How Medical Manufacturers Can Reduce Production Costs

Medical device, equipment and supplies manufacturing has higher production costs than other industries because of strict regulatory standards and the need for extensive product testing. These costs either lead to higher product prices for consumers or eat into profit margins. To gain a competitive advantage in a difficult market sector, medical manufacturers can reduce their production costs with an ERP to offer more affordable products and increase profits.

Real-Time Tracking

One of the greatest advantages of an ERP for medical manufacturers is real-time history tracking. Real-time tracking not only supports meeting compliance standards, but it also allows manufacturers to see weak points in their production line. Tracking allows you to see who and when each step of the manufacturing process is completed in real-time, so everyone is held accountable. You can also ensure that standard business processes are being followed, which helps with compliance and reducing production errors. To set up or upgrade an ERP, talk to an ERP expert like Datix. We take the stress out of ERP implementation by supporting our clients from start to finish. No matter how challenging your issues seem, Datix can help you achieve your goals.

Decreasing Nonconformance

ERP tracking features extend beyond simply offering real-time data. With an ERP, it is easy to track nonconformance issues. You can see data for resolving these issues from the identification to disposal stage, allowing your team to understand patterns that may be causing noncompliance and reduce its overall frequency. Likewise, you can track Supplier Corrective Action Requests (SCARs) to ensure that your suppliers are staying below certain failure rates.

Job Coordination and Inventory Control

Many jobs require the same individual parts, which may be produced during your manufacturing process or purchased from your suppliers. Generally, the more of the same individual part you produce or buy at the same time, the lower it is for the price per part. An ERP allows for sophisticated forecasting as well as job, work, and inventory management to maximize your part ordering and production. In the same way, you can also coordinate work processes to support multiple jobs at the same time. Job coordination has the potential to lead to significant increases in efficiency and speed while reducing overhead costs. However, it can be complicated to manage without overproducing items and going past your storage limitations. To avoid logistical issues, look to an ERP consultant like Datix for support. Our business-first approach means that we take the time to learn how your business operates to offer specific, tailored support to maximizing your ERP. With Datix, we help you to get the most out of your solution so that you can focus on doing what you do best: providing quality products and services to your customers.

Wrap Up

High production costs are a difficult challenge for medical manufacturers, but the right ERP solution can help. With an ERP consultant like Datix supporting you, you can increase your competitive advantage.

Read more in The Top 3 ERP Benefits for Medical Manufacturers

About Datix

When medical manufacturers are implementing a new ERP or software solution, Datix is the partner of choice. Datix has 25 years of ERP consultation experience and has worked with all the major software applications. At Datix, we will work with you every step of the way so that you see an increase in productivity, customer satisfaction, and profits.

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