medical devices industry Archives - SpendEdge

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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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IR15

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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IR39

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 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.request free proposal 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 Results

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.

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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 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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Cost-Benefit Analysis Helps a Medical Devices Manufacturer Gauge the Cost Structure and Develop Superior Negotiation Strategies

The Business Challenge

A global medical devices industry client wanted to gain insights into the negotiation levers implemented by suppliers to ensure low-cost raw material sourcing activities. Additionally, the client wanted to identify cost elements across the supply chain and assess its impact on the overall cost structure. Also, with the help of a robust, low-cost mix model, the client wanted recommendations to cut down the overall cost and develop better negotiation strategies with their suppliers.

Engagement Overview

The cost-benefit analysis experts at SpendEdge tailored a comprehensive two-step research methodology, which involved primary and secondary research methodologies coupled with qualitativebanner SE (2) and quantitative data collection techniques to address the client’s issue.

During the course of this cost-benefit analysis engagement, the medical devices industry client was able to measure the impact of each cost driver on the overall cost structure. Additionally, the client was able to forecast the cost movements across all cost elements. The medical devices industry client also devised a low-cost mix model which helped them reduce their maverick spends across the supply chain.

Key Findings

The cost-benefit analysis engagement assisted the client in identifying the major cost elements and gain a deeper understanding of the cost structure of the supply chain. The medical devices industry player was also given strategic insights into devising better negotiation strategies with their current suppliers.

Medical Devices Industry Overview

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Price Monitoring Solution Helps a Medical Devices Manufacturer Stay on Top of The Price Fluctuations and Improve Procurement Decision Making

Category Overview

The recent increase in competition in the healthcare industry has forced many medical devices manufacturers to adopt innovative technologies and establish themselves in this market space. Additionally, the high level of competition among players in the medical devices market space has resulted in the emergence of upgraded technologies. However, according to the price analysis experts at SpendEdge, the advent of stringent reimbursement policies and regulations for medical devices across the globe are forcing firms in this market space to showcase a high level of cost-effectiveness for their products. As a result, medical devices manufacturers have started opting for price analysis solutions to stay on top of the price fluctuations to improve procurement decision making across the supply chain.

The Procurement Pain Point and Insights Offered

A leading medical devices manufacturer wanted to gain in-depth insights on the latest price fluctuations and trends in the medical devices market space. The client also wanted to obtain a list of key suppliers; negotiate superior contractual terms and analyze their patterns of spending. Additionally, they wanted to streamline their procurement process and reduce maverick spends.request free proposal

The price analysis experts at SpendEdge followed a comprehensive two-step research methodology, which involved primary and secondary research coupled with qualitative and quantitative data collection procedures to address the client’s issue. During the course of this price analysis study, the medical devices manufacturing client was able to identify the emerging risks across the supply chain and monitor the price fluctuations. This helped the client negotiate superior contractual terms with suppliers, thereby, gaining a competitive advantage over their competitors across the supply chain. Furthermore, this price analysis study helped client streamline their procurement process and reduce maverick spends.

Key questions answered in this price analysis study include

medical devicesBusiness Outcome

The pricing analysis study helped the medical devices manufacturer gained insights to stay ahead of the competition and stay on top of the price fluctuations and improve procurement decision making across the supply chain. Furthermore, the client was offered recommendations to improve their process efficiency and optimize spend areas.

Want to know more about our procurement services for the medical devices industry?

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Leveraging Spend Analysis Solutions to Improve Process Efficiency in the Medical Device Market Space

Category Overview

Increased competition in the health care industry has forced many medical equipment companies to adopt new technologies and establish themselves in this market space. This high level of competition between the peer medical equipment companies has resulted in the development of upgraded techniques and innovation in medical equipment.

However, according to the spend analysis professionals at SpendEdge, medical equipment companies are required to showcase a high level of cost-effectiveness for their products due to the implementation of stringent reimbursement policies and regulations across the globe. As a result, many medical equipment companies have started opting for spend analysis solutions to effectively improve process efficiency and create value across the supply chain.

Moreover, the spend analysis studies offered by SpendEdge, help medical equipment companies evaluate and improve their management and identify cost-effective strategies.

The Procurement Pain Point and Insights Offered

Like several other medical equipment companies, the medical device client wanted to gain insights on how to devise a single platform to integrate their purchasing activities. Additionally, they also wanted to streamline their procurement process by cutting down on the excessive inventory costs and material spends. Furthermore, the client also wanted to identify and gain a list of key suppliers in the market space and analyze their patterns of spending. request free proposal

The spend analysis professionals at SpendEdge carried out a comprehensive research methodology which included an in-depth primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During the course this study, the medical equipment companies were able to gain insights on the different ways to improve their process efficiency and decrease procurement costs. Additionally, the client was also able to classify their major spend areas by using a standard taxonomic approach. Furthermore, this study also helped them identify and analyze the spending pattern of key suppliers in the market space.

