With life-saving devices and procedures, the medical device industry is one that requires precise and efficient management. Supply chain processes of medical devices can be highly complex, as seen with Loan Sets, Sales Rep stocks, Consignment and Field inventories.
Errors in supply chain processes can have dire consequences, from delayed or missed deliveries to potential threats to patient well-being. MedTechs lose valuable sales opportunities without the right software to help manage and bring visibility to complex supply chain processes. This in turn leads to significant revenue losses, Several key reasons contribute to these missed opportunities:
Reason 1. Incomplete customer bills
The rapid growth in volume can lead to missed sales opportunities because customer bills remain incomplete. And the reason for this? Revenue recognition requires time, especially for teams that lack the ability to automate and manage field inventory processes. As a consequence, customer billing frequently remains incomplete. Why does this happen? It’s because product usage needs to be updated in the core ERP systems in real time, and charge orders for usage must be automatically issued. Without this automation, service provision and billing rely on manual processing, making them harder to control. Consequently, this can result in ERP inaccuracies, lengthy invoicing times, and missed customer billing.
Reason 2. Lack of confidence in supplier
One of the key selection criteria for hospitals when choosing suppliers is the supplier’s ability to meet service levels. Consequently, an inability to meet specific lead times can result in substantial market share losses. The fulfillment of lead times is highly dependent on having four things right. These are the right inventory, in the right quantities, at the right locations, and at the right times. If MedTechs have ineffective and unreliable management solutions to assess accurate inventory data and field availability, they are faced with two options. They must either significantly increase their inventory levels to satisfy tighter lead times or, in dire cases, accept the loss of business.
Reason 3. A high incidence of expired batches
Without robust inventory management systems in place, batches of products often reach their expiry dates unnoticed. This, in turn, inadvertently results in larger stock write-offs during inventory or cycle counts. Consequently, this translates to a loss of what could have been productive inventory. This loss takes the form of expired batches and dead stock occupying valuable space within the facility. Such inefficiency prevents MedTechs from fulfilling customer orders with shorter lead times. Consequently, this leads to missed sales opportunities and revenue losses.
Reason 4. Slow loan kit turnaround times
Inefficient turnaround times for Loan Sets can occur when medical device suppliers lack dedicated and integrated software systems. Solutions outside their ERP system prove insufficient when mapping and managing the end-to-end loan process. The complete multi step process must be seamlessly integrated in order to be efficiently mapped and controlled within the core ERP system. The system should support steps including initial booking to fulfilment of orders, return from customer post usage to inspection, customer billing and replenishment of Loan Kit by the supplier. Manual processes can result in delays and extended invoicing times.
As a result, inefficient and insufficiently automated supply chain processes lead to lowered sales, reduced revenue, and lost profit. MedTechs urgently need to gain control of current inventory visibility and management in order to reverse and avoid future losses.
The solution? Streamline complex supply chain management with mymediset – a single Medical Device Hypercloud that runs inside SAP®, connecting everything in real-time.
To address these challenges, MedTech companies urgently need a solution that provides control and visibility into inventory management. mymediset, the world’s #1 Medical Device Hypercloud™, offers an end-to-end medical device management solution that runs seamlessly within SAP® systems, providing real-time updates on inventory levels and reducing reliance on external links and integrations.
Four ways to ensure sales when managing Loan Set, Consignment and Field inventory.
Here are four ways mymediset helps medical device companies turn missed sales into achieved sales:
1. Accurate, up-to-date inventory data
Reliable inventory levels, based on accurate data, play a pivotal role in ensuring accurate customer billing. This, in turn, leads to reductions in unnecessary sales losses. To achieve this level of reliability and accuracy, mymediset operates seamlessly within your SAP® ERP system, facilitating centralized records and real-time updates. This integration effectively eliminates errors stemming from data input replication, streamlining processes, and reducing the need for manual input reconciliations. As a result, you benefit from having a single, accurate source of ‘truth’ for real-time inventory levels, ensuring precision in customer billing and minimizing sales losses.
2. End-to-end visibility of supply chain process
mymediset provides visibility into Loan, Consignment, and Field Inventory processes, including RFID-located inventory. This real-time data ensures sales teams have confidence in stock availability, increasing customer satisfaction and retention.
3. Maximum usage of stock and circumventing waste
Reduction in expired inventory reduces significant waste. It removes associated depreciation and disposal costs, and increases availability for order completions, resulting in higher achievable sales opportunities. mymediset leverages sophisticated algorithms powered by AI to enable 100% stock usage. It follows a First In First Out (FIFO) method of inventory management, resulting in intelligent creation of optimum schedules and allocations minimising inventory waste for MedTechs. This in turn minimises inventory waste for MedTechs, and ensures appropriate stock availability for sales teams.
4. Accelerated processing and loan set turn-around times
Through streamlined booking, allocation, and return processes, mymediset accelerates loan set turnaround times, while ensuring full utilization of unused loan sets. Improved service levels due to realtime stock availability knowledge lead to increased sales and revenue. mymediset, with over 25 years of experience working with MedTechs, has designed a powerful automation platform to streamline processes that drive workflows. mymediset cuts lead times, and has made dramatic impacts on sales, revenues and profits through increase in inventory turnover by up to 20%.
With Mymediset seamlessly integrated into your SAP® system, you can count on accurate and consistent inventory and sales data, regardless of time, place or personnel. Transform your medical device supply chain management with mymediset and ensure you don’t miss out on valuable sales opportunities.