Designing the optimal industrial footprint to remain market leader
Sterima, the Medical division of Malysse-Sterima, provides sterilisation services for hospitals and medical companies in the Benelux. Sterima offers a wide range of sterilization-related services, ranging from advice on sterilization activities in hospitals (e.g. process audit or advice on accreditation) to insourcing or outsourcing and sterilization supply chain management.
Sterima is a pioneer in the sterile supply of loaner sets and has extensive expertise in the field of reprocessing instruments and implants.
For the purpose of further sustainable growth, Sterima involved Möbius to elaborate the required industrial footprint to remain market leader in the Benelux and to develop a cost allocation and pricing strategy.
In order to get a clear view on the current situation, Möbius executed an intensive audit by interviewing key players, analyzing the processes and studying in depth the cost allocations. Based on these elements, together with Sterima the industrial footprint of the ‘to be’ situation has been developed in order to realize its strategic long term goal:
- Develop cost allocation and pricing model : Identify the most relevant cost drivers for the different activities and evaluate the ideal size for a sterilization plant (finding the right equilibrium between economy of scale for operations, logistics and service aspects).
- Evaluate market potential : To evaluate the potential of the new footprint, six hospitals were contacted to evaluate the possible impact on their specific situation if they would outsource their sterilization operations.
- Build a business case : Based on the findings of the audit phase and market information, the business case for the ‘to be’ industrial footprint was developed and used for the board of directors to take the right investment decision.
- Design of the optimal industrial footprint for new sterilization plants (size, geographical scope, …)
- Development of a pricing strategy based on ABC cost drivers of the operations
- Building business cases for outsourcing for six hospitals
- Building a business case for required investments to present to the board of directors
Möbius helped in further developing our industrial footprint based on our business strategy. The facts and figures approach gave us a good insight in the pro’s and con’s of the different alternatives and a good guideline to identify the optimal footprint and business case.