Rising consumer awareness, increasing disposable incomes, and a desire among the millennial population to transform their lifestyles for the better have led to an unprecedented boom in the health and wellness sector globally. Owing to such factors along with the ongoing impact of COVID-19, the health and wellness sector like any other industry is set to witness a major transformation in the way they function and carry out day-to-day activities. Also, as people are turning their focus to the health and well-being of the community as a whole, several leading healthcare brands and pharma manufacturers are now investing in the health and wellness products segment to cater to the growing needs of the urban population.
What are the challenges?
With a huge chunk of the global population already focusing on improving their well-being in some capacity, it’s now time for health and wellness brands to step in and help its consumers improve their health by supporting their health and wellness aspirations. Though health and wellness brands are witnessing huge demand surges, they must latch on to the power of human connection and support their community at challenging times like these.
Generating accurate and reliable demand forecasts is crucial to thriving in the post-pandemic world. The current state-of-the-art techniques are typically univariate methods, which produce forecasts considering only the historical data sets. At Quantzig, we adopt ensemble methods that leverage multiple machine learning techniques designed to identify real-time demand-supply trends. Contact us to get started!
Challenges facing the health and wellness sector include:
- A sudden spike in demand for OTC drugs and immunity-boosting herbal products
- Large scale supply chain disruptions
- Labor and material shortages
- Need to optimize supply chain and manufacturing processes
What Adverse Effects Can Supply Chain Disruptions Caused by the Pandemic Have on the Health and Wellness Sector?
There are three main adverse effects of supply chain disruptions in the health and wellness sector.
Impact on New Product Launches
Owing to the sudden outbreak of the pandemic, the health and wellness sector has been witnessing a spike in demand for OTC drugs as well as herbal products that boost immunity. This, in turn, has left the entire supply chain under a lot of pressure delaying product launches and drug development processes.
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Impact on Manufacturing Units
With the rise in demand, the manufacturing and production capacity of OTC drugs and herbal products manufacturers are under high scrutiny and pressure. Adding to the complexity are the labor and material shortages that are forcing businesses to stop production for an indefinite period. In these times, it has become extremely critical to ensure the maximization of resource utilization as well as manufacturing efficiency in the minimum possible turnaround time.
Impact on Marketing and Communication Channels
With limited product options available, consumers are now relying more on the information they can seek through digital media and other online channels. Moreover, due to the government-imposed regulations and travel bans, web discussions and product reviews are now impacting the customer’s inclination towards a certain product category.
The value provided by accurate demand forecasts plays a crucial role in driving better supply chain outcomes. Request a free demo to know more about our supply chain analytics platform capabilities.
What Prudent Defensive Measures Can be Taken to Mitigate these Challenges?
Supply chain disruptions are poised to impact every aspect of manufacturing and production in the health and wellness sector. In such a scenario, it’s essential for a business to ensure continuity by devising robust action plans to mitigate supply chain risks. With the help of advanced analytics solutions that are tailored to target the COVID-induced challenges, businesses can stay well-prepared to face the disruptions. Our supply chain analytics solution framework is designed to run on ensemble methods that leverage multiple machine learning techniques to identify trends based on the current market situation and provide you with the updated results in a very short span of time.
What’s in Store for the Health and Wellness Sector?
With predictions for the health and wellness industry indicating a positive outlook, there is immense scope for businesses to make the most out of the current predictions and market forecasts. As such, the health and wellness sector is poised to witness several new trends led by the surge in demand in the post-COVID world. Based on our analysis, several opportunities from sectors like wellness tourism and other newer segments are expected to pave their way into the mainstream healthcare and wellness sector. Right from the use of technology to advanced analytics, businesses in this sector will be seen adopting newer strategies to cater to the high demand for products and services.