{"id":9101,"date":"2020-11-19T09:04:09","date_gmt":"2020-11-19T17:04:09","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9101"},"modified":"2020-11-19T09:04:09","modified_gmt":"2020-11-19T17:04:09","slug":"the-remedy-for-disruption-in-the-medical-device-industry","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2020\/11\/the-remedy-for-disruption-in-the-medical-device-industry","title":{"rendered":"The Remedy for Disruption in the Medical Device Industry"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”9103″ img_size=”full”][vc_column_text]There\u2019s been disruption in the medical device industry recently \u2013 new technologies, more <\/span>patient-centered <\/span><\/a>development<\/span>, hospitals pushing back on charges, more reimbursements being questioned, and supply chain issues due to the pandemic making shipments less reliable. Many medical device manufacturers are looking more closely at how they can make their operations less vulnerable to disruption.<\/span><\/p>\n

There may be opportunities your medical device manufacturing operation can leverage \u2013 in labor, materials, manufacturing and the supply chain \u2013 to make your infrastructure more resilient in the face of change. <\/span>Adaptive ERP software developed specifically for the medical device industry<\/span><\/a> can help provide a strong infrastructure so you can be more productive.\u00a0<\/span><\/p>\n

It\u2019s time to re-evaluate your company\u2019s foundation. Here are three areas where you can look for greater efficiencies.<\/span><\/p>\n

Efficient Inventory Management\u00a0<\/span><\/h2>\n

The Santa Clara Medical Center <\/span>reported<\/span> that\u00a0<\/span>383 medical items went missing<\/span><\/a>\u00a0between 2010 and 2014, including incubators, heart monitors and mammography machines.\u00a0The\u00a0investigation concluded that the equipment was lost due to an inefficient inventory monitoring system.\u00a0<\/span><\/p>\n

Inventory of medical devices in multiple locations is a prime target for efficiency improvements. A better <\/span>connected supply chain<\/span><\/a> can be the remedy for both inefficient inventory management and faster cash-to-cash turnover. <\/span>Cloud-based <\/span>Enterprise Resource Planning (ERP) software<\/span><\/a> helps medical device manufacturers and suppliers reduce the potential for disruption inefficiencies, both in the warehouse and out in the field. <\/span>An adaptive ERP can help you optimize <\/span>inventory accuracy<\/span><\/a> and the movement of material in and out of your manufacturing operation to improve your on-site and off-site inventory management. When you have full tracking and tracing across your supply chain,\u00a0you can effectively connect with your supply chain partners around the globe and sync up information. You can coordinate component deliveries, share targets and better manage distribution for improved <\/span>inventory effectiveness<\/span><\/a>.\u00a0<\/span><\/p>\n

Managing your supply chain isn\u2019t just about sharing data with your suppliers. You also need intelligent forecasting, with the power of machine learning, so you can automate data-heavy processes and make faster, more intelligent decisions.\u00a0<\/span><\/p>\n

Political pressures and trade issues can also delay getting components in or out of your manufacturing location. The <\/span>COVID-19 pandemic<\/a> highlighted the life-or-death potential for tight supply situations<\/span>, like ventilators, to quickly escalate. Because of their responsibility to our nation\u2019s health, the medical device industry has to ensure that their infrastructure is adaptable enough to guard against <\/span>supply chain risk<\/span><\/a>.<\/span><\/p>\n

Automation Improves Operational Efficiency<\/span><\/h2>\n

Has your medical device company grown so fast that your manufacturing operations haven\u2019t kept up? <\/span>Many industry processes are still carried out manually or in separate, unconnected systems. The formula for <\/span>fast and sustainable growth in the medical device industry<\/span><\/a> includes<\/span> the adoption of <\/span>digital manufacturing technologies<\/span><\/a>. Digital technology can integrate planning, scheduling, quality, cost management, material control and shop floor control, and <\/span>can help optimize an inefficient operation.\u00a0<\/span><\/p>\n

Automating machines, processes and repetitive tasks ca<\/span>n jump-start a more efficient manufacturing operation. Intelligent networking includes <\/span>the Internet of Things (IoT), artificial intelligence and machine <\/span>learning, <\/span>augmented reality<\/span><\/a> and even robotics.\u00a0If a company is operating efficiently, they can <\/span>optimize capacity utilization without additional investment in infrastructure or the need to raise the cost of the product.<\/span><\/p>\n

