Guoke Hengxing Aims to Set a Benchmark in Digital Medical Supply Chain Collaboration Amid Industry Transformation

In the post-pandemic era, digital applications have provided significant support to the healthcare sector, deepening medical enterprises’ understanding of digital transformation.

The “14th Five-Year Plan for the In-Depth Integration of Informatization and Industrialization,” released on November 30, 2021, explicitly states in the chapter on digital management that it is necessary to “connect enterprise data chains and promote real-time collection and comprehensive integration of data across the entire business chain through intelligent sensing and Internet of Things (IoT) technologies,”Build a digital supply chain management system, guide enterprises to create digital cockpits, and achieve visualization and transparency in business operations.”。

In the chapter on cultivating a new ecosystem for cross-sector integration, it is also explicitly stated that we should “promoteUpgrading industrial and supply chains to drive data-enabled collaborative transformation across the entire industry chain, promoting cloud-based collaboration throughout the supply chain, guiding upstream and downstream enterprises to strengthen digital supply chain management and integrated collaboration, and facilitating collaborative procurement, manufacturing, and distribution based on platforms., promote the establishment of sound supply chain security management systems in enterprises, and build agile, efficient, secure, and stable digital supply chains and supply chain networks.”

From the perspective of national policy guidance, strengthening the innovative application of key digital technologies, accelerating the development of digital industrialization, and promoting the digital transformation of industries constitute the transformative changes facing the entire sector. In response to these shifts, a singular offline integrated logistics organizational model no longer meets the innovation requirements of supply chain management.

VCBeat has learned that,Guoke Hengxing (Beijing) Medical Technology Co., Ltd. (hereinafter referred to as “Guoke Hengxing”), as a new company serving the digital transformation of the medical supply chain, has developed an online intelligent digital supply chain collaboration platform for the healthcare sector—Juxietong—over the past few years by integrating policy requirements with the industry-specific characteristics of segmented medical device fields., and by integrating with the offline logistics platform of its parent company, Sinotech Hengtai (Beijing) Medical Technology Co., Ltd. (hereinafter referred to as “Sinotech Hengtai”), it has established comprehensive service capabilities.

To understand how Guoke Hengxing leverages digital solutions to integrate upstream and downstream segments of the industry chain and empower its partners, VCBeat conducted an exclusive interview with Luo Hua, General Manager of Guoke Hengxing.

With the implementation of a series of healthcare reform policies, including the coordinated development of medical care, health insurance, and pharmaceuticals; volume-based procurement; zero-markup policy for drugs and consumables; Diagnosis-Related Groups (DRGs); Unique Device Identification (UDI); and smart hospital initiatives, the national centralized procurement prices for medical device products have dropped significantly. This has substantially compressed the profit margins of pharmaceutical and medical device manufacturers and suppliers, while intermediaries in the distribution channels, facing reduced roles, are also forced to undergo transformation.

Meanwhile, the national performance evaluation for public hospitals poses new challenges to the lean management of medical institutions, while quality supervision across the entire production and distribution chain has become more stringent. New policy requirements will further promote comprehensive transformation, upgrading, and coordinated healthy development across the upstream, midstream, and downstream segments of the pharmaceutical and medical device industry chains. This presents both challenges and opportunities.

Guoke Hengxing has accumulated nearly a decade of specialized management experience in the medical device industry. By closely monitoring policy trends, it has developed and implemented the Juxietong Platform, which aims to provide digital management tools for partners across the upstream, midstream, and downstream segments of the pharmaceutical and medical device supply chain. This platform helps enterprises at all levels integrate their supply chains, achieving industrial interconnectivity at minimal cost.

Guoke Hengxing represents the extension of Guoke Hengtai’s business into technological and innovative domains. Leveraging Guoke Hengtai’s extensive experience in the medical device industry, Guoke Hengxing possesses profound professional advantages in niche market segments. These advantages are reflected not only inUnderstanding of the Policy Environment, Implementation Status, and Industry Pain Points, but is also reflected in the presence ofon targeted digital solutions.

Taking upstream manufacturers as an example, In the past, enterprises largely relied on general distributor models, resulting in very slow feedback on product consumption at the end of the supply chain. However, with the rapidly changing market landscape, companies now need to gain timely visibility into their products’ omnichannel sales performance.

