Invacare 2011 Annual Report Download - page 19

The supply chain is focused on providing custom-configured, made-to-order manufactured products as well
as high-quality, cost-effective solutions for standard stock products. As strategic choices are made globally, the
company will continue to be focused on providing quick product delivery to the market as a specific competitive
advantage to the marketing and sales teams in these regions.
The company continues to emphasize reducing the costs of its global manufacturing and distribution
operations. Access to sourcing opportunities has been facilitated by the company’s establishment of a test and
design engineering facility in the company’s Suzhou, China location. In Asia, Invacare manufactures products
that serve regional market opportunities through the company’s wholly-owned factory in Suzhou, Jiangsu
Province, China. The Suzhou facility supplies products to the major geographic regions of the world served by
Invacare: North America, Europe and Asia/Pacific.
Best practices in lean manufacturing are used throughout the company’s operations to eliminate waste,
shorten lead times, optimize inventory, improve productivity, drive quality and engage supply chain associates in
the defining and implementation of needed change.
The company purchases raw materials, components, sub-assemblies and finished goods from a variety of
suppliers around the world. The company’s Asian sourcing and purchasing office has proven to be a significant
asset to the company’s supply chain through the identification, development and management of suppliers across
Asia. Where appropriate, Invacare utilizes contracts with suppliers in all regions to increase the guarantees of
delivery, cost, quality and responsiveness. In those situations where contracts are not advantageous, Invacare
works to manage multiple sources of supply and relationships that provide increased flexibility to the supply
chain.
North America
The company has focused its factories in North America on the production of powered mobility and custom
manual wheelchairs and seating products, the fully integrated manufacture of homecare and institutional care
beds, the final assembly of respiratory therapy products and the integrated component fabrication, painting and
final assembly of a variety of standard manual wheelchairs and personal care products in North America. The
company operates four major factories located in Elyria, Ohio; Sanford, Florida; London, Ontario and Reynosa,
Mexico.
Asia/Pacific
The Asia/Pacific region is focused on improving its customer delivery effectiveness, expanding its reach
into all customer channels in all major metropolitan centers and integrating its distribution operations across the
region.
Europe
The company has eight manufacturing/assembly facilities spread throughout Europe with the capability to
manufacture patient aid, wheelchair, powered mobility, bath safety, beds and patient transport products. The
European manufacturing and logistics facilities are focused on accelerating opportunities for streamlining to gain
productivity improvements in cost and quality over the next few years.
GOVERNMENT REGULATION
The company is directly affected by government regulation and reimbursement policies in virtually every
country in which it operates. Government regulations and health care policy differ from country to country, and
within some countries (most notably the U.S., European Union, Australia and Canada), from state to state or
province to province. Changes in regulations and health care policy take place frequently and can impact the size,
growth potential and profitability of products sold in each market.
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