Offshoring, reshoring, or no-shoring

The impacts of virtual, online supply chain management during the COVID pandemic are still being felt.

Now squarely in the first quarter of 2021, a year into this serious global nightmare, it’s time to reflect on today’s core business functions, how they are managed, and plan for what will change in the future (perhaps as early as 2022).

One core function in any viable medtech organization is managing its supply chain. Pre-pandemic, global supply chains were highly strategic with precise regional and local tactical actions required to maximize efficiency and optimize costs. COVID-19 suddenly pivoted that to “can I get the parts I need to ship products to satisfy my customers orders?”

As that urgency has settled into a Zoom normal, it’s time to start thinking about how to ensure the highest quality supply chain for the future.

Start with these questions:

1. What do I want out of my supply chain?

Companies simply need assurance of parts. As we think ahead to 2022, we believe that once again most organizations use their supply chains to think global, act local.

2. Can my supply chain help sales?

A good supply chain will bring innovation to improve the product pipeline and bring new revenue.

3. Will my supply chain maximize production capability?

There are books written about how supply chain management maximizes production capability. We anticipate companies with the most flexible supply chain will maximize their manufacturing efforts.

4. Does my supply chain optimize my margins for profitability?

Supply chain leaders have gained (and lost) due to this concern. Managing the local and global sourcing challenges is a highly proactive responsibility for a good supply chain leader.

Ultimately, it takes planning to properly meet the future needs of your organization.

Key questions are

• Do I have suppliers ready for the capabilities my company needs in the future?
• Does my supply chain support today’s organization and is it flexible enough to meet the future state of the company?
• Will my supply chain plans ultimately help my medtech organization win in the marketplace in 2022 and 2025?

Today’s Zoom-centered supply chain management covers the needs in 2021, but it’s time to start thinking about 2022 and beyond. Those who start planning now for ways to optimize their supply chain will stay ahead of the game for years to come.

MedWorld Advisors
https://medworldadvisors.com

About the authors: CEO Florence Joffroy-Black is a long-time MedTech M&A and marketing expert. She can be reached at florence jblack@medworldadvisors.com. Managing Director Dave Sheppard is a former medical OEM Fortune 500 executive and an experienced MedTech M&A professional. He can be reached at davesheppard@medworldadvisors.com.