Building Resilient Medical Supply Industry Post-COVID

 

From past to the present, the Medical Supplies Industry has been a solid but hidden backbone of the health care industry.  However, as we set our eyes towards the future, it is important to note that the medical supply industry has witnessed a monumental transformation due to the COVID pandemic. America’s heavy dependence came to light as it reportedly relied on China with its $800 million investment to source medical supplies, for almost a decade and a half until COVID. During COVID, India and China played an instrumental role in disbursing the required medical supplies to the US market with China supplying 20% (due to lockdown) of medical Personal Protective Equipment (PPE) to the USA which was 40%+ back in 2018 out of total PPE supply.

As the US sourced 72% of APIs (Active Pharmaceutical Ingredients) from other countries, India contributed to 18% and China accounted for 13% of the total supply. And according to the research reports a $105.8 billion medical supply industry back in 2019 is set to touch 160.6 billion in the next five years at the CAGR of 7.2%.

So how will the Medical Supply Chain transform after the accelerated global vaccination drive as the world is moving towards being COVID free? Read on to take a peek into the future of the Medical Supply chain industry. 

1) Strategic approach towards Inventory management 

The prevalent Just in time inventory function will undergo a drastic change. Although this existing process successfully puts a cap on cost and does not heavily depend on large warehouses it can fail during chaotic situations like Pandemic. The new inventory management strategy will be designed in perfect alignment with cost, standardization, and competition to keep pace with a radical change in the medical supply industry.  

2) Improvised Disease detection models

What if the disease is prevented in the earlier stages of the outbreak through effective disease detection models? It will reduce the burden on the medical supply to a great extent and hence the future will focus on personalization, preventive measures controlling the illness, and move from reaction to prevention model, which will play a catalyst role in eliminating bottleneck medical supply chain situations. 

3) Digital model to achieve precision

The inclusion of digital models and their applicability at all the stages in the supply chain, right from the point of manufacturing to the point of consumption will result in higher efficiency. The clockwork precision using technologies like blockchain will aid in tracking the deliveries, validation of medical supplies, timely mediation in case of lapses, etc. This process will introduce necessary accountability in the medical supply chain leading to transparent and robust medical supply deliveries.             

4) Data-driven infrastructure

When global medical events strike, leading to global panic and chaos, data will prove to be King. Not just at the micro-level from internal sources, limited to one point of supply, but at a macro-level connecting each essential point in the fabric of the entire supply chain industry. And to achieve this feat each player has to focus on delivering their bit. In case of emergency, this updated data can be utilized in making crucial decisions like understanding the GEOs that currently lack supply or clients that have ample supply.

5) Global sourcing network

The medical supply players spread over the global labyrinthine network will have to be connected to react effectively, and this approach will help in all situations irrespective of the nature of the medical requirement. This network will help approaching local suppliers first before connecting with overseas players thereby reducing the time and cost involved in sourcing the medical supplies. But with the absence of the global network, it will lead to a lack of connectivity in the sourcing.

6) Alignment of Deliveries 

Imagine a situation where hospitals witness a spike in demand for PPE kits one day and on the next, they experience a lack of ventilators. Now imagine this happening across the globe. Without the transparency and alignment of the delivery due to the shifting demand, the medical supply industry will render ineffective. Hence, deliveries have to be synchronized to meet the demand-supply gap. 

7) Creative approach 

Incentivizing the medical-supply vendors will put the focus on the local suppliers instead of the overseas markets. This will not only ensure timely deliveries but also develop personalized services. Secondly, establishing multiple contacts will ensure the availability of the products as and when the need arises instead of going berserk.

The Medical supply arena has witnessed a tremendous transformation which will result in building a strong resilience to increase efficiency in the future with or without the pandemic. The global pandemic has been a wake-up call for the medical supply arena to work in the areas of technology, inventory, data management, and more. The lasting impact of the pandemic will continue to create a flexible medical supply chain post-vaccination to be capable of handling all forms of medical events in the future.