ODM & Supplier Redesign Breakthrough
Philips
ODM and supplier redesign leading to a 50%+ cost reduction while improving quality and reliability.
Challenge
R&D Team was tied up on new system-level work and didn't have capacity for sustaining cost reductions.
Subobtimal product performance and quality issues persisted.
Actions
Engaged an ODM to redesign and standardize the articulation arm, achieving major cost savings.
Partnered with a strategic mechanical supplier to redesign a cart system, leveraging their engineering capability.
Selected suppliers based on unique expertise, broadening their role beyond manufacturing.
Redirected internal engineering resources to higher-value system development.
Results
55% cost reduction on redesigned cart.
50% cost reduction on articulation arm.
Improved quality and reliability through supplier-led design.
Established a repeatable model for leveraging supplier engineering resources.