Manufacturing

Case Study:

Medical Device Manufacturer

20% Cost Savings and On-Time Delivery for Medical Device Manufacturer

When a Class II medical device manufacturer needed a reliable partner for production and supply chain management, it turned to PRIDE Industries. For more than ten years, PRIDE Industries has helped this manufacturer produce essential devices that are used to reduce pain and speed recovery for athletes, military personnel, and post-surgery patients worldwide.

Situation

In 2008, a Class II medical device manufacturer hired PRIDE Industries as contract manufacturer to provide a full turnkey solution in supply chain management and electronics manufacturing services. Our solution is vertically integrated with global distribution support.

Services Provided

Supply chain management
Electronics manufacturing services
Strategic partnership, not solely transactional

Results

95%+ optimized, on-time delivery
20% cost savings realized through custom solutions and pricing
18 months – obtained ISO13485 medical certificate and FDA compliance
60% = 2021 forecast of YOY production volume increase for one product
Initial results exceeded expectations, leading the customer to expand the manufacturing contract

Highlights

20%

Cost savings

95%+

optimized, on-time delivery

“PRIDE Industries has been a reliable business partner for several years. The team at PRIDE remains in constant communication to ensure successful production of our products, and they consistently deliver quality results. We trust PRIDE Industries and we look forward to continuing to work with them as our business grows.”

— PRIDE Industries customer

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by Erin Fleischmann

PRIDE Industries helps BunkTrunk® build storage products for college-bound students.

BunkTrunk® is an innovative company founded by two San Diego entrepreneurs who developed a unique storage system which easily fit in dorm rooms to keep the belongings of college students safe.

Situation

When Guy Plouffe‘s daughter entered college, she quickly became concerned about storing her laptop and other valuable items when she was away from her dorm room. Regular safes were too big, heavy, and expensive to be considered an option, especially for the typical college student on a budget.

Guy quickly thought of a solution. He developed a lightweight storage compartment which attaches to dorm room beds and locks securely. His daughter’s roommate loved it as well, and Guy made another one for her. The concept for BunkTrunk® was then created.

Solution

Guy had reached the first step in his business plan, creating a unique storage system that would meet the needs of countless college students. Executing the rest of the plan, however, proved more difficult. The expense of raw materials, as well as skyrocketing labor costs, created major obstacles. But Guy didn’t find the talent he needed. So, he decided to turn to PRIDE Industries.

After reviewing a step-by-step video on how to put these trunks together, our manufacturing experts determined that our team members with disabilities could assemble the trunks.

And they were right.

PRIDE Industries’ employees mount the hinges, install the doors, conduct quality assessments, and package the final Bunk Trunk for shipping. Thanks to the work of PRIDE Industries’ inclusive team, about 30-45 Bunk Trunks are shipped every week—all over the United States.

“They have incredible attention to detail,” says Darla Reed, Co-Owner of BunkTrunk®.

As of today, thousands of the trunks have been sold to students all over the country. And, the price point of the BunkTrunk® hovers around $300—perfectly affordable for the college market.

Services Provided

Building, mounting, and packaging
Packaging and shipping

“So many people have gifts to give, including people with disabilities. We are proud to create opportunities and partner with PRIDE Industries to help reduce the stress for college students and their parents.”

— Darla Reed, Co-Owner

by Erin Fleischmann

Tony Lopez, Vice President of Manufacturing and Logistics Services for PRIDE Industries, talks with Josh Santo of Conquering Chaos. They discuss the value of employing persons with disabilities and creating an inclusive work environment for companies and employees to thrive.

Josh Santo (JS): Today, approximately 30 million working-age people in the U.S. have a disability. 75% of them are unemployed.

Our next guest, Tony Lopez, is committed to creating jobs for people with disabilities and is creating change in the contract manufacturing field. As the Vice President of Manufacturing and Logistics Services for PRIDE Industries, Tony oversees multiple lines of business, including electronics and medical devices, manufacturing, supply chain logistics, contract packaging, and fulfillment.

Tony, tell us about PRIDE Industries, the communities that you serve, and your manufacturing solutions.

