Developing a Sound Strategy for Selecting the Right CMODeveloping a Sound Strategy for Selecting the Right CMO

Representatives from Kimball Electronics gave their perspective on what OEMs need to do to find the right contract manufacturers during a session at MD&M Minneapolis.

Omar Ford

October 16, 2024

2 Min Read

The relationship between an OEM and a contract manufacturing organization has often been compared to dating with the intention of finding a suitable mate.

That’s because selecting a contract manufacturing partner is an important strategic decision that can impact a Medical Device Manufacturer for many years. Due to the long product lifecycle of regulated medical devices and FDA regulatory requirements, transferring to a different Contract Manufacturer later can be very time-consuming and costly.

On Wednesday, executives from Kimball Electronics doubled down on the relationship narrative during a session at MD&M Minneapolis titled “Contract Manufacturing Strategy: Cultural & Team Alignment.”

Lisa Butkovich Business Development Manager at Kimball Electronics and Patrick Prondzinski VP of New Business Development at Kimball Electronics were panelists at the session.

One of the most important steps in securing a strong relationship comes from the CMO. Prondzinski said CMOs must be upfront and see if the OEM is the right fit.

“We actually evaluate a relationship even before we start,” Prondzinski told MD+DI during the session. “We have a process that we go through … and it’s not just the xs and os, dollars and cents and things like that. There are some qualitative measures that we take measurement of.”

Related:Finding the Right Contract Manufacturer

Butkovich noted another way to make sure a relationship between a CMO can work is having the OEM understand the people that work at the organization.

Butkovich  said OEMs should ask these questions:

  • What is the length of employment by region?

  • Are the people happy and have a positive can-do attitude?

  • Are the production workers confident in their jobs?

  • What is the energy of the production operation?

  • What do the employee facilities look like?

  • Are people driven to always do the right thing?

  • Are the people driven to work on behalf of the customer?

  • How do the employees treat each other?

“From an OEM standpoint, we talked early on in the session about doing your research and knowing who’s out there,” Butkovich told MD+DI.  “I think that’s very important. You want to make sure the CMO is a [good] fit. And that’s not only from a product standpoint. You want to ask, does the CMO within our market, do they have the technology types that we’re looking at getting into? Do they have experience with these types of products?"

She added, “A lot of OEMs will come to us with expectations of wanting to engage -but maybe not understanding that they aren’t as developed yet. We tread very lightly and do extra research if it’s a startup right need to understand what that’s going to look like moving forward. I think the OEMs just need to understand the size of the company and does their product make sense to move forward with. OEMs will sometimes have unrealistic expectations of what they think they need or want and it might not align with what they really need.”

Related:Dating Drama in the Industry Next Door

About the Author

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

Sign up for the QMED & MD+DI Daily newsletter.

You May Also Like