Medical OEM Makes Savings For Stronger Growth

A major hospital equipment manufacturer asked us to help it respond to increased competition from overseas rivals.

We concluded the OEM not only needed low-cost manufacturing, but also resolution of ongoing quality issues, as well as help with stock management.

Customer Challenges

• Cut manufacturing costs
• Raise quality standards
• Free-up the warehouse for other work

CEL Group Solution

• Outsource manufacturing to CEL facilities in China
• Stock hold medical products in CEL’s UK warehouse
• Local stock deliveries using line-side Kanban system

Customer Results

• £430K manufacturing savings over 3 years
• £578K reduction in stock holding
• 27% increase in output

The medical equipment OEM achieved great results with CEL Group, benefiting from quality-assured cost savings, including a £430K manufacturing saving over three years underpinning market growth. Our solution freed up the stockholding area to create a new assembly cell. This allowed the business to increase output by 27%!