In addition to traditional competitive issues, Medical OEMs face a myriad of challenges associated with managing the multitude of suppliers involved in a complex design and manufacturing process. With continued pressures (both internal and external) to reduce costs while accelerating products to market, medical OEMs often find that they no longer have the internal resources in place to efficiently manage all of the product development and supplier requirements internally. Many now look to strategic manufacturing partners to help find and manage the best suppliers today as well as those scaled for future growth.
Truly sophisticated strategic manufacturing partners will come to the table with an established and robust supplier base as well as a sophisticated and formalized design and manufacturing process. The right partner will remove many burdens associated with managing product-specific supply chains, ensuring quality and accelerating the product development cycle. With the ever-increasing need to focus on their core technology competencies, leveraging an outsourced manufacturing partner can unlock significant advantages in the overall delivery of products to market.
We will focus on the following three core areas to consider in the qualification and selection of strategic manufacturing partners:
- Proven materials management
- Cost-reduction experience
- Ability to scale
Proven Materials Management
A truly sophisticated manufacturing partner has a proven strategic sourcing team to engage preferred suppliers that are well-aligned to the particular product being developed. Extensive experience, advanced capabilities and broad knowledge within supply chain management is essential to assuring medical OEMs ability to bring an innovative product to market on time and within budget.
An OEM was facing particular pressure to launch an upgraded version of an existing product on a compressed timeline. Anticipating a competitor’s release of a new product at an upcoming trade show created a hard deadline and the need to dramatically accelerate the overall development process. MPE’s project team is intimately familiar with their qualified supply chain partners and engaged them early in the development process. These relationships resulted in efficient collaboration and innovation in defining the right solution for the project. Leveraging their expertise in Design For Manufacturing (DFM) from the onset of the project and utilizing their depth of knowledge in materials and manufacturing, the MPE team helped drive the OEM throughout the development process, resulting in a product launch that was on-time and under budget.
As you can see, choosing an outsourcing partner with a sophisticated supply chain can speed the product development process and reduce your time-to-market. Our next post will highlight the impact of selecting a strategic manufacturing partner with cost-reduction experience and the ability to scale can have on your business.