Collaborative Solutions for MedTech Supply Chain Challenges

Recently Supply Chain Companions moderated an insightful Medical Technology Round Table in Zurich organized by Arvato, a service provider in logistics & fulfillment, transportation management and digital solutions. Supply chain executives from industry leading suppliers gathered to discuss the evolving landscape of loaner models and consignment in the medical devices industry.

The focus? Aligning the healthcare ecosystem with an outside-in perspective, putting hospitals at the center as end customers. This marks a significant shift from the historical inside-out approach, where MedTech firms prioritized internal efficiencies.

Today’s landscape presents new challenges. Hospitals demand improved therapy availability and quicker response times, while facing space limitations. Simultaneously, MedTech firms grapple with capital efficiency challenges. This scenario calls for innovative solutions.

The roundtable explored various strategies, including segmentation-based value propositions and hybrid consignment models. The combination of segmentation-based propositions with alternative hybrid models – such as season flex, procedure-linked, and tiered options – aim to optimize service and boost customer satisfaction.

Understanding customer needs and therapy characteristics is crucial. It enables tailored solutions that can increase capital efficiency, reduce costs, and improve therapy availability. Hybrid consignment models offer flexibility in inventory management, though their effectiveness requires careful evaluation. However, they must be assessed with an open mind to understand whether these approaches truly address the key challenges faced by hospitals and suppliers.

An ecosystem approach emerged as a key theme. This holistic view, which we use in different industries, considers the needs of all stakeholders: MedTech suppliers, hospitals, logistics providers, and data providers. Arvato’s specialized services are increasingly supporting MedTech companies in managing their end-to-end supply chains. Success in this domain will require unprecedented collaboration and data sharing among all players. Visualizing the total ecosystem, a will help to understand the broader picture, and as such aligning stakeholder interests.

Looking ahead, emerging technologies like smart sensors and AI promise to revolutionize inventory management. However, successful implementation hinges on mapping the technology landscape and ensuring interoperability among different solutions.

The takeaway? MedTech companies must remain adaptable to evolving customer perspectives. This adaptability includes embracing strategies like segmentation-based value propositions and hybrid consignment models. These approaches offer the flexibility needed to meet diverse customer needs. Furthermore, service and data providers are becoming integral to the MedTech ecosystem. Their solutions could be instrumental to optimizing processes that serve both hospital and supplier needs in this new era of healthcare logistics. By leveraging these strategies and partnerships, MedTech companies can better align with customer demands while improving their own operational efficiency.

Marcel van Rossum, Co-founder Supply Chain Companions