Consignment Agreement Medical Device

The show is not a new method. In fact, Dr. Dean S. Ammer, a father of the health care chain, stated in his 1983 book Purchasing and Materials Management for Healthcare Institutions: “This is a common practice for extremely high-priced high-margin products, such as pacemakers.” Things to Consider When sending an Emission Agreement, the Medical Establishment Must Consider the Following Issues, In a recent white paper entitled “Know Now: The Need for Better Visibility of the Medical Device Inventory,” we explained the need for a change in the health supply chain with respect to field inventory. Over the past decade, medical device manufacturers have experienced sustained inventory growth to support a growing customer base, with current storage days available for an average of 137 days for each company. To ensure product availability, medical device manufacturers were forced to place the inventory near the healthcare provider`s more than 6,000 sites. The growing number of inventories in the field has posed serious challenges for supply chain stakeholders, including: product flow, cargo registration, product integrity control, falsification, ability to comply with regulatory rules, poor demand forecasts and, most importantly, rising labour costs. The positive elements (for the medical establishment) of the consignment contracts are: the supply chain of medical devices is full of obstacles for manufacturers, distributors and hospitals. One of the most difficult areas is inventory management. If you combine different types of warehouses like Rep`s shipping inventory, hospital shipments and even the loan company or the basic stock, you create a very complex system. Shipping items offer variety of products and comfort that are definitely good things. Nevertheless, it has its drawbacks, as mentioned above.

Entering into a delivery contract is a way to manage expensive inventory while ensuring you have what you need and when you need it. It may not be for everyone, but for some, shipping has made the difference. Technology plays an important role in a new approach based on the value of the record inventory. In the future, the inventory of consignment will not be a blessing or a curse, but an effective necessity. Sounds like a real “win-win” proposal, doesn`t it? The health care provider has free access to abundant inventory and pays only for what it uses, and medical device companies have access to the demand for products by their customers. In becker`s Hospital Review , the authors highlight the many drawbacks and hidden costs of the record inventory for both health care providers and providers. The main problems are the lack of management, supervision and control by one of the parties to the inventory sent: “Since these items are now shipped or managed by the seller, operating equipment personnel often have little control over them. Without the necessary control and responsibility, the inventory may be lost, damaged or dilapidated.

If the delivery contract favours the supplier, the hospital could be held responsible in some cases. In addition, the incentive to continue to improve stocks and push them downwards towards optimal post-order points is lost.