Overview of the Healthcare Industry
The emergence of technically advanced prosthetic devices in the healthcare industry is expected to drive the growth of the global prosthetic devices market. The prosthetic devices market is currently experiencing a huge shift from conventional prosthetics to technologically advanced prosthetics. Also, the manufacturers of prosthetic devices are increasingly focusing on developing low-weight prosthetics by incorporating flexible polymers. Additionally, on the basis of technology the prosthetic devices market is divided into three segments, namely conventional, electric powered, and hybrid prosthetics. Among these, the electric powered prosthetic devices segment accounts for the highest revenue share of the market.
Let’s take a look at the key healthcare industry trends that are shaping the future of the global prosthetic devices market:
- Customization of prosthetic devices: Leading prosthetic device manufacturers are increasingly offering customized services to cater to the individual needs of the end-users. There is a higher preference for customized prosthetic devices in the healthcare industry as such devices provide a higher level of functionality when compared to the traditional devices.
- Innovations in prosthetic device technology: The prosthetic device market has experienced a steady innovation in terms of technology. This has resulted in the availability of advanced prosthetic devices that make use of low-temperature materials for manufacturing prosthetic devices.
Though several factors are favoring the growth of the global prosthetic devices market, there are a few challenges faced by players in this market space. To overcome the challenges, leading players are now leveraging strategic sourcing analysis to devise and implement better sourcing strategies.
The Business Challenge and Journey
The client a well-known prosthetic device manufacturing firm with several business units spread worldwide was looking at developing robust strategic sourcing analysis capabilities. Not surprisingly, the prosthetic device manufacturer found itself battling several problems common to organizations that employ acquisitions and mergers as a growth strategy.
Moreover, the company’s sourcing executives recognized the tremendous scope for streamlining their processes to achieve cost savings in indirect and MRP spend. As such, they were looking at reducing their overall sourcing costs by 15%. Also, since the company was operating using a semi-automated process to analyze its spend data, it had to compromise on the speed of data updates, efficiency, general accuracy, and analytic capabilities. For any organization of such size, this reduction would constitute a considerable sum—and it would go straight to the bottom line. With this in mind, the prosthetic device manufacturer approached the experts at SpendEdge to help them leverage the use of strategic sourcing analysis and implement strategies to enhance their supply chain performance.
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 transportation services sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Who should implement strategic sourcing?
SpendEdge’s strategic sourcing analysis offers end-to-end solutions that reduce the overall purchasing costs and enhance the value of supplier relationships. The adoption of strategic sourcing acts a guide for firms to devise standardized procurement processes. Hence it’s essential for every organization to use strategic sourcing principles to gain a better handle on its supply chain processes.
Furthermore, implementing the best practices of strategic sourcing provides an extra boost to increase the company’s profit margins. The goal is to look beyond daily price and delivery time challenges. Though strategic sourcing seems to be a complicated process, it helps you understand the relationship between your suppliers and your organization.
Fundamental questions answered in this strategic sourcing analysis study include:
SpendEdge’s strategic sourcing analysis engagement offered insights that helped the client to improve their sourcing practices. It also assisted the prosthetic device manufacturer to increase their business efficiency by formalizing the way spend information is gathered, analyzed, and factored into the procurement process. Moreover, the client was able to streamline their buying decisions and reduce procurement costs. Also, strategic sourcing facilitates the building of supply partnerships that are stable. Better supplier relationships eventually lead to improvements in quality, as suppliers and customers can work in tandem to measure the defect rates, as well as their cause.
To know more about strategic sourcing analysis and how it can help prosthetic device manufacturing firms