Article | May 8, 2017

OEMs: Discover The Hidden Costs And Risks In Your Complex Supplier Network

Source: Flexan
OEMs: Discover The Hidden Costs And Risks In Your Complex Supplier Network

Are your customers willing to pay for the cost of complexity in your supplier network? I think we know the answer to that question. With price competition and cost pressures squeezing the profitability of medical devices, supplier networks are the latest target for cost reductions — and rightfully so. Complex supplier networks add costs, without adding value. Medical device outsourcing is projected to continue to grow at an expected 11 percent compound annual growth rate, according to Technavio, a market research firm. Forward-thinking OEMs are simplifying their procurement model by reducing the number of suppliers and establishing strategic, instead of tactical, supplier relationships.