Medical devicesStrategic sourcing & procurement

Nitinol sourcing: partner selected at about half the incumbent's manufacturing cost

As it approached commercialisation, a Nitinol device company had a single manufacturing price from its incumbent, and nobody could take that price apart.

Situation

The company needed a single partner for everything from engineering transfer to global distribution.

Opyflow's role

Opyflow mapped specialist manufacturers, ran one common tender and broke every quote down into its cost components.

Documented outcomeRealised result

Manufacturing partner selected · About 50% below the incumbent's cost for the same scope · Transfer, validation and supply terms defined

The challenge

There was no competing offer to compare the incumbent's price with. The commitment would be long term and the product had not yet shipped, so accepting the quote as it stood meant depending on one manufacturer at a price the company could not test.

Opyflow's work

The search started from what the product needs: Nitinol laser cutting, braiding, laser welding, thermal treatment, cleanroom manufacturing and a certified medical-device quality system. Opyflow mapped specialist manufacturers against those requirements, shortlisted the qualified candidates and wrote one request for proposal. It covered engineering transfer, process redevelopment, tooling, equipment and process qualification, commercial production, purchasing, quality assurance and global distribution. Opyflow's review of each proposal checked cleanroom compliance, sterilisation scope, validation evidence, surge capacity, landed-cost terms and price escalation. Finally every quote was split into factory cost, supply-chain charge and commercial additions, which made the economics behind each total visible.

Common technical andcommercial scopeTechnical assessmentQuotation comparisonPartner selected at~50% lower cost
Illustrative explanation of the selection; the 50% compares the selected partner's offer with the incumbent's, for the same scope.

What changed

The company chose its manufacturing partner from credible alternatives. Capability gaps came to light during evaluation, before the award. Because factory cost was shown separately from commercial additions, leadership could see what made up the price it accepted. Transfer, qualification and commercial production will run on the terms set in the tender.

What made the proposals comparable?

Opyflow wrote the scope once, and every bidder priced the same transfer, qualification, production, quality and distribution work against it, on the same technical, quality and commercial basis. That let the totals be set side by side, and because the tender priced the whole scope, its result was a manufacturing partner as well as a price.

See the capability: Strategic sourcing and tendering →

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About Opyflow

Opyflow is an operations and supply chain consultancy, founded in 2019, working with manufacturers in regulated and high-complexity industries. Offices in Kiryat Ono, Israel and Melbourne, Australia; projects across Israel, Europe, the US and India. The senior person you talk to is the one who does the work.

We are done when it's in the P&L.

A single incumbent quote for a product that has not shipped yet is hard to judge on its own. That quote is a reasonable place to start.