Weekly Business Insights 10/11/2023
Stryker CEO Kevin Lobo offers supply chain update after ‘wild year’. ‘Love, yet fear’ — how medtech is stepping into the digital sphere. Harnessing Intelligent Algorithms to Improve Procurement.
Stryker CEO Kevin Lobo offers supply chain update after ‘wild year’
“In this industry, we never had to worry about [chip supply] before,” Lobo said. “We’re now at a point where the worst is over, certainly from having to spot buy these things from these — I call them — drug dealers, charging whatever prices they want for things. But when you’re addicted, what do you do? So, we took it on the chin big time last year.”
“The practicalities of building resilience onto our supply chains are easier said than done,” Nath said. “We all have similar sole-source suppliers we have to deal with and depend on. We obviously try and minimize the extent to which we’re exposed to a singular sole source but it’s part of med tech that’s going to be hard to get out of.”
Another change is that investor expectations previously centered around growth, but now shareholders care deeply about margins and cash. Building resilience in the supply chain over the past year, Nath said, may not have fallen in line with what investors expected.
‘Love, yet fear’ — how medtech is stepping into the digital sphere
The challenge remains to stitch together data in the continuum of care, the industry wants to see predictive analytics that provide more information to the surgeon on patient care. The challenge exists because “data is everywhere.” “Because currently there are no necessity to have regulations, and everybody’s trying to figure out the rules of data acquisition and data use,” “That’s our biggest challenge right now.
Safety’s always top of mind. How we use data, how we implement data into things and the extent to which that data has taken us to provide the direction. We are unbelievably conscious about that and are probably somewhat conservative —appropriately so right now. While trying to figure that out. The bias is real.”
“If we put ourselves in an American operating room, or British, German or Japanese operating room, it doesn’t matter,” “The level of automation is not there. If we could use digital and automation to standardize the vast majority of processes that occur, we’re going to eliminate variability, eliminate waste and enhance the patient experience.”
Harnessing Intelligent Algorithms to Improve Procurement
Artificial intelligence (AI) and machine learning (ML) technologies have made significant strides in procurement, with the application of intelligent algorithms in procurement processes holding immense potential for streamlining operations, enhancing decision-making and driving efficiency.AI and ML can be leveraged insourcing automation, vendor selection, demand forecasting and risk management. Let’s first look at automated sourcing.
These algorithms can evaluate supplier capabilities, track pricing dynamics, identify cost-saving opportunities, and suggest the most suitable suppliers based on predefined criteria. Automated sourcing not only saves time and effort but also enables procurement professionals to make data-driven decisions, negotiate better contracts and establish strong supplier relationships. As AI and ML technologies continue to advance, their integration into procurement processes will drive efficiency, improve decision-making, and pave the way for a more agile and data-driven procurement landscape.