Entrada Whitepaper on Sourcing Medical Devices from Mexico

March 14, 2011 - PRLog -- Entrada Group, a leading manufacturing shelter operator, has published a whitepaper that reveals why medical supplies and devices destined for North American markets should be sourced from Mexico versus other low-cost global regions. The whitepaper has been produced in collaboration with independent consultant John Cecilia, a former director of global manufacturing for Kimberly Clark Corporation, Healthcare Sector.

Multiple factors have led medical device companies to conclude that they need to go to a low cost manufacturing environment. Healthcare costs are rising, and the pressure being put on medical device manufacturers, whether for supplies, devices or both, is intense. So how does a healthcare company become more competitive? Secondly, as more global markets open up and competitors reshape their footprint, many companies are seeking viable ways to maintain cost competitiveness in different regions of the world.

Entrada Group’s whitepaper explores sourcing healthcare products from Mexico with an assumption that those products are destined for North America. It finds that if a company is being tasked with evaluating lower cost options, then Mexico should absolutely make the ‘short list’ of countries for business consideration.

The paper begins by evaluating total delivered costs.

“This is where a manufacturer needs to start. What is going to be my total cost structure to make the product and deliver to my target market?” advises Cecelia. “There is sometimes a tendency to look at a discrete aspect like labor costs. And while that is a key component, it’s not the ‘be all, end all’ of your costs.”

A medical products manufacturer must also consider sustainability. Taking a regulated product and transporting it anywhere in the world requires fulfilling many critical regulatory requirements - such as FDA compliance for the US market.

Another aspect is risk analysis: What are the factors that could influence the operation, be they currency related, government and social related, labor availability, etc?

An additional point is the reliability of the supply chain. It’s not a revelation that the further one ventures from the target market, the greater the potential for interruptions. Crossing multiple borders with a product, for example, introduces complexity into the supply chain. And typically complexity adds costs.

“A final critical factor is the business environment,” states Doug Donahue, Principal and V.P. of Business Development, Entrada Group. “So within our whitepaper, we felt it important to assess the business climate in Mexico vis-à-vis other countries. With Mexico’s introduction of the Maquiladora business model in the 1960s, and the enactment of significant national trade agreements such as the North American Free Trade Agreement (NAFTA), Mexico continues to be a prime supplier of products for sale to the U.S. and other global consumers.”

For a copy of the whitepaper, please contact Doug Donahue at ddonahue@entradagroup.com .
To listen to a podcast interview with Doug Donahue and John Cecilia on the topic of this whitepaper visit http://entradagroup.com/podcastDetail.aspx?code=johncecilia .

For Editors:

Headquartered in Austin, Texas, Entrada Group is a leading manufacturing shelter operator. It partners with international manufacturers seeking to enhance their competitiveness in the global market by swiftly and easily establishing a low-cost production facility in Mexico and the Americas to serve North American markets. On behalf of the manufacturer, Entrada Group oversees the legal and practical requirements of setting up operations in the host country and provides ongoing production support services, which leaves the client free to focus on its key competency: manufacturing.

Contact:

In the US:

Doug Donahue
Entrada Group
Phone: (210) 828-8300
Email: ddonahue@entradagroup.com  
Web site: www.entradagroup.com

In Europe:

Taunya Renson-Martin
Mach Media
Phone: +32 9 243 6011
Email: taunya.renson@machmedia.be