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Case Studies Chainlogix & Becton Dickinson Case Study

At A Glance

Summary

  • Complex subassembly for an industrial-grade display solution
  • 1,000 -1,400 units delivered annually

Solution

  • Global sourcing for components
  • Reduce complexity by providing just one point of contact
  • Manage MOQ, lead times, quality control, and inventory

Results

  • Saved customer 18% in total acquisition costs by sourcing globally without additional overhead costs
  • No cost increase in the last 7 years
  • Advantageous financial terms
  • JIT delivery and assurance of supply

The Company:

Becton Dickinson

Becton Dickinson (BD) is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics, and care delivery.

 

The Challenge:

Overcoming the Odds Generating Cost Savings and Operational Improvements.

BD has collaborated with Chainlogix since 2013, when Chainlogix provided vital instrument display solutions for BD’s hematological devices. BD also required superior technology and supply chain management for their buying cables, driver boards, touch screens, displays, and housing.

 

BD was under pressure to reduce costs, while also facing the difficulty of building strong and reliable supplier relationships for their cables, driver board, touch screen, display, and housing sub-assembly components (eight items in sub-assembly, 1200-1400 sub-assembly units are delivered annually). Ultimately, BD required a redesign to correct quality issues in parts and assembly.

The Solution:

Chainlogix Helps Becton Dickinson Reduce Costs Through Resource Optimization.

BD outsourced the sub-assembly process to Chainlogix, reducing its vendor base and creating one point of contact. By outsourcing the supplier relationship management and the sub-assembly process to Chainlogix, BD was able to focus on their core competencies, and meet client demands. Chainlogix was able to successfully manage all the complexities of medical device manufacturing, including MOQ, lead times, and quality control. To better manage inventory stock of their sub-assembly and shipping, Chainlogix provided BD with safety stocks, better terms, reduced inventory, and improved cash flow. As a result, total acquisition costs were reduced by 18%.

 

Chainlogix, through its patners, was also responsible for redesigning and modernizing key elements of BD’s hematological instruments by transitioning their resistive touch screen to a capacitive touchscreen. By forecasting supplier shortages of the resistive screen, Chainlogix was able to successfully avoid a catastrophic supply chain shortage. Over the next year, Chainlogix will continue to supply BD with product development assistance and support in the development of features that will make their hematological instruments more user friendly. The improvements include changes in instrument calibration and features for improving diagnostic accuracy.

 

As subject matter experts on display, Chainlogix has identified and vetted suppliers and manufacturer(s) to avoid issues with quality or material sourcing. In addition to this, Chainlogix continues to provide BD with product development support by overseeing the changes in the display field and providing their team with updated global manufacturing trends for display systems. This knowledge allows our team and clients to take advantage of lower price points and same (if not better) quality. Chainlogix also manages its supply chain with favorable cash-flow terms. Currently, components are sourced from Asia and the US, and sub-assembly is completed in the US, buying directly from manufacturers or distributors.

 

Chainlogix provides 30 years of strategic sourcing experience. Over the last eight years, Chainlogix has been able to plan for component obsolescence, forecast component year-end-of-life, and has helped many clients tackle the challenges of end-of-life components. Chainlogix can recommend suitable replacements, while keeping the client informed of all decisions and costs.

The Results:

Simplifying the Landscape to Achieve Cost Reduction and Supply Chain Reliability.

By changing the sourcing of components, Chainlogix passed on savings to BD. By implementing the appropriate inventory management strategy Chainlogix was able to improve product lead time by about 16 weeks. Every three to five years, end-of-life components are reviewed and solutioned. BD has a high precision sub-assembly with 100% manual assembly. Chainlogix tests every display, touch screen, and metal housing before starting sub-assembly to ensure zero defect. Once completed, a thorough validation and calibration is conducted. The final product is then packaged and shipped in containers designed and constructed to travel well.

 

Chainlogix helped BD achieve its goal of cost reduction by identifying alternative supplier sources and by providing redesign expertise (through its partners). This drastically improved product quality while simultaneously reducing cost. Chainlogix managed the supply chain on behalf of BD, acting as a single point of contact for BD’s supply chain management.

About Chainlogix:

Chainlogix Solves Supply Chain Challenges With Impactful Solutions.

Since 1998, we have provided supply chain management solutions that help manufacturers design and build cost-effective, high quality products and improve their bottom-lines. We strive to deeply understand our customers’ businesses and tailor supply chain solutions to their unique needs. Our team of solution-driven experts has decades of experience in global logistics and a passion for results. With broad capabilities, global supply chain connections, and a dedication to customer care, we are a trusted partner for demanding customers.

 

Our team of experts can manage:

  • Planning and procurement with preferential access to a broad supplier base and AVL optimization
  • Cost-optimized inventory warehousing and fulfillment
  • End-to-end supply chain tracking and communication
  • Product innovation through design and re-design by leveraging our partners

Serving the industry for 23 years, we have established nearly 200 supplier partner contracts. Headquartered in Charlottesville, Virginia, we operate worldwide with global strategic sourcing offices based in the USA and Zhuhai, China.

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