Tag: medical devices

medical devices market

Transforming the Procurement Process for a Company in the Medical Devices Market

The medical devices market has grown promisingly over the last five years and our experts predict that it will continue to move forward at a substantial pace in the years to come. However, with companies expanding their operations to new markets and the advent of new, stringent healthcare regulations, it has become essential for medical devices manufacturers to change the way they look at procurement to stay a step ahead of their peers. Companies of today need to understand that the aim of procurement in the medical devices industry has shifted from merely reducing costs to improving supply chain visibility and patient safety. Medical devices manufacturers can better position themselves in the market by proactively managing supplier risks and harnessing innovation from the supply chain. This case study is a classic example of how we helped a medical devices company address the cost challenges by transforming how they look at procurement.

The Business Problem

A well-known Fortune 500 company that manufactures medical devices wanted to transform their procurement process to drive higher savings and identify new sourcing opportunities. They wanted to regularize their sourcing process, improve their spend visibility, and boost supply chain transparency to strengthen their position in the medical devices market. In addition, the client also wanted to devise an effective procurement strategy that would help them achieve significant cost savings and stay a step ahead of their counterparts in the medical devices industry. 

Improving the procurement process can help medical devices manufacturers to cut costs. Request a free proposal to access our complete service portfolio of procurement market intelligence solutions.

Solutions Offered and Client Journey

The procurement experts at SpendEdge formulated a procurement strategy that allowed the client to differentiate between effective and underperforming suppliers by comparing supplier bids, offers, and positioning. The insights offered increased the natural process flow from completed sourcing events to contracts, ensuring the compliance of contracted terms with negotiated offers.

With the help of SpendEdge, the client developed a superior sourcing strategy that incorporated market intelligence and enabled the client to identify potential savings opportunities. The experts at SpendEdge also interacted with suppliers to drive value through contract and supplier relationship management frameworks and avoid uncontrolled communication channels. This helped the client to take advantage of like-for-like bid comparisons and improve spend visibility, traceability and audit control. The improved procurement process further provided additional cash flow by extending payment terms.

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Key Findings and Outcome

Provided Scope for Innovation

The solution offered improved the client’s medical devices procurement process and helped them achieve significant savings. They were able to initiate 200+ RFxs, create over 415 contracts, and process transactions worth $1 million with our help.

Improved Spend Visibility

In a span of 3-weeks, the client was able to develop actionable cost reduction proposals, drive greater value from suppliers, and reduce excess spend. Also, they gained better insights into the key medical devices manufacturers and their purchasing pattern. To know more about what we offer, request for more information.

Overview of Global Medical Devices Market Revenue (2015-2020)

smart artHow SpendEdge’s Solutions Can Help Companies in the Medical Devices Market?

By providing timely, incisive market intelligence insights, SpendEdge helps companies in the medical devices market to meet their cost goals – be it cost cutting, cost avoidance, or cost elimination. For over 15 years, we have specialized in offering actionable insights that help companies deal with multiple issues pertaining to their sourcing and procurement needs. For companies operating in the medical devices market, our solutions can help you better manage contracts, increase value from existing suppliers, and increase flexibility to meet the changing requirements of the end-users.

Wondering how transforming your procurement process can help you address the dynamic demands of the medical devices market? Get in touch with our experts today!

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5 Keys to Evaluate Your Inventory Management Process for Biomedical Devices

With the emerging need to delicately balance the medical devices’ security and patient safety, medical device manufacturers are facing numerous challenges like reducing costs, better inventory management, improving efficiency, and allocating resources effectively. The need for inventory management solutions is increasing for medical devices manufacturers owing to the surge in demand for better healthcare products.

Poor inventory management or disconnected systems can lead to operational inefficiency and issues with order fulfillment, which rises concurrently with an increase in the demand. Additionally, it can also result in wastage of time, space, and can increase the cost of operations. Therefore, it is important for the manufacturers of medical devices to understand that creating a feasible model for inventory management is central to the sustainability of their business.

At SpendEdge, we understand the impact that an effective inventory management solution can have on your business. And to help companies manufacturing medical devices in the changing landscape of the medical industry, our team of experts has highlighted five ways to examine their inventory management process and improve their efficiency.

