LONDON--(BUSINESS WIRE)--SpendEdge, a global procurement market intelligence firm, has announced the release of its position paper on COVID 19 impact risk analysis of healthcare industry and risk mitigation measures to streamline sourcing and supply chain operations in this industry.
Highlights of this position paper
Analysis of the Coronavirus Impact on the Healthcare Industry
While the pandemic impact has set healthcare professionals on a war footing to expedite the process of finding a cure, it has exposed the sheer lack of resilience of supply chains in the global healthcare industry. Stressed healthcare systems, extreme shortage of medical supplies, and a sudden rise in R&D activities are observed as the direct coronavirus impacts on the healthcare industry. Findings in this position paper stress on the importance of the next weeks that are expected to exert major impacts on the demand curve as the coronavirus impact becomes more evident and troubling in the healthcare industry. It is apprehended that the supply bottlenecks can trigger a hyperinflation-type situation for healthcare products and services.
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Demand-Supply Trends Governing the Healthcare Industry Sectors
The unprecedented rise in the number of infections has triggered a sudden surge in demand for healthcare essential items that are currently short in supply. Export restrictions on medical equipment imposed by the EU and lack of trust with respect to the Chinese supply base will continue to contribute to the supply chain crisis as the coronavirus impact on the healthcare industry worsens with every passing day.
Demand-Supply Trends in the Medical Devices and Technology Sector
- There has been an increase in demand for respirators, especially in the Covid-19 hotbeds across the globe. To cater to this demand surge, suppliers are expediting production and exploring innovative methods to boost production of critical equipment
- An increase in government spending to support the R&D efforts of suppliers is expected to improve their production numbers. This will foster a demand and supply equilibrium within a year of the Covid-19 outbreak
Read SpendEdge’s latest whitepaper on the coronavirus impact on the medical device sector and get deep-dive insights into strategies that will help you tackle the projected procurement and supply chain risks in this industry.
Demand-Supply Trends in the Pharmaceuticals and Biotech Sector
- There has been a spike in demand for lab equipment and supplies, especially “mice” to conduct vaccine trials. Certain labs are also breeding their own lab mice to cater to increased demand
- Crowdsourcing activities are on the rise to fund Covid-19 related research work. This will, in turn, drive demand for lab-related supplies
- There are increasing supply-side constraints, as suppliers across the globe were not equipped from a raw material standpoint to cater to the surge in demand. Global supply chains for API are facing disruptions and the situation is not likely to improve in short-term as the coronavirus impact intensifies on the global economy
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Risk Mitigation Activities to Address the Coronavirus Impact on the Healthcare Industry
Local sourcing strategy
Considering the bleak supply scenario owing to the coronavirus impact on the healthcare industry, it will be prudent of buyers to follow a localized procurement strategy to negate any transportation -related bottlenecks. Such a step is also recommended keeping in perspective the global lockdown scenario.
Ensuring shipment visibility
Restrictions imposed on cargo mobility will block shipments at various places for an unforeseen duration that will create massive delays in the entire supply chain. This necessitates the usage of software solutions for supply chain management, inventory, warehousing, shipment tracking, etc. Complete visibility and accurate communication on the supply chain are essential to plan ahead and curb the chances of loss of shipments in transit.
Buyers must stay abreast of global developments as well as country-specific trends. Lockdown situations are dynamic and exert significant impacts on supply chains. Buyers must also monitor emerging success case studies and learn from them (for example, the Indian government’s efforts to bulk buy protective clothing online and from Korea and Vietnam).
To stay on top of latest trends and supply market information, check out SpendEdge’s knowledge center on coronavirus impact assessment.
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