Supply chains are notoriously fragile. A shortage of raw materials or delays in shipping times can soon lead to empty store shelves. In the world of medical device manufacturing, the stakes are even higher. In this industry, supply chain disruptions delay life-saving devices from reaching patients.
At the same time, numerous regulations and safety guidelines must be considered. Medical device manufacturers can't source parts and materials from just anywhere. Quality parts and materials may only be available from a handful of suppliers. When world events slow down the global supply chain, production may stop.
If you're in the medical device manufacturing field, you know the importance of supply chain resilience. But how do you get there, given all the unique challenges in your industry? Here's a rundown of the issues medical device manufacturers face and how you can achieve supply chain agility.
Before securing medical supply chains, you must know what risks you face. While each organization's list of challenges and risks will be unique, all medical manufacturers have a couple of vulnerabilities in common.
First is the specialized nature of medical-grade parts. Unlike manufacturers of everyday items sold in bulk—plastic bags or cardboard boxes, for instance—you are limited to a small network of suppliers. In many cases, you may rely on a single supplier. And that's a significant risk. This one supplier could have its own supply chain issues, financial difficulties, or production shortfalls. Any of these problems could shut down your production line.
Then, there is the complexity of the medical supply chain. This global network is spread across multiple countries and is subject to a web of regulations in multiple jurisdictions. In the US, the FDA can exercise its authority to control supply chain shortages. Meanwhile, the EU enforces its own regulations to ensure the availability of medical devices for European citizens. Failure to properly navigate these worldwide regulations can lead to your company effectively being cut out of the medical device supply chain.
Consider these and other supply chain issues which could disrupt production. Then, you must find a way to mitigate each risk, such as negotiating with multiple suppliers and assigning resources to global supply chain management.
With risk mitigations, you can develop contingency plans for unforeseen supply chain disruptions. These are the world events that you can rarely plan for. Think icy roads in winter delaying transportation or military action breaking out in a key supplier's country. Epidemics and pandemics qualify, too, as they place unexpected demands on hospitals, doctors, and medical equipment.
For contingency planning against these disruptions, you may decide to maintain a buffer inventory of essential materials. This will provide you with emergency stock when the time comes. However, there are several potential downsides to this approach. From an accounting perspective, it's a financial liability to maintain inventory that essentially sits in a stockroom for months. And for some materials, you have to consider expiration dates. Emergency stock may go to waste before being used.
Other long-term contingency planning is trickier. You have to monitor world events and weather and adjust your plans accordingly. However, you can also perform periodic supplier audits. Ensuring suppliers have emergency plans improves your defenses against unforeseen disruptions.
Depending on the resources available to you, there are other forms of contingency planning you can take, including:
Given the uncertainties of a global supply chain, you may find outsourcing to a medical device contract manufacturing company is the best option.
Medical device contract manufacturers use economies of scale to mitigate supply chain risks. Contract manufacturing organizations have established supplier networks around the globe, ensuring global disruptions don't stop production. They also have backup systems and alternate facilities for contingency planning, which frees your organization to focus on what it does best—designing new and innovative medical devices.
Medical device contract manufacturers are well-versed in the laws and regulations which guide the industry. Outsourcing mitigates the risk of product recalls or other costly delays. Best of all, a trusted medical manufacturing partner ensures your products get to doctors and patients, regardless of supply chains and world events. This gives your company a competitive advantage in the marketplace.
Partner with Sanbor Medical for Supply Chain Resilience
Sanbor Medical has manufacturing facilities in multiple countries, ensuring supply chain disruptions don't stop production. With our extensive global network, we efficiently manage the medical supply chain for you, delivering substantial cost savings to your organization.
To mitigate supply chain risks and save on costs for your medical device contract manufacturing, contact Sanbor Medical today.