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IR23

Medical Gas Market: Supply Market Intelligence

Medical gases are vital for the functioning of hospitals and other healthcare establishments.  Medical gas systems in hospitals aid in the supply of piped oxygen, nitrogen, nitrous oxide, carbon dioxide, and medical air to recovery areas, operating rooms, and patient rooms. The gas flow is monitored by computerized alarm systems that alert hospital staffs in case of any anomalies. The growth in air pollution and changing climate are leading to an alarming increase in respiratory diseases such as asthma, TB, COPD, lung cancer, and pneumonia. This, in turn, is leading to an increase in the need for respiratory therapies, which is the key end-application for medical gases. Improving healthcare facilities, especially in regions such as APAC, MEA, and South America, is also leading to an increase in demand for medical gases for applications such as biological culture growth, medical equipment calibration, and diagnostic testing. (Source: Global Medical Gas Procurement Intelligence Report)

Key Markets

In the APAC region, the rise in income levels is expected to increase the demand for better healthcare facilities, which will, in turn, spike up the demand in the medical gas market. Furthermore, the rapid growth in industrialization and urbanization in this region is predicted to give rise to air pollution, which will drive the demand for improved respiratory health care. As a result, the medical gas market in the region is expected to experience growth. Most of the large, established suppliers in the medical gas market are based in North America and Europe, which is leading to a high supply influence from these regions.

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Pricing model

Oil and gas form critical inputs for the medical gas market, where they are used as raw materials as well as to produce electricity. Natural gas is a critical raw material to produce gases such as carbon monoxide. The production process for gases such as oxygen and nitrogen require large quantities of electricity, and over 60% of the electricity consumed by suppliers is produced from fuels such as oil and natural gas. Hence, the rise in oil and gas prices will increase suppliers’ operating cost in the years to come. However, the increase in adoption of on-site gas generators can help control a drastic rise in prices. On-site gas generation offers benefits such as reliability of supply and control over the cost of gas produced. These factors are motivating buyers to prefer on-site gas generation plants.

Laptop with pen and spiral notebook on desk.

Category Market Intelligence: Analyzing Supplier Pricing and Cost Structure for a Medical Supplies Firm

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 steadyrequest free proposal 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:

Medical Supplies


The Result

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.

Market trends

  • 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

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Supply Market Intelligence Allows a Leading Durable Medical Equipment Client to Achieve Annual Savings of $17 Million

Overview of the Durable Medical Equipment Industry

Generally, durable medical equipment can be classified into monitoring and therapeutic devices, personal mobility devices, medical furniture, and bathroom safety devices. The personal mobility devices segment can be further segmented into crutches and canes, wheelchairs, and walkers. Similarly, the medical furniture can be further segmented into medical beds, stretchers, mattress, and lift chairs.

The prevalence of cancer, gynecological, ophthalmic, neurological conditions, and cardiac disorders is increasing every year. The treatment of these disorders requires surgical procedures, which increases the demand for surgical equipment; thus, resulting in the requirement of long-term care until recovery. In the case of long-term post-surgery care, durable medical equipment plays an essential role in the faster recovery of the patient. Rapidly growing demand for home healthcare industry services can also be attributed to the growing demand of this market.

However, our recent analysis of the medical devices industry shows that the durable medical equipment manufacturers are facing challenges in terms of:

  • Cost of product development: The major challenge for durable medical equipment device manufacturers is to overcome the burgeoning cost of product development. Moreover, besides technology and government regulations, companies in the medical devices industry have to evaluate new products based on its price as against factors like patient experience.
  • Localization of durable medical equipment devices: In the emerging markets, local durable medical equipment manufacturers are more successful when compared to their multinational counterparts. This is possible because the local players offer tailor-made products that are aimed at resolving the local needs and constraints. Moreover, the local durable medical equipment manufacturers often indulge in market research and leverage the benefits of local operations and a domestic sales force to bridge the gaps in the market.

Challenges such as this pose a major threat to companies operating in the medical devices industry. Supply market intelligence solutions help companies gain profound insights into the latest healthcare trends, developments, key risks, and recommendations on devising procurement best practices across the industry. request free proposalThese solutions also help companies reduce their procurement spends and offer superior product and service offerings.

