Jumat, April 12, 2024

Growing chip supply helps Baxter reduce backlog

Baxter has long recognized limitations in the supply of electromechanical components used in items such as smart infusion pumps, as well as other shortcomings at external suppliers.

To address the shortage, beginning in 2022, Baxter will be redesigning some of its circuit boards and will source them from recyclable material suppliers. As “things are not 100% normal right now,” Baxter continues to lead a significant number of initiatives as the company continues to redesign the components that go into the boards.

“As we move into 2023, it will be imperative that the company remains focused on completing what we started with semiconductor transformation and supply chain resilience,” Almeida said. “However, we are cautiously optimistic with regard to the component supply of our company.”

In recent years, healthcare organizations have encouraged semiconductor manufacturers to prioritize healthcare companies. For example, in May 2022 retail giant AdvaMed called on the Biden administration to step in and help an industry that competes with consumer electronics companies with limited supplies.

In turn, many companies have had to adjust their forecasts to account for chip shortages, resulting in longer delivery times for items like sleep apnea devices or, in the case of Baxter, Sigma Spectrum infusion pumps and other medical devices.

Meanwhile, Baxter continues to be under pressure from rising supply chain costs, which it experienced in the second half of 2022 and continued into 2023.

“Some of our suppliers are still willing to raise prices,” Saccaro told analysts.”But overall I would say that from a supply chain perspective we have a pretty solid track record.”

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