Brand-conscious customers necessitate robust supply chain management in custom procedure tray markets

End users such as surgeons and operating room (OR) staff are very brand conscious, and the inability of custom procedure tray (CPT) vendors to provide a desired brand may result in loss of business and inability to maintain healthy customer relations. Market participants have to give significant attention to purchasing and supply chain management at both strategic and operational levels.

To provide the desired components, CPT companies should either have their own product range or the ability to establish relationships with appropriate suppliers. This is especially important since end users in this market are loyal to products such as drapes and gowns, and even to seemingly commodity products such as needles and plasters.

"The range of products contained within the CPT can be diverse and depend on the type of operation being undertaken," says Vaishnavi Ananthanarayanan, Research Analyst at Frost & Sullivan. "Product suppliers need to assess their future distribution channel plans. Creative strategies such as developing alliances with former competitors or providing additional services may also be considered."

Organisations that provide sterilisation services to hospitals on an outsourced basis also have enormous potential for growth in the CPT market. To complement their existing reusable medical instruments, these companies are considering the introduction of single-use CPTs to enhance their product ranges.

The USD 154.9 million market is developing at different rates across Europe. Increasingly sophisticated approaches to hospital management, reduced supply base/overheads, growing concerns about infection control and the spread of dangerous diseases are major factors that are driving the adoption of CPTs by hospitals. The intensifying need for convenience, speed and reliability in terms of the medical disposables used for surgery has also boosted product uptake.

Many hospitals in Europe do not recognise the increased value of CPTs. However, they are aware that the initial cost of CPTs is up to 20 per cent more than that of individual sterile components. CPT companies need to understand the many financial, organisational and cultural reasons affecting the purchasing decision for these products.

"Complete customisation and optimisation of resources would be the propulsion factors for the CPT markets in future," notes Ms. Ananthanarayanan. "The hospital authorities as well as the surgical staff should be made aware of the benefits of CPT. The acceptance has increased to a great extent as CPTs offer complete choice to end-users, thus giving more flexibility and optimizing the use of skilled staff and infrastructure."

By promoting these advantages, the market is likely to witness greater appreciation for CPTs. However, the approach to CPT adoption in Europe tends to be more cautious than that in the United States because of the prevalent lower health expenditure proportion of GDP than that existing in the United States.

If the market achieves its potential, it would have grown significantly in both size and revenue to touch USD 1,484.9 million at a compound annual growth rate of 32.8 per cent over 2003-2010. Countries such as France and Belgium, having slightly higher rates of surgery per capita than other regions such as Spain and Italy, present considerable scope for development.

Among market sectors, OR CPT is likely to show the maximum growth, followed by angiography and ophthalmology. The OR segment is the least penetrated, and therefore, is expected to bring in greater revenue in the long term, unlike the mature angiography sector.

If you are interested in an analysis overview providing a first introduction into the European Market for Custom Procedure Trays - then send an email to Katja Feick - Corporate Communications - at [email protected].

http://medicaldevices.frost.com