By Sean Fenske, Editor-in-Chief

As medical device manufacturers reevaluate their supply chains and service partners, they are also seeking methods with which to measure the compatibility of new organizations with which to do business. This can be challenging, however, when the two groups have never worked together. As such, it’s important to learn best practices for identifying and selecting the right partner.

There are a number of ways to effectively evaluate such a potential partner. Their capabilities, experience, costs, location, size, scalability, and more factors all contribute to making up the right mix for the ideal organization with which to work. But how does one successfully assess what characteristics are most important and how do they reach an answer? That’s the challenge.

Fortunately, to help pave the pathway to success in identifying the right manufacturing partner for a medical device organization, Jeff Miller, vice president of sales and marketing at MRPC, addressed a series of questions on the topic. In the following Q&A, he offers insights on making the selection, identifying the most important factors, and determining the best attributes.

Sean Fenske: What’s driving some medical device manufacturers to seek new partners?

Jeff Miller: Ultimately, OEMs are looking for a total solutions provider with strong experience. They want to partner with a company that can offer capabilities to drive complexity out of their supply chain while reducing costs and time to market. Our customers are searching for a vertically integrated manufacturer with a strong engineering group, allowing them to work with one supplier as opposed to multiple organizations. This provides them with an unmatched response, total control over their program, and a partner that serves as an extension of their company. Finally, I think OEMs are seeking a supplier that is willing and able to scale, grow, and invest with them, proving they have a long-term partner.

Fenske: Is there a universal template for the perfect supplier or is it a matter of what’s needed by the company seeking the partner?

Miller: There is definitely an element of “what’s needed by the company.” However, in the age we’re living in right now, OEMs are facing pressures to condense and downsize their supply base. Having a vertically integrated company with a variety of core capabilities, such as engineering services, injection molding, component manufacturing, and medical device assembly, allows them to accomplish this while strengthening their supply chain.

Fenske: What traits consistently make for the best medtech partner? What attributes must the partner demonstrate to even be considered?

Miller: First and foremost, there must be alignment with capabilities and needs. Your core competencies and package of value must be of significance to a medtech partner. Vertical integration as it relates to your total offering has been a common theme in this Q&A, and it’s very important to your partner as a total solutions provider. Finally, your company culture and how you execute your business must align with theirs as well. For example, are they looking for a long-term partner who understands their vision and wants to grow with them? Do they have a need for strong engineering services to support product development? Are they looking for an agile and nimble company that can adapt as designs, timelines, and cost targets change? These are all questions that need to be asked in order to evaluate compatibility and strategic fit.

Fenske: How do you recommend conducting an evaluation of a potential partner? Is there a way to evaluate them without having worked with them previously?

Miller: Absolutely. We must be just as diligent, rigorous, and methodical as our OEM partners—not only for ourselves but for our prospective partners. It offers neither side any benefit to engage in a manufacturing partnership without vetting the relationship, culture, vision, products, and fit appropriately.

Evaluating a partnership without having worked with a partner previously is tough because there are so many intangibles, many of which I already mentioned. However, ensuring critical components of a strong relationship are present is a good starting point. Are our core values and goals aligned? Do we have something of value to offer? How do our capabilities align with their needs? Do you meet a need?

Fenske: What attribute(s) is critical in a partner, but often overlooked or not considered?

Miller: The feedback I typically receive is supply chain development and management. What you cannot do within your four walls, you must be able to manage and, in some instances, develop for your partner. This is incredibly important when offering a total solution. In addition, a strong engineering core that can evaluate products and manufacturing processes, eliminate risks, and avoid pitfalls while delivering market-leading products and reducing time to market is invaluable. Also, the ability to support future growth is an important attribute for our partners to consider that is often overlooked until it is needed. Finally, demonstrating your ability to scale with your customers to support them as their business grows is very important.

Fenske: Do you have any additional comments you’d like to share based on any of the topics we discussed or something you’d like to tell medical device manufacturers?

Miller: Identifying a manufacturing partner is about ensuring success. It is important that we, as the contract manufacturing partner, certify our medical device partners are set up to achieve their goals and realize their vision. This begins with taking the necessary steps upfront to ensure success. Assessing risks, evaluating designs for manufacturability, developing a robust supply chain, and proactively evaluating appropriate infrastructure, equipment, and various other resources are all critical to this effort. The contract manufacturing partner must strive to reduce costs, ease the manufacturing process, improve quality, and shorten time to market.

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