Guoke Hengxing's “"Channel Operations and Supply Chain Management"It is a solution that helps upstream manufacturers achieve full lifecycle management of downstream channels.

This solution provides end-to-end support from channel recruitment and market access to online contract execution and product authorization, integrating the order supply chain environment to achieve closed-loop management of channels and supply. It enables internal integration with existing enterprise systems such as ERP, WMS, and TMS, while externally facilitating distributors’ self-service management across the entire workflow, including first-time qualification, background checks, contracting, authorization, training, order placement, shipment tracking, policy-based rebates, and service authorization management.

Figure 1. Digital Channel Chain

Figure 2 Digital Supply Chain

This solution is specifically tailored to the business models of pharmaceutical and medical device enterprises, including wholesale, long- and short-term consignment, and surgical procedures, thereby meeting the multi-category management requirements of China’s National Centralized Volume-Based Procurement. It provides mobile and PC-based software tools that enable distributors and service providers serving hospitals to efficiently place orders, track shipments, and submit settlement reports. This allows sales personnel to move away from traditional, inefficient management practices reliant on phone and email for ordering and shipping, as well as manual reconciliation and settlement, enabling enterprises to directly transition into a digital era characterized by collaborative and efficient commerce.

Furthermore, Guoke Hengxing’s “Juxietong” platform is deeply rooted in the specialized segments of the medical device industry. In the process of providing digital services to leading medical device enterprises both domestically and internationally, it has continuously accumulated and validated digital management capabilities that reflect industry-specific characteristics and advanced management standards.

The platform’s high-value digital management services will enhance enterprises’ managerial capabilities, facilitate the integration of collaborative resources and accelerate their transformation and upgrading, while establishing connections with more industry-related companies to form partnerships for synergistic development.

andFor intermediary distribution and operating enterprises,, amid the state’s stringent regulatory environment, compliance has become the top priority.In response, Guoke Hengxing has developed a business management solution tailored for small and medium-sized enterprises—Distributor Sales and Inventory。

This solution adheres to GSP compliance requirements and incorporates rich industry-standard master data, including qualification certificates, UDI, and medical insurance classification codes, to help enterprises achieve compliant and efficient management capabilities.

Moreover, the solution package is ready to use out of the box, meeting compliance requirements for business operations. It enables procurement-sales coordination with upstream and downstream partners, significantly reduces repetitive tasks, lowers operational costs, and allows distributor partners to rapidly acquire digital operational capabilities at a lower cost.

Meanwhile, it can also align with policy requirements and provide industry-specific value-added services such as UDI standard data management, manufacturer online authorization, download of batch certificates of conformity, and publication of hospital procurement sourcing information, thereby helping enterprises improve the collaborative efficiency of upstream and downstream procurement and sales.

Guoke Hengxing, targeting downstream medical institutions,Established an efficient, high-quality synergy between in-hospital and out-of-hospital supply chainsSolutions for Refined Management. In response to the growing demand from healthcare group clients for centralized supply chain management, we also provide group-level medical supply chain planning and product solutions. These solutions can integrate with group-wide tendering and procurement, master data, ERP, and supply chain management systems, thereby enabling multi-party collaboration among the group, suppliers, and hospitals, while ensuring compliance, intensification, and efficiency.Group Procurement and Sales Management Platform。

It is reported that there are currently over 30,000 medical device manufacturers in China, predominantly small and medium-sized enterprises. Meanwhile, the process of import substitution is accelerating, as the government vigorously encourages the sustained and rapid development of domestic medical device companies.

Currently, Guoke Hengxing has served numerous enterprises and medical institutions, including Boston Scientific, B. Braun, Terumo, Peijia Medical, Shanghai Guanghua Hospital, and Taikang Healthcare Group, earning a strong reputation.

As a result, companies do not need to invest excessive effort and capital in the implementation and optimization of digitalization. By adopting Guoke Hengxing’s Juxietong Platform, enterprises can efficiently and cost-effectively meet their development needs, collaborate with industry partners, and achieve true synergistic growth.

Note: Guoke Hengtai is a member enterprise of Orient Instrument Holding, an investment enterprise of the Chinese Academy of Sciences.