Finding the Upside to a Challenging Year

It’s been a year like no other. And it’s almost over.

Historians will likely regard 2020 as a pivotal year, one that irrevocably changed our lives through a smorgasbord of defining events. American politics, racial unrest, and extreme weather all made for life-altering moments this year, but they nevertheless paled in comparison to the societal transformation achieved by the COVID-19 pandemic.

No one evaded the changes wrought by a virus so new to human hosts, especially those in healthcare. Doctors and nurses became patients, hospitals became congested, ventilators and masks became scarce, and the medtech supply chain became strained.

Medical Product Outsourcing’s November/December feature, “The Lost Year,” details the pandemic’s impact on the medical technology industry. In the brief Q&A below, Charlie Mason, senior vice president, Medical Division at Sanmina, discusses the challenges brought on by the virus and the lessons the device sector learned during a difficult year.

Michael Barbella: How was the medtech supply chain impacted in the early days of the pandemic (March-June), and how did Sanmina and other medtech firms overcome the resulting challenges (i.e., product shortages)? 
Charlie Mason: In the early days of the pandemic, it was the responsibility of each manufacturer to verify the essential status of the products and components from the associated supply chain to support such products, in order to continue production. This justification process had to occur simultaneously across multiple component suppliers and industries to ensure that the entire supply chain could continue to operate, while abiding by all local governmental and legal requirements of impacted regions. Thanks to strong relationships and constant communication, we were able to successfully navigate the situation. It was a major undertaking that needed to happen very quickly as the pandemic made its way around the world.

Another big challenge for some of our suppliers was the ability to secure adequate resources and materials in a very short period of time to ramp volume for medical products like ventilators or COVID-19 tests that were in demand at staggering rates. In one situation, we were able to co-locate some of our employees with a key supplier to facilitate production. In other situations, we were able to rapidly reduce the window on material shortages by proactively working with our partners to obtain the needed components.   

By working closely with our customers and suppliers, we were able to address massive increases in business and manufacture products that had a positive impact on patients. We’ve enabled tens of thousands of critical care ventilators and significant capacity for industry-leading COVID-19 PCR test systems. We’re extremely proud of the difference that our efforts have made.

Barbella: What lessons will the pandemic teach the medtech industry? What lessons has Sanmina learned during the course of this pandemic (so far)? 
Mason: Companies must have updated business continuity plans that address all levels of the supply chain. Having a detailed understanding of where components are coming from, the number of available suppliers for a particular component and the locations where components are being produced will be critical moving forward. In some instances, there may be only a small handful of suppliers for certain vital components, so organizations need to be prepared to address these types of situations before the next unexpected event occurs. 

Another lesson that came out of the pandemic was to put in place a rapid response team that is prepared to mitigate unexpected events. Our rapid response team was phenomenal at evaluating the impact of the pandemic on a particular region and then analyzing how it could affect the next region in terms of supplier requirements, PPE needs and other aspects. This enabled us to stay ahead of the curve as the pandemic made its way across the world.

Barbella: What has been the most challenging aspect of 2020? 
Mason: The most challenging aspect of 2020 has been product volatility – some products have experienced astronomical growth while other products have been down in demand. You’ve got to be focused both on obtaining material as fast as possible for some products, while curbing the flow of materials for others. It’s a dynamic that creates some interesting challenges that we have been able to meet or exceed for our customers.

Barbella: Have there been any positive aspects to the year? If so, what are they? 
Mason: Prior to the pandemic, I don’t think the manufacturing industry could have imagined that so much work could be done remotely. Ultimately, we’ve done this successfully, navigating business volatility while producing large volumes of essential medical products that have made a positive impact on patients’ lives. While some face-to-face meetings will be re-instituted once the pandemic is over, I think their frequency will decrease, now that the efficiencies and cost savings of remote meetings have been proven over the past year. 

Virtual factory tours have also been a positive development during this time. In some ways, they are more effective than in-person tours, where people are physically spread out as they walk through a factory. When tours are performed virtually, everyone is listening to the same presentation and given the opportunity to ask all of their questions at the right time. Virtual tours will be a big plus moving forward.