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Electronics & Semiconductor Case Studies Maintenance & Repair Services

Medical Device Manufacturer Saves $500k in Annual Costs with OTC’s Electronics Repair Program and Inventory Management Solutions

By OTC Insights Team on September 23, 2025

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OTC Insights Team

Established in 1963, OTC Industrial Technologies (Ohio Transmission Corporation) is one of the largest industrial distributors & service providers in the United States. We're committed to seeing industrial operations advance through expert technical solutions & unmatched support using our years of experience.

Overview

A multi-site life sciences manufacturer was struggling with inconsistent line reliability, rising replacement costs, and a sprawling parts inventory that slowed down maintenance, putting uptime and quality at risk in a tightly regulated environment. They needed a scalable way to run more efficiently: standardize critical components, adopt a repair-first approach to extend asset life, and secure fast local parts availability so every plant could respond quicker, reduce costs, and keep production moving.

  • Customer: Life Sciences Manufacturer (Medical Device)
  • Relationship with OTC: 20+ Years

Challenges

Across multiple plants, the manufacturer struggled with erratic line reliability tied to Original Equipment Manufacturer (OEM) component choices that didn’t hold up in their environment. Unplanned downtime and maintenance interventions mounted while the cost and lead time of buying new motors, Programmable Logic Controllers (PLCs), and Human-Machine Interfaces (HMIs) strained budgets and extended outages. At the same time, a wide universe of parts, with hundreds of near-duplicate pneumatic Stock Keeping Units (SKUs), congested the tool crib, tied up working capital, and slowed technicians looking for the right item. Without standardization across sites, it was difficult to sustain consistent quality and responsiveness in a tightly regulated setting. They needed an engineering and supply chain improvement solution, and fast.

Solution

The manufacturer turned to OTC to streamline their inventory management to enhance uptime and reduce costs. OTC led a plant-by-plant engineering audit to redesign manifolds and bills of material, standardizing critical pneumatic parts on proven SMC equivalents to improve stability and simplify maintenance. At the same time, OTC established a repair-first program for electronics, covering motors, PLCs, and HMIs, to extend asset life and reduce annual spend. The teams co-developed and validated a custom actuator that could be deployed across sites for consistent performance. Finally, OTC consolidated the SKU catalog and positioned substantial local inventory, enabling same-day/next-day parts availability while lowering on-hand stock and carrying costs.

Results

  • Uptime & Reliability: Component standardization and engineered redesigns improved machine stability and reduced maintenance interventions.
  • $500K–$700K Annual Savings: Repairing motors, PLCs, and HMIs instead of replacing them delivered significant cost savings.
  • Faster Response & Lower Carrying Costs: Stocking $500K in local inventory allowed for same-day/next-day access while allowing plants to hold less inventory.
  • Multi-Site Scalability: The custom actuator, validated through research and development, and quality checks, is now deployed across multiple plants, freeing engineers and maintenance to focus on higher-value projects.

Don’t let supply chain and inventory management issues slow you down. Turn to OTC for custom-engineered solutions and simplified inventory management systems that create efficiencies and reliability. Contact OTC today.