Building diagnostic equipment like making sandwiches? Acloudier helps with the simplification, cost reduction, and efficiency improvement of NAYO LAB

With the arrival of the aging era and the increasing awareness of early screening among the public, in vitro diagnostics have become a hot growth point in the medical device industry. From nasopharyngeal swabs to gene sequencing, the application of in vitro diagnostic equipment naturally has segmented vertical and diverse industrial characteristics. However, in the eyes of industry veterans, “diversity” is just the appearance of the industry, and in vitro diagnostic equipment manufacturing actually has many efficiency improvement points that simplify complexity.

The detailed requirements for detection equipment vary, but the infrastructure requirements are similar. Automation in life sciences has always been a focus of industry attention and is bound to become a breakthrough in efficiency improvement, “said Mr. Luo Junkui, founder of NAYO LAB.

Commonly referred to as’ in vitro diagnostics’, this emerging field actually encompasses complex subcategories. As a result, the delivery of equipment by NAYO LAB has always been a challenge. Faced with delivery pressure, Luo Junkui began to consider the possibility of automation efficiency improvement – in his words: “If the infrastructure is similar, is it possible for us to ‘match’ the machines in a sandwich like way? Is it possible to shorten the delivery cycle with limited customization

This seemingly imaginative idea was quickly realized with the help of SAP Platinum Partner Acloudrear’s SiXiang Network, utilizing the standard features of SAP S/4HANA Cloud Public Edition [SAP ERP Public Cloud]. And the harvest of NAYO LAB is an obvious process that simplifies complexity and reduces production costs while increasing efficiency.

Six years ago, Luo Junkui founded NAYO LAB (Shanghai) Co., Ltd. At that time, it was the outbreak period of in vitro diagnostics. Despite the surge in orders, there have always been challenges in the delivery of equipment by NAYO LAB. For example, on similar foundational frameworks, there is a choice between single channel and multi-channel; The position of the air outlet often needs to be designed according to the actual situation of the customer’s laboratory.

The difficulty of these “tailored” designs is not high, but they still require a complete process of research and development, procurement, and stocking, which requires almost the same delivery time as the development of new models. In this set of contradictions, Luo Junkui actually saw an opportunity for efficiency optimization.

Sandwich fast food actually provides customers with ‘limited customization’. In this way, customers have the possibility of customization, but the supply chain is not too complicated. To some extent, this is also an ideal solution for the manufacturing of liquid handling equipment.

With a new idea, the next step is to find a suitable digital assistant. The idea of managing diagnostic equipment production through optional selection has actually stumped many ERP suppliers, “said Ms. Man Xiaoguang, Senior General Manager of the Supply Chain Management Department at NAYO LAB.

Diagnostic equipment has complex architectures, numerous precision components, and high prices. Traditionally, manufacturers tend to create a bill of materials for each product. The ‘sandwich mode’ actually requires the solution to balance end-to-end control with a certain degree of freedom.

Based on a deep understanding of SAP products and the accumulation of many best practices in the life sciences industry, SAP Platinum Partner SiXiang Network has keenly proposed that a balance between control and freedom can be easily achieved through the use of SAP ERP’s public cloud and variable configuration functions.

The expert team of Sixiang Network stationed at NAYO LAB meticulously combed through the cutting-edge equipment manufacturing process. Soon, Sixiang Network assisted NAYO LAB in sorting out the selection methodology for the entire product line. With the powerful public cloud and variable configuration capabilities of SAP ERP, SiXiang Network has restructured the entire process of NAYO LAB from purchasing spare parts to production delivery.

Now, NAYO LAB no longer needs to redesign models and establish material lists for customized options such as instrument height, gun path quantity, and air outlet position, saving a lot of design, communication, and verification time.

At present, with the help of SAP ERP public cloud, NAYO LAB can achieve prototype delivery within the production delivery time. Man Xiaoguang expects that after the company continues to expand its scale in the future, the benefits brought by the “sandwich model” will be more significant.

SAP ERP actually lays a solid management foundation for automation. NAYO LAB has been established for less than ten years, and choosing SAP is also a forward-looking and proactive approach to prepare for future orders in a more efficient way.

The implementation of the ‘sandwich mode’ is the primary goal of deploying and upgrading ERP at NAYO LAB, but the powerful end-to-end control of SAP solutions brings unexpected joy to NAYO LAB that cannot be underestimated.

Luo Junkui introduced that due to the trend of miniaturization and flexibility in laboratory liquid processing equipment, startups like NAYO LAB often invest heavily in research and development. However, traditional equipment manufacturing management does not emphasize the fine control of prototypes.

SiXiang Network has a deep foundation in the medical equipment industry, and SAP itself has cooperated with many internationally renowned manufacturers. The best practices of both parties have also achieved significant results in NaiYou. After deploying complete end-to-end control, we quickly saw cost savings brought by lean management on the R&D side, “shared Man Xiaoguang.

The advanced pipetting operation platform of NAYO LAB often consists of hundreds of precision parts, which are costly. In the past, in the era of manually ordering and purchasing prototype parts, tracking, quality, and maintenance of parts needed to be checked back and forth.

Nowadays, through SAP ERP public cloud, the procurement, research and development, and sales of NAYO LAB are integrated into the same system, and the status of each part can be seen. The research and development and production efficiency have been greatly improved, which further helps NAYO LAB enhance its market competitiveness.

From the forward-looking layout of the “sandwich model” to the lean management of “extending to the R&D end”, Acloudier has fully empowered the start-up company, Naiyou Biotech, with advanced international management experience through a digital system.

Luo Junkui sighed, “Start up and long termism are not contradictory. And this is also the reason why NAYO LAB has partnered with Acloudier and SAP – to align with international management concepts in the start-up stage, continuously extend the enterprise lifecycle with rigorous and lean enterprise management models, enhance its position in the industry, and ultimately grow from a start-up enterprise into an irreplaceable evergreen tree in the industry.”

If you wish to gain a deeper understanding of the digital transformation trends in the medical device industry and obtain more successful cases, please download and read Acloudier’s “White Paper on Digital Transformation in the Medical Device Industry”!

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This article "Building diagnostic equipment like making sandwiches? Acloudier helps with the simplification, cost reduction, and efficiency improvement of NAYO LAB" by AcloudEAR. We focus on business applications such as cloud ERP.

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