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AdvaMed Joins National Campaign to Improve Supply-Chain Performance
The Biden Administration has launched a strategy to bring medical products and other necessities into the hands of more Americans more quickly.
December 4, 2023
4 Min Read
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At a Glance
- AdvaMed) is a trade association that leads efforts to advance medical technology
- Biden administration announces nearly 30 action plans to help strengthen domestic supply chain
- AdvaMed and member companies work with administration and Congress to strengthen supply-chain resilience
An unprecedented set of initiatives established by the Biden administration to improve national supply-chain performance is garnering support from one of the leading medical technology trade associations in the United States.
Officials at the Advanced Medical Technology Association (AdvaMed), a trade association based in Washington, DC, that leads various efforts to advance medical technology globally on behalf of its members, has announced its collaboration with the administration’s nearly 30 action plans that are expected to help strengthen the supply chain and its influence on the country’s economic and national security.
Announced Nov. 28 during the inaugural convening of the White House’s Council on Supply Chain Resilience as part of the current “Bidenomics” agenda, these plans reportedly will enable more reliable deliveries for businesses and help Americans receive products more quickly. The action plans come on the heels of multiple unanticipated events that have been blamed for causing the overall cumulative issues with the supply chain.
“The pandemic, extreme weather events, and geopolitical unrest have revealed severe supply-chain challenges that have disrupted healthcare, as medtech companies work to source and transport components, parts, raw materials, and key inputs for medical devices,” said AdvaMed CEO Scott Whitaker in a statement released by the organization Nov. 28. “AdvaMed and our member companies are working closely with the administration and Congress to address these challenges and strengthen the supply-chain resilience in order to protect patients.”
Agenda action plans announced
Among the new actions being promoted by the White House that are involved in the comprehensive supply-chain strategy are:
Council on Supply Chain Resilience. The group is tasked with advancing Biden’s long-term, government-wide strategy to establish resilience within the supply chain. The council will be co-chaired by National Security Advisor Jake Sullivan and National Economic Advisor Jared Bernstein and include Health and Human Services (HHS) Secretary Xavier Becerra. Among the responsibilities of the council will be to identify supply-chain risks through data sharing, as well as recommendations to address those risks, and address the working conditions for those employed in the country to keep supply chains running as issues arise.
Utilization of Defense Production Act. The primary source of presidential authority to expedite and expand the supply of materials and services from the US industrial base needed to promote the national defense, the act will be utilized to produce more essential medicines throughout the country and to mitigate drug shortages. President Biden reportedly will issue a presidential determination to broaden HHS authority to enable investment in domestic manufacturing of essential medicines, medical countermeasures, and critical inputs that have been deemed essential to the national defense. HHS has reportedly identified $35 million for investments in domestic production of key starting materials for sterile injectable medicines and will designate a supply-chain resilience and shortage coordinator dedicated to medical product and critical food supply chains. HHS also reportedly intends to institutionalize this coordination to advance the department’s supply-chain resilience and shortage mitigation goals over the long term, and the Department of Defense is expected to release a new report on pharmaceutical supply-chain resilience aimed at reducing reliance on high-risk foreign suppliers.
Supply Chain Data-Sharing Capabilities. The administration has developed several cross-governmental partnerships to improve supply-chain monitoring and strategy, including a Supply Chain Center that’s described as a first-of-its-kind initiative to develop innovative supply chain risk assessment tools and to coordinate analyses on select critical supply chains to drive targeted actions to increase resilience. Additionally, a partnering with HHS will result in better assessment of industry to help address foreign dependency, vulnerabilities, and points of failure for critical drugs.
Freight Logistics Optimization Works (FLOW) Program. A public-private partnership led by the Department of Transportation, FLOW will bring together supply-chain stakeholders to create a shared, common picture of supply-chain networks and facilitate a more reliable flow of goods. Stakeholders are reportedly beginning to utilize FLOW data to inform logistical decision-making to avoid bottlenecks, shorten lead times for customers, and enable a more resilient and globally competitive freight network through earlier warnings of supply-chain disruption.
Collectively, the new analytical capabilities are anticipated to enable the council to coordinate more complete, whole-of-government critical supply-chain monitoring.
“[The recent] announcement by President Biden is a major milestone in the whole-of-government approach we have championed through our role in the administration’s Joint Supply Chain Resilience Working Group and with [The Food and Drug Administration’s] Supply Chain Resilience Program,” said Whitaker. “We look forward to continuing this partnership with the administration, serving as a resource to strengthen sterilization capacity, as well as access to mature semiconductors and other critical materials such as helium. A resilient supply chain is key to protecting patients as our members continue to develop the life-saving medical technologies needed to diagnose and treat them, and we remain committed to working with our partners in the federal government to ensure patients are put first.”
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