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Four Steps to Successful Digital Transformation in Medical Device Distribution

Four Steps to Successful Digital Transformation in Medical Device Distribution

Digital disruption is well and truly underway in the medical device distribution industry, and businesses must reinvent themselves as digital companies to stay ahead and relevant in this ever-evolving market.

New digital tools and technologies on the market are disrupting the usual product-and-service development processes, customer interactions, delivery management, back-office operations and supplier relationships.

Many medical device distribution companies are focusing on new technology to overcome challenges and improve customer relations, minimise costs, streamline operations and better manage changing industry regulations.

We’ve compiled four steps to successful digital transformation in medical device distribution.

1. Identify and Prioritise Critical Value Sources

Firstly, businesses determine where they provide value to customers and clarify how the use of digital technologies can enable these activities.

Following this, distributors then need to decide how best to adjust investments in digital technologies and development approaches to meet the highest priorities.

In Australia, the Medical and Scientific Equipment Wholesaling industry has performed well over the past five years, the industry revenue is expected to increase 3.6% annually in the end of 2018-19, to reach $17.6 billion. IBIS World indicates that the most important key success factors for the industry are:

  • Having favourable contracts.
  • An extensive distribution network.
  • Offering a broad range of payment options.

%

Australia’s medical devices are small to medium sized enterprises.

%

Have grown from Australian start-ups.

%

Were established as a subsidiary of a multinational company.

%

Per cent of the global market (US$342.8 billion) is in the Asia Pacific region.

2. Build Service-Delivery Offerings

Medical device distributors are increasingly building and increasing their offerings to expand on their product portfolio and services.

Companies are taking the time to understand user needs in full detail, using real-time insights to re-imagine workflows as complete activities to automate processes and personalise outcomes.

For example, real-time supply chain insights could help medical device distributors reduce general and admin costs, while improving customer service.

3. Modernise Business Foundations

When digital priorities have been identified, the next step for medical device distributors is to examine their IT foundations and ask the important question: is your system fully capable of supporting required activities?

Complex legacy systems are often the turning point in companies choosing to go digital. While these systems may have been suitable years ago, nowadays they’re often fragmented, slow and unable to offer transparency in business operations.

To support strategic priorities and agile development approaches, businesses seek to modernise their IT Systems to build a solid, reliable and flexible platform for quick and easy access to a “single source of truth”.

4. Strengthen Core Capabilities 

Transformations require strong core competencies in several areas of the business.

The winners are those who move quickly to initiate change and embrace new developments and operating models, relying on real-time data driven insights to make crucial business decisions.

It’s the medical device distributors who are reinventing themselves as digital enterprises; adapting and collaborating, and most importantly, keeping up with changes in the industry.

Download NetSuite Guide for Equipment and Machine Distribution

If you want to know more about a system that will help you grow your Medical Devices business, download this guide all the modules and technologies integrated into NetSuite, the cloud-based ERP that can support your Distribution Company’s growth.

Need a specialist’s free advice?

Feel free to call an expert in Distribution Enterprise Resource Planning Systems today. Find out how cloud-based technology can modernise your wholesale distribution business.

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There are several advantages to running a business that rents out equipment rather than selling it. There’s room for financial gain, growth, and continued customer relations – but it all comes down to how you go about it. We’ve identified four key factors that enable smart equipment hire businesses to stay successful.

Seize Growth Opportunities 

Hiring equipment may initially get you the customers, but going the extra mile is what makes them stay loyal. It’s likely that your customers will pay more to have your business not only provide the equipment, but help install, service, and maintain it. It’s becoming more common for businesses to offer wider services to save their customers time and money, all while developing repeat business and potential referrals to new customers.

Use a Solid Business Management Tool

IBISWorld identifies the top three success factors for an equipment hire business. With ‘access to efficient technology and techniques’ and ‘ability to quickly adopt new technology’ ranking at one and two, it’s imperative that companies take full advantage of the equipment hire software available to streamline and simplify business processes. Using a cloud-based business management platform allows equipment hire companies to comprehensively manage every process within the business in real-time; from sales, marketing, accounting and finance, inventory management through to field service, resource scheduling. Having a live inventory accessible from any smart device means that admin, data duplication and reporting is kept to a minimum, allowing you to focus on strategy and growing your business.

Mitigate Risk

The simple truth is that your customers are your biggest risk. Of course you need your customers to hire your equipment, but they are capable of breaking or misplacing your equipment, which is your main asset. Ensure that your equipment is fully insured to avoid bigger issues down the line.

Check Your Equipment Regularly

While it may be a no-brainer for many, a small reminder doesn’t hurt. It’s important to make sure that your equipment is regularly checked and serviced, and if something isn’t working properly, it needs to be fixed. Your customers are paying for your equipment, so it’s important that it does the job well and looks the part.

Do you service the equipment you hire?

Learn about NextService, our easy-to-use field service management system. Download the brochure here and learn how our NetSuite native app can help you manage every aspect of your business.

Need a specialist’s free advice?

Feel free to call an expert in Business Managment Platform systems today. Find out how cloud-based technology can make your field business a real service beast.

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NetSuite is well-known for enabling businesses’ sales team with unique visibility into every aspect of the customer relationship, from support cases to bills, contracts and inventory. With powerful and customisable real-time dashboards, sales managers and reps...

