Medical Design Briefs - September 2023 - 10

Inside the OEM: Smith & Nephew
2023 Outlook
The company is on track to target unThe
Ultrabutton is an adjustable fixation device for knee
ligament fixation. (Credit: Smith & Nephew)
tutes. The acquisition was expected to accelerate
growth from Smith & Nephew's
advanced wound management franchise.
A growth of 12.9 percent for advanced
wound devices reflects a similar pattern
to the company's previous quarter, with
double-digit growth for the company's
single-use product PICO and a significant
contribution from its traditional
platform, RENASYS. Suitable for use in a
hospital or home care setting, the PICO
single-use negative pressure wound therapy
system also features a gentle silicone
dressing adhesive that helps minimize
trauma and pain in the peri-wound area.
The RENASYS GO System is suitable
for a variety of wound types, enabling a
seamless transition from acute to postacute
or home care settings.
derlying revenue growth of 5- 6 percent
with above-market growth expected in
sports medicine and advanced wound
management and improved orthopedics
performance. Nesmes said that
the company will continue to improve
commercial execution as well as growth
from new products. She noted that
growth in the first quarter is an encouraging
start, and the recent growth headwinds
in China orthopedics will ease as
the year progresses. The first quarter
also benefited from higher-than-expected
surgery levels in established markets,
which are 85 percent of Smith & Nephew's
business.
12-Point Plan
The company has developed a 12-point
plan to position itself for sustainably
higher growth and to improve its competitive
edge. Smith & Nephew has new
products in both robotics and in its sports
medicine pipeline. The plan centers on
fixing orthopedics, improving productivity
throughout the value chain; and
further accelerating sports medicine and
advanced wound management. The plan,
said Nath, is central to how the company
will deliver its midterm targets. It will continue
to drive these initiatives each quarter.
The company has made progress in
areas around logistics, sales force delivery,
robotics, and productivity, Nath said.
It's first five initiatives fall under " fixing
orthopedics. " These include rewir12-point
plan addressing the remaining challenges
Fixing
Orthopedics
Initiatives 1-5
Rewire orthopedics commercial delivery
* Rebuild demand planning process
* Improve asset utilization
* Strengthen last-mile logistics
1 initiative
Improving
Productivity
Initiatives 6-10
Improve value and cash processes
* Standardized order-to-cash
process excellence
* Implementing company-wide
product pricing process
Win market share with our technology
* Expansion of CORI base and use
* Accelerate trauma through EVOS
*Launch of AETOS™ shoulder
Streamline our recon portfolio
* Sales focus on key brands
* Reduce number of implant
systems in each category
1 initiative
3 initiatives
Optimize procurement
*More consistent purchase price
management across company
* Building greater supply resilience
Manufacturing optimization
* Driving lean across operations
* Further review of manufacturing
network
2 initiatives
1 initiative
2 initiatives
ing orthopedics commercial delivery
through rebuilding demand, winning
market share through expansion and
new launches, and streamlining its portfolio
through focusing on key brands.
The second set of five initiatives focus on
honing productivity through improving
its value, optimizing procurement, and
optimizing manufacturing.
The final two initiatives are aimed
at accelerating its foray into sports
medicine and advanced wound management.
The company plans to scale
its negative pressure wound therapy
product offerings and drive cross selling
through a number of incentives and
deals. For more details, see Figure 1.
" Last-mile logistics is another important
part of rewiring our commercial delivery
for both better growth and greater asset efficiency, "
said Nath. " Our project team has
been working with our local distribution
centers to standardize processes around
fulfillment, inventory, and asset management,
and we are seeing some early wins. "
One example, he said, is kit cycle
time, which is the time taken to process
a set post-surgery and make it available
for another procedure. Smith & Nephew
has reduced that time by 40 percent
in just a few months, which means better
availability of sets to customers and better
asset turns by reducing downtime.
The company has also identified and
reconstituted incomplete sets that were
previously not turning at all.
In sales force delivery, Smith & Nephew
is moving its field force to a new digiAccelerating
Sports
& AWM
Initiatives 11-12
Scale negative pressure wound therapy
*Drive competitive conversions
in traditional NPWT
*Expand single-use market
globally
Drive cross-selling in ASCs
* Pursue cross-franchise deals
with improved coordination,
incentives, and planning
1 initiative
1 initiative
Fig 1 - The company has developed a 12-point plan to position itself for sustainably higher growth and to improve its competitive edge. (Source: Smith & Nephew)
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Medical Design Briefs, September 2023

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Medical Design Briefs - September 2023

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