• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Opinions
    • Top 30
    • Research
    • Supply Chain
    • Device Sectors
    • Directory
    • Events
    • Resources
    • Microsites
    • More
  • Magazine
  • News
  • Opinions
  • Top 30
  • Research
  • Supply Chain
  • Device Sectors
  • Directory
  • Events
  • Resources
  • Microsites
  • Current / Back Issues
    Features
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Reprints
    Subscribe Now
    Advertise Now
    Top Features
    The Changing Face of Medtech Surface Treatment

    The Totally Tubular Technologies that Support Medical Devices

    Simply Stimulating: Examining the Neurostimulation Sector

    Sensing Technology Drives the Future of Medical Care

    New and Developing Diabetes Technologies Offer 'Sweet Relief'
    OEM News
    Supplier News
    Service / Press Releases
    Online Exclusives
    Press Releases
    People in the News
    Product & Service Releases
    Supplier News
    Medtech Makers
    Technical Features
    International News
    Videos
    Product & Service Releases
    Live From Shows
    Regulatory
    Financial/Business
    Top News
    Tracey Technologies Upgrades iTrace Software

    Foster Corporation Rebrands its Distribution Business

    Greenleaf Health Recruits Two Former FDA Officials

    TOTAL Toric Contact Lenses for Astigmatism Debuts in Canada

    FDA Approves Abbott's Epic Max Tissue Valve for Aortic Valve Disease
    From the Editor
    Blogs
    Guest Opinions
    Top Opinions
    The Changing Face of Medtech Surface Treatment

    The Totally Tubular Technologies that Support Medical Devices

    Simply Stimulating: Examining the Neurostimulation Sector

    Sensing Technology Drives the Future of Medical Care

    New and Developing Diabetes Technologies Offer 'Sweet Relief'
    Top 30 Medical Device Companies
    Market Data
    White Papers
    Top Research
    Timeline Mystery for Updated EtO Rules

    An Update on Hospital Trends Post-Pandemic

    Don’t Fear the Audit: Benefits of Good Quality Practices

    Understanding the FDA’s Standards & Conformity Assessment Program

    Medtech Divestitures Are Good for Medtech Innovation
    3D/Additive Manufacturing
    Contract Manufacturing
    Electronics
    Machining & Laser Processing
    Materials
    Molding
    Packaging & Sterilization
    R&D & Design
    Software & IT
    Testing
    Tubing & Extrusion
    Cardiovascular
    Diagnostics
    Digital Health
    Neurological
    Patient Monitoring
    Surgical
    Orthopedics
    All Companies
    Categories
    Company Capabilities
    Add New Company
    Outsourcing Directory
    Halkey-Roberts Corporation

    LEMO USA Inc.

    Fusion Biotec Inc.

    Cirtec Medical

    NDH Medical Inc.
    MPO Summit
    Industry Events
    Webinars
    Live From Show Event
    Industry Associations
    Videos
    Career Central
    eBook
    Slideshows
    Top Resources
    Designing for Manufacturing: 5 Common Startup Mistakes (and How to Avoid Them)

    5 Challenges Medtech Must Address to Transform Healthcare

    3D Printing Medical Devices Revolutionized Manufacturing

    5 Current Trends in Medical Device Security

    How Advanced Sensors Improve Design & Functionality of Respiratory Care Equipment
    Companies
    News Releases
    Product Releases
    Press Releases
    Product Spec Sheets
    Service Releases
    Case Studies
    White Papers
    Brochures
    Videos
    Outsourcing Directory
    Halkey-Roberts Corporation

    LEMO USA Inc.

    Fusion Biotec Inc.

    Cirtec Medical

    NDH Medical Inc.
    • Magazine
      • Current/Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Editions
      • Subscribe Now
      • Advertise Now
    • News
    • Directory
      • All Companies
      • ALL CATEGORIES
      • Industry Associations
      • Company Capabilities
      • Add Your Company
    • Supply Chain
      • 3D/Additive Manufacturing
      • Contract Manufacturing
      • Electronics
      • Machining & Laser Processing
      • Materials
      • Molding
      • Packaging & Sterilization
      • R&D & Design
      • Software & IT
      • Testing
      • Tubing & Extrusion
    • Device Sectors
      • Cardiovascular
      • Diagnostics
      • Digital Health
      • Neurological
      • Patient Monitoring
      • Surgical
      • Orthopedics
    • Top 30 Company Report
    • Expert Insights
    • Slideshows
    • Videos
    • eBook
    • Resources
    • Podcasts
    • Infographics
    • Whitepapers
    • Research
      • White Papers
      • Case Studies
      • Product Spec Sheets
      • Market Data
    • MPO Summit
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Microsite
      • Companies
      • Product Releases
      • Product Spec Sheets
      • Services
      • White Papers / Tech Papers
      • Press Releases
      • Videos
      • Literature / Brochures
      • Case Studies
    • About Us
      • About Us
      • Contact Us
      • Advertise with Us
      • eNewsletter Archive
      • Privacy Policy
      • Terms of Use
    Columns

    Global Supply Chain Wisdom from Coronavirus-Colored Lenses

    There are precious pearls of wisdom from this past year that will come in handy during the next “crisis.”