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Solar Boom Drives The Need For New Technology

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Aussie Solar Energy Boom Predicted for 2018

We’re in the midst of a solar energy boom. Analysts say that a record number of solar panels were installed in Australia in 2017 – a total of 9,500 panels installed across the country daily. The sunshine state is fast becoming the “solar state”, with Queensland home to the largest number of residents with solar panels installed in their homes. This trend is expected to continue rising, with residential rooftop solar installations on the up this year. More than 100MW of registrations were recorded in January 2018, delivering the best start to a year ever, according to Renew Economy.

Three Benefits of Solar:

  • Save money on power bills.
  • Increase property value.
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Why Does The Boom Drive Need For Solar ERP?

IBISWorld reports that the demand for solar is increasing inline with Australia’s growing population. Demand for industry services tends to be greater in areas with larger populations, so it’s not surprising that between Australia’s three largest states – New South Wales, Victoria and Queensland, they account for just above 70%  of total installed solar capacity in 2017-18. The solar industry is expanding rapidly, but it faces both business and technology challenges. The nature of the industry is complex; solar installation companies require a broad range of features to be able to manage their entire business processes in one system, in addition to the mobile nature of their workforce. This brings the need for seamless access to systems, whether it’s in the office or out in the field. NetSuite provides solar installation companies with an outstanding solution as it covers every aspect of the business, from sales and marketing, financials and accounting, to job costing, manufacturing and field service.

Equipment Services and Repairs

NextService ensures that equipment service and repairs businesses can run their core business operations with increased efficiency. This field service management system helps you automate and streamline previous manual or labour intensive processes within service administration.

Get in Touch

If you’d like a bit more information, get in touch to speak with one of our experts.

Challenges Faced by Medical Device Distributors and How to Overcome Them

Challenges Faced by Medical Device Distributors and How to Overcome Them

With the medical device distribution industry expected to grow 20.1% by 2020, we reveal some of the biggest medical device industry challenges and how a cloud-based, one system solution can overcome these problems.

Challenge One: Tracking Medical Devices 

The growing number of medical devices with millions of product variations presents a challenge for the healthcare supply chain. With 6+ million medical devices on the market, information about these devices is often difficult to manage. Maintaining a medical device item master list often requires manual entry, leading to high risk of error, inconsistency, and incomplete data.   Solution: The goal is to use an automated platform to identify, source, manage, document, track, and bill for device options.

Challenge Two: Excessive Waste 

It’s been recorded that around $5 billion annually is wasted due to expired or lost medical devices – 45% of healthcare spending is assigned to supply chain. Solution: Reduce waste management and enable intelligent, informed purchasing decisions by gaining visibility of stock across all channels in real-time, including showrooms and warehouses, and track transfers between locations. 

Challenge Three: Incomplete Records of Medical Devices

Many businesses rely on manual data entry to record information, which is a high risk strategy that can not only lead to incomplete records, but more challenges further down the line with reporting and billing. Product expirations and recalls need to be tracked in an efficient and timely manner, from inventory to clinical use and follow up. Solution: You need the correct information at your fingertips to notify clinicians and supply chain personnel for the next steps in the process. 

Challenge Four: Lack of Information and Data to Make Smart Purchases

Disparate data creates inefficient business processes and makes it difficult to make informed decisions. Many medical device distributors find that their information lacks structure, is incomplete, and often unavailable when needed. Solution: Real-time reporting from one single source to drive business processes, support smart decision making, and harness the power of data like never before.

Employee Productivity is Critical for Distributors – Download Your Free White Paper

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  3. Enterprise Resource Planning. ERP is a business software that uses a system of integrated applications to manage a business and its many back-office functions, including CRM, inventory management, accounting, human resources and more, as one complete system.
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  5. Analytics. Business analytics track customer information and their investment level in your company, so distributors can not only follow customer buying behaviours but also predict their future purchases.

Read more about NetSuite. Download your free white paper today.

Mining and Construction Positively Impacts the Crane Industry, but Will Your Crane Company Benefit?

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As demand for equipment increases in line with positive activity within mining and construction industries, so does the need for cranes and servicing.   An Industry report from IBIS World (Allday 2017) suggests that the downstream effect of the growth in the mining sector will positively affect the Construction (residential and commercial) sector and in turn, the heavy machinery sub sector, crane hire and servicing. This is great news for the industry, so how do you position your crane company to benefit from this growth? When equipment and service companies grow too quickly without the right systems and processes in place, they can fail to benefit due to inefficiencies within their business. We work with equipment manufacturers and distributors to improve their processes and systems, with distribution software specifically designed for the industry. With productivity a key priority amongst businesses in the industry, with over 66.5% stating this is the top concern. We ensure that they can scale up quickly when the time is right, and take advantage of market opportunities. Crane companies who have the following in place will benefit most from this upturn in the market:

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Do you also service the equipment you distribute? You’ll need NextService, a native application to NetSuite that can help you manage your field service team. As it’s native, it sits in the one platform – so no need for data integration and double data entry. And best of all, it was developed in Australia for an Australian Equipment Distributor, so it’s purpose built for your industry. Why Klugo? We’ve been in the industry since 1979 and we know the ins and outs of the industry. With our parent company, Headland Machinery, we’ve been working with manufacturers for over 60 years. Read the Headland Machinery case study to find out how we help companies like yours. If you’d like help in positioning your company for growth in this upturn, please don’t hesitate to get in touch. We specialise in helping businesses like yours in the equipment manufacturing sector grow with NetSuite, a cloud-based business management system.