Invacare 2012 Annual Report Download - page 19

The company is looking forward to completing the remediation of its quality systems, so it can resume
design activities and refocus its engineering resources on new product development. Introducing new product
solutions to the market will allow the company to resume its globalization program designed to harmonize core
product offerings and reduce complexity within the business thereby increasing cost-effectiveness. In addition,
by streamlining its engineering and product development capabilities on a global basis, the company expects to
further increase its industry leadership with the broadest range of product offerings in both homecare and
continuing care medical device equipment. This will uniquely position the company in a changing healthcare
environment.
MANUFACTURING AND SUPPLIERS
The company’s objective is to continue to reduce costs and possibly consolidate facilities to maintain its
high quality supply. The company seeks to achieve this objective through a strategic combination of Invacare
manufacturing facilities, contract manufacturing facilities and key suppliers.
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.
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 an 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
Invacare manufactures products that serve regional market opportunities through the company’s wholly-
owned factories in Suzhou, Jiangsu Province, China. The Suzhou facilities supply products to the major
geographic regions of the world served by Invacare: North America, Europe and Asia/Pacific.
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