The imbalance between supply and demand continues to challenge medical device manufacturers. Rising costs, materials constraints and logistics delays have become “givens” in today’s manufacturing environment. In the outsourcing realm, contract manufacturers are being tested as never before. However, there is one major difference. Most OEMs’ business models revolve around product innovation and an ability to dominate their market niches. Conversely, the contract manufacturing business model revolves around manufacturing expertise and ability to rapidly transform customer orders to delivered products. As a result, there is greater incentive in the contract manufacturing model to find ways to mitigate current challenges. Contract manufacturers who are vertically integrated and expert at addressing logistics challenges may fare better than companies dependent on a broader supply chain to produce and deliver a finished product. Contract manufacturers with a focus on continuous improvement may be better positioned to offset higher costs or increases in shipping lead-time with improvements that shorten manufacturing cycle time.
Forefront Medical Technology, a specialty contract manufacturer with a focus in disposable diagnostic, drug delivery systems and medical device systems, feels there are four areas where a contract manufacturer’s capabilities may be able to improve outcomes in the current market:
- Product launch
- Vertical integration
- Continuous improvement
- Logistics management.
This whitepaper looks at each of these areas and discusses ways Forefront’s team applies their expertise.
Download the full white paper to read more