By Sean Fenske, Editor-in-Chief
Pre-pandemic supply chain strategies were challenged during the pandemic. A lack of inventory and a just-in-time mentality created concerns and delays among medical device manufacturers. As such, one of the biggest lessons learned post-COVID-19 was with regard to supply chain resiliency.
How each company responds to this, however, will differ. Dual sourcing may emerge as more prominent, better tracking of second and third tier suppliers may be prevalent, warehousing of additional inventory may become the norm. Some firms will adopt all three methods to avoid problems in the future when supply chain challenges occur.
To discuss this topic and how supply chain could be used as a competitive advantage going forward is Kelly Cimillo, Sr. account executive at Triangle. In this Q&A, she describes the impact the pandemic had on her company and its customers, as well as the actions they are examining and implementing to better prepare for issues in the future.
Sean Fenske: What supply chain challenges are orthopedic device customers bringing to Triangle?
Kelly Cimillo: In our business, we already operate on a thin margin, ordering only what is needed—never more. These days, it’s a daily battle. Demand surges are causing our clients to place orders and add to existing orders to mitigate risk. They want to know how much material we have secured on their behalf and they are requesting lists of every product by material type used. We are receiving orders through the end of calendar 2022 and into the entirety of 2023. In the past, it was simple; receive an order, check inventory, order material, build, and ship. Today, we are constantly chasing raw material, purchased items, packaging products, and every day manufacturing supplies. This ever-dynamic cycle puts a strain on resources.
This versatile hand piece is used primarily for various CMF procedures.
Fenske: What offerings and/or approaches does Triangle use to help ease supply chain concerns?
Cimillo: At the start of the supply chain challenge, as a courtesy to our clients, we absorbed most of the increased costs that flowed down to us. We are now holding more inventory and raw material for clients than ever before, with firm forecasts, letters of intent to purchase, and/or POs in place. We are working more closely in collaboration with all of our suppliers and clients in an effort to bridge any gaps that may arise.
Fenske: Can supply chain factors be used as a competitive advantage when serving orthopedic device companies?
This image contains components for powered surgical tools used in various ENT, Spinal, CMF, and Orthopedic procedures.
Cimillo: While we would never jeopardize a client’s pipeline due to supply chain inconsistencies, we certainly can leverage the fact that other clients are working with us to provide solid forecasts and longer-term commitments. By discussing this idea with a client who may be reluctant to provide such granular information, it may help to persuade them to do the same. In the long term, once the issues subside, these practices will become an organic part of doing business, allowing us to mitigate both our risk and the risk to our clients.
Fenske: How do you view the supply chain challenges encountered today impacting the orthopedic device industry in the near- and long-term?
Cimillo: Supply chain challenges have put basic production planning 101 out the window. The struggle to quickly ramp-up or ramp-down production capacities, coupled with extremely rigid planning cycles, has been one of the most challenging and complicated scenarios to navigate. We have demonstrated our flexibility to our clients by pivoting quickly as an organization and identifying what works best for all stakeholders. For example, a client provides a forecast, but not enough PO coverage; we know material prices are rising and that we can get a better price if we order for the entire forecast amount. We endeavor to take the risk in this case, which benefits our client and builds trust, reinforcing the partnership. This lesson learned is aiding us in the short term and will continue to help us over time.
Fenske: How are supply chain challenges being faced today shaping the services Triangle is offering to customers or planning to offer in the future?
Cimillo: Due to the ever changing environment, Triangle has been prompted to grow as an organization. We have invested in new technology and equipment upgrades that enhance our capacity to meet these challenges, predict future demands, and safeguard for surges. We’ve learned that mastering dynamic circumstances promptly, pivoting as an organization, and maintaining all-around flexibility has created a foundation for moving forward with our enhanced systems and practices.
In addition to systems, we take pride in our people—the ones who make Triangle who we are. We are hiring new associates and investing in their training, which allows us to adjust, adapt, and improve our internal businesses moving forward, enabling us to become more resilient to adversity and advance overall productivity.
