March 8, 2023 Challenges In Medical Supplies & Equipment Distribution

Distribution of medical supplies and equipment presents many challenges. Learn about the major ones and the fitting solutions in this post.

Distribution plays a major role in the manufacturing industry. It’s the only way customers get a hold of your goods to meet their needs. Challenges are bound to happen as you distribute your goods, as is with any other operation.

As a business owner, it’s always advisable to identify and rise above challenges. Suppose you’re into medical supplies and equipment distribution. What challenges are you likely to face?

Below we discuss the top challenges you are most likely to meet:

1. Expanding The Product Line To Meet Customer Demand

Medical supplies and equipment are broad, including small and large equipment. Engaging in all their distribution is an expensive venture. Because of this, most businesses specialize in producing one or two medical supplies. For example, you can focus on medical personal protective equipment (PPEs) or test kits.

The main problem with specialization comes when customer demands vary. In one season, there can be a higher demand for PPEs, while in another, stretchers are needed more. If you’re a distributor focused on PPEs, you might stay out of business if PPE demand decreases. 

In this situation, you may want to engage in the distribution of stretchers when they’re in season. However, it’s not always easy. You’ll require new resources to meet the new needs, which require financing. Hence, you will need to evaluate whether you’ll always adjust your line of operation to meet changing customer demand.

The ideal solution is to approach medical supplies and equipment from the demand point. This allows you only to produce and distribute enough to meet the current demand. Doing so gives you room for flexibility in distribution while simultaneously decreasing costs.

It’d also help to allocate a budget for unexpected production demands. It prevents situations where you can’t venture into the distribution of specific equipment on demand due to a lack of finances. This will allow you to have a sufficiently large catalog of medical supplies.

2. Unreliable Suppliers

Suppliers are often the middlemen in the production process, as they’ll get your goods on the market for sale. However, the main issue with suppliers is unreliability. Sometimes, you may be unable to rely on them to quickly get goods to the market. This results in delays and unsatisfied customers. In other cases, there’s a possibility of damaged goods due to the delays.

A good working relationship is the best way to work with suppliers. It’ll create a basis for mutual respect, where each party does what’s expected of them according to the agreement.

3. Increased Operating Costs

You require many resources to distribute medical supplies and equipment. You’ll need a warehouse to hold equipment to facilitate operations and distribute your supplies, including the loading and unloading of your vehicles. These require maintenance, fuel, and drivers, each of which comes at a cost.

Expect your operation costs to increase if you must ship some medical supplies and equipment. There are shipping costs and taxes you’ll have to pay. In some situations, these costs can increase beyond your capabilities, leading to financial strain.

Operational costs will also increase if you utilize old vehicles for distribution and delivery. There’s a high likelihood they have faced extensive wear and tear. The result is increased fuel consumption and visits to the mechanic for repairs and replacement.

With older vehicles, it’s time to replace them with modern ones. It’d also help to seek energy-efficient ones, like those that run on electricity. They’ll reduce fuel consumption and their associated costs. Overall, you’ll have efficiently-running vehicles with minimal to no visits to the mechanic.

Thus, the best way to handle increased costs is to cut your operating costs. If it’s not feasible for you to ship to long-distance destinations, consider distributing medical supplies and equipment to closer areas first. You’ll eliminate and possibly reduce taxes and shipping costs.

4. Delays In Delivery

Lead time has been greatly reduced thanks to technological advancement. It refers to the time customers have their orders delivered. The result is convenience for the client. Most industries have adopted the same concept. However, it’s often not applicable to all of them in totality. One such industry is medical supplies distribution.

With the wide adoption, clients who’ve experienced reduced lead times expect the same service from other suppliers. However, it’s not always possible. A client might require a given medical equipment. You have to ship it to them on your end, which might take a week or so. For a client used to prompt delivery, this time frame may be a delay for them.

In the end, they might not be satisfied and raise concerns. However, you can’t control the lead time in some situations due to ports’ rules and working mechanisms. The client might decide to seek similar services from your competitor.

As a distributor, it might become a challenge where you go beyond all means to deliver within the shortest time possible. Doing so strains you and your business resources. In this case, it’d help to work with a reliable courier service provider. They’ll make timely deliveries, increasing customer satisfaction. You must also devise contingency plans to handle late deliveries.

Lastly, it’s best to inform the client of the expected delivery time even before they place orders. Knowing this beforehand reduces expectations that might result in customer dissatisfaction.

Conclusion

Challenges are part of everyday life, whether as an individual or a business. The discussion above focuses on business challenges, specifically medical supplies and equipment distribution. These challenges touch on each step of the process, from production to distribution. By knowing what challenges to expect, you can use this to grow your medical supplies and equipment distribution business to greater heights.

About the Author:
Randy M. Kemp has worked in the logistics and supplies industry for over a decade. He uses his experience to help business owners and holds seminars on efficiency in the logistics business. During his free time, Randy loves watching a good game of football.

Subscribe to Industry Today