What medtech companies and suppliers expect from each other – a manufacturing dialogue

Wherever your company sits in the value chain, the rules of the game are the same: you win or lose depending on the quality of your collaborations.

This article brings together the key lessons shared during a panel discussion involving Urs Zueger, Director New Product Introduction at Sonova and Grégoire Veber, Technical Business Unit Director at Jabil Healthcare – and translates them into practical takeaways for company owners and managing directors.

In medtech, you rarely succeed alone. Complex devices, strict regulation, global supply chains, and demanding partners mean that no single company can master every process and technology.

For both suppliers and Original Equipment Manufacturers (OEMs) in the Basel Area, this is both a challenge and a huge opportunity. Precision engineering, micro-machining, and surface treatment are already regional strengths. In addition, the Basel Area is a global life sciences hub that constantly needs reliable manufacturing partners, and medtech OEMs are actively looking for suppliers who can combine local expertise with global standards.

The question is no longer whether to work in partnership, but how to choose the right role and the right relationships – and how to structure those relationships so they last.

Every medtech company and OEM wrestles with the same question: should we invest in our own capacity, or should we work with external partners?

Manufacturers approach this in three steps:

First, clarify your strategic intent. Are you trying to “control your own destiny” by building core capabilities in-house? Or do you want to position yourself as a specialist partner in a narrow technology niche? Both can work – but you must be clear about which one you are choosing.

Next, map the technologies you really need. Look at the full product life cycle:

• Where do you already have strong capabilities that are hard to copy?
• Which processes are standard and can be sourced more easily?
• Which new technologies (for example high-precision finishing, micro-assembly or new coatings) will become more important in your future products?

Finally, decide where partners add the most value. External partners can help you access specific technologies without the upfront capex, ramp up capacity faster than you could on your own, and share risk when you enter a new market, indication or geography. What matters is not a dogmatic “make vs buy” stance, but a conscious portfolio of what you keep and what you share.

Both OEMs and Contract Manufacturing Organizations (CMOs) agree on one thing: the earlier manufacturing experts join the development discussion, the better.

When design and manufacturing sit in different buildings – or different companies – it is tempting to hand over a “finished” design and expect the factory or supplier to make it work. In reality, that creates friction, delays, and costly compromises.

From a manufacturing perspective, the main expectations are:

1. Early engagement: Bring manufacturing and key suppliers into the project while requirements and concepts are still flexible.
2. Design for manufacturing (and beyond): Think in terms of “design for X”, e.g. for manufacturing, assembly, testing or reliability.
3. Clear scoping from day one. Define together:
   • What problem the product solves
   • What volumes and timelines are realistic
   • What the regulatory pathway is
   • Who is responsible for which validation and documentation activities.

In medtech, quality is not a differentiator – it is the minimum requirement. Manufacturers in this industry need to look at quality on three levels:

1. Regulatory compliance: Meeting MDR, FDA and other requirements is “just” the price of entry. You must know which markets you aim for and what that implies for your quality system and documentation.
2. Reliability and functionality: You need a clear internal definition of what quality actually means for your devices:
   • How robust must they be in real-world use?
   • What design rules are non-negotiable?
   • Which failure modes are acceptable, and which are not?
3. Quality culture along the supply chain: Paperwork and certifications are not enough. Manufacturers look for suppliers who:
   • Understand the spirit behind their quality system, not just the letter.
   • Can adapt their own processes to the expectations of a global customer.
   • Treat quality as part of their daily work, not as a separate department problem.

When OEMs describe their best manufacturing partnerships, several themes repeat over again:

1. Clear scope and shared expectations: Good collaborations start with a structured conversation:
   • What success looks like for both sides
   • Which risks worry each partner
   • What speed, cost and quality targets are realistic
   • How will decisions be taken and escalated.

   Skipping this step is one of the fastest ways to burn trust and delay launch.

2. Mutual trust and transparency: Trust operates at many levels:
   • Financial (fair pricing, realistic payment terms)
   • Operational (reliable deliveries, honest reporting)
   • Strategic (no hidden agendas, clear view of each other’s direction)

   Without trust, every negotiation becomes a fight. With trust, both sides can tackle problems openly and move faster together.

3. Respect for people and culture: Ultimately, collaborations are built by people, not contracts. Empathy, listening and openness matter.

For many manufacturers in the Basel Area, this people-centric mindset is already a strength, manifesting as long-standing relationships, short communication lines and strong local identity. The opportunity is to bring that same mindset into structured collaborations with international partners.

Even experienced companies get partnerships wrong. The most frequent traps include:

1. Poor initial scoping: Partner and OEM start working together before they have clarified:
   • whether the partner is certified for medical devices
   • who owns which regulatory and validation activities, and
   • whether the technology fits the product’s scale and complexity.
2. Rushing immature technology to market: Speed-to-market pressure leads to insufficient testing and validation, quality issues in clinical use, and expensive redesigns and damaged reputations.
3. Underestimating regulatory overhead: A supplier may be excellent in another industry, but unprepared for the documentation and traceability that medtech requires.
4. Hidden agendas and misaligned strategies: If one party has strategic plans that they do not share – e.g. divestments, geographic shifts, or exiting a product line – conflicts will emerge later.

You cannot avoid all problems. But you can greatly reduce them by investing time up front in scoping and risk analysis, involving regulatory and quality experts from the start, and being open about constraints, limitations and long-term plans.

Even the best collaboration will end one day. For example, strategies change, supply chains shift, and companies are acquired or spun off.

The way you manage the end of a partnership is as important as how you start it:

• Anticipate possible exit scenarios from the beginning
• Plan how products, tooling and documentation would be transferred
• Keep communication respectful, even when business logic changes
• Avoid “slamming the door” – you may work together again in another configuration

Handled well, a partnership can end without burning bridges, and both sides can keep their reputation in the regional ecosystem.

If you are an owner or managing director and you want to play a stronger role in medtech manufacturing, here are concrete steps you can take:

1. Clarify your strategic role: Decide whether you want to be a specialized expert in a narrow technology, or a broader partner that can take on complex assemblies and long-term programs.
2. Assess your readiness: Be honest about your current quality and regulatory level, capacity to deliver reliably at scale, and internal skills in design for manufacturing and collaboration.
3. 3. Invest in your people: Your biggest competitive advantage is not a single machine; it is your team’s ability to understand customer needs, communicate clearly, and work across functions and company boundaries.
4. Build your network in the region: The Basel Area offers a unique combination of precision manufacturing expertise, a dense life sciences cluster, and public and private partners willing to support your development. Use that ecosystem – you do not have to do this alone.

If this article resonates with the challenges and opportunities you see in your own company, our Level Up services can help you move from insight to action:

• InnoJura Academy: Through tailored training modules, you’ll develop the mindset and skillset to collaborate effectively with startups and solve real-world challenges for your industry or business.
• InnoJura Platform: The program where ambitious startups and forward-thinking OEMs and CMOs join forces to tackle real-world challenges in advanced manufacturing and medtech. Startups gain access to industry infrastructure, testing environments and expert feedback, while established companies tap into new technologies and agile methods.

To explore which mix of Level Up services fits your situation, we invite you to learn more about our offerings and talk to our team.