Get A Quote
How Global Interconnect Changed the Game for a Global Sports Medical Device Manufacturer.
SYNOPSIS
After meeting with the company’s VP of Engineering, our game plan was clear: help this $5 billion, US-based medical OEM (Original Equipment Manufacturers) achieve major cost savings through improved designs, consolidated supply chains, and simplified manufacturing processes.
The Result… $7,000,000 in cost reductions!
Background
Before working with Global Interconnect, this OEM’s contract manufacturer (CM) managed multiple vendors for their custom cable assemblies—including connectors, cable, and printed circuit boards—used in Energy-Based and Diagnostic Medical Devices for sports medicine applications. The CM would then bring all components in-house, assemble them, and continue to move through their production line for the finished device. They did not have the niche expertise in custom connectors and cable assemblies to identify and implement an alternative solution that would drive significant business outcomes.
The OEM realized this process was complicated, costly, and inefficient – and asked Global Interconnect to help.
Solution
Global Interconnect’s engineering team developed a connector design that was a drop-in replacement to the field, so no capital investment or equipment changes were needed.
- Components reduced from six to two (the plug and back shell), which snapped together.
- Pin manufacturing costs were reduced by 300% by converting from a machined pin with gold plating to a stamped with gold flash for single use.
- A lower-cost contact insulator material was made possible by converting to stamped pins.
- Reduced need for additional materials by adding contrast to the shells using a laser engraving process instead of a two-part molding process.
Global Interconnect leveraged its expertise in custom cable design and extrusion, printed circuit boards, and complete cable assembly to help further consolidate supply chains, improve processes, and reduce costs.
Implementation
The successful implementation of this product was a complex undertaking, primarily due to the intricate network of relationships between Global Interconnect, the medical OEM, and the contract manufacturer, who held a dominant position in the supply chain for this product. The contract manufacturer presented numerous challenges throughout the implementation process, necessitating careful navigation to address them. Nonetheless, Global Interconnect was able to surmount these challenges. Thanks to their close rapport with the medical OEM and the compelling value proposition of the proposed solution, which delivered substantial cost savings.
Design Verification
Global Interconnect started developing this project by producing design specifications based on product research and the information gathered from the OEM. Once the OEM confirmed viability, we moved into low-volume prototyping. When prototypes were approved, we started the design verification builds, including three lots of 1,000 assemblies. These parts were sent to the OEM for design verification, testing, and qualification. Eventually, Global Interconnect ramped up to full-scale production, increasing its capacity from 1,000 to 20,000 pieces per week.
Outcomes
Global Interconnect reduced this OEM’s costs, consolidated the supply chain, and shortened lead time.
- Significant cost savings of approximately $7 million for 500,000 pieces.
- Consolidated suppliers from 3 to 1
- Reduced steps in the contract manufacturing process by supplying a
sub-assembly, therefore reducing the contract manufacturers’ cost.
The most important outcome? Essential sports medicine treatments and procedures are now getting to market faster and more cost-effectively.
Check out our blog titled
“Design Considers for Single-Use Medical Connectors”
To see how you can reduce your connector costs by millions..