Smart and Cost-effective Ways to Contract Medical Device Sales Reps

Smart and Cost-effective Ways to Contract Medical Device Sales Reps

- March 8, 2018

Contracting employees or using contract sales reps has been proven as a tremendous help for medical device companies to lower costs, increase agility, and boost their return on investment.

In fact, according to a recent survey of 94 respondents in the medical device and service provider industries, cost reduction and improved service delivery are two of the primary drivers for contracting (KPMG survey).

Contracting implies ‘sourcing outsiders’ to perform various functions. There are almost endless advantages to hiring professional teams specializing in sales and tech support, product development, research, commercialization, distribution and team management for pre to post-launch services.

Related Reading:
 Top Sales and Service Support Designed for Medical Device Manufacturers and Vendors


Contracted Service Usage Levels

Information Technology (IT) is still the most widely adopted contracting function.

According to the survey results, 55% reported the IT function was either contracted or in the process of doing so, with approximately 24% reporting that the function remains in-house.

Of the amount that remains in-house, more than half of respondents said it is being considered for contracting. The most common areas in the process of being contracted are Research and Development (R&D) followed by Human Resources (HR), as seen as a practical way to contain budget pressure from healthcare and R&D.


Growth of Contracting Medical and Healthcare Services

The medical device and pharmaceutical sales market are experiencing explosive growth in recent years. According to the European Medical Devices Association, Eucomed, the global market for medical device sector alone is valued at $184 billion.

Major Market Drivers that Have Contributed to this Growth:

  • A growing and aging population
  • Increased active lifestyles
  • Tendency and desire to live longer
  • New and advanced technologies/breakthroughs
  • Worldwide market penetration, and
  • Manufacturing process advancements

The use of contracted medical services has been embraced by the medical device and pharmaceutical industry as a method of saving time and resources while ultimately increasing their bottom line, quickly and more efficiently.

The process requires a great deal of communication and management expertise to maintain standards and achieve the right results. See how the Rep-Lite team works to streamline the manufacturer/vendor relations process.

Device Contract Sales Can Be Done at Two Significant Levels:

Traditional Business Contracting – processes sourcing (marketing, customer services, team training, HR team building, distribution, business development)

Product Development – (technology-based) product design to development that may also include clinical research, logistics (warehousing/delivery) and more.

Sourcing design to development-specialty areas results in a product utilized by vendors under their own brand name. Typically, this can be completed for a fraction of the costs as compared to the company/vendor having the product manufactured in-house.

How Manufacturers are Contracting Medical Device Sales Reps And Making It Work

Medical device sales contracting is a very cost-effective solution to research, design, development, launch, distribution, sales team development, and sales team management.

Major Advantages:

  • Cost cutting
  • Time-saving – speed to market – allows manufacturer’s team members to focus on other operational functions and needs
  • Geographic expansion – increasing bottom line
  • Business process improvements

Current levels of contract reps usage show significant opportunity for both the buyers and suppliers among the medical device manufacturers and service providers surveyed. IT was identified as the most mature area of contracting, with more than a third of respondents (36%) reporting two or more contracting years under their belt, followed by another 20% each for R&D and customer care.

See a customized approach for recruitment, team management, HR, sales, tech support, and other case coverage and support services offered by Rep-Lite.

Savings Built into the Model:

Companies that make sound investments to reduce operational costs, increase their agility and adaptability, ensure compliance and efficiency in their delivery models will become the new market leaders.

Consider these next steps…

  1. First, objectively review where your organization is and where you want it to go in the future.
  2. Review regulations regularly and look for regulatory competence from your medical device rep contractor.
  3. Take a look at current relationships and shared services capabilities both within and outside the industry.
  4. Review your service delivery strategy. How are your vendors identified, evaluated and responsible for the services and functions they are providing?
  5. Geography – are all current markets being served? Are you prepared for expansion into future markets? Do some markets pose geopolitical and/or environmental related risks?
  6. Technology – consider whether existing platforms support the integration of processes and providers along the supply chain. Is it a competitive asset? Or is it a risk?
  7. Culture – will it support a governance structure that provides comprehensive oversight of services, including performance metrics? Even under changing regulations, situations and environments?


Obviously, there are risks and benefits to consider, but many innovative medical device and equipment vendors are seizing great opportunities by contracting medical device sales reps into their business model strategies.


With 27 years of experience in various medical device industries, Rep-Lite has a proven track record of success. Rep-Lite is changing how manufacturers accomplish business in the current environment by providing cost-efficient solutions using overhead reduction revenue generation.

Call Us at 1-833-REP-LITE or Schedule A Consultation to learn more about our step-by-step process.

Rep-Lite only provides high-level sales and technical support to surgeons and hospitals and works closely with manufacturers to customize the program to their specific needs and challenges.

We would love to hear from you! If you have questions and/or suggestions, please leave a comment below.


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