India is emerging as a potential Medical Device outsourcing hub due to favorable investment schemes, government support and a quality talent pool. But, here lies another challenge for B2B traders in all the sectors of the economy, the unprecedented rise of the oil & gas prices due to the Russia & Ukraine war. Russia contributes around 12% of the World’s oil and 17% of the natural gas supply. The interrupted oil & gas production and supply has led to hike in prices of Medical Devices for end consumers.
The unprecedented rise in prices of components & raw material due to increased transportation cost has forced manufacturers to increase prices to remain profitable without hitting the bottom line. The situation will once again require special measures to combat the crisis.
Here are the impactful ways Medical Device Manufacturers must adopt to remain profitable without hitting the bottom line:
Re-visit the Packaging
The cost of shipping and transportation depends on the weight and volume of the product. Manufacturers can re-look into their packaging and find best solutions to fit in more number of devices in a single packaging. The lesser the weight & volume of the device, the easier and cost-effective it is to ship the product.
Optimize your Device Design
Consider replacing the costly, yet unimportant & non-mandatory parts with relevant alternative parts that are easy to procure at a much more feasible price. Alternatives aren’t bad if the quality of the device isn’t compromised.
Pre-Plan to optimize the procurement cost
Pre-plan the inventory and procurement to maintain pace with the rising demand. In uncertain times of war and COVID-19, pre-planning ensures that your orders are always on time even when the supply chain is disrupted.
Transparent Communication with Manufacturers or Suppliers
Communication gaps regarding procurement of components, vendors or logistics may lead to additional cost. Effective communication throughout the manufacturing cycle facilitates planned decisions and helps in avoiding last minute hassle.
As a 40+ years Medical Device Manufacturer, we at Johari Digital Healthcare Ltd strategically develop our processes to ensure timely delivery of your Medical Device Consignments. With effective supply chain measures, transparent communication and tendency to adapt with every upcoming challenge you can trust us to support you in your Medical Device Development journey!
Schedule a Consultation today to explore quality Medical Device Manufacturing services with Johari Digital Healthcare Ltd.