Search

MedSec’s response to the global supply chain crisis



Canada’s healthcare sector has felt the crunch ever since the beginning of the Covid-19 pandemic but how is it faring 2 years down the line? As the number of new cases each day has begun to stabilize, health experts around the world are discussing the possibility of Covid-19 transitioning to an endemic status like influenza.


Some may find it difficult to understand why shortages and delays continue to be felt despite the fact that Canada’s economic recovery has been going well with high vaccination rates, easing of containment measures, low unemployment rates, high domestic demand and open trade between boarders. Indeed, the OEDC projected that Canada’s real GDP would grow by 3.8% in 2022 and 2.6% in 2023.(1)


What is exacerbating the issue in 2022?


Demand continues to defy expectations, as the current shortage in Children’s Advil and Tylenol shows, even in summer, cold medicine is going out of stock.


Congestion at ports continues to slow the delivery of overseas products such as catheters for epidurals in our local Hospitals.


Labour shortages in the trucking industry continue to be felt. The Freedom Convoy truckers protests against mandatory vaccine mandates also contributed to elongated delivery times.


New bottlenecks, created by the Russia-Ukraine war further complicate shipping logistics. Although, Ukraine doesn’t produce medical supplies for Canada, the Canadian medical industry will feel ripples of the war’s effects as healthcare is partially dependent on oil from Russia for transportation and manufacturing of plastics for syringes, pill bottles, and sharp disposal containers. Certain metals used for surgical instruments and implants are also mined in the area.(2)


Persistent rising inflation continues to impact medical companies purchasing power. The consumer price index has risen to its highest level in decades (7.7% in May).(3) It is only a matter of time before prices for healthcare catch up to this increase. The threat of looming recession has moved the Bank of Canada to implement a series of benchmark interest rate hikes in an attempt to cool this tendency. On Sept 7 2002, it raised its benchmarks interest rate to 3,25% (a rise of 0.75% from July).(4)


Higher interest rates, however, will impact health system financing and capital structures in the long-term, further complicating financial forecasting and sustainability planning in hospitals. A significant rise in interest rates can also negatively hinder a healthcare company’s ability to obtain capital for new construction, expansion or renovation projects.(5)


How is MedSec prepared to deliver amid crisis?


We are proud of our resilience amid crisis. We were spared the quality issues others faced at the beginning of the pandemic and some of the delays caused by shutdowns. Our many years of experience have helped us navigate sourcing and logistical issues as they emerge.

Certain things are out of our control, such as the results of global warming and natural disasters like the flooding and mudslides that happened in Vancouver in November 2021. The backlog created by that event did cause a notable delay of certain containers. With successive disruptions, just in time delivery has become a difficult promise to keep post-covid.


“MedSec is committed to mitigating the supply chain disruptions to ensure our health products reach our clients and fulfill their needs as soon as possible."


We are doing everything within our control to ensure timely cost-effective delivery of high-quality medical equipment. We are mitigating risks by building relationships with trustworthy partners, diversifying our product sourcing, relying on airfreight for urgent orders, and improving our storage and shipping capabilities for speedy in and out. For example, in 2021, we teamed up with a third-party logistics provider (3PL) to aid in growth in new regions, and ease the transition between seasonal periods and industry fluctuation.


MedSec’s large stockpile of goods is ready to ship out to distributors and re-sellers across Canada. MedSec offers competitive prices. Request a free quote. Request a sample. As always, speedy delivery is ensured by reliable shippers such as FedEx, UPS and Canpar.


The sustainable growth of MedSec’s brand and network depends on efficient resource management. We are grateful to our staff for their continued efforts, perseverance and consistency. Our long-term goals include offsetting carbon emissions and implementing more advanced warehouse automations.


Our team is ready to deliver great service. Send your first purchase order (PO). Request to open an account.


Experts agree, the global supply chain crisis is something we will continue to contend with for some years. It is a complex issue that will require adjustments internationally, nationally and locally. There is no singular solution. Even though companies do their best to mitigate issues, leverage risk and manage flux, customers can expect to see higher shipping costs and inflation of prices in future. The good news is MedSec is prepared to serve.


Stay in the loop, sign up for our newsletter. Receive promotions and news by email.


SOURCES:

https://www.oecd.org/economy/canada-economic-snapshot/

https://www.medpagetoday.com/special-reports/exclusives/97502

https://chamber.ca/may-2022-consumer-price-index-data-7-7-the-highest-rate-in-almost-40-years-but-the-worst-may-be-yet-to-come/

https://www.msn.com/en-ca/money/topstories/bank-of-canada-hikes-benchmark-interest-rate-again-to-325-25/ar-AA11z0xd

https://www.plantemoran.com/explore-our-thinking/events/2022/06/inflation-and-rising-interest-implications-for-health-system-structures


MedSec


Quality. Value. Affordable.


8-1340 Gay-Lussac, Boucherville, Qc, J4B 7G4


438-300-9689


info@medsecare.com