Today, the global healthcare system continues to rise up to various challenges presented by the increasing inflation rate, recession, supply chain, ongoing pandemics, and wars which continue to dominate healthcare sectors’ resources.
The impact ranges from healthcare supply chain disruptions to understaffed hospitals.
The Disruption of Healthcare Systems
The healthcare system will be affected due to several factors:
The breakdown of IT Systems
The process of providing healthcare services and deliverables is disordered for many reasons including, the effects of cyberattacks on the IT systems, such as website defacement, malware, and ransomware resulting in the huge loss of medical data.
Healthcare organizations should be prepared for disruptive cyberattacks, especially small ones. Those organizations play a big role in the medical supply chain infrastructure. For this reason, cyberattacks impact the healthcare industry and medical suppliers.
Delay in the Production process and Transportation of Supplies
Due to the Russian war’s implemented actions, healthcare deliveries have faced several limitations regarding air transport and shipping. They have to take slower routes and expensive modes of transportation. Therefore, the rerouting procedure costs will increase as air cargo prices increase. Additionally, there is a huge number of congestion at the ports which means that the medical supplies are stuck leading to an increase in the container backlogs. Factories worldwide are expecting delays in production.
Interruptions in the medical supply chain and Raw Materials
Most of the world’s raw material supplies that are utilized to produce medical equipment originate from Russia and Ukraine which are rich in natural gas, crude oil, and metals. Therefore, there is a possibility of an increase in the prices of the healthcare supplies. Russia produces 17% of the world’s natural gas supply and 12% of its crude oil. Due to the current invasion, many organizations anticipate disruptions to the medical solutions production and this will lead to a rise in the prices of plastic and a shortage in the global medical supply chain.
Managing the Long-term Effects and action plans should be executed in order to mitigate the risks of these global interruptions.
Consequently, the healthcare system should consider minimizing the risks mentioned previously through, reshoring, digitization, automation and bolstering practices to be implemented on the supply chain.
MMD Suppliers Facing Supply Chain Challenges
One of the suppliers whom we represent in the MENA region, MAVIG GmbH, is facing a shortage in some of the raw materials – specifically, lead acrylic. As an alternative, instead of lead acrylic MAVIG products, some of their items are now offered with transparent lead glass.
Some challenges are inevitable, and setting plans for uncertain events help overcome potential obstacles. For more information about MMD services in the MENA region, please contact us.
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