Tony Lopez (TL): PRIDE Industries was founded in the basement of a church in 1966 by a group of parents who wanted to create jobs for their adult children with disabilities. We originally operated like a true nonprofit but found this wasn’t sustainable. So, PRIDE Industries became a social enterprise, which means we employ the same strategies as commercial businesses. The difference is that any profits or surplus go back into reinvesting into our mission to create employment for people with disabilities.

We operate several different lines of business, including packaging and fulfillment, electronics manufacturing, and supply chain and logistics for companies like HP, Inc. We also do contract packaging and fulfillment, including for a large hospitality food provider that we’re projecting to fulfill 5,000 work orders.

Workplace Inclusion is Good for Business, Including Manufacturing

JS: Besides solving workforce and recruitment problems, how else can hiring people with disabilities help organizations?

TL: If you look at companies with high environmental, social, and governance (ESG) ratings—which take workplace inclusion into consideration—they have healthier cultures, lower turnover and absenteeism, and are more profitable. And consumers take positive notice when organizations become socially conscious.

In the manufacturing field, employees with disabilities have high productivity rates and lower levels of mistakes. Contrary to popular belief, people with disabilities take safety seriously—our safety incidents are 30% lower than the industry average. Overall, the key to success as an employer is to offer opportunity and support to all your employees—with and without disabilities.

Understanding Disability and Creating an Inclusive Work Environment

JS: Can you help us understand what constitutes a disability?

TL: Disability is a broad concept that encompasses invisible and visible disabilities, intellectual disabilities, physical disabilities, and mental health and learning disorders.

It’s important to realize that people aren’t just born with disabilities; some individuals develop them over the course of their lifetime. It might be harder for them to complete certain tasks, but focusing on their value is important. People with disabilities are capable, and often they just need the opportunity.

JS: What common misconceptions do you encounter about hiring people with disabilities?

TL: One is that people with disabilities can only do simple job tasks. However, we have seen that by adapting training and creating a supportive environment, you can allow an employee to thrive and learn new skills.

JS: What kind of culture is needed to recruit and retain workers with disabilities?

TL: Diversity and inclusion have to be part of the organization’s goals. To create a truly inclusive work environment, companies need to employ people with disabilities for all career levels—not just entry-level jobs. They can achieve this goal by assessing their workplaces and offering inclusivity training.

JS: What kind of training and job coaching helps people with disabilities succeed?

TL: Onboarding is important. We start new employees by introducing our organization and culture, reviewing workforce inclusion support and accommodations, and explaining our learning and development opportunities. Training and support, including being provided with a job coach, is customized to each person’s skills and goals.

We can help your business grow

We offer cost-effective manufacturing and logistics services in a wide variety of industries.

Learn More

“In manufacturing, employees with disabilities have high productivity rates and lower levels of mistakes.”

—Tony Lopez, Vice President of Manufacturing and Logistics for PRIDE Industries

by barb

Building and Shipping Low-Cost, Lifesaving Medical Devices

3^rd Stone Design creates affordable medical products that protect the health of people and the planet. In addition to designing these critically important devices, 3^rd Stone Design also partners with other companies to create the businesses that bring these products to the global marketplace. 3^rd Stone Design has more than 15 years of experience, and also develops renewable energy systems and socially conscious consumer products.

Situation

Many medical solutions have traditionally been too expensive and complex to widely implement in developing countries. 3rd Stone Design is changing this by designing low-cost, essential medical devices. And when it comes to building these machines, the company has turned to PRIDE Industries not once, but twice.

In 2013, PRIDE Industries partnered with 3^rd Stone Design to build and ship its Pumani CPAP machine—an inexpensive airway device that can triple the survival rate of babies with respiratory distress syndrome. In just a few months, PRIDE Industries built and shipped over 1,000 of these breathing aids to 35 countries around the world. So in 2022, when 3rd Stone Design needed a manufacturing partner that could affordably build, package, and ship its new BiliDx system, the medical device company turned again to PRIDE Industries.

Solution

Jaundice is a common condition in newborns, affecting about 60% of babies worldwide. The disease is caused by a buildup of bilirubin in the bloodstream, and usually resolves on its own within a few days. In rare cases, however, jaundice can lead to severe brain damage. This is why it’s so important to monitor bilirubin in babies who present with the condition’s telltale yellow skin and eyes. In many developing countries, however, the technology to measure bilirubin in the blood is expensive and hard to come by.