The Business Challenge and Journey

The client, a leading player in the medical devices industry, specializing in manufacturing durable medical equipment was facing difficulties in managing their sourcing and procurement processes, which resulted in higher expenses. As a result, they wanted to gain a comprehensive understanding of the competitors, their products, suppliers, services, and spending patterns prevalent in the medical devices industry to cut down on their direct and indirect spends. Additionally, they also wanted to gain actionable insights on the strategies to develop a superior contract negotiation strategy.

SpendEdge’s supply market intelligence experts followed a comprehensive research methodology. The research approach included primary and secondary research coupled with qualitative and quantitative data collection procedures to help the client overcome their predicaments.

During the course of this supply market intelligence engagement, the durable medical equipment manufacturing client developed a long list of suppliers in terms of their business profile, revenue, and financial structure with the help of a robust SWOT analysis. This helped them gain an understanding of the supplier’s pricing and cost structure, which, in turn, helped them in devising a robust price model to evaluate competitors’ strategies. The engagement also helped the client cut down direct and indirect costs across their business units by establishing lean and centralized sourcing and procurement process.

Fundamental questions answered in this supply market intelligence engagement

The Results

With the help of SpendEdge’s supply market intelligence solution, the durable medical equipment manufacturing client identified the potential supply risks and enhanced their overall procurement and sourcing capability. This helped them achieve annual savings of $17 million.

To know more about our supply market intelligence solution and how it can help companies in the medical devices industry

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IR24

Top Medical Wearable Devices Manufacturers Changing the Healthcare Landscape

The advances in medical technology have been so impressive that it is no longer required to visit healthcare facilities to keep track of general health indicators. Small werable devices can today measure health metrics like heart rate, fitness level, sleep time, sleep quality, blood pressure, blood sugar, and fertility with relative ease. It has not only improved the quality of life but also the quality of care prompting people to take better care of themselves. Medical wearable devices can be broadly categorized into two types namely diagnostic devices and therapeutic devices. Therapeutic devices can aid patients to monitor and manage their blood sugar levels, provide therapeutic relief from pain, and help individuals to replace their physiologically lost functions. The procurement market intelligence report from SpendEdge for the global wearable medical devices market forecasts an impressive growth rate of 24.7% annually. The growth is also partially helped by the fact that such devices are getting more economical and portable.

Request Free SampleTop 5 medical wearable devices manufacturers

Philips

Philips is one of the largest electronics companies in the world with primary focus on electronics, healthcare, and lighting. Philips explored into the world of healthcare with a vision that technology has the capability to make life better. Their key products include personal health products, diagnosis and treatment equipment’s, connected care and health informatics, and health technology products. In late 2016, they launched a $250 medical wearable device called Philips Health Watch that is capable of monitoring host of biometric data. With an aim to prevent lifestyle induced chronic conditions, the device tracks and alerts users of their steps, sleep patterns, active and sedentary time, running, and calories burnt.

Nokia

Nokia was one of the leading smartphone manufacturers in the world. Today, they have diversified their business operations into healthcare, VR, networks, and analytics solutions. In 2016, they acquired Withings to form its health division dealing with medical wearable devices. Withings was known for its innovative designs and technologies such as the first Wi-Fi scale, and the US FDA approved blood pressure monitor. Their product portfolio includes pulse monitor, blood pressure monitor, smart hairbrush, digital thermometers, and smartwatches. Their Health Mate application collects data from scales, trackers and other connected devices in one place and provides a 360-degree view of health.

Medtronic

Medtronic is one of the world’s largest companies that deals in medical technology, services, and solutions serving more than 65 million patients across the globe till 2017. They have a host of products which provides solutions to people with diabetes and heart conditions. In 2014, they launched SEEQ MCT System which remotely monitors heart activity up to 30 days. The device is worn by patients who experience symptoms such as irregular heartbeat, lightheadedness, vertigo, palpitations or shortness of breath.

Alphabet

Alphabet is the parent company of Google with substantial investments in machine learning and AI to drive company’s innovation initiatives. The company has some of the most innovative products in the medical devices market including contact lenses that can monitor wearers glucose level. Alphabet’s Verily Life Sciences company have developed wearable devices that can perform an electrocardiogram (ECG), monitor heart rate, electrodermal activity and inertial movements.

