How Cloud ERP Can Help Alleviate MedTech Shortages and Constraints

Shortages across the Entire Healthcare and Medical Technology Industry

The pandemic, though appearing to loosen its grip around the world, continues to impact industries in numerous ways, including staffing and supply chain shortages. For those in the healthcare, MedTech (medical technology), medical devices and supplies industries, MedTech shortages are impeding their ability to effectively serve patients and customers.

Supply Chain Constraints and Materials Shortages

A Gallup survey conducted in July 2021 found that 60% of Americans could not get a product they wanted, and 57% said they experienced significant delays. Not much has changed in 2022 as the ripple effects of the supply chain breakdown continue to produce empty store shelves and a lack of options. Even worse, patient procedures are being deferred, while necessary medical device components, such as semiconductor chips, are either delayed or nonexistent.

The availability of raw materials, like resins used to produce medical devices, has also been affected by medical supplies and MedTech shortages. But the industry’s hands are tied, and patient health is being compromised. Sadly, MedTech staffing issues are compounding the problem.

MedTech Staffing Shortages

MedTech staffing shortages are a nationwide concern as companies are dealing with record turnover amidst changes in workforce habits. The pandemic ushered in an era of remote work, and companies that need on-site personnel are being hit hardest. US economists predicted job openings would shrink by mid-2022, but the latest data shows the opposite. Not only did job openings not decline, they went up to a whopping 11.5 million. With so many job openings and a smaller number of available employees, business leaders are having to adjust their operations. Some may shrink their production volume in response to material shortages and skilled labor while others fold altogether. The most successful businesses will adopt automation and other technologies to keep the lights on.

MedTech firms are facing concerning shortages and dire consequences as they struggle to find the staffing they need for their production and distribution needs.

How Cloud ERP Can Help Alleviate Shortages and Constraints in the Medtech Industry

There’s no magic pill that will make MedTech shortages and constraints disappear, but Cloud ERP systems can help alleviate them.

A Cloud ERP system is a comprehensive business management solution through which a company can access its organization-wide data from a single, centralized database. The information is updated in real-time and is available to employees 24/7.

Cloud-based ERP solutions allow businesses to integrate disconnected systems, streamline workflows, and automate business processes. This saves employees time and effort, which means that MedTech firms can do more with fewer employees, helping mitigate the MedTech staffing concerns.

ERP systems can also lessen the impact of MedTech shortages and the supply chain breakdown. In “The Great Supply Chain Disruption Reflects Need for Cloud Business Management Solutions”, Debbie Baldwin, Senior Product Manager at Acumatica, writes that adopting Cloud ERP software gives companies “visual insight for managing inventories, supplier deliveries, and production schedules.” This helps companies identify shortages and constraints in advance and allows them to focus on finding alternative solutions, adjusting production schedules, and being more proactive overall.

How Acumatica Can Help

Operational efficiency, even in the face of daunting challenges, is possible with Acumatica’s cloud-based distribution and inventory management software. NexTec Group, a national consulting firm specializing in industry-specific technology, has helped medical supplies and devices companies successfully implement Acumatica with phenomenal results.

DAS Medical Holdings develops, manufactures, and markets custom and single-use surgical equipment covers and draping systems. InBios International designs, develops, and manufactures immunodiagnostic devices for infectious diseases and biothreats. Both medical supply companies needed a comprehensive and trustworthy Cloud ERP solution to manage their medtech challenges and the unique problems stemming from supply and labor shortages.

They chose Acumatica and implemented the software with the help of NexTec experts. In the wake of this implementation, DAS and InBios have enjoyed the following benefits.

  • Automated workflows
  • Real-time, updated inventory numbers
  • Accurate lot tracking
  • Improved forecasting
  • Robust financial controls
  • Streamlined compliance processes
  • Unlimited users without additional user fees

As MedTech shortages in materials and staffing continue, DAS and InBios can rely on Acumatica’s industry-specific ERP solution to help alleviate the consequences before they occur.

To learn more, contact our experts today. We’d love to chat.

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