Globalization has increased demand for medical technology around the world. According to a new survey by Axendia, a majority expect their business to grow globally in the next three years. Executives expect grrowth will be higher, 88% , in emerging markets compared to 69% in developing markets.
The top two drivers of globalization is the need to support emerging markets with locally produced product (64%) and improve the rate of innovation (63%).
With the globalization of design, sourcing and manufacturing of medical technology, companies need to balance the risks and rewards of globalization. As the business model shifts from selling products to providing integrated solutions, companies must navigate three primary macro trends:
- Managing sustainable global growth
- Complying with tightening global regulatory environments
- Supporting changing healthcare delivery models globally
"While Med-Tech companies are poised to capitalize on these opportunities, global expansion has industry executives on alert. Nearly 7 out of 10 executives reported moderate to high risk based on their level of visibility into critical suppliers," commented Daniel R. Matlis, president of Axendia.
The following are some of the issues that are "keeping executives up at night":
- The quality of products, raw materials or services provided (60%)
- The ability to maintain consistent quality standards across internal and external sites (59%)
- Protecting the company’s intellectual property (49%)
Supply Chain Issues
Looking at the supply chain, seven out of 10 executives rated their level of risk as moderate to high based on their current level of visibility into critical suppliers. Sixty-eight percent perceive moderate to high risk based on their current visibility into critical suppliers with the majority desiring access to real time data and on-demand data from critical suppliers, contract manufacturers and other Tier 1 suppliers.
Furthermore 59% worry about maintaining consistent quality standards across internal & external sites.
Based on the results, authors of the study suggest that brand owners need to "implement consistent strategies which capitalize on the opportunities set forth by globalization and outsourcing while proactively reducing and controlling risks. This calls for changing the business, technology, and regulatory models traditionally used in the industry."
To view the report, "Walking the Global Tightrope: Balancing the Risks and Rewards of Med-Tech Globalization" click here.