LONDON--(BUSINESS WIRE)--According to the findings of SpendEdge, despite projections of spend growth in the medical device market at an exponential rate, weak links in the supply chain management will continue to expose enterprises in this market to risks of business downtime.
There is no doubting the fact in today’s business climate, sectors such as the wearable medical devices, telehealth in the medical device market are heavily reliant on their supply sources to ensure their business continuity. Most of them have their well-thought-out strategies in motion to ensure supply continuity and cost-savings from their supplier. However, the current COVID 19 pandemic has issued a reality check for the enterprises and compelled them to factor in the risks of relying on a single sourcing option to cater to their needs during periods of unprecedented demand surges.
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How is Multiple Sourcing Option an Answer to the Emerging Supply Chain Risks in the Medical Device Market?
The very essence of multiple sourcing is about having a supply back-up considering the predominance of supply bottlenecks in the sectors in the medical device market such as laboratory equipment services, cleanroom consumables, next-generation sequencing equipment, among others. Replacing the faltering supplier can be a common solution but the inconveniences and the uncertainties that this switching over will entail will further complicate the scenario for enterprises in the face of a huge demand surge and a major shrink in the supply source. These implications reinstate the necessity of exploring multiple sourcing options in the medical device market.
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Insights into Selection Strategies to Partner with the Top Suppliers Identified as Multiple Sourcing Options in the Medical Device Market
Thermo Fisher- Buyers in the medical device market usually face a demand for additional ad hoc procurement of equipment, particularly in instances where they are required to respond to epidemics. Factoring in such situations, it will be prudent of buyers to assess sufficient spare production capacity of this supplier to meet any ad hoc variations in product demand. This will, in turn, enable buyers to reduce procurement time in such cases, that would otherwise be required for selecting a new supplier and check adherence of its products to quality and regulatory norms.
Medtronic- Prior to finalizing the contract, it is crucial for buyers to determine the mode of procurement of raw materials by this supplier. It is expected that this supplier procures its raw materials from three to four local primary vendors, where a single vendor is contacted for the supply of a single item. Due to the supplier’s primary sourcing, buyers will have an uninterrupted supply of products that are consistent with their quality.
Philips- VMI has become one of the best ways to reduce inventory costs and simultaneously ensure a continuous supply. The buyer should ensure the provision of efficient inventory management solutions, such as JIT by this supplier, that help to reduce inventory maintenance and storage costs.
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