8 Thoughts for a Solid Supply Chain

As hospitals and insurance companies impose cost restraints, and the 2.3% medical device tax continues to impact manufacturers and their bottom line, having a strong supply chain grows in importance for OEMs. In order to keep a supply chain strong, here are some tips for ensuring that success.

1. ISO-Certified/Registered – Make sure the manufacturer selected is ISO-certified and registered with the FDA in its database.
2. Meet the Engineers – When choosing a supply chain partner, meet with the company’s staff of engineers to make sure they are the highly trained, highly educated group you expect.
3. Communicate – All participants need to work and communicate on all issues, such as component sourcing concerns or if design changes are required.
4. Eliminate Risk – You can’t always control the circumstances. Natural disasters and other emergencies happen, and they can cause severe delays. Always keep an updated list of qualified component suppliers so you have a backup plan in case one of these unforeseen events affects your prime supplier.
5. Ask for Proof – Set out your quality requirements from the start, and make sure the partner can prove its supply chain matches up to your standards.
6. Plan Ahead – Determine the contract duration up front so the product is not orphaned – left without a manufacturer – for all the components five or 10 years down the road.
7. Stay Local – Look to utilize local companies first – whether it is for the raw material sourcing or the final sterilization and assembly step. Often, keeping your sources local can help keep costs down, and allows you to work closer with your supply chain.
8. Distribution – Once the product is ready for market, do not overlook the importance of proper logistics. If you plan to sell direct, great. If not, choose a partner that will get your products to the marketplace in a timely manner.

About the author: Elizabeth Engler Modic is editor of TMD and can be reached at emodic@gie.net