasing emphasis on quality of care and treatment, aging population, the proliferation of chronic diseases, empowered and informed customers, evolving technologies, and stringent regulatory landscape focusing on cost-containment and patient safety.
Let’s look at a few key factors that are expected to influence the growth forecasts of the medical devices industry in coming years.
- Increased complexity of medical devices and equipment: Increasing complexity of medical devices results in complicated diagnosis and repair processes and spurs the cost of field service. This is subsequently rising the cost of training field service technicians.
- Demanding and diverse customer base: Today, customers have more choices and are demanding better medical devices and equipment. They are also trying to get more out of their reduced capital and expense budgets by asking for higher discounts.
Many such factors are compelling firms in the medical devices industry space to leverage the use of supply market intelligence solutions. Supply market intelligence solutions help companies decrease their procurement spends and deliver superior product and service offerings to their clients. These solutions also assist companies in gaining an in-depth understanding of the latest trends, developments, risks, and recommendations on framing procurement best practices.
The Business Challenge and Journey
The client, a leading medical devices manufacturer with operational units spread across the globe, was facing predicaments in supplier failure rate due to improper risk management planning and strategies implemented. Also, the procurement function was overloaded and focused on secondary activities rather than focusing on strategic activities. The client’s procurement team was also unable to track the performance of their goals. As a result, they wanted to improve their supplier diversity program and formulate appropriate strategies across the supply chain.
To help the medical devices client drive higher efficiency and savings, the supply market intelligence experts at SpendEdge tailored a wide-ranging research methodology. The research approach included primary and secondary research coupled with qualitative and quantitative data collection methods.
During the course of this supply market intelligence engagement, the medical devices manufacturer was able to rank their action plans, think strategically, formulate best practices, and devise new sourcing strategies across business units. Through improved portal connectivity, the client enhanced integration with their suppliers and manage indirect spend across the supply chain.
Fundamental questions answered in this supply market intelligence engagement
The supply market intelligence engagement helped the client enhance productivity and achieve tighter control and compliance across the supply chain. This helped them realize annual savings of $20 million.