But that situation is changing, thanks to a new technology—the BiliDx System. This innovative diagnostic system uses a handheld medical device to measure an infant’s serum bilirubin levels. Invented by 3^rd Stone Design and built by PRIDE Industries, the device needs only a single drop of blood—applied to an inexpensive, disposable lateral flow strip—to immediately provide a precise reading. Because it’s portable, low cost, and highly accurate, the BiliDx System is an ideal solution for resource-constrained medical settings.

In addition to building, packaging, and shipping the BiliDx system, PRIDE Industries also provides affordable international shipping. This has led to significant cost savings for 3^rd Stone Design and its customers. This affordability, along with the product’s high accuracy, has made the BiliDx System a reliable diagnostic solution, helping economically developing nations combat neonatal jaundice—which affects 24 million newborns each year.

Services Provided

Building, packaging, and shipping of low-cost medical devices for the developing world.

Highlights

247

BiliDx Systems shipped

2,950

BiliDx test strips shipped

“PRIDE Industries has been an extraordinary partner in helping us scale and produce specially designed medical products for mothers and newborns in underserved communities throughout the globe.”

— Robert Miros, CEO, 3rd Stone Design

by barb

GDS expands its social mission and its business, with the help of PRIDE Industries.

Established in January of 2000, Granite Data Solutions (GDS) is a California Certified Disabled Veteran Owned Enterprise (DVBE) specializing in Client Lifecycle Management with a focus on serving state and local government entities, as well as education-related organizations.

Situation

Driven by the same mission to create job opportunities for veterans and people with disabilities, GDS partnered with PRIDE Industries for assembly and kitting in 2012. PRIDE Industries has since supported the business through its outgrowth of two buildings. Then, in 2018, when GDS expanded further and needed on-site packaging and shipping support, they turned again to a provider they knew they could count on.

Solution

After an evaluation, five work groups, composed of 15 employees with disabilities, were created to handle GDS’s IT-related deployment and depot-style service projects. For every work group hired by GDS, PRIDE Industries provided a work group trainer to help employees with developmental disabilities learn and succeed in their jobs.

With consulting help, GDS earned its Processed Food Registration (PFR) certification from the California Department of Health in October 2018. Instruction and training involved implementing safety, quality, and fulfillment guidelines—including proper food handling procedures, allergen separation, shipping, receiving, and lot code tracking. In addition, PRIDE Industries helped GDS develop its pricing and shop rate. Production lines, using lean manufacturing methods, were also created.

With GDS’s new food processing business plan implemented, work groups now help run up to four food-packing lines and handle shipping for four new customers.

Services Provided

Kitting and assembly
Pricing and shop rate development
Assistance in running up to four food packaging lines
Implementation of safety, quality, and fulfillment guidelines
Shipping, receiving, and lot code tracking
Creation of production lines using lean manufacturing methods

Results

Continued annual expansion
Processed Food Registration (PFR) certification
Four new business accounts acquired
Over 7,000 pallets per year
24 truckloads per month
Expansion of mission of providing job assistance and training to people with disabilities.
Hiring of PRIDE Industries-trained individuals with developmental disabilities for its permanent staff

Highlights

individuals with developmental disabilities

years of business partnership

>7,000

pallets shipped per year

work groups of individuals with disabilities

“It’s been amazing to see what PRIDE Industries and GDS have been able to achieve in such a short amount of time. We’re excited to see what our partnership will bring in the future.”

— Brigg Goodwin, President, Granite Data Solutions

by barb

Over the last two years, a growing trend has multiplied, resulting in increased awareness for consumers, suppliers, investors, and those who facilitate the transfer of goods: Social responsibility. Or, more broadly, environmental, social, and governance (ESG). And now, more than ever, the supply chain is factoring in—not only when it comes to satisfying consumer demand, but also regarding product returns.

