Consolidated Global Strategic Sourcing Leads to Major Savings | Healthcare
8/5/2020 RRD
Emerging paradigm shifts in medical device company requires global network and resources
CHALLENGE
A major medical device manufacturer was shifting from a single plant sourcing model to consolidated global strategic sourcing. The goal was to reduce their supply base and direct materials print and packaging spend across multiple business units.
SOLUTION
RRD collaborated with this client to assess, develop, and validate a solution to maximize the cost savings potential across their print and packaging spend. New implementations included:
- Centralized direct print and packaging materials through RRD
- Supplier consolidation and a transition plan for migration to RRD production sites
- Optimized production for cost and performance
- Vendor managed inventory (VMI) solution
- Material and specification optimization
- Continuous improvement and strategic cost reduction
RESULTS
RRD’s hybrid management model provided the client:
- A total cost savings of 30% from current spend
- One supplier point of contact rather than hundreds
- A soft transition with minimal supply chain disruption
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