The implantable medical device industry is poised to capitalize on the unique needs of an aging population, while simultaneously meeting unprecedented cost pressures. It is time for manufacturers to seek expertise in inventory management and logistics for greater visibility, control and profitability.
The healthcare ecosystem is intent on improving patient outcomes while also reducing the cost of care. This movement hits the medical device manufacturer in unique ways. Without significant change to the dominant business model, price will remain the controlling factor. To stay healthy in the market, manufacturers must consider alternatives that impact cost and find new ways to value.
Though price is the current differentiator, manufacturers must find better ways to collaborate and find efficiencies that maintain or improve service levels to distinguish themselves in the marketplace.
This must be done in tandem with fixing financial drains from their complex distribution process to make their business and products more profitable.
Downward costs drive consolidation
Due to downward cost pressures and the perpetual search for efficiencies, there is rampant consolidation in the medical device market. What’s more is the shrinking pool of players creates giant market leaders and disrupts the sales process. The result is fewer payers, providers and manufacturers—with those holding the purse strings dictating the terms. And a diminished group of suppliers that implants surgeons may choose from.
However, there is promise for change, offered by competent third-party logistics providers such as UPS, with particular expertise in the healthcare supply chain.
A new white paper from the world’s largest package delivery company reveals that manufacturers are at a critical decision point in the way they do business. The impact of new, procurement-led buying models is untenable for the dominant manufacturer distribution model. There is a systematic shift toward lower-cost implantable medical devices driven by the consolidation of providers and reduced surgeon choice.
Logistics solutions that work
This UPS white paper reveals how efficient healthcare logistics can allow medical device distributors to create innovative medical device solutions that can:
- Reduce pressure on inventory, and make less work harder
- Achieve price and profitability improvements
- Restructure the way the sales force manages inventory, bringing costs down
- Drive efficiencies around faster and more efficient rekitting and tooling, so your inventory works harder for your bottom line
- Locate implantable devices, orthopedic devices, or other critical healthcare supplies—with full visibility—closer to the front lines of your business, and reduce the possibility of not being able to fulfill customer needs
- Strengthen your core capital position by investing less in product—and having less to eliminate at the end of the product life cycle
- Empower your salespeople to engage customers more, when they have less implantable solutions “trunk stock” to manage
- Develop improved systems for data-driven decision making, leading to increased improvements
Take the first steps to improving your medical device supply chain, and learn how increased efficiencies created through logistics can help mobilize your business to do more.
Download the white paper here.