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Optimizing Supply Chain Expansion: A Case Study in Partnering with ADH for Medical Device Parts Sourcing in Southeast Asia and India

August 7, 2024

Background & Objective 

A leading medical device manufacturer known for its commitment to innovation and quality in the healthcare industry. As the demand for their products grew, the company sought to expand their operations by outsourcing the production of certain medical device parts. The primary objective of this project was to support the client in finding reliable and cost-effective contract manufacturers (CMs) who could meet their stringent quality standards and production requirements. Here's a breakdown of the specific objectives addressed: 

 

  • Identify Qualified Suppliers: Locate contract manufacturers with the capabilities and experience to produce high-quality medical device parts. 

  • Maintain Quality Standards: Ensure that potential partners adhere to the client's rigorous quality control procedures and regulatory requirements. 

  • Navigate New Markets: Assist the client in identifying suitable CMs within Southeast Asia and India, expanding their supply chain options. 

  • Streamline Outsourcing Process: Facilitate a smooth and efficient process for selecting and onboarding qualified contract manufacturers. 

Our Service/Solutions  

Here's a breakdown of the offered solutions/services provided by ADH to address the client's challenges in finding suitable contract manufacturers: 

 

Strategic Sourcing & Market Research: 

  • Conducted in-depth market research across Southeast Asia and India to identify potential contract manufacturers (CMs) with the capabilities to meet the client's needs. 

  • Evaluated each supplier's expertise in various areas crucial for medical device production, including: 

    • Product Development: Assessed their ability to collaborate on product design and development processes.

    • Research & Development (R&D): Evaluated their commitment to innovation and continuous improvement.

    • Quality Management Systems (QMS): Analysed their quality control procedures to ensure alignment with the client's stringent standards. 

B2B Matching & Partner Shortlist

  • Leveraged ADH extensive B2B network and matching capabilities to identify a curated list of potential partners who demonstrated strong alignment with the client's requirements. 

  • This shortlist focused on CMs with a proven track record in medical device manufacturing, ensuring they possessed the necessary experience and expertise. 

Industry Expertise & Network Integration

  • Tapped into ADH network of industry experts to gather valuable insights and recommendations on suitable contract manufacturers. 

  • Included experts with specialized knowledge in the medical device industry, such as: 

  • Head of Procurement at a Medical Device Company in Indonesia: Provided regional procurement insights and best practices. 

  • Regulatory Affairs Manager at a Medical Device Company in Malaysia: Ensured shortlisted CMs met regulatory compliance requirements for the target markets. 

  • Procurement Specialist at a Medical Device Company in India: Offered expertise in identifying and evaluating potential partners within the Indian market. 

Results Achieved

The engagement with ADH led to substantial and positive outcomes for the client: 

  • Identification of Qualified Contract Manufacturers: ADH successfully identified a group of highly qualified contract manufacturers in Southeast Asia and India within a short timeframe. These manufacturers demonstrated the necessary capabilities and adherence to the client's stringent quality standards, ensuring a high level of confidence in the new supply chain partners. 

  • Alignment with Quality Standards: The selected suppliers were meticulously vetted to ensure they met the client's rigorous quality and regulatory requirements. This alignment was critical to maintaining the integrity and reliability of the client’s medical devices, ultimately safeguarding patient safety and product efficacy. 

  • Streamlined Outsourcing Process: ADH's systematic approach to supplier identification and evaluation significantly streamlined the outsourcing process. This efficiency reduced the time and resources the client needed to allocate to this project, allowing for a faster transition to external production while minimizing disruptions to ongoing operations. 

  • Operational Efficiency and Risk Mitigation: By leveraging ADH’s expertise and network, the client mitigated risks associated with outsourcing production. The thorough vetting process ensured that the selected manufacturers could reliably meet production schedules and cost constraints, thereby enhancing overall operational efficiency. 

  • Strategic Positioning for Growth: With a robust and diversified supply chain established, the client was well-positioned to meet the growing demand for their products. This strategic positioning enabled the client to scale operations efficiently, maintain high product quality, and continue their commitment to innovation in the healthcare industry. 

Why Choose Asia Deal Hub? 

When it comes to navigating the complex landscape in Asia, ADH stands out as your trusted partner for success. Here's why: 

  • Unparalleled Expertise in Industry Research: We possess a deep understanding of the specific requirements and regulations within industries. This allows us to identify contract manufacturers/partners who not only meet your production needs but also adhere to the strictest quality and compliance standards. 

  • Streamlined B2B Matching & Shortlisting: Our extensive network and B2B matching capabilities enable us to quickly connect you with a curated list of qualified players in Southeast Asia and India. This saves you valuable time and resources compared to traditional supplier identification methods. 

  • Quality-Driven Approach: We prioritize quality above all else. By leveraging industry experts like procurement specialists and regulatory affairs managers, we ensure the shortlisted partners possess robust quality management systems (QMS) that align with your stringent requirements. 

  • Expert-Backed Recommendations: Gain valuable insights and informed recommendations from our network of medical device industry experts. These insights go beyond just capabilities, providing a comprehensive understanding of regional best practices and potential challenges. 

  • Focus on Efficiency & Cost-Effectiveness: We understand the importance of streamlining your supply chain without compromising on quality. Our approach balances efficiency by identifying reliable partners with cost-effectiveness, potentially lowering production costs without sacrificing quality. 

  • Global Reach with Local Knowledge: Our network spans across Asia, providing you with access to a wider pool of qualified CMs. However, we also possess in-depth knowledge of regional regulations and market dynamics, ensuring a smooth onboarding process for your chosen partners. 

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