Fitbit

Fitbit was founded as Health Metrics Research in March 2007 and later changed its name to Fitbit. Today, it is the most popular brand name in the wearable technology market. Their fitness trackers capture various data including recent activities, sleep, body vitals, GPS, and calorie. The company is currently looking to manufacture products to address four major health conditions namely, sleep disorders, diabetes, cardiovascular health and mental health. Fitbit released its Ionic model in December 2017, which has the ability to track an individual’s activity and location in real time.

Read more about the medical wearable devices market along with category management, pricing insights, procurement challenges, and key suppliers in SpendEdge’s upcoming report on the global wearable medical devices market.

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Spend Analysis Solution Helps a Leading Prosthetic Device Manufacturer Assess Their Marketing Spend

Category Overview

The key stakeholders in the healthcare and medical device industry across the globe have started witnessing unprecedented encounters in terms of increasing their market shares and predicting potential growth opportunities. Additionally, the firms operating in the prosthetic device manufacturing segment are facing persistent pressure to offer improved medical support to patients at reduced costs. As a result of these underlying challenges, leading firms operating in the prosthetic device manufacturing space have started leveraging the use of spend analysis solutions. request free proposalSpend analysis solutions help prosthetic device manufacturing firms to gain improved visibility into their spending patterns across the supply chain and consequently helping them enhance their business decision-making process.

With years of expertise in offering a plethora of solutions, SpendEdge’s spend analysis solution helps firms operating in the prosthetic device manufacturing space to devise an automated sourcing and procurement solution that helps to organize the complete process. Additionally, these solutions help companies gain better visibility into the spending patterns and consumer buying behavior to gain a competitive edge over the peers.

The Procurement Pain Point and Insights Offered

A renowned prosthetic device manufacturing client was facing predicaments in achieving a single platform to integrate their purchasing activities. Additionally, the client was also facing challenges in reducing the procurement lead time and material spends for their sourcing and procurement activities across the supply chain. As a result, they wanted to leverage the use of spend analysis solutions to streamline their overall sourcing and procurement performances by trimming down their inventory costs.

To cater to the specific business requirements of the prosthetic device manufacturing client, the spend analysis professionals at SpendEdge tailored an in-depth research methodology. This comprehensive research methodology included primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this spend analysis engagement the prosthetic device manufacturing client was able to gain better visibility into the procurement data, thereby, enabling them to rectify the significant areas of spend in terms of products, services, suppliers, and commodities. This also helped the client reduce overall costs and strategically enhance supplier relationships.

Fundamental questions answered in this spend analysis study include

Business Outcome

The spend analysis engagement helped the prosthetic device manufacturing client achieve a single platform to integrate their purchasing activities across business units and supply chain. Additionally, was offered suggestions to improve their process efficiency and optimize their major areas of spend.

To know more about our spend analysis solutions

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Supply Chain Analysis Helps a Leading Medical Implants Manufacturer Increase Profitability Across Office Locations

Category Overview

The recent developments in the technology have brought about numerous innovations in the medical devices manufacturing space. Additionally, with the growing preference for superior healthcare services among the individuals across the globe, renowned medical implants manufacturers are expected to reach new heights. Consumers are looking out for healthcare solutions with better accuracy and lower costs with the easy accessibility of healthcare services. To offer cost-effective and best-in-class product offerings owing to the relentless demand for innovations among the customers, medical implants manufacturers across the globe have started leveraging the use of supply chain analysis solutions.request free proposal

With years of expertise in offering similar services, SpendEdge helps medical implants manufacturers increase their profitability across the supply chain by assisting them to determine effective ways to handle and limit the inefficiencies of their sourcing and procurement processes in a short lead time while optimizing cost.

The Procurement Pain Point and Insights Offered

A renowned medical implants manufacturing client was facing predicaments in identifying their significant areas of spend across office locations and reduce the overall costs. As a result, they wanted to assess their supply chain capabilities and compare it to that of competitors in the industry. Additionally, they wanted to formulate cost-effective strategies for their sourcing and procurement activities across the supply chain.

To help the medical implants manufacturing client overcome their predicaments, SpendEdge’s supply chain analysis specialists personalized research approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures. Additionally, the specialists gathered information from various proprietary sources to gain more visibility into their sourcing and procurement processes and identify their major areas of spend across office locations. Moreover, the client was able to evaluate their supply chain competencies and compared it to their peers operating in the medical implants manufacturing space to serve their customers better.