As a final note, we are optimistic and proud of how far we have come due to the ever changing world we are living in and we look forward to continued growth as a result of these changes.
Click here to learn more about Triangle >>>>>
Pre-pandemic supply chain strategies were challenged during the pandemic. A lack of inventory and a just-in-time mentality created concerns and delays among medical device manufacturers. As such, one of the biggest lessons learned post-COVID-19 was with regard to supply chain resiliency.
How each company responds to this, however, will differ. Dual sourcing may emerge as more prominent, better tracking of second and third tier suppliers may be prevalent, warehousing of additional inventory may become the norm. Some firms will adopt all three methods to avoid problems in the future when supply chain challenges occur.
To discuss this topic and how supply chain could be used as a competitive advantage going forward is Kelly Cimillo, Sr. account executive at Triangle. In this Q&A, she describes the impact the pandemic had on her company and its customers, as well as the actions they are examining and implementing to better prepare for issues in the future.
Sean Fenske: What supply chain challenges are orthopedic device customers bringing to Triangle?
Kelly Cimillo: In our business, we already operate on a thin margin, ordering only what is needed—never more. These days, it’s a daily battle. Demand surges are causing our clients to place orders and add to existing orders to mitigate risk. They want to know how much material we have secured on their behalf and they are requesting lists of every product by material type used. We are receiving orders through the end of calendar 2022 and into the entirety of 2023. In the past, it was simple; receive an order, check inventory, order material, build, and ship. Today, we are constantly chasing raw material, purchased items, packaging products, and every day manufacturing supplies. This ever-dynamic cycle puts a strain on resources.
This versatile hand piece is used primarily for various CMF procedures.
Fenske: What offerings and/or approaches does Triangle use to help ease supply chain concerns?
Cimillo: At the start of the supply chain challenge, as a courtesy to our clients, we absorbed most of the increased costs that flowed down to us. We are now holding more inventory and raw material for clients than ever before, with firm forecasts, letters of intent to purchase, and/or POs in place. We are working more closely in collaboration with all of our suppliers and clients in an effort to bridge any gaps that may arise.
Fenske: Can supply chain factors be used as a competitive advantage when serving orthopedic device companies?
This image contains components for powered surgical tools used in various ENT, Spinal, CMF, and Orthopedic procedures.
Fenske: How do you view the supply chain challenges encountered today impacting the orthopedic device industry in the near- and long-term?
Cimillo: Supply chain challenges have put basic production planning 101 out the window. The struggle to quickly ramp-up or ramp-down production capacities, coupled with extremely rigid planning cycles, has been one of the most challenging and complicated scenarios to navigate. We have demonstrated our flexibility to our clients by pivoting quickly as an organization and identifying what works best for all stakeholders. For example, a client provides a forecast, but not enough PO coverage; we know material prices are rising and that we can get a better price if we order for the entire forecast amount. We endeavor to take the risk in this case, which benefits our client and builds trust, reinforcing the partnership. This lesson learned is aiding us in the short term and will continue to help us over time.
Fenske: How are supply chain challenges being faced today shaping the services Triangle is offering to customers or planning to offer in the future?
Cimillo: Due to the ever changing environment, Triangle has been prompted to grow as an organization. We have invested in new technology and equipment upgrades that enhance our capacity to meet these challenges, predict future demands, and safeguard for surges. We’ve learned that mastering dynamic circumstances promptly, pivoting as an organization, and maintaining all-around flexibility has created a foundation for moving forward with our enhanced systems and practices.
In addition to systems, we take pride in our people—the ones who make Triangle who we are. We are hiring new associates and investing in their training, which allows us to adjust, adapt, and improve our internal businesses moving forward, enabling us to become more resilient to adversity and advance overall productivity.
As a final note, we are optimistic and proud of how far we have come due to the ever changing world we are living in and we look forward to continued growth as a result of these changes.
Click here to learn more about Triangle >>>>>
