Medical Device Industry Overview
The US medical device industry is one of the largest industries and is constantly being driven by the emerging technologies and innovative manufacturing methods. Though medical device manufacturing companies have witnessed unprecedented growth in the last decade, such dramatic advancements have also given way for several challenges that loom over companies operating in the medical device industry. Owing to the increasing challenges in the market, companies in the medical device industry are increasingly leveraging demand management solutions to manage and allocate capacity to meet the markets’ increased demands.
The client is a medical device manufacturer based out of the United States. The company is well-known for manufacturing a wide range of healthcare devices.
Inconsistency in the product demand, owing to fluctuations in the market, made capacity planning quite challenging for the client. Also, due to their inability to meet the rising market demand, the client was unable to maintain the right balance between supply and demand, which resulted in reduced profit margins for the company. This necessitated the client to capitalize on these market changes through better forecasting and demand planning.
The key objectives the client was looking to achieve by leveraging Infiniti’s demand management solution were:
Medical device industry challenge #1
Enhance product forecast accuracy – By leveraging Infiniti’s demand management solution, the company in the medical device industry wanted to accurately forecast the product demand and better plan production, warehousing, and shipping schedules.
Medical device industry challenge #2
Identify long-term savings opportunities – By employing an effective demand management process, the client wanted to effectively manage the supply-demand shortages. With this, they wanted to enhance sales and efficiently cater to the needs of the increasing population.
Medical device industry challenge #3
Create efficient cash flow management – By accurately forecasting the product demand, the company in the medical device industry wanted to predict shortfalls in sales and plan capital requirements in advance to meet the financial needs.
The experts at Infiniti Research conducted a medical device market study. This phase of the engagement helped the client to understand industry transformations and developments in the US medical device industry. Also, the client was able to identify factors impeding the demand of medical devices.
The next phase of the engagement involved an inventory forecasting engagement. By leveraging Infiniti’s expertise in offering inventory forecasting solutions, the experts helped the company in the medical device industry was able to accurately identify the target stock levels to meet the potential market demand for medical devices in the United States. This helped the client to fulfil customers’ demands seamlessly.
Also, Infiniti’s demand management solution involved competitive benchmarking analysis, where the experts helped the client to identify approached undertaken by their key competitors to meet the evolving market demand. Also, the company in the medical device industry was able to understand how well they performed compared to other top medical device companies in the US.
Insights obtained from Infiniti’s demand management engagement helped the client to formulate effective strategies for making smart decisions about inventory and production levels. This subsequently reduced the risk of stock-outs, resulting in lower holding cost and increased turnover rates.
Moreover, Infiniti’s demand management engagement also delivered tangible outcomes in their supply chain, most notably the cost savings obtained from inventory management and demand planning. Infiniti’s demand planning solution helped the company in the medical device industry to improve achieve average savings of $5.2 million in a year.