    Chris Oleksy, Founder and CEO, Oleksy Enterprises and Co-Founder Next Life Medical; CEO, Emergent Respiratory04.01.21
    The past 13 months have been quite surreal. It seems like the pandemic-induced journey the world has been on for the past 400 days or so began a lifetime ago. Personally, this past year has felt like a dog’s first year of life, which generally equates to 15 human years. The supply chain lessons learned over the past year have been so numerous, it theoretically could have taken 15 years to amass them. There are some precious pearls of wisdom from this past year that will definitely come in handy during the next “crisis,” whatever form that may take and whenever that may be. Hopefully the lessons will help companies create a supply chain “playbook” they can use as they continue to navigate COVID-19 and prepare for the next unforeseen event.

    Where’s Waldo? (Data/Information)
    One of the most important lessons to be learned from the pandemic is the value of reliable information. As COVID-19 ravaged the world, there was plenty of data available, but very little of it was actually trustworthy information. Many attribute this shortcoming to election year politics, and that’s certainly a rational argument. But the election is over and the data/information dilemma has not changed. From the corporate boardroom to the shop floor employee, it has become practically impossible to navigate through the maze of misinformation that currently exists. I still don’t know how many ventilators were needed or may still be needed in New York City. And, how many doses of a vaccine are needed? How long does immunity last? Do masks work? If so, which ones are most effective? It’s not hard to understand why record numbers of viewers have stopped watching the news or listening to politicians (both parties). We need data sources that are accurate rather than agenda-based.

    I learned at the start of my supply chain career that reliable data is necessary to produce actionable information. If data cannot be used to make decisions, why even bother gathering it in the first place? Think about how many metrics are created with poor data inputs. The golden rule of garbage in equals garbage out is always applicable to the major supply chain SCORE elements of Plan Source Make Deliver, particularly during a crisis. Reliable data for informed decision-making is now so scarce that many of my closest colleagues are calling each other to find dependable information.

    Lesson/Nugget 1.0: Companies should create a data/information “war room” of sources and trusted content that can be called upon when crises occur. Stay close to customers and suppliers because both have a vested interest in the information their OEM partner relies on is accurate. And both can help companies safely navigate past the crisis.

    2.0 Made in America: The Math Doesn’t Always Work
    I support the “Made in the U.S.A.” mentality and have strived to build or help build products in America wherever logical. But I’ve also created many landed cost supply chain models to show it’s cheaper to make a product outside of the United States. Sometimes the transportation freight costs alone are more expensive than the product value itself, especially when shipping internationally. Such logic was at play two decades ago when I encouraged a previous employer to open a plant in Costa Rica, as the shipping costs far exceeded the value of products being shipped. What some may deem un-American is actually common sense. Businesses are not charities—for-profit companies cannot stay afloat long without gains. Nor can they sustain payrolls.

    Another sobering fact is that no one country has all the necessary raw material sources for domestically manufacturing 100 percent of its products, as some resources can only be found in one place on Earth (i.e., the Horn of Africa). However, one of the most overlooked resources is labor.

    On a fairly regular basis, but particularly in election years, both political parties have sounded the “Made in America” alarm. I’d love to, but the labor math doesn’t work. Even if it was possible to domestically source and manufacture all raw materials and products, there wouldn’t be enough American workers to carry out the task. Case in point: Not too long ago, the U.S. unemployment rate was 3.8 percent, which many economists consider “full employment.” Hence, there would be a shortage of labor to handle the volume of products American companies make abroad. It’s not un-American, it’s fact. According to the Nov. 20, 2020, issue of The Kiplinger Letter, Asia accounts for 39 percent of the world’s gross domestic product (GDP). Over the next 20 years, that GDP is estimated to grow to 50 percent. Isn’t it more logical to make product in Asia rather than ship products there from America?

