Med-tech - Stryker case

One of the world's leading medical technology companies, offering a diverse array of innovative products and services in orthopedics, medical, surgical and neuro technology. The company is active in over 100 countries around the world.

The challenge

The customer has the ambition to become the leanest med-tech company in the world. MRO and cutting tools were in their peripheral sight, not receiving the constant attention and continuous improvement it requires. Spend volumes were not leveraged across sites, technical support varied and processes were very manual and labor intensive, leading to a suboptimal MRO control.

The roadmap

MAG45 performed a thorough Full Scan of the European production sites in the French, German and Chinese speaking clusters (6 manufacturing sites). We jointly established a clear baseline of the current situation and the key improvement areas, quantifying the improvement potential and proposing a tailored solutions model to reduce the Total Cost of Ownership.

The solutions

After the go decision, the proposed solutions were implemented by a dedicated project team to ensure a seamless transition towards the optimized situation. The following solutions have been installed:

  • MAG45 introduced a sourcing strategy across all manufacturing sites to leverage volumes and reduce the item prices
  • Replenishment of materials in Vending Machine / Tooling robot solutions on the production floor
  • Inventory pooling between sites reduced obsolete inventory and improved the working capital
  • Supplier consolidation, reducing hundreds of suppliers and reduce the transactional workload
  • Consumable items are managed in an RFID kanban solution near the point of use to prevent walking times
  • Technical support model installed with the major suppliers to ensure access to support when needed
  • On-site supplier days with innovative and technically relevant companies to share the latest developments
  • Personal on-site support and quotation desk by a dedicated customer service engineer for the end-users

Benefits

The company has benefited from item cost reductions thanks to standardisation and consolidation of suppliers across production sites. Thanks to the inventory sharing solutions, the inventory levels have decreased significantly and our process solutions reduced walking time for engineers . Additionally, our technical support model helps the organisation to stay on top of the latest technological developments.

Customer experience

"Our partnership with MAG45 has been successful thanks to their high level technical support and open communication with our team of engineers. This way we have been able to reduce the complexity and costs of our supply chain management while keeping pace with technological developments."

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Get in touch with our Integrated Supply specialists to learn more about how MAG45 can help you reduce your Total Cost of Ownership.
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