Procurement and supply chain optimization for the medical technology industry

The medtech industry faces growing challenges, including supply chain disruptions, regulatory demands like the ongoing transition to the Medical Device Regulation (MDR), and the push for innovation in life-saving technologies. Procurement and supply chain management (SCM) are essential in addressing these pressures. From ensuring compliance and securing critical materials to optimizing costs and supporting R&D, we help medtech companies build resilient, efficient operations that drive patient care and competitive advantage.

Procurement consultancy in medical technology

As a manufacturer or distributor of medical technology, the Corona virus pandemic has had a massive impact on your business. With rising vaccination rates, the situation is beginning to normalise, but it will be a long time before the old predictability returns. In addition, the EU’s Medical Devices Regulation (MDR), which has been in force since May, imposes new requirements that involve more time and higher costs for the certification of medtech products. To ensure that you can continue to operate profitably in the face of these challenges, new approaches to cost optimization and supply chain management are necessary.

We will develop an individual programme for you, which we will implement together with your employees if desired.

Procurement Contribution to Profitability in MedTech

Research and development is undoubtedly a key driver of innovation and competitiveness in the medtech industry, ultimately leading to long-term profitability. However, to fuel R&D investments, companies need to free up financial resources. While increasing revenues is one avenue, focusing on cost reduction offers a faster and more sustainable path to boosting profitability.

Cost optimization through strategic procurement not only improves financial performance but also enhances operational efficiency and supports long-term growth. Key advantages include:

Fast and measurable impact: Cost-saving initiatives often yield quick results with lower upfront investment compared to strategies like revenue growth.
Sustainable outcomes: When implemented strategically—such as by negotiating long-term supplier agreements—cost optimizations can deliver lasting benefits without compromising quality or innovation.

By prioritizing procurement-led cost savings, medtech companies can ensure a steady flow of resources to fund R&D, strengthen competitiveness, and secure their future success.

Making procurement and SCM fit for the new normality

Due to the global shift in demand, cost structures for raw materials and intermediate products have changed substantially, especially in the medtech sector. It is not yet foreseeable whether the shifts will be permanent. It is indispensable to analyse the previous requirements with regard to savings potentials, to bundle them anew, to specify them and to put them out to tender.

Although the great wave of insolvencies has so far failed to materialise thanks to broad-based government support programmes, the consolidation of the entire medical technology industry, which had already begun before the pandemic, continues to progress. It is likely to accelerate in view of the MDR. Companies should therefore analyse their supply chain and check whether current suppliers and their product portfolio are still the right fit.

Furthermore, due to the ongoing disruptions in global markets, it makes sense to diversify one’s supply chain and selectively qualify new suppliers, if necessary in regional proximity to one’s own production. The establishment of a structured risk management system safeguards your company against the occurrence of future risks.

Professional working capital management optimally controls liquidity and is thus the best basis for defying disruptions of all kinds. Working capital should therefore always be considered in the course of optimising procurement and supply chain management.

Digital tools provide the necessary transparency in the supply chain and can automate routine activities in procurement. Both are important prerequisites for complying with the Medical Devices Regulation.

With customised training courses in procurement, we can support you in sustainably anchoring the newly acquired knowledge in your company.

A holistic risk management process must be approached across departments and repeated on a regular basis. In this way, risks can be identified at an early stage and corrected more quickly in the event of an emergency.

Philipp Mall, Managing Director, INVERTO – a BCG Company

Further publications

Medical Devices Regulation: Analysing the portfolio

Although the new MDR offers a transitional period of up to four years, it is clear that all products will have to be re-certified – many of them at greater expense than was previously the case.

Under these conditions, it is necessary to subject your own portfolio to a detailed analysis. Before you sort out products, however, you should seek dialogue with your customers: If you are no longer able to produce a medtech article at a cost-covering level under the new requirements, clarify whether and under what circumstances your customers will accept higher costs. A serious, transparent calculation can serve as an argumentation aid.

At the same time, you should look for solutions together with your suppliers. Respecifications or standardizations may help you to control costs. Our experts will be happy to support you in analysing and developing your portfolio.

Flyer “Profitability in MedTech: how procurement can make the difference” Preview

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Our medtech experts

Nicolas Willmann

Managing Director

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Gökhan Yüzgülec

Managing Director

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