Most Medical Device Manufacturers (MDMs) have a manufacturing facility that is not utilizing its resources 168 hours a week. In an environment where MDMs are under constant pressure to reduce costs, there is an alternative to maintaining under-utilized operations or establishing larger operations and footprints. Medical device manufacturers (MDMs) can maximize their current assets.
This paper will examine a solution to dramatically reduce total operational costs by changing the ownership of cost of goods sold. It includes a case history of a top-5 orthopedic medical device company that successfully executed this strategy.