2. Industry and keydeliverables
Industry Backdrops:
United states is the largest medical device market in theworld:
Size: $110 billion in 2014. Expected to reach $133 billion by2016.
More than 6,500 medical devicemanufacturers
The sector employs almost half a million people directly & indirectly 2 millionmore
Top 4 organizations cover $ 23 billion (24%)
Industry under consolidation ( -0.6% YoY reduction in no. ofmanufacturers)
Overall Growth 4.8% by 2020 for Industry
Specifically Growth of 7.6% in Medical deviceDistribution
KeyFactors:
Ageing Population inUSA
Increase in number of people coverage ( Due to Health Insurance CoverageBill)
Increasing of Process Innovation Requirements byHospitals
Key Deliverables
Costs savings to cover Affordable Care Act (ACA) Medical Device Excise Tax of 2.3% ofrevenue
Translates into over 10% reduction in
MTC’s
profits
3. Key challenges
Technological assistance in terms ofTracking & traceability
Innovationin Supply chain management
Innovativeapproachtowards current Distribution Channels
With RationalizedCosts
Consolidation ofchannels
Clarity on approach towards Focus Market Groups
Regional Segmentation
Management of Internal Dynamics
Sales
Agents’
Commission methodology
Inventory Management
Make-vs-Buy (Outsource)nodes in Supply Chain
