Originally Published MX November/December 2004
INFORMATION TECHNOLOGIES
Pitfalls in Outsourcing|
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Medtech companies have a lot to consider when deciding how to manufacture products that embody high-tech components. In many cases, the need to maintain product quality while also gaining cost-efficiencies will recommend an outsourcing strategy. According to Mark Zetter, president of the Venture Outsource Group (San Jose), taking care to avoid the following common pitfalls will help medtech executives ensure a trouble-free working relationship when dealing with an EMS provider.
- Ineffective evaluation of prospective outsource providers.
- Choosing an outsource provider casually rather than strategically.
- Beginning a partnership too late in the product life cycle.
- Incomplete, inaccurate, or late request for quotation.
- Lack of planning prior to contract negotiations.
- Failure of all decision makers to agree on the company's plan.
- Inadequate identification of contract requirements.
- Inadequate measurement of the provider's performance.
- Micromanagement of the outsource provider.
- Failure to actively manage the company's relationship with the outsource provider.
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