Overview of the Medical Supplies Industry
Companies offering medical supplies are involved in the manufacture and distribution of a broad range of items that include dental equipment, surgical instruments, elective laser surgery equipment, and other orthopedic products. Within the medical supplies sector, some companies deal with low-tech items such as syringes and surgical gloves. The other companies focus on complex operations including the manufacture of orthopedic and interventional cardiology devices, which require extensive capital spending. This is mainly because the products are highly technology-based and require research and development to maintain a steady rollout of new offerings.
The global medical supplies industry is mainly divided into:
- Medical supplies invasive
- Medical supplies non-invasive
The Business Challenge and Journey
The client, a leading medical supplies firm, was looking at leveraging SpendEdge’s market intelligence solution. The client was facing several issues related to their inefficient supplier management strategies. Also, the instability in their supply chain increased their maverick spend and supplier pricing associated risks.
The company’s supply chain management executives recognized the tremendous benefits of adopting the best practices in market intelligence to minimize their maverick spend. As such, they were looking at reducing the company’s risk profile by implementing a centralized supply chain system for analyzing the supplier’s pricing and cost structure.
To identify challenges in the supply chain functions, the market intelligence experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the medical supplies sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage category market intelligence?
Today’s supply chains are increasingly turning complex and dynamic, with constant changes to suppliers, raw materials, and pricing within the markets themselves. Though ERP tools help in enhancing management capabilities, they do not consider external data. Their “inside-out” approach can leave companies flat-footed when planning and executing competitive supply chain strategies. However, leveraging market intelligence solution helps firms in gaining real-time insights on suppliers, customers, and competitors; thus, creating an “outside-in” perspective to reduce risks and create a competitive advantage.
Fundamental questions answered in this market intelligence study include:
SpendEdge’s market intelligence solution offered relevant insights that helped the medical supplies firm to analyze supplier pricing, cost structure, and drive significant profits. Our market intelligence solution also enabled the client to efficiently keep track of acquisitions, customer wins and losses, divestitures, operational changes, and other such factors that have a substantial impact on a supplier’s ability to deliver. Moreover, it offered relevant insights to better understand a potential supplier’s business strategies, supplier pricing, their management, and their motivations.
- Demand for disposable medical supplies: Healthcare establishments are increasingly adopting disposables as a response to increased pressure from accreditation organizations that aim at preventing patient and staff harms. Also, the adoption of stringent infection prevention policies by leading healthcare service providers will also contribute to the demand for disposable medical supplies.
- 3D printing: The rapid advances and innovation in medical technology are poised to change the way medical supplies are manufactured. 3D printing techniques may aid in the development of advanced medical supplies designed to suit specific applications.
- Demand for polymeric tissue sealants: The demand for polymeric tissue sealants and similar products is expected to accelerate while the demand for bandages will decrease owing to their limited flexibility in terms of innovation and pricing. Also, the higher preference for minimally invasive surgeries will reduce the demand for traditional staples and sutures.
To know more about our market intelligence solution and how we helped the medical supplies firm