Automating processes leads to full inventory visibility and greater accuracy, reducing overstock and ensuring all expired products are removed from hospital shelves.\u00a0<\/span>According to various analysts, a 20-30 percent <\/span>inventory<\/span><\/a> reduction can be achieved with improved management of raw materials, parts, WIP and finished goods.<\/span><\/p>\n

Greater control can also improve <\/span>quality management<\/span><\/a>. The manufacturing cycle can be streamlined and quality can be checked throughout the production process. Even the rate of scrap generated by the manufacturing process can be reduced.<\/span><\/p>\n

Mergers and Acquisitions <\/span>\u00a0<\/span><\/h2>\n

Mergers and acquisitions (M&A) are a proven strategy<\/span><\/a> to meet the demand for fast growth in the medical device industry and in <\/span>contract manufacturing<\/span><\/a>. However, acquisitions, divestitures and restructuring can be significant disruptions to any company. When companies are integrated, they\u2019re faced with new and rapidly shifting rules and regulations as well as GAAP, tax and audit issues. The attempt to comply can sap efficiency and put pressure on shared services. According to <\/span>Deloitte<\/span><\/a>, most global companies save 15 percent in productivity on shared services during M&A, which goes right to the bottom line. But 52 percent of respondents who had to deploy shared services indicated they were not ready for end-to-end process execution. A more adaptive ERP environment can assist with end-to-end performance.<\/span><\/p>\n

M&A can often address technological and regulatory issues, but the integration of two companies always poses challenges to efficiency. Software in the cloud can allow you to quickly adapt, and to merge shared services like finance and purchasing quickly. <\/span>Real-time data and analytics<\/span><\/a> enable shared information across the new enterprise and allow you to continue to make fast decisions.<\/span><\/p>\n

Efficiency and Accuracy: Rethink Your Foundation<\/span><\/h2>\n

Every business has inefficiencies. But the more you can engineer a solid foundation into your manufacturing process, the more profitable your organization will be.<\/span><\/p>\n

Medical device ERP<\/span><\/a> software exists that can improve your organization\u2019s response to everyday change or systemic disruption faster and can enable you to make decisions based on more accurate data. Preparing your foundation now can pave the way to the fast growth you need to win in the competitive medical device industry.<\/span>[\/vc_column_text][vc_single_image image=”9102″ img_size=”full”][vc_column_text]QAD launched the <\/b>Adaptive Manufacturing Enterprise Maturity Model Diagnostic<\/b><\/a>, a comprehensive tool that gauges a company\u2019s ability to cope with disruption. Take the 12-question survey to identify your business\u2019 strengths and potential weaknesses in the context of business disruption.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_single_image image=”9103″ img_size=”full”][vc_column_text]There\u2019s been disruption in the medical device industry recently \u2013 new technologies, more patient-centered development, hospitals pushing back on charges, more reimbursements being questioned, and supply chain issues due to the pandemic making shipments less reliable. Many medical device manufacturers are looking more closely at how they can make their operations less vulnerable […]<\/p>\n","protected":false},"author":29,"featured_media":9103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[1421,773,1309,1448,6,1449,9,697,1422,230,511,24,27,1447,157,720,1402],"class_list":["post-9101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-adaptable-erp","tag-adaptive-erp","tag-adaptive-manufacturing-enterprise","tag-adaptive-manufacturing-enterprise-diagnostic","tag-automation","tag-cash-to-cash-cycle","tag-cloud-erp","tag-disruption","tag-erp-for-manufacturing","tag-inventory-management","tag-life-sciences-erp","tag-manufacturing","tag-medical-device","tag-medical-device-erp","tag-medical-devices","tag-mergers-and-acquisitions","tag-operational-efficiency"],"yoast_head":"\nThe Remedy for Disruption in the Medical Device Industry | QAD Blog<\/title>\n<meta name=\"description\" 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He is responsible for profitable revenue growth, developing sales strategy, driving new market penetration, and managing employee development. In his spare time, he enjoys playing guitar, skiing, and running, when he\u2019s not spending time with his wife and two lovely daughters.","url":"https:\/\/www.qad.com\/blog\/author\/bart"}]}},"_links":{"self":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/9101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/comments?post=9101"}],"version-history":[{"count":2,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/9101\/revisions"}],"predecessor-version":[{"id":9105,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/posts\/9101\/revisions\/9105"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/media\/9103"}],"wp:attachment":[{"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/media?parent=9101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/categories?post=9101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.qad.com\/blog\/wp-json\/wp\/v2\/tags?post=9101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}