Medical Device and Diagnostic companies looking to drive growth this year are looking to outsource their final assembly and kitting.
The past few years have seen a rise in "value" customers—those who gravitate to products that are good enough and competitively priced. Unlike customers who seek premium products, value customers are willing to sacrifice a degree of innovation, quality, and service in return for a lower price according to Chris Llewellyn, Dmitry Podpolny, and Christian Zerbi in their article, "Capturing the new 'value' segment in medical devices".
While value customers are concerned about price, they also have standards for product quality, efficacy, safety, and service.
A major focus of TAGmedica is "final article assembly" for class I medical devices and diagnostic testing kits. According to McKinsey and Company, "medical-device companies offer customers four levels of products and services".
- Premium differentiated. These products and services are differentiated by efficacy, outcomes, or care delivery and are usually supported by high-touch selling and servicing models. Because they are innovative and provide proven benefits, they command high prices.
- Premium undifferentiated. Although incrementally innovative, these products and services are not clinically differentiated from competitors' offerings. Our research suggests that this category will suffer intense erosion in price and share. The many premium companies that profit from these products because of strong customer relationships or a brand image attractive to consumers will be at greatest risk from the trends described in this article
- Value. The features and services this group provides are tailored to meet customer expectations for good-enough products and usually sell at much lower prices than premium products. The sales model for these offerings may involve online support or light-touch representatives who call on clients.
- Basic. These products do their job but offer minimal service. They compete purely on price and are often used in settings where providers seek to supply a basic service rather than optimize outcomes. In McKinsey's estimation, this segment is growing faster than the premium segment in many product categories. However, we believe it offers fewer opportunities because it is more competitive and has lower profit margins
TAGmedica (a division of The Allied Group) assists with the development, production and distribution of both diagnostic and carrier screening kits for biologics companies to help with their commercialization efforts. Our highly experienced team supports organizations that create and market specimen collection kits for services that include:
Parental, Prenatal and Postnatal diagnosis of heredity diseases
• Both RNA & DNA tests for cancer screening• Genetic Tests for diseases such as: Statin Myopathy, Alzheimer's, Huntington's and Parkinson's
• Genome Testing
• Disease Testing
• Home Diagnostic Testing
• Fecal Occult Testing
• Sputum Testing
In addition, we support medical device companies with their connected supply chain, final article assembly and product delivery to end users from our fulfillment center. We offer complete turnkey programs that are built on in-house services that include: Procurement, Graphic Design, Print Production, Warehousing, Kitting, Assembly & Distribution, Logistics, Marketing, IT and Mailing Services.
We have perfected the art of final article assembly and kitting! Designing, procuring, picking & packing and assembling—by incorporating state of the art technology with a team of dedicated experts, we know how to get any product to market faster and more accurately than anyone else in the industry. Our assembly team is 99% accurate and has been able to reduce turn times along with reducing assembly operations. Whether products are a simple kit or a complex mix of options, we can assemble, pick, pack and ship just about anything.
Good documentation follows detailed discovery as the first steps to successful kitting or final assembly. We ask all the right questions to fill in the blanks and create a comprehensive kitting SOP. In addition, we will help to uncover best practice for every kit we build if you don't know how it should all go together or are looking to improve, enhance, or cut costs. Visuals will include Visio drawings, photos, and physical samples used to confirm kit composition and appearance, in training kitting personnel, and to ensure quality from start to finish of a kit run.
Technology drives our kitting operation from setting up the SKU's, bill-of-materials, and generating kit work orders, to directing the picking of components to control kit materials and inventory, to automated replenishment when kitted stock reaches its assigned low level.
Our process is clearly defined for every kit from handling of items to be received, kitted and/or assembled, packaged, and shipped. We provide work cell, assembly line, and combination kitting production solutions. Process means enforcing efficiency and accuracy by aiding, driving, caging, or removing the human element while integration equipment and automation when prudent.
Finally, we engineer solutions for best practice using simple hand kitting and assembly techniques, weigh scale and lot control piece counting, building of jigs and fixtures to deliver and maintain precise positioning of parts. Physical sampling, 'nth' unit count/quality inspection, and visual aids are keys to TAGmedica's kitting and assembly quality ensuring each item is in its exact place and in the correct quantity per kit.
Our kitting process seamlessly integrates with TAGmedica's client fulfillment programs running on an ongoing basis with discrete order picking, packing, and shipping. We also kit and assemble simple to complex and small to large one-off projects that can ship one-to-many, many-to-one, or any combination in-between. While TAGmedica's technology and facility with client data plays a huge role in delivering exceptional outcomes.