Addressing Supply Chain Issues in the Medical Supply Industry
MedSource Labs understands the critical importance of ensuring clinician access to high-quality medical supplies, as it directly impacts patient care and outcomes. In the face of global challenges, such as supply chain disruptions due to a spike in geopolitical conflicts, the time it takes to move products by sea and air has vastly increased. The costs related to the longer transit time has increased as well. Despite these obstacles, we remain committed to supporting our distributor partners and clinicians of all types by delivering the medical supplies they need—on time —so they can focus on delivering the best possible care to patients.
Current Factors of Supply Chain Disruption
Several disruptions have affected the medical supply industry due to the ongoing conflicts. These include:
Red Sea Situation:
Major shipping routes, including the Red Sea, have now become high-risk zones, necessitating rerouting and resulting in significant delays. Shipping routes from Asia to Europe and the U.S. are experiencing increasing delays, which are compounding over time as extended transit times continue to impact both origins and destinations.
Air Freight Issues:
The increased demand for airfreight has surged as a result of prolonged ocean shipping times, largely driven by the situation in the Red Sea. However, with airfreight capacity remaining unchanged, this has created a supply and demand imbalance, leading to rising costs and extended lead times to secure available space for cargo transport.
Raw Material Shortages:
Key raw materials for medical devices often need to be transported to manufacturing locations across various countries. Disruptions caused by the situation in the Red Sea and its cascading effects can significantly impact manufacturers’ ability to meet demand.In response to these challenges, MedSource Labs has implemented strategies to mitigate the impact of these disruptions, ensuring continuity in supply and production.
Our Commitment to Quality and Reliability
The MedSource mission has always been to provide access to quality medical products. We maintain strong relationships with our suppliers to ensure the availability of important medical devices, including peripheral IV catheters, electrodes, and pulse oximeters.
President Dave Kunelius shared how MedSource Labs manages these challenges:
“We work closely with our raw material suppliers to make sure our products reach the healthcare professionals who need them. Disruptions in these relationships can directly impact patient care.”
He emphasized the importance of adaptability in today’s uncertain environment:
“The shortages brought on by the COVID-19 pandemic showed how fragile global supply chains can be. Geopolitical risks have now become an even greater challenge. MedSource has prepared for these issues as best that we can and remain committed to providing uninterrupted access to essential medical supplies.”
Proactive Solutions
To support our customers during these challenging times, MedSource has launched initiatives to ensure timely and affordable deliveries.
1. Smarter Scheduling with Air Freight:
MedSource works closely with air freight carriers to anticipate problems and schedule shipments in advance. By securing cargo space before shortages
occur, we ensure our customers receive their supplies on time without sudden price hikes.
2. Near-Shoring Manufacturing Operations:
MedSource has moved some of its manufacturing closer to home, to countries like Colombia. This reduces transit times and the risks caused by conflicts in the Middle East and other challenges. By keeping production closer to customers, we can deliver supplies faster and more reliably.
3. Cost Stability for Our Customers:
Rising shipping costs have been a major hurdle, but MedSource is committed to absorbing these costs. We believe healthcare providers shouldn’t face added expenses during tough times. Through careful planning, we do all that we can to keep our products affordable.
Strengthening Supply Chains and Relationships
MedSource’s decision to near-shore manufacturing is a key part of ensuring supply chain stability. By doing so, we avoid disruptions and maintain consistent pricing for our customers. This decision reflects our dedication to helping healthcare providers continue their important work without interruptions.
CEO Todd Fagley shared his thoughts:
“Our customers need stability to effectively run their businesses and care for their patients. That’s one of the main reasons we’ve invested in moving production closer to home without passing on the costs. In doing so, we avoid long, uncertain transit routes and keep our customers reliably supplied. We believe in strengthening the relationships with healthcare providers who make us successful.”
Fagley further emphasized MedSource’s core values of reliability and customer care:
“Our customers are partners in the business. Their success is our success. Near-shoring allows us to continue providing the high-quality products they depend on, while reinforcing the trust they place in us. We are committed to maintaining affordable, reliable access to medical supplies, even when global challenges arise.”
Long-Term Planning for the Healthcare Industry
The Middle East conflicts have created major challenges in the medical supply industry. However, MedSource’s proactive approach ensures that our customers will continue receiving the supplies they need, without delays or added costs.
As the global situation evolves, MedSource remains committed to adapting and supporting our customers, so they can continue delivering uninterrupted care. We are proud to be a trusted partner in the healthcare industry and will always prioritize our customers’ needs.
