Case Study · Medical devices
Medical device maker cut landed costs 18% by going to source
A medical device company was buying raw materials and consumables through several layers of middlemen and overpaying for it. The firm brokered a direct, recurring supply relationship that cut landed cost and held it.
Landed-cost reduction
18%
Supply chain layers removed
3
Cycles to full handoff
2
Supply continuity maintained
100%
Situation
A medical device manufacturer was sourcing raw materials and single-use consumables through a chain of intermediaries. Each layer added margin. The company knew it was overpaying but did not have the relationships to reach the original suppliers directly, and switching carried real risk because supply continuity is not optional in medical manufacturing.
Approach
The firm mapped the supply chain back to source and identified suppliers who could meet the company's volume, quality, and reliability requirements. Rather than a one-time buy, the firm structured a recurring supply agreement with protected pricing and clear performance terms, then ran the first purchasing cycles alongside the client to confirm the suppliers held to the agreement.
Outcome
The direct relationship cut landed cost by roughly 18% against what the company had been paying through middlemen. More important than the one-time saving, the recurring structure held that pricing across renewals, and supply continuity was maintained without interruption through the transition.
Same service line