How To Avoid The Two Biggest Challenges Medical Device Companies Face When it Comes To Efficient Inventory Optimization
Supply chain logistics for implant medical devices is complex as is. To automate that supply chain with intelligent systems and tools is even harder to do right.
In no other industry do you have so many different types of inventory shared across so many locations, with so many different stakeholders. To top it off, you don’t exactly know what will be used or what will come back, let alone where it will go next.
These issues make asset utilization in the implant medical device world intense, challenging, and exciting.
Here are the biggest challenges—actually they are mistakes… avoidable mistakes.
- Wrong Tool
- Wrong Processes
Obviously! Here is what these two problems actually mean for your business.
Wrong Tool
This isn’t your fault.
The wrong tool prevents you from doing your job efficiently.
For a long time, various tools like Excel, whiteboards, like ERPs, car rental software, etc.. were square pegged to try to get the job done. Through the herculean effort of sales and operations teams the job always got done, but these makeshift solutions make life harder, and just don’t work well.
Until Movemedical, no tool had successfully abstracted sales functions discretely from operations, and true item-level kitting and tracking remained elusive.
Some tools have been built with the right idea, yet because they are missing one or more critical components—they are not scalable (globally), or they are not integrated—this excludes them from many benefits of an intelligent, automated system.
In the end, the wrong tool will never be fully adopted. And without user adoption, inventory optimization is impossible.
Wrong Processes
The wrong processes make sure you never fully optimize your inventory.
Even if you have a good tool, if it is paired with poor processes you will never get the data you need to improve your business or any of the benefits that come from having an all-in-one integrated solution.
The first step is to make sure you have a tool that everyone loves to use. Often inventory tools are not helpful to the majority of users, benefitting only a few non-users. This is because they are usually built with specifications designed by operations and IT, while the actual users—mostly sales reps, are forced to comply. This never works. That is why in the industry standard adoption is less than 40% (Movemedical is above 98%).
Additionally, when the tool is integrated into your business processes and is also aligned with sales and their processes, you will finally have everyone on the same page.
Putting it all together…
In order to make sure you have the right tool, make sure it can accommodate these basic functions:
Demand Signal (Case-based)
– Calendar
– Preference Cards
– Case Cloning
Reservation System (Specific and Customizable)
– Shared Calendar
– Kits
– Trays
– Individual Items
– Loaners
– Trunk Stock
Aligning Sales and Operations (Reduces Wasted Time, $, Effort)
– Shared Calendar
– Status Updates
– Inventory Visibility
– Usage Capture
– PO Info
– Simple communication (in-app, case-specific, HIPAA compliant)
Integration to Backend ERP (SAP, Oracle, JDE, etc.)
– Inventory / Financial System of Record
– Consolidation
– Billing
– Replenishments
User-Friendly System
– Intuitive
– The sales reps must have a tool that HELPS THEM DO THEIR JOB first, everything is secondary
If you are able to make sure you get the right tool and right processes in place you will be able to achieve inventory optimization.
Benefits of The Right Tool & Right Processes
Visibility
– accurate location for all inventory types across all locations
Faster Order-2-Cash
– integrated usage capture, PO and billing allows for faster processing
Scalable
– a system that grows and changes as your business does
Better Real-Time Data
– “living” continually adjusting forecast
– Turn Ratios
– Accurate sales forecasting
– True demand planning
Your journey to optimization has already begun. Keep going.
Movemedical has helped many medical device manufacturers succeed after a previous “solution” failed them: whether it was built in-house or by a 3rd party. You need to partner with someone who has done it before. We are here to help. Better partners help drive better results.
We can help, we can be your partner.
Call Now: 877.469.3992
Email: mm@movemedical.com
Request Info: https://movemedical.com/request
More info: https://www.movemedical.com/product
Key benefits: consignment management at all levels, true item level kitting, case management and inventory assignment, loaners, accurate forecasting, complete visibility, par-management, RFID, tracking all items inside and outside kits, sterile, non-sterile, HIPAA compliant communication (files, messaging), and full custom ERP integrations to reduce manual effort.
Now it is time to take action.
Call Movemedical now to begin your journey.
858.956.0219 or info@movemedical.com
Some results and user experiences:
