Case Study

IT Cost Alignment – Manufacturing and Healthcare Provider


Our client was a $110 million a year, private national medical device manufacturer and patient healthcare provider with 770 employees, 137 distribution centers and 3 warehouses in the US and manufacturing operations in China, Taiwan, Germany and the US.

Private national medical device manufacturer and patient healthcare provider
  • IT costs approaching 12% of sales
  • Insurance and government reimbursements were declining
  • 22-year-old custom built legacy EMR system incapable of handling new products
  • IT staff had legacy skills and did not know the inner workings of the custom software
  • Organization was shrinking but all contracts, hardware, and software were designed for a larger company.
  • Developed a cost reduction and operations improvement plan
  • Worked with IT leaders to renegotiate all IT contracts
  • Enhanced staff’s technical skills and built lite weight apps using Agile techniques
  • Initiated a Strategic Outsourcing effort
  • Streamlined technical footprint
  • Deployed new IT policies to accommodate smaller organization
  • Modernized and migrated some systems and data to the cloud to reduce costs and provide scale when needed
  • Reduced IT Annual Budget by 57% in first year
  • Increased number of upgrades from bi-annual to bi-monthly
  • Improved user satisfaction with new web frontend and user enhancements
  • Applied approach to business supply chain, inventory, manufacturing, and facility management reducing all business costs by a total of 42% in two years