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SOP Manual for Medical, Dental and Hospital Equipment and Supplies Merchant Wholesalers

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Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers industry comprise establishments primarily engaged in the merchant wholesale distribution of professional medical equipment, instruments, and supplies (except ophthalmic equipment and instruments and goods used by ophthalmologists, optometrists, and opticians).

Services provided by this industry are

  • Appliances, surgical, merchant wholesalers
  • Artificial limbs merchant wholesalers
  • Beds, hospital, merchant wholesalers
  • Crutches merchant wholesalers
  • Dental chairs merchant wholesalers
  • Dental equipment and supplies merchant wholesalers
  • Dental equipment and supply merchant wholesalers
  • Dentists' professional supplies merchant wholesalers
  • Dentists' professional supply merchant wholesalers
  • Diagnostic equipment, medical, merchant wholesalers
  • Dressings, medical, merchant wholesalers
  • Electromedical equipment merchant wholesalers
  • First-aid kits, industrial, merchant wholesalers
  • Glassware, medical, merchant wholesalers
  • Hearing aids merchant wholesalers
  • Home health care supplies merchant wholesalers
  • Hospital beds merchant wholesalers
  • Hospital equipment and supplies merchant wholesalers
  • Hospital equipment and supply merchant wholesalers
  • Hospital furniture merchant wholesalers
  • Hospital gowns merchant wholesalers
  • Industrial safety devices (e.g., eye shields, face shields, first-aid kits) merchant wholesalers
  • Instruments, dental and medical, merchant wholesalers
  • Laboratory equipment, dental and medical, merchant wholesalers
  • Medical equipment merchant wholesalers
  • Medical furniture merchant wholesalers
  • Medical glassware merchant wholesalers
  • Medical instruments merchant wholesalers
  • Medical supplies (except household first-aid kits and non-surgical bandages) merchant wholesalers
  • Medical supply merchant wholesalers
  • Orthopedic equipment and supplies merchant wholesalers
  • Orthopedic equipment and supply merchant wholesalers
  • Patient monitoring equipment merchant wholesalers
  • Physicians' equipment and supplies merchant wholesalers
  • Prosthetic appliances and supplies merchant wholesalers
  • Prosthetic appliances and supply merchant wholesalers
  • Surgical appliances merchant wholesalers
  • Surgical dressings merchant wholesalers
  • Surgical instruments and apparatus merchant wholesalers
  • Surgical supplies merchant wholesalers
  • Surgical supply merchant wholesalers
  • Surgical towels merchant wholesalers
  • Tapes, medical and surgical, merchant wholesalers
  • Teeth, dental, merchant wholesalers
  • Therapy equipment merchant wholesalers
  • Thermometers merchant wholesalers
  • Towels, surgical, merchant wholesalers
  • Ultrasound equipment, medical, merchant wholesalers
  • Wheelchairs merchant wholesalers
  • Whirlpool baths, hospital, merchant wholesalers
  • X-ray machines and parts, medical and dental, merchant wholesale

1. Standard Operating Procedures (SOP) Manual for Accounts Department
2. Standard Operating Procedures (SOP) Manual for Finance Department
3. Standard Operating Procedures (SOP) Manual for Customer Service
4. Standard Operating Procedures (SOP) Manual for CRM Department
5. Standard Operating Procedures (SOP) Manual for Credit Department
6. Standard Operating Procedures (SOP) Manual for Treasury Department
7. Standard Operating Procedures (SOP) Manual for Human Resources (HR) Department
8. Standard Operating Procedures (SOP) Manual for Training Department
9. Standard Operating Procedures (SOP) Manual for Learning & Development Department
10. Standard Operating Procedures (SOP) Manual for Administration Department
11. Standard Operating Procedures (SOP) Manual for Front Office
12. Standard Operating Procedures (SOP) Manual for House Keeping
13. Standard Operating Procedures (SOP) Manual for Safety Department
14. Standard Operating Procedures (SOP) Manual for Security Department
15. Standard Operating Procedures (SOP) Manual for Facilities Management Department
16. Standard Operating Procedures (SOP) Manual for Vigilance Department
17. Standard Operating Procedures (SOP) Manual for Legal Department
18. Standard Operating Procedures (SOP) Manual for Information Technology (IT) Department
19. Standard Operating Procedures (SOP) Manual for Sales & Marketing Department
20. Standard Operating Procedures (SOP) Manual for Design & Engineering 
21. Standard Operating Procedures (SOP) Manual for Procurement Department
22. Standard Operating Procedures (SOP) Manual for Production
23. Standard Operating Procedures (SOP) Manual for SRM Department
24. Standard Operating Procedures (SOP) Manual for Supply Chain Department
25. Standard Operating Procedures (SOP) Manual for Warehouse
26. Standard Operating Procedures (SOP) Manual for New Product Development Department
27. Standard Operating Procedures (SOP) Manual for Research and Development  
28. Standard Operating Procedures (SOP) Manual for Quality Department
29. Standard Operating Procedures (SOP) Manual for Calibration Department
30. Standard Operating Procedures (SOP) Manual for Maintenance Department

Global revenue for makers of medical equipment and supplies is about $350 billion. Major markets include the US, Japan, Germany, France, the UK, Italy, and China.

