Pandemic Supply Chain Lessons Revisited: 20 Years Earlier—#ThrowbackThursday

Since 2024 marks my 25^th year covering this fantastic industry, I thought it a good idea to begin a look back at previous editorials from the start of my term through to a few years ago. Revisiting past commentaries will provide a unique opportunity to see how sectors of medtech have changed and how much some technologies have developed. I expect to get a good laugh from some of my predictions, but I also hope to gain some insights in returning to the origins of concepts, innovations, and regulations to see what’s happened since.
 
I hope you enjoy reading these entries as much as I expect to enjoy writing them. And for those who were around for any particular aspect one of these articles features, please don’t hesitate to reach out with your own experiences and recollections from the sector of the industry in which you were residing at the time. Remember, those that fail to learn from history are doomed to repeat it; hopefully, we can avoid any doom together.
 
My very first editorial needed to be something somewhat familiar. I felt like a fish out of water, unsure how I could credibly comment on some aspect of the medical device industry without coming across like a complete moron. This would appear in my October 1999 issue of a magazine long since forgotten (well, by many anyway). I was editor-in-chief of the magazine Medical Design Technology and was desperate for something I could associate with for that first editorial.
 
Fortunately, I was a bit of a computer nerd at the time and I could speak intelligently enough about the Y2K concern. (For the younger members of the medtech community, there was a significant fear over just what would occur when all the programming systems saw the clocks for the year go from “99” to “00.” For a slightly more comprehensive explanation, just watch the comedy Office Space.) Most programming had been using two digits for the year, rather than four, not thinking this might be a problem come the year 2000.
 
Knowing this subject matter would be my first submission to this new #ThrowbackThursday series, I began making connections in my head about how the Y2K concerns were going to likely draw similarities to the current issues surrounding cybersecurity. I figured that would be an ideal match to make comparisons to as both involved computer issues and both could impact the industry in a significant way. But when I read the editorial, a very different event was clear as day in what I wrote about Y2K.
 

Are You Ready for Y2K?—Medical Design Technology, October 1999

The millennium is rapidly approaching and on its heels is the end to the Y2K dilemma that has been the hot topic of conversation for the past two years. For better or for worse, we will finally see the much anticipated changing of the date to “00” on our computer systems. Fortunately, HIMA [now AdvaMed] has made significant strides to ensure the medical device industry is not caught off-guard.
 
Unfortunately, this is only one aspect of the problem. Over-ordering in anticipation of problems, lack of effective communication between suppliers and customers, and inadequate contingency plans are all factors that need to be examined by manufacturers and purchasers of medical-related products before the turn of the date. While most U.S. companies will be Y2K compliant in time for the year 2000, manufacturers that deal with a company that is not will be adversely affected.
 
Is it clear to you yet? That second paragraph mirrors many concerns being brought up during the pandemic. Over-ordering, poor communication, and inadequate contingency plans were likely said in many articles written about issues regarding the pandemic. I don’t know that history repeated itself in these two incidents, but there were certainly many who failed to learn from it. Hopefully, many have put forth significant effort to resolve these issues that emerged only a few years ago.
 

Avoiding Supply Shortages

One possibility of the Y2K scare is that shortages of necessary supplies and products will develop. Unfortunately, this may not be a result of a computer glitch, but instead, due to a panicked ordering frenzy by healthcare professionals, distributors, and suppliers. Manufacturers are being advised to overstock their inventories before the year 2000 in case of shortages. This, in turn, will create the feared shortage as companies are asked to produce more quantities of a product than they are capable or accustomed to manufacturing.
 
In order to avoid this possible result, [AdvaMed] recommends healthcare providers and distributors maintain normal business practices as it relates to ordering goods. They are asking this segment of the industry to base ordering on a historical level and anticipated workload demands and not on speculation of a disaster.
 
How many of your customers overordered during the pandemic? How many of you requested more inventory than you needed? I understand the mentality of it, but this greatly contributed to the microchip shortage and issues sourcing certain raw materials. In many instances, the supply was there, but hoarding and overordering led to significant shortages. Have you spoken to your suppliers, customers, and other members of the supply chain since the pandemic? Do you have a better approach to future concerns or problems and know how these will be handled? If not, it’s certainly something you need to do.
 

Communication Is Key

Open lines of communication between all parties involved with the manufacturing process should be established and maintained. If every aspect of the supply chain is involved in close communication with each other, there will be an enhanced level of understanding relating to the needs of each member.
 
In addition, communication will lead to stronger business relationships between the members of the “chain” as a level of trust will develop among the companies. This will enable a smooth transition into the next millennium and continued success in future business endeavors.
 
Simply put, this is spelling out why having a relationship with a supplier as a partner rather than a transactional arrangement is so critical. Even back then, it was clear medical device manufacturers should be nurturing their relationships with the supply chain as mutually agreeable partnerships and not simply as putting in an order for X number of widgets. Communication is clearly a vital aspect of moving in that direction.
 
I did hear from a number of companies who had very good communication channels with their supply chain that they fared better in terms of ordering and receiving materials and components than some of their peers. Companies with strong, well-established partnerships weathered the pandemic better than those who found themselves struggling to reach contacts at supply chain companies. If you feel your communication with your suppliers was not as good as it needed to be during the pandemic, be sure you’re addressing that now when not in crisis mode so you’re better prepared for the next disruption.
 

Contingency Plan

While most companies have prepared for disasters, including Y2K, unforeseen occurrences can disrupt daily business practice and create a kink in the supply chain. Therefore, it is of paramount importance for all companies involved to have a contingency or back-up plan for such an occasion. If a company cannot provide a manufacturer with the necessary supplies to develop a new product, the manufacturer needs to have an alternate plan of action. Without this contingency plan, the manufacturer will be forced to halt production on the new product, thereby losing valuable time and profits.
 
Fortunately, many companies realized just how critical a contingency plan was in the wake of the pandemic. This has included establishing dual sourcing, finding new sources for materials and components, and moving manufacturing closer to the customers who will use the products, among other strategies. Has your company done a full debriefing of what went wrong during the pandemic and laid out an action plan on how to address it? How to improve it? If not, what are you waiting for? The next disruption is coming; no one knows when or where or how widespread it will be. So control what you can and prepare your contingency plan now when you don’t need it.
 
Companies should use the Y2K bug [and pandemic] as an opportunity to evaluate its disaster readiness. While many companies are prepared for the computer glitch, how many are prepared for a natural disaster? These three points are not only applicable to Y2K, but should be implemented and maintained as standard operating procedure for emergency preparation.
 
I couldn’t have said it better myself today.