Supply Chain Management

Mitigating risks in the medical supply chain

Medical supply chain management optimizing delivery, medical supply chain management, logistics in healthcare

Supply chain problems in the medical sector can be a matter of life or death. Millions of people worldwide depend on medical devices to manage chronic illness and pain. Any shortage of medical equipment, such as infusion pumps, pulse oximeters, auto-injectors, and insulin pens, can have significant personal consequences and must, therefore, be avoided at all costs.

The importance of smooth and reliable medical device delivery was brought into focus during the COVID-19 pandemic. The European Commission established an ongoing ‘clearing house’ for medical devices to identify available supplies and match availability with demand in EU countries. Meanwhile, the US Food and Drug Administration was so concerned about potential supply chain problems that it set up a dynamic device shortage list that is still maintained today.

How to navigate supply chain complexity

Managing risks in the medical supply chain is clearly of paramount importance – yet it is no easy task. There are hundreds of medical equipment makers globally supplying an incredibly diverse range of systems and solutions such as defibrillators, ultrasound scanners, heart rate and blood pressure monitors and continuous positive airway pressure machines. In each case, these manufacturers rely on their own network of crucial suppliers to provide electronic components, such as microcontroller units (MCUs), capacitors, sensors, and antennas.

Medical devices are typically the sum of many parts, so there is often a risk that a shortage of one specific component could have a significant knock-on effect. Fortunately, there are several ways that device manufacturers can mitigate such risks and reduce the chance of supply chain disruption.

Supply chain analysis

First, a detailed analysis of the current supply chain should be performed. Vital considerations include assessing an organisation’s background and financial stability, along with processes and inventory levels. Response times and shipping processes are also key. A tier 1 electronic supplier should be able to deliver orders within 2–3 days, with same-day shipping available on most weekday orders. Medical device makers require consistency, transparency, reliability and open communication from their component suppliers, perhaps more so than in any other sector. Performing this basic level of due diligence will provide a solid foundation for long-term relationships.

New product introduction leader

Medical device makers are often at the forefront of innovation, and the rapid introduction of new products and technologies can give companies a competitive edge. Managing that fast time to innovation requires relationships with component suppliers that can show a proven commitment to new product introductions (NPI). This could mean adding hundreds of new manufacturers and thousands of new products each year. From semiconductors and embedded solutions to sensors, connectors and passive components, medical device makers should choose an electronic component supplier that can meet their ever-changing needs.

Lifecycle visibility

Keeping an eye on future procurement needs is a critical consideration. By incorporating built-in lifecycle indicators for thousands of products, electronic component suppliers can help procurement professionals and engineers see parts that are Not Recommended for New Design (NRND) or are reaching end-of-life (EOL) status. This functionality helps eliminate the use of outdated components, which can lead to costly project delays and redesigns and ensures that a project remains successful from inception to end of life. Working with a component supplier that clearly labels lifecycles will help avoid out-of-stock issues, project delays and costly redesigns caused by out-of-date components – yielding time-to-market advantage.

Authorised distributor

Device makers can be lured by online offers that are too good to be true, which can lead to a multitude of problems, such as regulatory non-compliance or a halt in production, while issues are investigated and resolved. Partnering with electronic component distributors that provide products obtained directly from the manufacturers or their authorised channels and handle and store them according to industry quality standards will mitigate the risk of counterfeit parts. Component distributors that are AS9100D certified will assure purchasers that high-level traceability and anti-counterfeit controls apply for every electronic component stocked and shipped.

The value of relationships

Look to build robust and transparent relationships with distributors that employ customer service and support teams committed to maintaining open communication and resolving issues promptly. Distributor websites can also feature purchasing resource libraries featuring articles and videos that help buyers with the insights needed to select the right product. Mouser has created a dedicated resource site for electronics purchasing professionals that offer specially curated material. Ultimately, people do business with people, and the forging of long-term relationships can help alleviate supply issues down the line.

Making sure you choose the right distributor

Mouser is an authorised distributor of medical solutions and can help device makers navigate supply chain challenges. Additionally, it has launched a dedicated medical resource centre that profiles the latest healthcare breakthroughs that enable faster, more accurate diagnoses and reduce wait times. The web resource gives design engineers the tools to develop accurate and precise technologies to improve patients’ lives. With dozens of articles, blogs, eBooks and products covering medical topics, readers will find innovations transforming traditional healthcare and medicine.

Procurement professionals can also use many dedicated procurement tools and services, such as the Price Availability Assistant and the FORTE intelligent bill of materials (BOM) tool, which quickly evaluates millions of parts to improve order accuracy, save time, and increase confidence when specifying and purchasing components.

This article originally appeared in the November issue of Procurement Pro.