Stryker Corporation: in-Sourcing Pcbs

In: Other Topics

Submitted By raameen
Words 483
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TIMOTHY A. LUEHRMAN

Stryker Corporation: In-sourci
In late May 2003 executives in Stryker Corporation component of many of Stryker Instrument,s medica from a small number of contract manufacturers. more than 910 million in each of the next two
Instruments business grew. In recent years,

been unsatisfactory with respect to quali$ repeatedly found itself looking for new su bankruptcy, a financially weak suppl appearance of several current suppli
Stryker Instruments'

establish a
Stryker was
Stryker

ucts. Currently, Stryker purchased

ts had resolved to address the issue.

nt basic

sourcing policy

for

PCBs,

but with important

tect against future disruptions by acquiring safety stocks of rcing of all electronic assemblies. Option #2 would boost

supplier of PCBs and ility for supplying them. The partnership and incriased business from the supplier, further boosting its reliability. Option #3 was for acture its own PCBs in its own facility near company headquarters in

such a facility was up and running, as well.

PCBs

PCBs

ments business anticipated spending an amount that would increase as the of some contract manufacfurers had
/or responsiveness and Stryker had lly, contract manufacturers tended to were not uncommon/ and even without reliable. Given recent events and the shaky

rs studied three options for improving the situation.

Option #1 was to ma modifications. Specificall key materials and institu reliabilify by establishing a manufacturers. business were actively
(PCBs), a key electronic

it might be expanded to supply

ves, Option #3 promised the highest degree of control over quality and t perspective, it was most the atkactive. But it also required the largest capital d the largest increment to Stryker's…...

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