The orthopedic medical device industry is rapidly evolving. The global increase in people over 65 has led to more musculoskeletal disorders, boosting demand for orthopedic solutions. Sports injuries among younger populations also drive this demand. Innovations like 3D printing, custom devices, and robotic surgical tools are enhancing orthopedic procedures by making surgeries more accurate and minimally invasive, thus reducing recovery times and complications.
Original equipment manufacturers (OEMs) are addressing this increase in demand for new innovative products by increasing their reliance on contract development and manufacturing organizations (CDMOs). OEMs have learned that CDMOs provide flexibility and scalability without sacrificing quality.
However, these relationships don’t manage themselves.
To maximize the value and gain a competitive advantage, OEMs need to establish partnership-level relationships with CDMOs. They not only need to evaluate their core technical capabilities, but also to understand how they communicate, collaborate, and manage their projects. OEMs must work seamlessly shoulder to shoulder with their CDMOs as a single team.
While many OEMs and CDMOs have long-standing relationships, the question remains: Has the working model continued to evolve to meet today’s more complex and demanding environment?
Here are the traditional CDMO success measures:
- Stringent quality control and compliance
- Managing complex manufacturing processes
- Supply chain management
- Cost management
- Achieving scalability and flexibility
- Technological integration
So, what is needed to elevate the relationship to a partnership?
1. Going beyond transactions
A successful strategic partnership begins with a shared vision and common goals. Both parties must align on the long-term objectives and the desired outcomes of the partnership. There must be a mutual dependency where both parties share in the risk and reward.
2. Equal standing
Open and transparent communication is the cornerstone of any successful partnership. Each party must feel empowered to share feedback and suggestions without hesitation.
3. Commitment to excellence
Both parties must have confidence that the other is providing their best resources, ideas, etc. and is committed to producing the best possible outcome. This trust is built over time through consistent performance, transparency, and honoring commitments.
The rapid pace of growth and innovation in the orthopedic sector should have OEMs rethinking their CDMO relationships and striving to elevate them to strategic partnerships.
With expertise in medtech, alliance management, strategic execution, and product development and lifecycle management, IPM can help you get the most value out of your partnerships. Let’s talk.
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