3 Reasons Why Labelling Can Transform Medical Device Supply Chains

Laura Johnson

Unexpected supply chain disruptions have impacted nearly every industry since March 2020, and medical device companies have needed to withstand challenges, such as new regulations and the need to reduce costs, expanding into new markets, and scaling end-to-end enterprises. Although PPE, ventilator, vaccine, and syringe manufacturers may be what immediately come to mind, companies across every vertical—not just those that are COVID-19 specific—have been affected.

More than two years on from the start of the pandemic, global supply chains continue to grapple with the challenges of unprecedented demand. According to McKinsey, on average, global container shipping rates have more than quadrupled since 2019, and schedule delays have risen. In some key trading routes, such as Asia–Europe and Asia–North America, the rate spikes are even higher and the delays more frequent.¹

When it comes to medical devices, it is vital that the supply chain be as robust as possible-people depend on this equipment for surgical intervention, lifesaving care, drug delivery, and pain management. If supply chain disruptions are not properly accounted for and managed, these products may not get to where they are needed in a critical time frame.

The challenge: shifting from supply to production

Over the last two years, the biggest challenge for medical device manufacturers has been shifting supply and production. When medical device manufacturers change suppliers, for example, their raw materials or components often arrive with a different label structure or label content than the previous supplier. As a result, these materials cannot be incorporated into the assembly process until they are re-labelled, which costs time, money, and resources. Additionally, language barriers, time differences, and email chains can stretch this process out interminably during a time when there needs to be efficiency.

Medical device manufacturing is a competitive industry, subject to ever-increasing demands for quality, constant price pressures, and the need for increased operational efficiency. As such, companies are waking up to the competitive secret weapon of modern Enterprise Labelling. With a relatively small upfront investment, these manufacturers have experienced significant quality improvements and efficiency gains that help them meet the challenges of today’s medical device industry.

Here are three reasons why Cloud-based Enterprise Labelling is the answer to tackling continued supply chain challenges:

1. Convenience, Compliance and Security

By obtaining visibility and control over supplier labelling, it becomes much easier for medical device manufacturers to shift to suppliers in new locations, while enabling compliance to global regulations. Instead of requiring third-party suppliers to manage templates, Cloud-based Enterprise Labelling gives suppliers role-based web/browser access to the brand owner’s labelling solution, thereby ensuring they use the approved label template, data, and other required information.

What’s more, a supplier no longer needs specialist knowledge to generate a label. International shipping regulations can be difficult to manage, but by using a Cloud-based Enterprise Labelling solution, suppliers can generate compliant labels. If they can correctly identify what is being shipped, its origin, and destination, the technology can generate documentation and labelling with the correct languages, the correct pictograms, and even the correct font and lettering size. This allows medical device companies to focus on their core competencies—designing and building high-quality medical devices.

Given the competitive nature of the industry, the ability to eliminate relabelling and improve the commitment to just-in-time manufacturing is critical. To flourish, medical device makers must change the way they innovate, design for manufacturability, and differentiate their products in the market. Adopting a centralised Cloud-based Enterprise Labelling enables companies to manage and source content centrally to dramatically increase the speed, accuracy, visibility, and flexibility required for dynamic labelling and packaging artwork.

Lastly, medical device manufacturers take security seriously. By turning to the Cloud, they will have the ability to offer role-based security. This means that system administrators can choose who can access labels, content, and printing devices. They will also have the ability to understand printing activity across the entire facility network, ensuring their printing architecture meets privacy and security standards.

2. The Need for Flexible Medical Device Supply Chains

No one can truly predict the next event that will disrupt medical device supply chains—the only thing that businesses can control is how well they are prepared to respond. Whether they’re shifting production, switching suppliers, introducing a new product, selling devices in a new country, or preparing for the next pandemic, Enterprise Labelling will streamline organisations’ ability to scale and adapt. Apart from saving their bottom line, this shortens the time it takes to help people in need.

As COVID vaccination efforts continue, the risk of additional supply shocks loom over medical device companies. As such, it's important that companies are ready for the next medical crisis. Even if a company made it through the pandemic without serious inconvenience to date, this does not mean they are immune to changing demands. With this in mind, the best hedge against a changing logistics landscape is to implement an Enterprise Labelling solution.

3. Reduce costs and keep up with the pace of change

As they rethink existing methods and innovate processes, medical device manufacturers need to improve quality, while spending less and tracking more. That’s where Cloud-based Enterprise Labelling can help.

When it comes to Cloud deployment, there are big cost saving and cost management opportunities. First, the Cloud offers financial predictability, eliminating the need for upfront investments. Simply put, you only pay for what you use and when you use it. The Cloud further reduces staff costs and overall manpower hours, while also addressing expenses involved in scaling and updating hardware and software.

Other, less obvious, cost advantages of Cloud labelling include its smaller environmental footprint (there are no big servers to maintain onsite) and dramatic reduction in errors. This, in turn, leads to less waste and fewer scrapped supplies, both of which can positively contribute to a company’s carbon footprint.

Another really important point here is that on-premises enterprise software systems were historically cost prohibitive for small to mid-sized organisations–however, the Cloud has removed these barriers and put world-class systems into the hands of companies of all sizes. The Cloud has made enterprise applications affordable and accessible to all, even those that might be resource constrained.

By rethinking the way they handle labelling and taking advantage of the latest technology within an Enterprise Labelling solution, medical device manufacturers can effectively and efficiently comply with industry regulations, cut costs, improve quality, expand their operations, and scale.

Minimize the impact of global supply chain challenges

The fallout from COVID has changed the way companies approach global trade. Due to factors such as rising geopolitical tensions and increased cost pressures, supply chains will likely continue to remain under constant threat of disruption for the foreseeable future. By implementing a Cloud-based Enterprise Labelling solution, medical device companies can mitigate these challenges and set themselves up for future success.

Laura Johnson is director or sales for life sciences at Loftware.

Resources

1. McKinsey & Company, Overcoming global supply chain challenges