| Careful consideration must be given when
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| | the current status of the local health of
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| choosing and working with an outsource
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| | the geography. In addition, they look at
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| manufacturing partner. Although each
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| | the local environment where prospective
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| situation is unique, there are common
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| | outsource supplier's facilities are
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| characteristics that make for a reliable
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| | located to confirm not only that it is in
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| outsource partner.
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| | good condition but also to be assured the
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| One company that carefully analyzed the
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| | location is safe.
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| determining factors of a successful
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| | Additionally, VIASYS chooses their
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| outsource partnership is VIASYS
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| | facilities based on how well their
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| Healthcare, a global leader in health
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| | manufacturing practices are, such as
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| care technology. VIASYS manufacturers,
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| | higher quality, faster lead time; whether
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| markets, and services medical devices,
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| | or not they comply with Good
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| instruments, and medical/surgical
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| | Manufacturing Practices (GMP) and the ISO
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| products for use in respiratory care,
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| | standards, company rating, profit
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| neurocare, medical systems, and
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| | capability, and last but not least, the
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| orthopedics. VIASYS is known for its
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| | employee-turnover rate. Also, VIASYS
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| solid history of innovation, superior
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| | supply chain group outsources for a
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| product performance, and a commitment to
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| | minimum of two years within each country
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| customer service, yet they achieved this
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| | for the longevity of each product. They
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| success while outsourcing more than 75 %
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| | feel that two years gives them a good
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| of the assembly of each of its product
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| | idea of the type of service and quality
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| lines. To complicate matters even more,
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| | they receive.
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| VIASYS currently outsources to Canada,
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| | Still risk exists for VIASYS and they
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| Mexico, the United Kingdom, Germany,
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| | must mitigate this risk with vigilant
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| Italy, China, and Thailand. Their two
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| | measurement and management involvement.
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| biggest outsourcing facilities are in
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| | There are risks involved in all the
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| China and Guadalajara, Mexico.
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| | industries, be it political, social, or
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| Managing this many outsource
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| | economical. VIASYS follows various
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| relationships is a huge task and required
| |
| | practices to mitigate their risks from
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| them to create a criterion matrix to
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| | unforeseeable factors. They carry safety
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| choose and measure their different
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| | stock for most of their products. For
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| outsource partners. After careful
| |
| | example, they store three-month inventory
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| consideration, they focused on four major
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| | instead of one-month supply. VIASYS also
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| criterions: Quality (the most important),
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| | carefully segments their market, which
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| Cost Savings, Work Relationships, and
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| | protects them by not assigning too much
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| Geography (the least important).
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| | control to a supplier. VIASYS maintains
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| Specifically, the criterion is defined as
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| | frequent communication with their
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| follows:
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| | suppliers, and employs various methods to
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| Quality: Within each outsourcing facility
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| | audit the facilities weekly to ensure
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| quality and control tests are done for
| |
| | appropriate internal control.
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| each product by the team of Operations
| |
| | Additionally, VIASYS has a very open mind
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| and a team of Supply and Quality
| |
| | and is well aware of their social
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| engineers. If the products do not pass
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| | responsibilities. They work with the
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| the control tests, the product is
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| | outsourcing facility to ensure that the
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| discharged. Product testing and
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| | workers are working under good working
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| inspection is very critical for VIASYS
| |
| | conditions and there is no child labor
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| since they provide health care products
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| | involved. VIASYS oversees the whole
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| that consumers rely on for life support.
| |
| | process; however, local customs vary from
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| Cost Savings: VIASYS studies the total
| |
| | region to region.
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| cost of ownership when making a decision
| |
| | This example of successful outsourcing is
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| whether to outsource a product or not.
| |
| | not necessarily unique but it is
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| For example, one high-volume consumable
| |
| | definitely a Best Practice. Outsourcing
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| cost $5 to produce in California and in
| |
| | is a trend that continuously evolves and
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| China it only costs $.50. In this case a
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| | is driven by the relentless push for low
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| 90% percent savings justifies the
| |
| | cost, quality, and improved
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| significant investment and risk of
| |
| | profitability. To this end choosing and
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| sourcing from a geographically remote
| |
| | managing your outsource partner is a
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| supplier.
| |
| | critical element of a successful
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| Work Relationship: VIASYS chooses to
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| | partnership.
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| outsource with reputable companies. In
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| | Dr. Joe Greco is Director for the Center
|
| addition, they maintain continuous
| |
| | for the Study of Emerging Markets (CSEM)
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| communication with the outsourcing
| |
| | located in Fullerton, California. As
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| facilities through weekly program
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| | part of the College of Business and
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| management and conference calls in
| |
| | Economics at California State University,
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| addition to one on one telephone
| |
| | Fullerton, CSEM was established to
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| conversations, all of which are
| |
| | promote the flow of global information
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| facilitated after hours to accommodate
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| | and technology between the academic and
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| the different time zones.
| |
| | business communities. In particular, CSEM
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| Geography: VIASYS looks at the current
| |
| | studies offshore outsourcing and it
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| economy of the country as well as the
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| | economic and cultural impact on US based
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| politics in order to give them an idea of
| |
| | emerging markets. You may contact Dr.
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