BUSINESS PLANNING & TECHNOLOGY DEVELOPMENT 3532

Originally Published MX January/February 2004

BUSINESS PLANNING & TECHNOLOGY DEVELOPMENT

Challenge: A manufacturer's product has specifications that are outside the current range of its outsourcing company's equipment or capabilities. It is a new, low-volume product that is expected to ramp up an unknown amount over the next 24–36 months. What are the manufacturer's options, and how can an outsourcing company help?

This is an everyday scenario for today's full-service medical outsourcing providers, which exist specifically to be engaged in new product development opportunities with uncertain demand forecasts. The prospective manufacturer should not be dissuaded by the complexity or uncertainty of any given assignment.

It is typically the responsibility of the outsourcer to source and purchase capital equipment that can be used for multiple customers. Obtaining dedicated equipment is usually the responsibility of the customer. Whoever purchases the equipment, the outsource provider's engineering organization should take responsibility for putting it into service as part of the overall project plan.