“Despite the current climate’s challenges, many CMOs are investing in capabilities and expanding operations to support their OEM customers who want supply chain consolidation. OEMs increasingly want to do business with contract manufacturers who have capacity to move quickly to scale production and streamline services that will simplify the supply chain while meeting customer needs in an evolving market.”
– Steve Santoro, Executive Vice President, MICRO
Unprecedented supply chain disruptions have dramatically impacted medical device development since COVID-19. The medical device industry, which uses a complex network of suppliers, distributors and manufacturers in its supply chain operations that produce parts, components and products for surgeons and patients, has been especially challenged.
With fewer elective procedures being performed, demand for single-use surgical instruments and other devices used primarily for the elective market decreased. However, as elective surgeries begin to return to near normal levels, a sudden increase in demand for product has left manufacturers struggling to meet the demand as the market rebounds.
Contract manufacturing organizations (CMOs) need to stay ahead of the market and manage supply backlogs and material shortages for their original equipment manufacturer (OEM) customers.
Three key considerations can help CMOs effectively address supply chain disruptions and challenges: communicate frequently; plan ahead; and design for supply chain.
In April 2021 MICRO announced plans to expand our full-service medical contract manufacturing operations in Costa Rica. We expect to open the new manufacturing facility later this year with operations beginning in early 2022. Our 32,000 square foot facility will have a clean room assembly facility within the manufacturing center, allowing us to better respond to our customers’ needs with cost-effective, full-service contract solutions for complex medical assemblies.
Full-service suppliers who can support product and process development, component manufacturing and assembly are likely to have a competitive edge, especially in light of supply chain vulnerabilities. Contract manufacturers who can expand their global footprint will also be in a position to better serve customers and remain cost competitive as a full-service preferred contract partner.