Product details

After a joint venture with Siemens Medical Solutions, Drager Medical, one of the world''s leading manufacturers of medical equipment, is facing the restructuring of its procurement system. The case illustrates the specific industry situation Drager is confronted with as well as their core competencies: to provide all necessary products along the Acute Point of Care. Due to the complexity of its products, as well as to the high demands in terms of quality, Drager chooses to implement a modular sourcing system. It has to make important make or buy decisions, as outsourcing frees capacities to concentrate on its core competencies. The main issues of the case are the design of an appropriate procurement system using a provided framework, and the development of a scoring model for the selection of adequate suppliers, taking the concept of the total cost of ownership into consideration. Furthermore, it addresses the subjects of modular sourcing, electronic reverse auctions, the benefits of centralised and decentralised production, the potential risks of purchasing globally and the concept of a cross balanced scorecard. There is a Spanish translation available ''E605-018-1''.