The supply chain of DMEPOS practices was significantly impacted during the pandemic. The post-pandemic climate is still fraught with challenges as structural weaknesses continue to pose a challenge. The resilience and strength of the DMEPOS supply chain continues to be tested as the industry battles demand-supply fluctuations.
Lack of visibility- A key issue faced by the DMEPOS industry is the lack of centralized data that can be easily accessed. Siloed systems and fragmented processes result in opaqueness and poor forecasting of demand.
Inability to build forecasting models- Receiving medical equipment from overseas or from other States takes time. This often leads to delays and long wait times for providers. Building a forecasting model for DMEPOS practices is difficult due to several points of friction within the supply chain.
Cost management- Managing costs is tough for DMEPOS practices. Managing inventory and calculating costs remains an ongoing challenge.
It is important to build a forecasting model to manage demand-supply disruptions. Ina time-sensitive industry like healthcare building a forecasting model is of paramount importance. Analyze previous orders and delivery turnarounds. Arriving at an average of your orders over a span of one month or quarter will help you develop a forecast of the products you need. Developing a SKU for a particular product can help in forecasting. Studying utilization and buying patterns is the first step towards building a strong forecasting model.
Partner with multiple vendors to resolve supply chain issues and ensure timely delivery. Sourcing all supplies from one vendor may cause delays and disruptions. It is best practice to partner with two or three vendors to ensure timely and consistent delivery of products. Discuss with vendors about new revenue opportunities and products that align with the landscape you operate in.
Distributors stock and manage products. As inventory costs go up it is essential to work with distributors to bring down operational expenses.