    Lesson/Nugget 2.0: Companies must embrace the world and all its imperfections. Raw materials come from every corner of the globe and so should the workforce. The pandemic has proven that America-first policies are pointless; rather, the United States must embrace the use of the world’s raw material sources (including labor) and foster positive trade relations. When a crisis like COVID-19 occurs, every worker counts, regardless of the country of residence. America should be more interested in how its manufacturing base can help “supply” that 50 percent of Asia’s GDP and produce it in the most financially sensible location. Supply chain success and America’s future prosperity will depend on the nation’s ability to “supply” rather than simply “make” product domestically.

    Single Source vs. Duplicate Capacity: Time to RE-think?
    Like many of my supply chain colleagues, I’ve believed it to be too cost prohibitive to duplicate an organization’s capacity or supply lines. The risk/reward narrative historically was skewed in favor of no repeats until COVID-19 came about. It’s become obvious that worldwide supply chains are very interconnected, and rightly so. Much like the “Made in America” economics, duplicating supply chain capacity across the globe makes more financial sense now and will better prepare these distribution channels for future (unforeseen) crises. I’m not predicting another pandemic to occur, but I do expect supply chains to be more prone to disruption going forward as they become interdependent in order to manage global consumption growth. Viruses, after all, are not the only disruptors—Mother Nature can be pretty capricious when she wants to and politics can impact product supply.

    During my 40-year career, accessibility to the world and its supply chains has changed dramatically, and so has its growth. Thus, duplicating capacity (and potentially suppliers) in various parts of the world should be on every multinational organization’s radar to manage global consumption needs and risk management. A supply chain professor friend once told me that over 40 years, the same test still applies but the answers change. That certainly was the case this past year.

    Lesson/Nugget 3.0: Companies should reconsider duplicating critical portions of their supply chains to better manage both impending global growth and risk management needs. This could necessitate contracting two different suppliers or a single supplier with multiple locations.

    The Rise of the “Mom and Pop Shop”
    Being the son of a career banker in the 1970s, I saw a prediction my father made back then come true over the past decade. He said, “…the banks will be consolidated. All ‘mom and pop shops’ will become consolidated because of the economies of scale. Big banks will become more important than the local banker always being there to help you. But there is a time and a place for economies of scale. When the going gets tough for consumers, the importance of the small bank will become a requirement, not a necessity.” He didn’t live long enough to see that reality manifest itself as local banks have multiplied nationwide over the past 20 years. Many consumers actually prefer a local bank over their large multi-billion-dollar rivals. Case in point: It’s not a coincidence that many individuals sought PPP loans from local banks due to their short turnaround times.

    The medical device industry has witnessed a similar consolidation at the OEM and at supplier levels. Over the past year, I’ve heard praise for the speedy, innovative ways mom and pop shops responded to supply chain needs during the COVID-19 crisis. Was their response more related to the crisis itself or their ability to be more nimble and agile than their larger competitors? I believe the latter may be manifesting itself as the banking history repeats itself in the medtech industry.

    Lesson/Nugget 4.0: Don’t under estimate mom and pop suppliers. That “flotilla of destroyers” over the battleship can be quite effective in good times and bad. In all wars, there’s a place for a battleship and a place for a flotilla of destroyers that is nimble and customer focused.

    The coronavirus has taught the world many lessons over this past dog year of a year. Hopefully, medtech organizations have gained some insight into operational improvements and supply chain best practices they can implement going forward. There are certainly many more lessons to be gained from the COVID-19 pandemic, which will be addressed in future columns. One of those will most likely discuss the importance of U.S. school systems (including day cares) in providing needed labor to the workforce. But there’s a twist: The key is not necessarily what children learn in schools but rather what they can provide to the medical device eco-system. The lessons here are surprising. Stay tuned. 


    Chris Oleksy is founder and CEO of Oleksy Enterprises, co-founder of Next Life Medical and CEO of Emergent Respiratory. He can be reached at chris@oleksyenterprises.com or chris@nextlifemedical.com.
    Suggested For You
    Providien Providien
    Zeus Zeus
    JK Medirise-Disposable Medical Device Company JK Medirise-Disposable Medical Device Company
    DDL Inc. DDL Inc.
    RAUMEDIC Inc. RAUMEDIC Inc.
    sfm medical devices GmbH sfm medical devices GmbH
    BMP Medical - Delivering Custom Plastics Manufactured Solutions BMP Medical - Delivering Custom Plastics Manufactured Solutions
    Rootstock Software Rootstock Software
    High Tech Turning Co. Inc. High Tech Turning Co. Inc.
    Breakthrough Device Designation Granted for New Neuromodulation Platform Breakthrough Device Designation Granted for New Neuromodulation Platform
    Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles Hyperfine Names Paykel, Teisseyre to Executive Leadership Roles
    Accu-Tube Appoints Matthew Haddle as CEO Accu-Tube Appoints Matthew Haddle as CEO
    First CellFX Procedure Performed in Canada First CellFX Procedure Performed in Canada
    Turner Imaging Systems Announces International Expansion Turner Imaging Systems Announces International Expansion
    Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings Heraeus Acquires Mo-Sci Corporation, ETS Technology Holdings

    Related Buyers Guide Companies

    • Providien

      Providien

      ...
      Bonalyn Boyd, Marketing Manager 11.30.22

    • Zeus

      Zeus

      ...
      Laura Bright, Ad Manager 11.18.22

    • JK Medirise-Disposable Medical Device Company

      ...
      Ketan Munjani, Marketing Manager 11.17.22


    • DDL Inc.

