CASE STUDY

Leading Biosciences Organisation Uses Reagecon To Maximise Return On Assets Employed

Company Background

One of Reagecon’s Manufacturing Services clients is a multinational biosciences organisation manufacturing biochemical instrument systems and associated consumables for the life science industry. The client is a world leader in its field and has manufacturing operations in the UK, the USA and the Far East. From its very foundation the client organisation has been research led and is continually introducing new technology to bioscience research laboratories.

The Challenge

What do you do when a new product line is “taking off” but all your manufacturing space is taken up with more mature products?

This was the challenge faced a number of years ago by the UK operation of this biosciences client. The new product line was providing significantly higher margins but the limitations of the UK site made expansion a difficult and costly exercise. Given the importance of the mature products in the client’s portfolio discontinuing their production in favour of the new product line was not considered an option.

The Solution

The client decided that the best option was to outsource the manufacture of the mature product line, provided that this could be done without negative impact on quality or cost. After an intensive search for a provider with the required technical skills and resources Reagecon was chosen as an outsource partner.

In the first phase of this outsourcing relationship Reagecon took on the manufacture of a range of DNA synthesis reagents. The success of that initial project and the client’s continued generation of new product lines has resulted in several more outsourcing projects being concluded between the parties. Today Reagecon manufactures and quality controls more than 200 finished parts for this client. Reagecon routinely dispatches these DNA synthesis and sequencing reagents directly to the client’s distribution centres in the UK, The Netherlands, Japan and the USA.

The Benefits

Reagecon’s client has realised a number of benefits from this solution:

• Significantly increased margin per square foot of the client’s production space
• Reduced inventory costs
• Increased margin on the product lines outsourced
• Increased capacity in its outbound logistics department.