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.