Home delivery programs to HME providers through drop-ships are evolving in the market. ISG markets a home delivery program to HME providers through which ISG drop-ships supplies in the provider's name to the customer's address. Providers have no products to stock, no minimum order requirements and delivery is made within 24 to 48 hours nationwide.
As Wal-Mart brings DME dealers into the stores, there will be continuing demand for mobility products from the customers. The current DME networks will sell lift devices that let people load chairs to and from cars.
Folding wheelchairs facilitate personal mobility for disabled people. Even regular people may begin to wish to extend personal mobility using wheeled devices that work in short range campus environments. Wheelchair vendors seek to maintain low cost, high quality supply chains.
Companies seek to achieve this objective through a strategic combination of enterprise manufacturing facilities, contract manufacturing facilities, and key suppliers. The operational strategy supports the marketing strategy with assets that are fast, flexible providers of new and modified products that respond to the demands of the market.
The supply chain is focused on providing custom, configured, made-to-order products from facilities close to the customers in each of its major markets. As strategic choices are made on locations globally, those facilities that remain in higher cost regions of North America and Europe very focused factories that provide specific competitive advantage to the marketing and sales teams.
Companies have refined cost reduction plans and initiated outsourcing in the first half of 2005 for global manufacturing and implemented international distribution strategies. These are long tem initiatives with some companies that have completion targeted for 2008. These actions are anticipated to generate savings. Companies expect global reductions positions and exiting a number of manufacturing operations worldwide.
Wheelchair markets are expected to grow as the baby boomers age. The aging of the population is expected to change markets. Older people need more support for continued mobility through disability. Rehabilitation becomes more prevalent.
The ability to get reimbursement has been a significant market factor. As baby boomers age and need wheelchairs, they will be willing to pay directly for mobility and comfort as they do for homes and cars now. This trend will assure market growth worldwide.
Wheelchair and scooter markets at $3.2 billion in 2005 are expected to grow to $7.4 billion by 2012. (See Figure ES-3.) Wheelchairs and scooters provide mobility and move the healthcare delivery system toward the lower cost homecare.