According to new analysis, over the next six months, there will be a series of demand shocks, both positive and negative, as medical device manufacturers and their suppliers respond to providers’ changing needs. Beneficiaries of the epidemic will be vendors of basic hospital supplies, as healthcare facilities fill to capacity with coronavirus victims. Many of these products will be low-margin disposables including masks, wipes, disposable hospital room products, and standard examination supplies.
As the device industry navigates uncharted waters, supply chain managers might want to consider how best to present their firms to customers. Suppliers should recognize that manufacturers may be dealing with market disruptions. They may not be able to provide accurate information or lead the relationship in the ways they have in more stable times. Rather than ignore or complain about uncertainty, suppliers will be well-served if they can demonstrate plans that show customers they can reliably manufacture regardless of societal disruptions.
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