Supply Chain Shortages in Medical Devices: Dealing with Semiconductor
crisis
Joharitech
Electronic Medical Device
Manufacturing company runs mainly on the semiconductor supply. The
semiconductor market is estimated to grow from $452.2 billion in 2021 to 803.1 billion
in 2028. The weather-related supply chain issues and pandemics led to chip
shortages in the MedTech industry. The chip-powered equipment includes
ventilators, defibrillators, ECH, EEG, BP Monitors, and implantable pacemakers.
In the United States of America and across the globe these devices were
required in enormous numbers.
The MedTech companies cannot solely
rely on external sources for relief. Companies are strategizing ways of
managing both current and long-term risks associated with the device.
Supply Chain Disruptions in Medical Device
Manufacturing (Core problems and suggestions)
The supply chain of Medical devices is
a highly regulated process involving Pre-planned inventory management, Managing
obsolescence of components, Supply Chain Transparency, Vendor logistics, and
Strict compliance with regulatory norms.
Each of these processes has become
more stringent with time and the pandemic situation. The scarcity of
semiconductors across the world has significantly brought things to a halt in
nearly half of the Medical device manufacturing domain.
Strategies to manage supply chain
risk
1.
Analyze the inventory to ensure
fast-paced delivery without any major time lag.
2.
Enabling digitization and
transparent controls for handling supplier shortages or delayed delivery.
3.
Adoption of patient Centric
approach to ensure patient needs and pain points.
4.
Strengthening public-private
relationship.
5.
Company leaders must identify
opportunities in collaboration with state, federal, and local governments to
resolve chronic supply shortages.
The supply chain is a dual-edged sword
with a significant role in the beginning and at the end of the manufacturing
process. Both ways it can extend the life cycle of the manufacturing process
and Go-To-Market. The lack of a supply chain for delivery of raw-material or
products from the warehouse to the site of use, both ways the supply chain can
have a significant role.