The US medical equipment and supplies manufacturing industry includes about 10,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $92 billion.

As pressure to lower health care costs grows, companies are challenged to create more effective medical equipment while controlling price increases. Consolidation is widespread as larger companies look for economies of scale in manufacturing and R&D. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation. The US industry is concentrated: the 50 largest companies account for about 60% of revenue.


Major companies in this industry are

  • Owens & Minor Inc
  • Philips North America LLC
  • Patterson Companies Inc
  • Owens & Minor Distribution Inc
  • Olympus Corp of Americas
  • Flatiron Health Inc
  • Patterson Dental Supply Inc
  • Butler Animal Health Sup LLC
  • Siemens Hlthcare Dgnostics Inc
  • Mwi Veterinary Supply Inc

Challenges faced by this industry are

  • Identify High-Demand SKUs

Success starts with identifying which SKUs are suddenly in high demand so that you can take action quickly. Now that we’re a few months into the pandemic and stricter regulations due to Coronavirus, it’s easier to identify which SKUs are in higher demand. But it’s important to keep an eye on these SKUs and to watch for demand surges for other SKUs as they deviate from their typical (that is, non-pandemic) demand. This can be difficult to manage with an Excel spreadsheet or just an ERP. An automated inventory optimization solution like EazyStock will be able to flag SKUs that are deviating from normal demand and send you an alert so you can add what you need to your inventory.

  • Accurate Inventory Overview

Once you’ve identified the high-demand SKUs, the next step to success is knowing exactly how much inventory of each high-demand SKU you have and where it is located. Knowing what you have on-hand and where will help you better fulfill the orders you already have while helping you gauge what to reorder and when. The challenge here is keeping an eye on your inventory levels as it goes out more quickly than usual. You don’t want to reorder too late and miss out on fulfilling orders to customers. Added to the rest of your inventory management responsibilities and the need for precision and accurate timing, it’s easy to let this slip. Automated software will keep an eye on your inventory levels for you and alert you with a Risk of Run-out report so you know when it’s time to reorder. The software automatically takes inventory levels, lead times, and demand into account so you always have what you need on your shelves.

  • Identify Excess Stock & Plan for the Future

Typically, when companies find themselves with excess inventory, the best option is to try to sell as much as possible to free up capital and storage space. Often, they’ll run promotions or campaigns to accelerate sales. While this certainly remains an option, this may not currently be the best plan. As restrictions ease, the demand for these elective procedures and other postponed procedures is increasing. While demand may not be at its previous levels yet, once Coronavirus has diminished, manufacturers and distributors can expect a surge in demand for the equipment and supplies for these procedures. However, that may still be a long time coming. The question to answer is whether it is more cost-effective to try and get rid of stock with currently low demand or to retain that inventory until demand is restored (and possibly even higher than before).

  • Reevaluate Stocking Policy

For companies facing diminished demand, it’s wise to minimize costs where you can. One way is to reevaluate your short-term stocking policy. According to the Pareto Principle, 80% of a company’s sales come from 20% of the inventory. So how many SKUs within that additional 80% of inventory do you need to be stocking, and where can you stock less while still keeping customer service levels relatively high?

An inventory optimization solution like EazyStock will automatically analyze the demand and prioritize SKUs. This will ensure that you know what SKUs and how much of each you need to keep on hand for your customers. Additionally, you can easily evaluate your stocking policy with the inventory policy simulation. This feature lets you choose which low-priority SKUs to stock less of and will relay a customer service level percentage that you’ll still hit. This way, you won’t sacrifice customer satisfaction and you’ll be able to free up capital and storage space.

  • Prioritize your Customers

Once you have an overview of your remaining inventory for high demand products, try to prioritize your customers. Fulfilling orders to clients who have a long order history with your company should take precedence, as you want to keep them as clients once normality is restored. Clients who have a strong need for your products should also be a priority – for example, hospitals treating patients with Coronavirus should be considered priority for PPE. Spreading your remaining inventory around as much as possible will also go a long way in customer satisfaction and proves that you are trying to take care of your customer as much as possible.

  • Source from New Suppliers

While you wait on orders with now nearly impossible-to-predict lead times in your disrupted supply chain, you can be looking for new suppliers. While this will likely prove challenging, finding a local supplier could ease your supply chain disruption. This will also be a good practice in the future to mitigate supply chain disruption risk. A pandemic is not a usual type of disruption, but we can still expect natural disasters and even climate change disruptions in the future. Now is the time to create a more resilient supply chain.

Governing bodies

For further references

The Medical Supplies Wholesaling industry distributes dental and medical supplies and equipment intended to improve or maintain health. Demand for wholesale activities associated with these products is highly correlated with demand for the products themselves. Over the five years to 2020, the median age of the population rose, which pushed up the number of age-related, nonelective procedures performed in the United States. Rising product prices have also supported industry growth. Over the five years to 2020, industry revenue is expected to increase at an annualized rate of 3.3% to total $239.6 billion. In 2020, industry revenue is expected to see an uptick as demand for medical supplies drastically increases.

SOP Manual for Medical, Dental and Hospital Equipment and Supplies Merchant Wholesalers

Research By : Mohammed Ijas

 

Written by SOP Team

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