Recently, the Reverse Logistics Association (RLA) explored this very topic in a webinar titled, “Why Using Nonprofits for Returns Management is Socially Responsible.” The webinar featured moderator, Tony Sciarrota, Executive Director and Publisher of RL Magazine, and three expert panelists: Claudia Freed, President and CEO of EALGreen; Travis Laws, President of WIN Warehouse; and Bob Anderson, Business Development Executive for PRIDE Industries.

The discussion was one of depth and breadth; however, ESG dominated the conversation—notably transparency in the return process as well as re-use and environmentally ethical disposal of goods. Further underscored was an increasing shift in consumer awareness when it comes to requiring companies to be socially and environmentally responsible—an expectation that includes the entire supply chain. And to satisfy these expectations, companies are requiring their suppliers and transporters to have some kind of ESG framework in place.

“Almost every RFP or RFI that comes out now has some questions about what you do about sustainability,” said Bob Anderson of PRIDE Industries. “Also, what you do about people and your hiring practices.”

“Two-thirds of an organization’s ESG commitments lie with its suppliers”

– Jagmeet Lamba, Forbes Council Member

A 2021 McKinsey report supports Anderson’s observation. Referencing this report, a recent Forbes article summarizes that “two-thirds of an organization’s ESG commitments lie with its suppliers.” The article further notes “. . . choosing the right supplier partners and managing them well is perhaps the most impactful decision for a company when it comes to sustainability.”

This is where nonprofits, when it comes to returns management—and supply chain, in general—shine. Because they are largely mission-driven, nonprofits typically already have a positive social or environmental focus built in. For example, both EAL Green and WIN Warehouse leverage used/donated materials—Green, to fund college scholarships and WIN, to help companies save on taxes while repurposing used materials. And PRIDE Industries? This social enterprise leverages its business services to create employment for people with disabilities.

Also built into each of these nonprofit’s business models is transparency.

In the webinar, Claudia Freed of EAL Green notes, “. . . transparency has now become an organizing principle . . . a nonprofit helps generate that value proposition.” She goes on to explain that, unlike a traditional corporation, a nonprofit must disclose its tax returns which, for example, reveal the highest-earning employees’ salaries. This requirement speaks to the “social” element of ESG, allowing stakeholders to discern the level of “pay equity” an organization cultivates.

When it comes to supply chain and reverse logistics, transparency is also achieved through traceability throughout a product’s lifecycle. Again, nonprofits are uniquely positioned to leverage their already-in-place transparency measures. For instance, because nonprofit donors want to know what their donations fund, nonprofits tend to be structured around allowing them to do this with relative ease.

“From a returns standpoint,” said Bob Anderson of PRIDE Industries, “we have a responsibility to show our customer where, when, and in what condition an item was received.” Anderson went on to say, “For example, if a company says to salvage part 1, 2, and 3, we act as a vehicle between them and the recycler—with transparency every step of the way. Plus, our customers get the added social impact of employing people with disabilities.”

Unfortunately, the benefits of using nonprofits for supply-chain needs aren’t yet on many companies’ radar. But the webinar’s panelists see that changing.

“I think the market is going to demand it,” said Travis Laws of WIN Warehouse. “Increasingly, consumers are going to want to know more and more. And we’ve seen that from younger generations.” Laws went on to note that the new generation of customers will, in time, be investors who carry their ESG awareness forward.

“The concept has evolved, from a charity that would go out with its hand” [out . . . to] “shaking hands . . . being a partner,” Freed, of ELAGreen, pointed out, underscoring the fact that nonprofits can, increasingly, offer the same business advantages to customers that traditional corporations do—while also offering tax breaks and a positive social impact.

“It’s a matter of awareness,” said Anderson, mentioning that a tech giant has relied on PRIDE Industries’ kitting and packaging services for 15 years—the kind of partnership many potential customers don’t yet associate with a nonprofit.

“It’s going to take time to change people’s mindsets,” continued Anderson. “And I’m confident that we will get there.”

Want to learn more?

The reverse logistics cycle is a key touchpoint for customers—a foundational process that provides opportunities to influence and improve customer loyalty. Find out how you can optimize the reverse supply chain to enhance the customer experience.

“. . . choosing the right supplier partners and managing them well is perhaps the most impactful decision for a company when it comes to sustainability.”

– Jagmeet Lamba, Forbes Council Member