Key questions answered in this spend analysis study include

medical equipment companiesBusiness Outcome

The spend analysis solution helped the medical equipment company to identify and reduce inefficiencies in its procurement system. This helped the client manage risks, recover overpayments and reduce maverick spends across the supply chain. Additionally, the client was offered recommendations to improve their process efficiency and optimize spend areas.

Want to know more about our spend analysis solutions for medical equipment companies?

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Industry Best Practices Study Helps a Medical Device Manufacturer Become the Best-in-class Procurement Organization

Category Overview

The medical device industry is regarded as one of the primary industries in healthcare, driven by innovation and new technologies. Over the last decade, this industry has seen an extraordinary growth in innovative and improved technologies. This has led to the development of state-of-the-art medical devices and has resulted in major advancements in the healthcare industry. However, delivering value in this current dynamic healthcare environment requires an understanding of a broad set of relationships, partnerships, and joint venture initiatives. Consequently, to establish themselves in this market space, many medical device manufacturing firms have started opting for industry best practices studies to gain insights into the global category management structure and a list of talent with varied skill sets.

The Procurement Pain Point and Insights Offered

A leading medical device manufacturing firm wanted to transform its procurement function with the primary goal of becoming a lean, best-in-class, scalable, and efficient procurement organization to lay down a strong foundation for improved efficiency gains and double-digit procurement savings. The client also wanted to identify a list of key competitor companies and their key suppliers. Furthermore, they wanted suggestions on the best-in-class sourcing and procurement strategies.SE_Demo2

To address the client specific business challenges, the industry best practices specialists at SpendEdge followed a blended research methodology consisting of primary and secondary research coupled with qualitative and quantitative data collection methodologies. With the help of our industry best practices study, the client could identify the key drivers for this procurement transformation project, including organization design, people, process, optimization, and technology. Additionally, the client was provided with all necessary information to understand the existing position, responsibilities, and essential competencies.

Key questions answered in this competitive pricing study include

industry best practices

Business Outcome

The industry best practices study helped the client identify the best practices followed by the competitor’s companies and their suppliers. Additionally, the client could identify the inefficient and unproductive processes across platforms and discard them. Furthermore, SpendEdge’s industry best practices study also helped the client gain insights on the best-in-class metrics and strategies to measure process efficiencies and effectiveness.

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IR26

Medical Device Manufacturers Increase Cost Savings With Spend Analysis and Benchmarking Solutions

SpendEdge’s supply market intelligence study on the spend analysis and benchmarking services for medical device manufacturers helped identify cost savings opportunities by evaluating spend areas, supplier performance, process efficiency, and legal compliance.

Challenging Procurement Scenario for Medical Device Manufacturers

Medical devices comprise a broad range of devices and materials used in the diagnosis, prevention, monitoring, and treatment of injuries, disease, or medical conditions. It encompasses a majority of items from big devices such as radiology machines, patient monitoring devices, and medical testers to small articles such as a syringe, medical dressing, bandages, and implants. Of all the various costs incurred by medical devices manufacturers, R&D cost comprises a significant part. Medical devices manufacturers face a host of challenges in marketing their products since it is governed by complex FDA device classifications, dynamic economic environment, device standardization, patent laws, and complex worldwide reimbursement models.

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The Rise of Telemedicine and Home-Based Treatment

Medical technology has advanced to such a point that general devices like smartphone are also capable of measuring primary health data. The increasing trend of wearables is moving beyond fitness trackers to sophisticated devices such as medical biosensors, glucose monitors, automatic insulin dispensers, electrocardiogram patches, and smart hearing aids. Medical device manufacturers are focusing on the development of devices which could reduce the medication and care costs and are capable of providing immediate health solutions. In order to improve the quality of healthcare, several home-based treatment options such as telemedicine are bursting into the scene.

Solutions SpendEdge offer to businesses

SpendEdge’s spend analysis and benchmarking study for a fortune 500 medical device company provides insights into the cost components, spend patterns, vendor performance, and contract negotiation strategies. The solutions offered includes:

  • Deliver maximum savings by in-depth spend analysis of various cost components
  • Provides insights on best practices to improve process efficiencies and assists in the implementation of new system
  • Manages maverick spends with advanced data analytics solutions to help manage spends across non-contracted vendor categories
  • Delivers compliance information to ensure the procurement processes comply by governing rules and regulations

Read our complete case study titled – Spendedge Helps a Fortune 500 Medical Device Company Improve Savings Through its Spend Analysis and Benchmarking Services

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