Outsource Manufacturing Feasibility Study - Medical Device Distributor

Challenge
The client was experiencing quality and fulfillment issues with a supplier. They wanted to find a partner to develop and manufacture a handful of products for them. Rasdal Associates was engaged to conduct a feasibility study of whether it made sense to manufacture these products rather than purchase them.

Action
Rasdal Associates performed the study with the following activities:

• Identified 20-30 potential outsource partners through personal contacts, networking and Internet research
• Developed partner package including technical requirements, specifications and projected volumes
• Determined partner selection criteria
• Selected three potential partners to execute non-disclosure agreements and submit proposals
• Financial analysis to support make/buy decision

Results
Rasdal Associates found the ideal partner and a supply agreement was signed. The new partnership will result in product cost savings of $80,000 the first year growing to $700,000 at the end of three years. It will also address supply gaps and quality issues.