Blog
MedTech: Building a Resilient Future
4-minute read
April 12, 2024
In today's rapidly changing world, the ability to adapt and thrive in the face of disruptions is crucial for businesses. As per a recent Accenture survey, disruptions in engineering, supply chain, production, and operations across 11 industries resulted in a significant rise in manufacturing inventory levels (totaling $1.9 trillion) and a 40% increase in product order-to-deliver lead times. However, for resilient companies, these disruptions presented an opportunity to capture over 3.6% additional average revenue growth.
The recent disruptions have exposed vulnerabilities in MedTech industry. Production, operations and supply chain disruptions have resulted in a significant financial impact, with an average revenue loss of 8.3 percent, a 3.4 percent erosion of profit margins, and a 40% increase in product lead times. These numbers highlight the urgent need for MedTech companies to address these challenges and reinvent themselves around technology, with a focus on analytics and data, to be able to seize the opportunities ahead.
While functional capabilities in MedTech may be mature, there is an opportunity to continue to embed solutions within companies. Looking ahead, MedTech companies expect to more closely integrate their engineering, manufacturing, and supply chain functions using technology, analytics and data across functions to optimize their operations and empower their workforce. This will help MedTech companies enhance their resilience and adapt to changing market needs.
The survey highlighted three core actions that can help build resiliency as a competitive advantage:
To build resiliency in engineering, supply chain, production and operations, MedTech companies should follow a few key steps:
In the face of disruptions, MedTech companies must prioritize building resiliency as a competitive advantage. By investing in technology, embedding resilience in design and developing a multi-skilled workforce, these companies can navigate challenges and capture market share. The time to invest in resiliency capabilities and a strong digital reinvent core foundation is now, before the next disruptive event occurs. With a proactive approach, MedTech companies can build a resilient future and ensure sustained growth in the industry.