MAG45 a reference case study

The challenge

One of Stryker’s goals is to be the leanest manufacturer in its sector in order to increase margins, support strong growth, and improve its offering and service to clinicians. Manufacturing excellence and continuous improvement programmes are front and centre at every site, with the aim of standardising practices and deploying efficient systems and partnerships.

Guillaume Finck is Vice President Operations for the European and Chinese factories, reporting directly to the US. “I’m a guy who believes we need to focus our energy and resources on the core design, development and manufacturing that we’re good at. There are other, linked processes that are not our specialisation but core business for others. So I’m very open to developing real partnerships with companies who can support our business operations, help us get better at what we do, and bring value to product management. At the same time, such companies must be capable of growing, developing, and benefitting from our business over the long term.”

The introduction

Four years ago, Guillaume was introduced to MAG45 by one of its clients, Johnson & Johnson – a competitor to Stryker that was located in the same neighbourhood in Switzerland. This recommendation suggested two things: MAG45 had the competence and experience required, and there might be opportunities for some serious integrated supply synergies.

Together they initially explored outsourcing the complete supply management of cutting tools (later extending this to consumables, factory supplies and all other MRO). Cutting tools is a com-plex area involving direct relationships – often at a highly technical level – and Stryker was working with nearly 80 different suppliers for such tools. According to Guillaume, “We needed MAG45 to directly manage all the supply chain activity, effectively reducing all these supplier accounts to one. But it was crucial for us that we maintained our technical access to the tool providers as well as our relationship with them.” Discussions followed with dealers and manufacturers, many of whom were happy to move to this new arrangement.