According to a recent research report, the medical packaging industry is expected to grow from 35.31 Billion USD in 2016 to 50.55 Billion USD by 2022.
Over the past few years, factors like increase in disposable income, changes in lifestyle, and relative advances in medical technology across the globe are fueling the demand for the medical packaging industry. Medical packaging plays a vital role in preserving the health-based outcomes. As a result, firms operating in the medical packaging space are emphasizing the use of modern technologies to improve the quality and cost-effectiveness of the products offered. Additionally, the regulatory concerns laid out by the FDA and the rising need for superior medical packaging facilities are contributing to the growth of this industry.
However, a few factors are expected to hinder the growth of the medical packaging industry in the coming years. These factors include:
- Rising environmental issues: Today, companies within the medical packaging space need to ensure that the regulatory requirements are met before supplying the products to the end-users due to the stringent regulations by governments across the globe. Additionally, the rising environmental concerns are compelling medical packaging manufacturers to reduce pollution while managing the reduction of waste.
- Fluctuating raw material prices: The medical packaging industry is facing constant pressures to maintain safety and stability in the products being offered even with fluctuations in the prices of these products. Additionally, the combination of economic uncertainty and price inflation is expected to pose a challenge on the medical packaging companies as it requires the use of several raw materials such as board, paper, and rigid plastics.
These factors are compelling firms across the medical packaging industry to leverage the use of robust supplier selection solutions. Supplier selection solutions help companies in profiling and shortlisting right suppliers from a pool of suppliers. These solutions also help firms carry out a robust selection process based on factors such as pricing, service, quality, reliability. Moreover, a reliable supplier selection engagement helps companies identify potential suppliers that can match their business requirements.
The Business Challenge
- The Client: Medical packaging
- Area of Engagement: Supplier identification and profiling
The client, a renowned company in the medical packaging space with business operations spread across the globe wanted to collect information from suppliers and set contract terms and negotiate with suppliers. Additionally, the client wanted to seek ways to define and measure the best value for the organization. With the help of supplier selection solution, they also wanted to understand the supplier characteristics and devise a scorecard to prioritize the needs of the customers.
Moreover, the primary objective of the client was to identify and profile potential suppliers and accordingly allocate resources to meet the business requirements.
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Infiniti’s supplier selection specialists carried out extensive interviews and discussions with leading stakeholders within the medical packaging industry to identify the current suppliers. Additionally, the specialists also compiled information from a wide array of secondary sources such as paid industry database, company presentations, and industry forums to profile the competitor suppliers.
The Solution Benefits and the Business Impact
With the help of the supplier selection engagement, the medical packaging firm profiled the right suppliers based on their characteristics. Additionally, the engagement helped the client sought ways to improve the time-to-market for the products offering, drive customer demand, and build a strong brand reputation. The client was also able to prioritize the suppliers and increase their focus on high-risk suppliers while monitoring second-tier suppliers. This helped them measure supplier performance and understand the supplier strength and weaknesses to enhance supply chain visibility.
The medical packaging industry is expected to witness a gradual improvement in the raw materials used for the production of packaging materials. In the next few years, product offerings are expected to stronger, durable, and have a better design. Smart packaging, electronic tagging, and RFID technology are also likely to influence the growth of this industry.