Risk Management Strategies for Medical Device Distributors
For medical device distributors, reducing the risks inherent in the distribution network is of vital importance, especially in today’s economy. Effective risk management strategies can both reduce liability and improve the productivity of the medical device distributor.
Among the risks the medical device distribution network faces is the growing occurrence of counterfeit items being passed off as genuine medical devices. Such counterfeits not only pose a risk to the end user, but harm the reputation of the distributor. For this reason, effective inventory management, including the ability to track items from their initial purchase to the final delivery to the end user is vital. By being able to ensure that all units in the supply chain are in fact legitimate, the distributor can help increase confidence in its ability to deliver high quality equipment.
The second area of risk that medical device distributors can address is the danger of damage to equipment that is currently in the distribution network. Protecting the client from receiving damaged equipment is a major component of reducing the over all risk to the distribution network. In this case, the distributor must ensure that the network includes effective tracking provisions, allowing both the customer and company to track the material from the moment it has left the warehouse to its final delivery to the client.
In addition, the transport of the medical devices should be designed in such a way that the medical device distributor can be assured that the equipment will be safe from environmental stress or damage. Only transport contractors who can adhere to these requirements should be considered for inclusion in the medical device distribution network. As a part of this, policies should be put in place so that both the distributor and the client can verify the equipment’s condition upon delivery to avoid later conflicts.
Finally, distributors should keep their clients informed at every step of the procedure. By doing so, clients can be aware of delays and other issues that might impact their own operations. This is especially important in today’s market, where maintaining a positive relationship with the client is so vital to the long-term financial health of any company.
By working to reduce risks in the distribution network, medical device suppliers can improve their relationship with the client, while reducing shipping related costs. By doing so, suppliers can position themselves to maintain a leading position in the world market