Sean Fenske, Editor-in-Chief05.01.19
Twenty years ago, outsourcing wasn’t spoken of very much. Original equipment manufacturers (OEMs) didn’t want to admit they used third-party companies to aid in manufacturing tasks. They certainly didn’t want to admit they were using products and/or components developed overseas. It was the worst kept secret in the industry, sure, but it didn’t change the fact that many were using service providers to enhance their own capabilities. Fast-forward a few years and outsourcing was an acceptable business practice, but it was primarily reserved for manufacturing. The OEMs handled everything else.
Move forward a few more years and several more tasks were being taken on by the OEMs’ service providers, such as packaging, sterilization, and warehousing/distribution. Continue to follow the pathway and design, engineering, and regulatory tasks are moving to outside companies. Today, even more responsibilities are being assigned to these companies, leaving OEMs to focus on true core competencies such as ideation and sales and marketing. (Of course, for some, even those tasks are being outsourced.)
Outsourcing’s h
Move forward a few more years and several more tasks were being taken on by the OEMs’ service providers, such as packaging, sterilization, and warehousing/distribution. Continue to follow the pathway and design, engineering, and regulatory tasks are moving to outside companies. Today, even more responsibilities are being assigned to these companies, leaving OEMs to focus on true core competencies such as ideation and sales and marketing. (Of course, for some, even those tasks are being outsourced.)
Outsourcing’s h
Continue reading this story and get 24/7 access to Medical Product Outsourcing for FREE
Our in-depth coverage includes comprehensive feature articles, industry news, trends, and other developments pertinent to the service provider-OEM relationship. MPO examines the increasingly complex and demanding requirements of managing outsourcing partnerships. From regulatory mandates and manufacturing best practices to market shifts and legal concerns, our website is filled with exclusive content to help device manufacturers and their vendors stay informed. Join Today!
FREE SUBSCRIPTION
