When Equipment Lifecycles Reshape Wholesale Buying

Generally purchasing medical equipment is seen as quite a straightforward task. You know what stock you have, you see what the price is and purchase what you need. However, equipment does have a life span. Eventually the equipment will reach the end of its life span; the manufacturer will have updated their products and your equipment may no longer be on the market. This can affect how you would purchase your equipment wholesale.

Equipment will have a life cycle which includes choosing the right product, installing (if needed), using, maintaining and planning for replacing and finally removing. All of these factors can affect how you purchase your products. A product nearing the end of its life will be purchased in a completely different way to a product that has recently been introduced.

To ensure your purchases aren’t a shock and you don’t waste money, it is important to understand the lifecycle of your products. It will help you make informed decisions on stock levels, suppliers and future requirements. You can plan your purchasing strategy to fit your current requirements.

Understanding Equipment Life Cycles

Products will usually start with an introduction to the market. As a result you will need to consider the new specifications, availability, documentation and if they fit with your requirements. Whilst the new product may have some new features or increased performance, they may require staff to be trained, processes changed and/or compatibility checked. The procurement team will need to consider all of these aspects before placing a large order.

Products will generally be easier to obtain once they have reached their established phase. You can consider how they are used, compare suppliers and agree the correct quantities to order. This is often a great opportunity to standardise your purchasing strategy. Having consistent specifications will make it easier to manage your stock.

Products will reach the end of their life cycle and become harder to obtain. The manufacturer may decide to no longer produce the product, release a new version or simply reduce the amount produced. If you do not check your availability you may find that you cannot source the product anymore. It is vital that you keep track of your life cycle information so you can plan for any changes.

Why Equipment Life Cycles Impact Wholesale Purchasing

When purchasing products wholesale you will consider how available the product will be. If they are coming to the end of their life cycle you may need to change the quantity you are ordering or look for an alternative. However, if you order lots of the product because they may be taken off the market you may end up with too much stock. This will cause issues with space, working capital and will be completely useless if requirements change.

Products will often be updated meaning they may have different measurements, materials, packaging or technical specifications. Even if the product does the same thing you cannot assume it will be a direct alternative. The relevant teams will need to consider the product information to ensure it is suitable.

If you have multiple categories to purchase you will need to consider the life cycles. This may include clinical consumables, PPE and larger medical devices. Each category will have different replacement cycles and availabilities. Understanding this will help you prioritise your purchases.

Financial Impact of Not Planning Replacements

If you do not plan to replace your products you may pay more. Once the product reaches its established phase it may become more scarce meaning less suppliers to purchase from. If you need to place an urgent order you may be charged more for freight and poor commercial deals. By understanding the change in life cycle and having an alternative plan in place you could avoid these costs.

If you replace your products too early you may waste money. The product may be perfectly safe, suitable and functioning. You will need to consider the condition of the equipment, how much maintenance is required and the cost of running it. Just because it is older does not mean you need to replace it.

You need to make an informed decision on the total cost of ownership. This includes the purchase price, maintenance, storage, training, spares and disposal. With consumables you will also need to consider the expiry dates and how much you expect to use. For example Paraffine gauze sterile you will need to consider the packaging, storage and expiry. You should order based on actual usage and how long the product can be stored for.

Dealing with Discontinued Products and Suitable Alternatives

Discontinued products can cause issues if you rely on specific specifications. The alternative may have a different reference, pack size and technical design. The procurement team will need to obtain the updated information from the supplier/manufacturer before approving an alternative. When considering an alternative you should consider what it will be used for, compatibility and any relevant regulations.

When considering an alternative you should involve those who will actually be using the product. The clinical teams will be able to consider if it is suitable. The warehouse team can consider how it will be stored and handled. The procurement team can then consider how available it is, the price and delivery terms. This will ensure you do not have an issue with the end user.

Once you have approved an alternative you should update your records. Ensure that the references, description and stock codes are correct in your purchasing and stock systems. If the original product comes back onto the market your staff should know the difference. Keeping good records will help to avoid confusion and also allows for traceability.

How Suppliers Can Help with Life Cycle Purchasing

Suppliers can help with your planning by providing clear information. If they can provide you with early information on discontinued products, new packaging and updated specifications it will allow your team to consider alternatives. If they do not provide early information you may not know until you try to place an order.

Consider how reliable the supplier is with regards to life cycle. Consider how they communicate changes, manage discontinued products and offer suitable alternatives. Ask if the replacement has the required documentation and if they can supply the right amount. Often how well they can explain the nature of the change will be as important as how much stock they currently have.

Businesses in Europe that purchase medical equipment wholesale should consider life cycle information when reviewing suppliers. International purchasing will have longer lead times and will need more co-ordination. You should be given enough notice of any changes to the product so you can plan your transport, regulatory and stock requirements. This will also help to avoid any last minute orders.

Creating an Effective Life Cycle Strategy

Having a good strategy starts with having a good product register. This should include all the references, suppliers, purchasing history and life cycle information (if available). For equipment that will be maintained you can also include service dates and expected lifespan. This can then be monitored regularly to identify any products that may need more attention.

Procurement teams should categorise their products. The more important the product and less alternatives there are, the sooner it should be planned for. This does not mean you will stock up on products. You should have appropriate reorder levels and have an alternative supplier or approved product ready.

Other departments should be involved in life cycle reviews. The procurement team will know the cost and supplier side, the operations team will know how it performs in practice, finance can consider the budget impacts and quality can consider the relevant product documentation. This will mean your purchasing decisions are based on actual requirements.

Conclusion

Equipment life cycles will impact your wholesale purchasing. Refreshes, reduced availability and discontinued products will impact your budget, stock and supply. If you are aware of these issues you will be in a much better position to change your purchasing strategy.

By having accurate product records, talking to your supplier and considering if you need to replace early you can make an informed decision. Considering the total cost of ownership and ensuring alternatives are suitable will help you not make a hasty decision. You will have more control over your purchasing.

Wholesale procurement should consider how the product will change throughout its useful life. By linking the life cycle information to your demand forecasting and supplier planning you will be able to make better decisions and have a more reliable supply.

FAQs

What is an equipment lifecycle?

An equipment lifecycle refers to the different stages a product goes through when entering the market, regular usage, servicing, replacement and end of life. Knowing your product lifecycle will help you when ordering products.

Why should I know my product lifecycle?

Knowing your product lifecycle will help you understand if any items are likely to be out of stock, end-of-life or if there are any changes to specifications. This will give you more time to look into any alternatives, adapt your purchasing strategy and prevent you from having to order items urgently.

What should I do if a medical product is end of life?

Confirm details on why it is end of life, check what stock you have left and ask for details on what alternatives you have. Any alternatives should be checked to ensure they are fit for purpose, right specification, have the correct documentation and work.

How will knowing the product lifecycle help me reduce costs?

By knowing your product lifecycle you can reduce any last minute purchases, overstocking and reduce any unnecessary replacements. You will also have more time to compare suppliers.

How frequently should I check my product lifecycles?

This will depend on how critical/ specialist the product is. If the item is critical you may need to check more frequently. It is also good practice to check the lifecycle information if a supplier says there is going to be a change.