Four factors to fuel decisions

1. Consumer comfort with at-home testing drives market growth

Nearly three-quarters (74%) of respondents are involved in the manufacturing, purchasing, sales, or distribution of at-home medical diagnostic tests. For this cohort, the top three factors impacting growth in at-home diagnostic testing are rise in awareness of early diagnosis, increase in routine diagnosis, and movement toward preventive care. We see this as confirmation that consumers are more open to its benefits.

While COVID-19 has contributed to ease of testing within the home, emerging diagnostic categories — and combination tests, which can diagnose for more than one thing such as COVID and the flu — show promise for growth this year.

Expert take: "As consumers continue to gain more control over their own health, an accelerated acceptance for at-home testing has created new levels of complexity in fulfillment. Direct from the manufacturer, an insurer, or the pharmacy down the street — channel coverage must be a top consideration as manufacturers aim to get their product into the hands of the end user safely, securely, and efficiently."

– John Marrow, President of Supply Chain Solutions, RRD

2. Economic downturn offers opportunity to realign supply chains

Following two years of extreme supply chain volatility, less than half (42%) identified supply chain disruptions and transportation delays as current challenges. However, risk posed by inflation and economic downturn may emerge as key challenges supply chain leaders face this year.

In fact, when asked to rank the top potential impacts to their supply chain, 58% of respondents ranked inflation and cost control in the top three, while 48% ranked an economic recession.

Top three potential impacts to supply chains

Expert take: "Wild volatility through the pandemic has left, in many cases, an abundance of inventory in the face of lessening demand. On the life sciences side, we know the majority of that inventory will have expiry dates. We see this leading to a number of significant rework opportunities, but this will require a regulated environment to turn excess into market-share gains and bottom-line growth."

– John Marrow, President of Supply Chain Solutions, RRD

3. “Amazon Effect” influences supply chain decisions

Expert take: "It wasn’t that long ago when offshoring the bulk of your operations was the smartest, most cost-effective decision you could make. Today, however, as the market shows gradual improvement and supply chains get up to speed — particularly in the area of logistics — a number of our clients have expressed a readiness to explore reshoring or nearshoring as a way to increase the resiliency and agility of their supply chains, minimizing disruptions and improving total cost."

– John Marrow, President of Supply Chain Solutions, RRD

4. Outsourcing partners key to meeting customer expectations