There are many different aspects to the manufacturing process such as the supply chain management and logistics. Supply chain management (SCM) is the administration of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Wikipedia, 2009). The Supply chain management comprises of five basic procedures namely planning, sourcing, making, delivering and returning (Thomas Wailgum, 2008).

A huge component of SCM planning includes developing a set of metrics to monitor the supply chain’s efficiency, cost effectiveness, capability to deliver high quality and add value to customers. The next step in SCM is to source for the suppliers to deliver the goods and services required to create the product. To ensure a smooth selection process, the SCM managers must develop a set of pricing, delivery and payment processes with their suppliers and create metrics for monitoring and improving the relationships.

The third stage involves manufacturing the goods. This stage calls for the supply chain managers to schedule the activities for production, testing, packaging and preparation for delivery. Quality levels, production output and worker productivity are measured during the above stipulated procedure. Following that, the companies coordinate the receipt of customer’s orders, develop a network of warehouses, pick carriers to get products to customers and establish an invoicing system to receive payments. This is referred to as logistics. The final but challenging procedure of SCM is the necessity to create a network that is responsive and flexible for receiving defective and surplus products back from their customers when they encounter problems with the delivered products.

The needs of Med Tech companies are diverse so the supporting industries span sectors such as electronic manufacturing services (EMS), plastic components, metal forming and casting, ceramics, surface treatment and cleansing as well as sterilisation (Medical Product Outsourcing, 2008). Hence in order to gain an edge in the manufacturing of medical technology, it is essential to leverage on Singapore’s world class logistics and supply chain capabilities.

Image: Flickr/logistics area/Frankfurt Airport