Fundamental questions answered in this supply chain analysis engagement include

Business Outcome

This supply chain analysis engagement helped the medical implants manufacturing client evaluate and enhance the overall buyer and vendor performance by identifying their sourcing and procurement process inefficiencies across office locations and supply chain.

To know more about our supply chain analysis solutions for medical implants manufacturers

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Spend Analysis Helps a Leading Medical Equipment Manufacturer Cut Down Overall Cost

Category Overview

The health and medical facilities across the globe procure and consume a wide array of products, including pharmaceuticals, building, food, and medical supplies. Sourcing and procurement activities that encourage the use of efficient materials and products with low carbon footprints can create environmental and health benefits and cost savings. In many countries across the globe, the spending in healthcare is on the rise, and the recent predictions of spending seem to indicate that current healthcare systems are unsustainable in the long run.request free proposal Moreover, in most of the developed markets, the healthcare industry suffers from two substantial and growing challenges which include the significant variation in patient outcomes for routine procedures and the spiraling costs involved in such procedures. As a result, stakeholders across the healthcare industries are looking for methods to provide high quality and accessible healthcare services to individuals at affordable public and private costs. One such method is to implement value-based healthcare service that focuses on patient outcomes and the costs of delivering these results, can address both challenges. In addition, the healthcare industry is in a unique position to boost value-based health care. Thanks to its design innovations, business, and therapeutic experience, and deep relationships with healthcare providers who deliver enhanced care at reasonable costs.

As the healthcare industry endures to increase its focus on cost-to-serve strategies for managing healthcare cost, accurate data could be a stumbling block for understanding procedure costs and its relationship to desired clinical outcomes. As a result, it is crucial for healthcare industry players, especially the medical equipment manufacturers to understand the association between clinical and supply chain management data. Understanding the medical equipment sourcing and procurement strategies are critical factors in ensuring that the process of opening, moving, and upgrading a medical facility is handled in a manner that delivers the level of service assured right from the start. Moreover, procurement managers and facility equipment administrators across the globe are becoming increasingly aware of the vital importance of bringing efficiency to this complex undertaking as the healthcare industry continues to dictate the need to increase quality performance and cut costs.

These challenges have urged players in the medical equipment manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical equipment manufacturing space identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. These solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

With years of expertise in offering spend analysis and spend management solutions, SpendEdge also helps medical equipment manufacturing firms measure and improve their business decisions by formulating cost-effective strategies across the supply chain.

The Procurement Pain Point and Insights Offered

A renowned global medical equipment manufacturing client approached SpendEdge to streamline their logistics chain. The medical equipment manufacturing client was also facing predicaments in reducing their cost across the medical equipment sourcing and procurement processes. As a result, the client wanted to find an established vendor that could provide everything from competitively priced medical equipment all the way to delivery and set-up solutions than just merely focusing on the price of an item itself. Additionally, the client was also facing challenges in operational functions which restricted them request free proposalfrom increasing their process efficiency and streamlining their sourcing and procurement functions. Identifying an automated sourcing and procurement solution that helps to organize the process was a more appropriate option.

To cater to the business requirements of the medical equipment manufacturing client, SpendEdge’s spend analysis specialists tailored an integrated two-step research methodology which included qualitative and quantitative data collection methods. SpendEdge also closely collaborated with specialists from the healthcare institutions who have already implemented innovative procurement practices. During this spend analysis engagement, the medical equipment manufacturing client was able to identify sourcing and procurement solutions that address the issues unique to healthcare. Additionally, the client was able to launch category-specific sourcing events, thereby, making it possible to swiftly analyze the types of complex, strategic products with the help of SpendEdge’s collaborative sourcing tool. These tools also offer built-in category-specific dynamic pricing structures that help in assessing the trade-off decisions between quality and price to identify the supplier offering the overall best value.

Fundamental questions answered in this spend analysis study include

Business Outcome

The medical equipment manufacturing client was able to identify the areas for process improvement and cost reduction by gaining real-time insights into the firm’s procurement activities and expenditures. The client was also able to identify the best-in-class suppliers in the medical equipment manufacturing space which will help them in significantly cutting down the prices on high quantity products. Furthermore, the client captured the product data and subsequently formulated an efficient patient cost-to-serve model with the desired outcome for quality patient care.

To know more about our spend analysis solutions for medical equipment manufacturers

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