What happens when your only manufacturer stops producing?
For a Texas-based medical supplies company, that question became an urgent reality during the COVID-19 pandemic.
The company depended on a single overseas manufacturer for its Class II medical products. When lockdowns forced that supplier to halt production, the customer faced a serious supply chain interruption.
At the same time, demand for its in-home medical products was increasing rapidly.
Communication with the manufacturer had already been difficult. During the shutdown, obtaining reliable information became even harder.
The company needed to resume production without overwhelming its already stretched internal team.
Establishing an alternative source of production
ITI Manufacturing worked with the company to create a dual-source manufacturing solution.
Rather than relying on a single factory, the customer gained access to additional overseas production capabilities managed through ITI.
ITI coordinated:
- Alternative factory sourcing.
- Manufacturing communications.
- Production management.
- International logistics.
- Weekly order and project updates.
The arrangement allowed the customer’s supply chain team to maintain visibility while ITI handled day-to-day manufacturing coordination.
The result: Production resumed with greater flexibility
The dual-source solution helped the medical supplies company restore production and respond to growing customer demand.
With ITI coordinating manufacturing and logistics, the customer’s internal team could focus more attention on serving its customers.
The company also reduced its dependence on a single overseas factory, creating additional flexibility for future disruptions.
Frequently Asked Questions
Single-source manufacturing risk occurs when a company depends on one supplier or factory for an essential product or component. If that supplier experiences a shutdown, capacity shortage, financial problem, or other disruption, the buyer may have no immediately available alternative.
Companies can reduce single-source risk by identifying and qualifying additional factories before a disruption occurs. This typically involves evaluating manufacturing capabilities, reviewing quality requirements, producing approval samples, and establishing production and logistics processes. ITI Manufacturing helps U.S. companies source and manage overseas factory partners.
Single sourcing means manufacturing a product or component from one supplier. Dual sourcing means establishing two qualified sources for the same requirement. Dual sourcing can improve supply chain flexibility, although both suppliers must be evaluated for capacity, quality, and operational independence.
Don’t Let One Supplier Determine Your Entire Production Schedule
ITI Manufacturing provides turnkey global manufacturing services with greater visibility, predictability, and accountability.
Talk With ITI About Alternative Manufacturing Sources
