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Article: Taking your outsourcing strategy beyond manufacturing processes: outsourcing of labor-intensive manufacturing operations is increasingly popular with medical device companies. It cuts down on labor, plant, and more; why build when you can buy? But some of these same companies are discovering that it can make sense to outsource other functions as well. This article, based on interviews with experts in the field, will explore this area.(Cover story)
- Article from:
- Medical Design Technology
- Article date:
- April 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Advantage Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As competition and costs increase, the idea of outsourcing is spreading to companies that hadn't considered it in the past. "I think healthcare was the last area to really embrace this," says Thomas Taylor, president of Nypro Medical Products Group. "Outsourcing is becoming a necessity now," adds Marco Bafan, lead analyst for west coast territory at Nerac.
Outsourcing manufacturing not only cuts costs, it can also add to flexibility. Ron Earle, a recently-retired executive in the medical device outsourcing field, cites an example: "A guy called me and said my plant is running at maximum capacity; I've got to find a new manufacturing location, and [do] you know ...