In the world of manufacturing, it is quite common for companies to quickly outgrow their own production facilities. In such cases, medical device manufacturing companies / OEMs outsource their manufacturing requirements to a contract manufacturer. Such associations benefit the OEMs in cost savings, a streamlined supply chain, and logistical alignment. This partnership also facilitates their meeting all regulatory requirements for the industry while enabling them to launch their products commercially quickly.
Contract Manufacturers serve as third-party partners, offering a solution to OEMs production requirements in the form of outsourced providers of specific parts or total product production. The most successful contract manufacturing companies are involved in more than just providing goods to supply chains. They are comprehensive in their operations, and are meticulous about quality and capital investment.
Gesco Healthcare does precisely does that. Our dedication to quality extends far beyond a simple stamp; rather, it permeates every step of our workflow. Each and every instrument or implant is the product of an in-depth understanding of the surgeon’s requirements, an exhaustive familiarity with device specifications, and comprehensive quality systems.
Advantages of Consolidating Vendors to a Single-Source Contract Manufacturer
When a company is trying to bring a medical device to market, there is a lot at stake because the medical industry requires additional tests and processes before it can be brought to market. There are many benefits to outsourcing to a Contract Manufacturer.
1. Financial Implications
Companies that provide full-service contract manufacturing have a significant competitive edge over others due to the lower costs associated with their operations. Contract manufacturers save medical device manufacturers an average of 25 to 35 percent on overall production costs. Leading contract Manufacturers offer fully operational precision manufacturing and assembly using CNC machines and technology, in addition to trained employees and automated production processes. As OEMs no longer have a need to have these in-house, it results in a significant reduction in early production overhead costs, as well as future savings in labor, utility, and maintenance prices. Contract manufacturing partners offer premium materials, cutting-edge machinery and technology, and new product solutions in a shorter amount of time, and they are equipped to have all of this under one roof.
2. Scale up production capacity
The ideal scenario for many firms would be to cut lead times while simultaneously boosting unit outputs and product fabrication rates. However, figuring out how to strike a balance between the two sides of that equation can become a living nightmare if it is mishandled or disregarded.
When you choose a partner in contract manufacturing, you put products in the hands of facilities and employees who are highly efficient and highly specialized, and who are also fully optimized to enhance the amount of material produced. They are able to manufacture larger quantities in a shorter amount of time because of their high precisions equipments, seasoned project management, and production services that are specifically suited to meet an OEM’s requirements. For any OEM, it may be impossible to keep up with the expanding production demands at some stages of a firm due to limitations such as a lack of space, a limited budget, or production regions that are already at capacity. Whether they need to outsource the whole product or just a few customised parts, contract manufacturing companies will improve their production in a big way.
3. Quality Control
When you outsource production, you gain a second set of eyes to inspect your goods, as well as a larger pool of skilled workers. This additional focus goes beyond conventional quality inspections or checks and balances.
Some organizations that specialize in contract manufacturing even provide additional services, such as design-for-manufacturing (DFM) consultation.
4. Risk Management
When you partner with a contract manufacturer, manufacturers have access to specialized knowledge and technology. Additionally, the work on your product is done strictly in compliance with national and international standards. With numerous standards, compliance becoming increasingly important in today’s increasingly global industry, this gives you a distinct advantage. When you choose the right contract manufacturer, there is a greater emphasis placed on topics like product testing, regulations, and compliance. These partnerships have the potential to lessen the likelihood of product failures as well as accidents that occur within the organization, provided that a healthy mix of collaboration and oversight is maintained.
5. Management of Resources
Simply said, when you outsource certain aspects of the production of your work, you free up your time and resources to use them in other areas. Working with a contract medical device manufacturer allows you to allocate more resources to other parts of your company. Companies can invest more time and money in developing your business, products, and services. This is one of the reasons why many leading OEMs choose to outsource their manufacturing capabilities to a trusted Contract Manufacturing company like Gesco healthcare.
Despite this reality, it does not mean that OEMs can sit back and trust for the partnering company to deliver the products on time. There is still a requirement for effective communication, organization, and product management to simplify the process and improve the time to market. The most successful partnerships feature product oversight and paperwork that is uncomplicated yet performed on a routine basis. These partnerships also feature streamlined channels of correspondence and staff who are dedicated to managing it.
Looking to Outsource the Manufacturing of Your Medical Device?
At Gesco, we provide a wide range of contract manufacturing services to leading medical device OEMs, supporting their various implant and surgical instruments requirements. In the end, our goal is to become your trusted single-source contract manufacturer, providing you with assured satisfaction as well as on-time deliveries. Gesco Healthcare has assisted original equipment manufacturers of medical devices in accomplishing their objectives for more than 60 years.
Do get in touch with us so that we can explain how Gesco may become your reliable contract manufacturing partner.
