As we all know by now, data is the lifeblood which pumps through the arteries of the modern business. As work is ever more steadily assimilated into the online world, the volume of data being produced grows exponentially and the utility of that information grows in kind.

It's predicted that by 2025 the volume of digital data created worldwide will hit an absolutely staggering 181 zettabytes (that's one sextillion, or 1,000,000,000,000,000,000,000 bytes) and the value of that information from a big data analytics perspective will be approximately $68 billion. Even today, worldwide IT spending on data center systems is estimated to be $196 billion.

Clearly, data is only going to become ever more important and understanding how to effectively integrate it into the modern medical supply chain will massively contribute towards your probability of success or failure in the future.

Digital Supply Chains

Digital technology has the potential to provide accountability and transparency into processes or operations, make business more agile and adaptable, improve real-time logistics to make business easier, and reduce costs, liability, and loss by making operations leaner. Digital transformation management systems, chain of custody software, blockchain, and IoT technology, can all contribute towards the benefits - and data is running through each and every one of them.

However, without an effective and efficient data implementation program, your brand will never see the full benefits which can be mined from this valuable resource. Integration makes the whole medical supply chain operate better by taking information out of isolated silos and bringing it together into a single stream of data which can then be actioned for the good of the entire supplier operation.

Data Integration

There are many digital technologies which can facilitate data integration independent of any other ways those same innovations benefit the business. Pre-built application connectors and shared templates make data formats consistent throughout the organization, while AI mapping and dashboards assist with the actual analysis of that information.

Better still, data integration provides a framework under which multitier supplier collaboration can occur. Companies which regularly collaborate with suppliers see increased levels of growth, lower operating costs, and greater profitability than those who don't engage in the practice.

One of the largest benefits of this kind of data driven collaboration is greater production efficiency. By integrating manufacturing planning data between collaborators, customer requests can be better managed, leading to more stable operations, with fewer schedule changes, or changeovers between products. Early warning systems can communicate up and down the value chain and provide all stakeholders the agility they need to meet increasing or decreasing demand.

This increased agility and flexibility will of course lead to reduced inventories as safety stock become a less essential component of the supply chain. Overstocking is nearly always the result of poor communication, or unreliable/uncertain production forecasts. However, when data is integrated throughout the system, the occurrence of these situations are significantly reduced. The need for emergency deliveries is similarly reduced as integrated data-driven inventory management will have an impact on unplanned stock depletions.

That's not to mention the increase in product quality. When medical device test results, transportation and storage information, and production process parameters and best practice standards are integrated throughout the value chain, critical data can be instantaneously fed back to the manufacturing level so processes can be re-evaluated and updated accordingly where necessary. At the manufacturing level, technology such as creating digital twins helps changes be made more rapidly and efficiently than ever.

Final Thoughts

Obviously, there are barriers to collaboration on this scale and it will take one link in the chain to stand up and take charge of the process. This will likely be the one which has the most resources and most innovative leadership team and it will be responsible for making the case for integration to the rest and guide the process to completion.

"The development of suitable technologies has been an important step, but platforms alone are insufficient to enable deep integration between supply-chain participants," reports McKinsey. "Industrial IoT platforms work nicely to drive efficiency within companies, but collaboration along the supply chain requires further enablers. Defining open standards for data exchange, as well as a joint ontology for data, is only just beginning and will mean close collaboration with technology and cloud providers."

Integrating a data-driven supply chain is set to be a hot topic at LogiMed 2022, taking place in March at the Rancho Bernardo Inn, San Diego, CA.