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Eastek Access℠ Provides “Factory-Within-a-Factory” for American Healthcare Products Suppliers

Eastek International’s “factory-within-a-factory” solution helped one company set up shop in China. The Eastek Access approach provided a low-risk, quick and cost-effective way for an American healthcare products supplier to enter the market. Eastek helped the company navigate China’s complicated business and legal landscape, provided on-site plant space and labor, and supported the launch of its own fully operational shop in the same province within six months.

Eastek International’s “factory-within-a-factory” solution helped a American supplier of healthcare products set up shop in China. The Eastek Access approach provided a low-risk, quick and cost-effective way for the company to enter the market. Eastek helped the company navigate China’s complicated business and legal landscape, provided on-site plant space and labor, and supported the launch of its own fully operational shop in the same province within six months.

Client Challenge

A leading provider of innovative comfort, support, restraint-free, fall-management and patient-safety products marketed to health care providers had always operated it’s own manufacturing facilities. In 2002, however, the company became interested in cost savings opportunities available in China for its “cut-and-sew” operation, which involved the manufacturing of a variety of soft goods. At the time, the company had neither the knowledge nor the resources to begin the process of single-handedly establishing a solid manufacturing base in China. Realizing that such a project could potentially prove extremely complex, costly and time-consuming, they turned to Eastek International, its contract manufacturer of small, electronic medical instruments.

The Eastek Access Solution

With a fully operational manufacturing facility in China, Eastek and its new Eastek Access program presented a unique opportunity to help the company achieve its goal. At the program’s core is a “factory-within-a-factory” approach that provides a low- risk, quick and cost-effective way for a client to develop its own manufacturing operation in China, within Eastek’s pre-existing campus.

During the development period, Eastek helped the company navigate China’s complicated business and legal landscape and put the wheels in motion to eventually establish it’s own operation in the region.

The program’s flexibility enabled the company to choose from a wide range of services and to determine Eastek’s level of involvement in the operation at every step of the way.

Rapid Ramp-Up

Before signing on with Eastek, the company seriously considered setting up a plant in China on its own, and those plans called for a three-year timetable. With Eastek’s assistance, however, a “factory-within-a-factory” at Eastek was fully operational within six months. The company was then able to establish its own plant within the space of two years, compared to the original three-year time projection associated with going it alone.

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