Transferring manufacturing work is like a trust fall. It’s one of the biggest tests in the relationship between an original equipment manufacturer (OEM) and a manufacturing solutions provider. As they close their eyes and lean back, OEMs place their trust in their new or established partners. Will the manufacturing solutions provider or contract manufacturer be there to catch them?
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As the healthcare industry’s largest manufacturing solutions provider, Jabil has extensive experience transferring manufacturing operations from customers, and even competitors, to our facilities. In fact, we leverage a multi-disciplinary, collaborative approach to helping customers improve product safety, performance, sustainability and accessibility.
For instance, in our work supporting Candela, a leader in medical aesthetic devices, one of the first steps we took was to consolidate Candela’s manufacturing and supply chain operations.
Jabil's Director of Business Development, John Vennari, worked hand-in-hand with Candela to understand their products and prepare them for transfer. “Candela had multiple programs moving from multiple locations. We had to take a very careful view of the planning, supply chain and testing issues to ensure a smooth transfer,” he said.
Faced with extremely aggressive timelines, Jabil quickly mobilized highly qualified transfer teams to move Candela’s current manufacturing and complex capital equipment to a Jabil Healthcare facility in Tijuana, Mexico. Download the Candela Case Study.
“Through the transfer process, Jabil was able to catalyze its expertise,” Candela’s Chief Operating Officer Todd Van Horn said. “They guided innovation in terms of process improvements, manufacturing best practices and quality.”
For Bob, with 15 years at Jabil and 20 years in the military and defense sector, he has repeatedly has seen the benefits of careful planning for a manufacturing transfer. Conversely, he's aware of the trouble caused by delays, when preparation is not as careful as it needs to be.
As they say, the devil is in the details with a manufacturing transfer—especially with medical products where the bar is set so high due to strict regulatory requirements. With the healthcare sector going through such a dynamic phase, it’s a good time to walk through four considerations for those planning a manufacturing transfer to ensure a safe pair of hands catches your “fall:” planning, communications, materials and testing.
Manufacturing Transfer Checklist: Four Considerations to Get it Right
1. Planning is Vital to a Manufacturing Transfer
Developing a robust, well-defined project plan document is listed first since it’s arguably the most important step in the manufacturing transfer. If you can create a comprehensive project plan and schedule with clear ownership, you are more than halfway to a successful transfer. The plan should be developed by experienced Project Managers (PMs) – on both the customer and manufacturer side – with clear roles and accountability defined.
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Your project management team is vital to a successful transfer of your manufacturing process. The PMs are the conductors of this orchestra and must be empowered to ensure that everything is in order before they lift the baton for the first note. Everyone on the team should know their responsibilities. Each side of the partnership relies on the other to understand all the elements required for overall program success.
The following manufacturing transfer checklist details just some of the key considerations for the planning stage.
3. Track All Materials During a Manufacturing Transfer
Roadmaps are an essential navigational tool for ensuring manufacturing transfer success by recording where materials are coming from and where they are going. Even as manufacturing old-timers muse “we just make stuff,” products are more sophisticated than ever. It takes “stuff” to make “stuff,” and being able to locate, track and account for the flow of it all is critical to keeping production on time and on budget.
Every part and piece that goes into a product must be accounted for prior to kick off. Take a detailed inventory of all required materials, including their costs, their lifecycle stages and their supply chains. And be sure to also include your suppliers’ inventories and capabilities, as well.
As technology works its way into more and more products, the consideration of end-of-life (EOL) becomes increasingly critical. Frequent iterations and upgrades in technology are the norm, which impacts your supply chain downstream. The discovery and hassle of an EOL part is happening more frequently as product lifecycles speed up across the board.
Here are four vital areas of consideration for materials transfer – inventory, supplier pricing, supplier lifecycle status and viability. The following checklist outlines important manufacturing transfer considerations relating to materials.
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Industrial operations face mounting pressures: labor shortages, rising costs, throughput demands, and supply chain complexity are all risks that can lead to missed deliveries, lost customers, and declining market share. Our teams empower businesses with tailored, integrated automation solutions that streamline operations, improve quality and accuracy, and control costs.
We help customers achieve seamless workflows and smarter decision-making by leveraging technologies like RFID, IoT, machine vision, fixed industrial scanning, industrial automation, and more—all backed by trusted partnerships with industry-leading OEMs.
But complex challenges aren’t solved by technology alone. They demand a solutions partner that understands your industry, your operations, and your edge workers’ needs—and delivers proven solutions that drive measurable ROI across industries:
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