Win Source Helps Clients Survive Threat of Medical Chip Shortages

Few industries are immune to the advances in technology that have put semiconductors at the heart of pivotal devices and equipment. In the medical industry, important and potentially lifesaving equipment such as ventilators, imaging machines, blood glucose and blood pressure monitors, electrocardiogram and implanted pacemakers, all rely on semiconductors. Shortages in supply impact not only the production but the repair of medical equipment, putting millions of patients at risk.

One prominent recent example of the impact of shortages was during the Covid-19 pandemic in which a shortage of ventilators seriously threatened the lives of patients. Though the pandemic has affected the production of semiconductors, in the case of the medical industry, it has merely exposed supply chain problems already there.

According to a survey by Deloitte, two-thirds of medical technology companies use semiconductors in at least half of their products. The underlying story here is that the medical industry currently lacks the conditions for technological progress, the eventuality of which could threaten human health and safety.

The integrity of medical equipment demands the use of second or third chips, a situation that puts the industry in a highly competitive position. Other industries vying for these key chips include the automotive, industrial and consumer industries. This clash for the principal chip technology exacerbates an already fraught situation.

Due to shortages in chip production, manufacturers of medical equipment, 70% of whom rely upon a single manufacturer for the supply of chips, have been affected by supply disruption. Faced with the inability to complete orders, the result has been cancellation of orders and an interruption of supply.

Furthermore, geopolitical factors have compounded the situation, exacerbating the supply of chips. From the pandemic itself, to the war in Ukraine affecting the supply of raw materials, manufacturing, as well as disrupting global logistics as a whole. Even the political efforts for a positive redistribution of semiconductor production have been narrow-sighted enough to cause short term disruption.

The advice to medical manufacturers from Win Source is to spread the risk more wisely and take advantage of independent distributors. Leaning on strong global supply resources, manufacturers can increase the purchase of various medical chips, such as sensors, resistors and other indispensable electronic components used in medical equipment. By actively increasing inventory, especially of medical chips that are scarce, manufacturers can ensure that the need of their customers can be met in a timely manner.

Faced directly with the shortage of a chip, alternative solutions maintain the stability of the supply chain. Win Source is strongly committed to quality control with its own in-house quality control processes maintained to ISO standards. As a member of the ISO13485 Association, the company ensures the performance and reliability of alternative solutions are fully verified assure the safety and effectiveness of medical devices. ISO13485 is a set of internationally recognized standard requirements issued by the International Organization for Standardization (ISO) to create a quality management system for those in the medical device industry. ISO 13485:2016 specifies the requirements for a quality management system whereby an organization needs to demonstrate its ability to provide medical devices and related services that consistently meet customer and applicable regulatory requirements.

With safety assured, Win Source prides itself on its ability to meet the urgent needs of customers in the medical industry. Adhering to the principle of proximity, the distributor has established a multi-location inventory which strengthens its logistics management and efficiency. The best possible customer delivery has been achieved through a combination of multi-warehouse delivery and a speed up of logistics, setting Win Source apart in the global delivery stakes.