Fexco will be exhibiting at the Medical Technology Ireland Exhibition and Conference on the 25th and 26th September at Galway Racecourse. The Fintech company will also present “How to streamline foreign exchange payments & receivables for the med tech sector” at the Breakfast Briefing on the morning of the 26th.
According to the Irish Medtech Association, more than 300 medtech companies active in Ireland export €12.6bn worth of goods every year and employ 38,000 people between them. Nine of the top ten global medical tech firms have also settled in Ireland making it one of the world’s leading technology hubs for the sector.
As the UK is one of Ireland’s largest export markets for medical devices, relationships between Irish and UK suppliers and distribution hubs are intricately linked. Manufacturing businesses are reliant on the UK market and supply chain with cheaper sterling driving competitive pressures. One of the largest manufacturing sectors in Ireland with goods exported to the UK is the medical devices sector.
When one also factors in spending on raw materials from Britain, overall trading in sterling means businesses are at the mercy of a volatile pound which can seriously impact the bottom line when currency swings are negative.
It is obvious that the med-tech industry will be impacted by Brexit. Any trading transactions between the UK and Ireland may have customs duty and tax implications applied given that the UK will no longer form part of the customs territory of the EU.
Added to these pressures for the med-tech sector are the implications of getting re-certification on products in order to meet new EU regulations that will come into force in 2020. This along with the prospect of customs delays, additional administrative work and risk to sales may lead to additional costs so med-tech companies need to evaluate operations and seek to create efficiencies.
Speaking ahead of the Medical Ireland Technology Exhibition and Conference, Helena O Dwyer, Business Development Manager at Fexco International Payments commented:
“The med tech sector is facing uncertain times and cost pressures mean that many businesses are looking to streamline and create efficiencies throughout their operations. The payables function is often overlooked when businesses look to cut costs. However many finance departments are often mired in manual processes leading to payment errors and inefficiencies which inevitably lead to higher costs and poor supplier relationships. This is even before you factor in currency fluctuation issues which also seriously impact the bottom line when paying out or receiving foreign currency”
The Fexco international payment solution creates efficiencies and cost savings for med tech companies paying overseas suppliers or receiving foreign currency payments by streamlining the payments process through innovative technology.
“Procurement departments at med tech companies are usually tasked with nurturing supplier relationships and handle contract negotiations and early payment opportunities. Yet the AP department largely influences these relationships. At a time when there could be major disruption to supply chains, businesses should do everything possible to maintain relationships along the supply chain. Streamlining the payments process is an effective means of fulfilling this”.
Fexco counts several medical technology companies as clients who benefit from its automated payment and currency strategy management solutions.
You can also meet the team at Stand 210 on the second floor throughout the event.