Outsource Manufacturing Feasibility Study – Medical Device Distributor
Challenge
The client was experiencing quality and fulfillment issues with a supplier. They wanted to find a partner to develop and manufacture a handful of products for them. Rasdal Associates was engaged to conduct a feasibility study of whether it made sense to manufacture these products rather than purchase them.
The client was experiencing quality and fulfillment issues with a supplier. They wanted to find a partner to develop and manufacture a handful of products for them. Rasdal Associates was engaged to conduct a feasibility study of whether it made sense to manufacture these products rather than purchase them.
Action
Rasdal Associates performed the study with the following activities:
- Identified 20-30 potential outsource partners through personal contacts, networking and Internet research
- Developed partner package including technical requirements, specifications and projected volumes
- Determined partner selection criteria
- Selected three potential partners to execute non-disclosure agreements and submit proposals
- Financial analysis to support make/buy decision
Results
Rasdal Associates found the ideal partner and a supply agreement was signed. The new partnership will result in product cost savings of $80,000 the first year growing to $700,000 at the end of three years. It will also address supply gaps and quality issues.