The past few years have witnessed a myriad of changes in FDA-regulated sectors such as the medical device industry. Accountable care and value-based reimbursement models are causing a groundbreaking shift in the medical device industry. This means that now focusing on data and the value of the medical device is not enough to boost the ROI. Companies in the medical device industry need to begin their quest for new avenues of revenue and profitability. The radical shift towards value-based care demands solutions that can deliver actionable insights for use in existing electronic medical record systems. Here are some critical challenges that are pressuring the medical device industry:
Medical Device Industry Challenges
The competition in the medical device industry is soaring to a whole new level, prompting players in this space to manufacture more complex and integrated products to stay ahead of their peers in the market. Consequently, this results in a rise in the cost of field service and repair processes. Moreover, this has also doubled the cost of training field service specialists and engineers. Quantzig’ s cost analytics solutions help medical devices companies identify and set the optimum price for their products and yield maximum ROI.
Meeting customer expectations
The advent of technology has given customers around the world access to the internet and smartphones. They now have numerous choices at their disposal and demand more from companies in the medical device industry, especially in terms of implementing more aggressive SLAs. The end-users of medical devices are demanding more incentives from their reduces capital. Quantzig’ s customer analytics solutions are designed to help healthcare device manufacturers gain glean customer insights to drive sales and improve revenues through acquisition, growth, and retention.
Shift towards home-based care
The popularity of home healthcare services and POC tests are skyrocketing, this means that players in the medical device industry need to follow suit and migrate towards the production of home-based health kits. This would pose as a threat in reducing the spend on capital programs for the development of new lab equipment.
Manufacturers in the medical device industry are gradually losing their ability to fund capital for their new devices primarily due to the implementation of new schemes to reduce reimbursements for medical assays by insurers. To add on, heightening competition from other emerging companies in the market will contribute to eroding customer loyalty and thereby reducing the profit margins of top medical device companies.
Healthcare professionals constantly encounter a seemingly impossible number of obstacles in their mission to deliver quality care at affordable prices to the patients. From rapidly skyrocketing pharmaceutical prices to needing to jump through hoops for treatment reimbursement, the tasks have been becoming more complex with time. Quantzig’ s analytics solutions for the healthcare industry help companies including pharma, medical devices, diagnostics, and healthcare delivery companies to address key challenges, reduce costs, increase margins, and gain a competitive market advantage.
The client- A renowned medical equipment manufacturer
Area of engagement- Supply chain visibility
Despite the global uncertainties and sluggish economic growth, the demand for medical equipment has witnessed considerable growth – owing to the increase in GDP, government support, and increase in the per capita income. With the rising government effort to increase medical coverage, the companies in the medical equipment industry are focusing on investing in innovations to reduce healthcare spending and improve the healthcare efficiency. Although technological innovations are driving the growth of the medical equipment industry, the industry is expected to face certain challenges, which include:
- Ensuring product quality: In the healthcare industry, medical equipment manufacturers should offer top-notch quality products to avoid issues related to product recalls. For a medical equipment manufacturer, product recalls can have a negative impact on the brand reputation and the overall company’s bottom-line performance. So, to counter these challenges, medical equipment manufacturers should ensure product safety and security in their product offerings.
- Cost of product development: As regulations become stringent, the cost of production increases, making it essential for the manufacturers to invest heavily in research and development. Besides technology, medical service providers should evaluate new ways to offer and market their products to improve sales.
To counter these challenges and improve the efficiency of their supply chain, organizations are utilizing supply chain visibility solutions. In the medical equipment manufacturing space, gaining supply chain visibility can help manufacturers achieve better transparency into the supply chain right from the adherence to regulations to on-time delivery of the products. In addition, improving supply chain visibility also helps medical equipment manufacturers gain accurate and real-time insights into the inventory levels.
The Business Challenge
The client, a renowned medical equipment manufacturer, wanted to reduce their lead times and improve the supply chain efficiency. With the help of our supply chain visibility solution, the medical equipment manufacturer wanted to orchestrate the end-to-end supply chain from suppliers to the customers. The primary objective of the client was to improve the supply-demand balancing to meet the surges in demand efficiently. In addition, the medical equipment manufacturer wanted to streamline their supply chain process and reduce business and supply chain risks.
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The Solution Benefits and the Business Impact
The supply chain visibility solution offered by Quantzig assisted the medical equipment manufacturer to improve lead times and enhance their business performance. The engagement helped the medical equipment manufacturer identify shortage and eradicate problems in the supply chain. The supply chain visibility solution also offered granular insights into the medical equipment manufacturing space in terms of the true cost of products. Additionally, the medical equipment manufacturer was able to effectively respond to production bottlenecks while improving agility in the supply chain operations.
Supply Chain Visibility Solution Predictive Insights
Quantzig’s engagement helped the medical equipment manufacturer acquire real-time and precise information regarding the stocks, orders, and deliveries. The medical equipment manufacturer was able to reduce lead times and improve their competitiveness in the market. The engagement also offered more consistency in identifying SKUs, measuring units, and enforcing timelines. The medical equipment manufacturer was able to handle the materials, inventory, and transportation better.