Topic: How analytics could transform medtech manufacturing
While industries like aerospace had decades to embrace advanced technology, analytics and workflows, medical device manufacturers will have to make the same shift in their factories in a fraction of the time.
Medical device manufacturing is on the verge of major transformation. Over the last 30 years, industries such as automotive, aerospace and consumer goods have modernized their product innovation strategies with advanced analytics models to scale manufacturing and keep up with evolving demands.
Now it’s time for the medical device industry — a sector with a growing need for high-volume cost-efficient production — to do the same.
Merger and acquisition activity in the sector over the last 10 years has broadened sales and distribution networks for medical device manufacturers. This market consolidation has brought a major improvement opportunity for these organizations to build new efficiencies across all manufacturing sites, systems and supply networks. Creating this new level of efficiency will ultimately drive increased production output, improved product quality, lower costs and strengthened supplier relationships for product innovation — all critical aspects to solving many of today’s top healthcare issues.
The medical device industry was ready for a new, analytical manufacturing model in 2019, but the coronavirus pandemic has catalyzed the transformation from a nice-to-have to a core business mandate. While industries like aerospace had decades to embrace advanced technology, analytics and workflows, given today’s market dynamics, medical device manufacturers will have to make the same shift in their factories in a fraction of the time. Before COVID-19, some projected maintaining the status quo and not embracing digital transformation could mean losing 21% of profits, according to a report by KPMG. That figure is now arguably growing.
The best place to start is with inventory. When teams have a real-time, accurate and harmonized view of inventory levels, they’re better positioned to quickly balance inventory across even the most complex and multi-sourced supply chains and ramp production up and down to respond to demand changes. They can also make faster decisions in the factory that further organizational goals, speed time-to-market, create competitive advantages and give healthcare providers what they need to improve patient outcomes.
Using analytics for a competitive edge.
The daily factory management problems facing medtech manufacturers — managing shortages, optimizing inventory, dealing with supplier delivery issues and more — are not new. These are all common battles, especially when teams rely on antiquated systems. Spreadsheets and home-grown business intelligence solutions have served manufacturers and factories well in the past are no longer sufficient, given the growing complexity of contract manufacturing, which is amplified by globalized supply networks and the disparate systems and processes that come with the industry’s uptick in M&A activity.
Topic Discussed: How analytics could transform medtech manufacturing