Over the next five years, health and medical equipment suppliers can expect significant growth in their industry of around 5–7%, according to research from IBISWorld. The Australian healthcare market is influenced by a number of demographic trends, including:

• A growing and aging population (The Australian Bureau of Statistics projects that over 17% of the Australian population will be 65 and over),
• An anticipation that Governments will increase their spending on health over the next five years,
• Consumer expectations for improved healthcare are increasing, and
• Technology is giving rise to new clinical therapies, which in turn are addressing more and more medical ailments and aiding in earlier diagnosis and prevention of diseases.

Given some of the trends mentioned, the growing demand for health services over the coming years will drive demand for medical and surgical equipment as well as a range of health supplies and products. Advances in information technology over the last few years are helping organisations in the healthcare market to cope with such increasing demand. Advances have allowed firms to revolutionise procurement procedures and facilitate better supply chain management. The development of electronic ordering systems over the Internet have greatly enhanced service levels, while improving process efficiencies, by allowing customers to search inventory lists, check pricing, place and print-out orders, and receive billing slips via email.

By its very nature, the industry faces a high degree of regulation and compliance. The Therapeutic Goods Act (1989) outlines the regulation for therapeutic goods in Australia, to ensure their safety, quality and efficacy. Consequently, organisations need to have sufficient quality assurance to ensure the quality of the products and equipment they are delivering to the market.

Your opportunity

Though this growth offers a number of opportunities, it also presents a number of challenges for organisations. Not all organisations will succeed at growing their business or increase their market share in an expanding market. IBISWorld expects a number of consolidations and mergers will occur within the industry over the next few years. It will only be those organisations who have the facilities and expertise to deliver superior service who will succeed. A number of factors, according to IBISWorld will determine which organisations will thrive and grow over the next five years including:

• Superior financial management. Cashflow management is imperative when dealing with high inventory levels.
• Ability to control stock on hand. Computerised stock controls facilitate up-to-date monitoring and analysis of inventory which allows suppliers to offer a higher level of services to customers.
• Having an extensive and flexibile distribution/collection network. Having efficient warehousing and distribution centres in place, with high levels of automation is imperative in keeping manual and delivery costs to a minimum.
• Offering clients a range of payment options. The ability to offer leasing finance is another success factor.

Sage Business Solutions and our Partners have an extensive history in the health and medical supply industries, bringing years of local and international experience in developing solutions that manage:

• warehousing and inventory,
• freight and dispatch scheduling,
• service management, as well as
• eCommerce and online logistics.

These solutions seamlessly integrate with our core ERP and financial management solutions, Sage ERP Accpac and Sage ERP X3, to give you total control of your business.

By implementing an integrated Sage ERP solution, incorporating eCommerce, CRM and warehousing, online medical distributor Medshop were able to greatly expand their business and the range of products they could bring to market.