      DDL Inc.

      DDL has been in medical device package, product and material testing industry for almost 20 years. We strive to offer the most effective business practices while employing a staff of technical experts.
      Chris Murphy, Marketing Manager 11.11.22

    • RAUMEDIC Inc.

      RAUMEDIC Inc.

      ...
      Christy Worley, Sales Coordinator 11.11.22

    Loading, Please Wait..

    Trending
    • Medinbox And Abbott Partner To Increase Efficiency In Electrophysiology Labs
    • FDA Clears LiveMetric's Wearable Blood Pressure Monitoring Tech
    • FDA Approves Abbott's Epic Max Tissue Valve For Aortic Valve Disease
    • 5 Ways Plastics Revolutionized The Healthcare Industry
    • A New Approach To Post-Market Surveillance
    Breaking News
    • Tracey Technologies Upgrades iTrace Software
    • Foster Corporation Rebrands its Distribution Business
    • Greenleaf Health Recruits Two Former FDA Officials
    • TOTAL Toric Contact Lenses for Astigmatism Debuts in Canada
    • FDA Approves Abbott's Epic Max Tissue Valve for Aortic Valve Disease
    View Breaking News >
    CURRENT ISSUE

    March 2023

    • Sensing Technology Drives the Future of Medical Care
    • New and Developing Diabetes Technologies Offer 'Sweet Relief'
    • Discussing Matters of Substance in Medtech Materials
    • Medical Device Testers Are Caught Up in a Whirlwind
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Jiaherb Receives CITES Certification for Rhodiola Rosea
    Hyaluronic Acid Ingredient Linked to Antioxidant Benefits In Vitro
    Anita Johansen Appointed New CEO of Probi
    Coatings World

    Latest Breaking News From Coatings World

    BASF’s Monomers Division Receive ISCC+ Certification in Its Two Asian Production Sites
    Omya to Represent Songwon’s Coatings Portfolio in 4 South-Asian Countries
    Brenntag Commences Operations at Its New Site in Zhangjiagang, China
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Tracey Technologies Upgrades iTrace Software
    Foster Corporation Rebrands its Distribution Business
    Greenleaf Health Recruits Two Former FDA Officials
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Quotient Sciences Supports Crinetics Pharma with Pediatric Development, Clinical Testing Program
    Syndax Pharmaceuticals Names Neil Gallagher President, Head of R&D
    ABL Names Stephanie Colloud GM and COO in Europe
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Arbonne Names New Chief Growth & Innovation Officer
    MAC Revamps 'Back To MAC' Recycling Program
    Coty Names New Chief Commercial Officer for Prestige Division
    Happi

    Latest Breaking News From Happi

    Maya Jama Named Rimmel London’s New Global Brand Ambassador
    Former Bliss Products CEO Meri Baregamian Named CEO of Give Back Beauty’s Indie & Talents Division
    Registration Now Open for Cosmoprof North America’s 20th Edition
    Ink World

    Latest Breaking News From Ink World

    ACTEGA to Showcase Products and Solutions at Interpack 2023
    hubergroup Print Solutions Takes Stock of Digital Print Folders
    INX International Makes Investment in Gooten
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Two from Sun Chemical honored with NAPIM Pioneer Awards
    Loftware secures significant growth equity investment
    Avery Dennison’s atma.io adds new ChatGPT and AI features
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Drylock Technologies Plants First Trees in Drylock Forest
    A.Celli Group to Hold Open House
    Toray Awarded for Nanodesign Technology
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Report: No Complications With OssDsign Catalyst Graft
    FDA OKs Bioretec's RemeOs Bioresorbable Metal Trauma Screw
    First Clinical Use of Stryker’s Tornier Pyrocarbon Humeral Head
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Emerson Named 2023 ENERGY STAR Partner of the Year
    Nano Dimension Increases Offer to Acquire Stratasys to $19.55 Per Share in Cash
    Universal Display Sponsors, Presents at ICDT 2023

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login