The implementation of China's Volume-Based Procurement (VBP) policy for medical devices has sent seismic shocks through the laparoscopic cannula market. Imported products that once cost several thousand yuan have seen price cuts of over 70% during VBP negotiations. For manufacturers, the competition is no longer merely a battle for market share, but a critical overhaul of supply chain costs that determines corporate survival. Only those who minimize costs via lean manufacturing and supply chain optimization can thrive in this era of slim profit margins.

Stryker, a global leader in orthopedics and endoscopy, has demonstrated robust supply chain management capabilities amid VBP pressure. The company shifted its cannula production lines from Malaysia to its manufacturing facility in Suzhou, China, adopting a local production strategy. By forging strategic alliances with domestic suppliers of stainless steel bars, Stryker avoided import tariffs and cut the raw material procurement cycle from three months to two weeks. In addition, bulk raw material procurement leverages economies of scale to lower unit costs, enabling the company to remain competitive in VBP bidding.

In contrast, Kangji Medical, a leading domestic manufacturer, has chosen vertical integration as its breakthrough approach. The company identified that the major cost drivers of disposable polymer laparoscopic cannulas lie in depreciation of injection molds and prices of polymer raw materials. To address this, Kangji expanded upstream by building in-house mold processing centers and injection workshops, and even acquired equity stakes in medical polymer modification factories. This full industrial chain layout freed it from reliance on external processing partners, sustaining a gross profit margin above 60%. The company still maintains profitability even after price reductions under volume-based procurement.

B. Braun has adopted a more flexible response strategy by launching a modular product design initiative. It swiftly adjusts product configurations to comply with varying VBP rules across different provinces. For regions where price is the primary evaluation criterion, the company launches basic cannula models with simplified packaging and non-essential accessories removed. For regions prioritizing product quality, it retains full-featured flagship products. Meanwhile, B. Braun leverages its extensive domestic distribution network to improve logistics turnover efficiency and reduce channel inventory costs, offsetting profit losses caused by lower end-market prices.

For innovative manufacturers such as Edge Medical, avoiding red ocean competition is the core survival strategy. As the market for conventional cannulas shrinks, the company has pivoted to develop dedicated cannulas compatible with surgical robots. Since robotic surgical consumables are not yet included in large-scale volume-based procurement and require extremely high precision, the manufacturer retains strong pricing power. This differentiated supply chain strategy helps Edge Medical evade head-on competition with general disposable medical supplies.

To sum up, volume-based procurement has forced laparoscopic cannula manufacturers to shift from extensive growth to refined operation. Whether it is multinational giants accelerating local deployment, domestic brands expanding across the full industrial chain, or innovative enterprises switching to niche tracks, all reflect that supply chain agility and cost control have become the core competitiveness for manufacturers in the new landscape.