Applied Medical is on a mission to improve clinical care through technology and to increase the affordability and accessibility of healthcare. We talk to Rob van der Meer, President Europe to find out why this Californian medical device company set up its European headquarters in Amersfoort and how their vertical integration approach is helping to reduce healthcare costs.
Healthcare costs are rising around the world, and more healthcare providers are turning to innovative technology solutions to reduce the burden of increased costs and escalating demand – without compromising care.
US technology company Applied Medical develops, manufactures and distributes medical devices that improve clinical care and address the needs of surgeons and patients.
When Applied Medical started the search for its European headquarters in 2006, the Netherlands ticked all the boxes: a multi-lingual, skilled workforce, a stable and innovative economy and excellent IT and transport infrastructure.
Rob, explains: “We chose Amersfoort, because it’s a growing city, and the Utrecht region has much to offer international colleagues in terms of history and cultural activities.”
More affordable land prices than Amsterdam and space to develop were also contributing factors.
The Amersfoort headquarters supports sales teams across 17 European countries, it has a central distribution warehouse and a cleanroom for the production of many of its products. After establishing the Sales team, the site has expanded to include personnel, customer services, finance and accounting IT, distribution, branding, clinical development, regulatory affairs, and legal.
Applied Medical received national and international support to establish and expand from the municipality of Amersfoort, the Netherlands Foreign Investment Agency and ROM Utrecht Region.
Technology is the driver of change. Advances in surgical technologies such as minimal invasion techniques continue to lead to improvements in patient safety and promote better healthcare outcomes.
As part of its commitment to innovation, Applied Medical has a portfolio of more than 700 medical devices and a pipeline filled with next-generation breakthrough technologies for a wide range of surgical specialties, including general, colorectal, gynaecological, obstetric and orthopaedic surgery.
Investment in R&D development and advanced manufacturing technologies is critical to develop the products and processes to meet customers’ needs and offer unrestricted choice for hospitals and healthcare providers.
Vertical integration is a phrase you often hear at Applied Medical. But what does it actually mean in practice and why is it so important?
A vertically integrated company maintains control over its manufacturing process by integrating elements of the supply chain instead of outsourcing its operations to third parties. Applied Medical designs and manufactures products in-house as much as possible at its facilities in California and Amersfoort. Everything from raw materials for mould manufacturing and metal sheets to components for assembly, packaging and distribution. Rob, explains: “One of the most important and unique facets of our business model is vertical integration. This means we can streamline our operations and ensure high-quality products.”
Vertical integration allows the company to implement product improvements and develop new technologies quickly and efficiently, reducing the time it takes to convert innovative ideas into products. It also allows Applied Medical to maintain absolute control over product cost and quality and to guarantee availability.
A new production facility was built in Amersfoort in 2017, and a dedicated sterilisation facility is due to open in early 2023. Its commitment to innovation can also be seen in plans to rapidly grow the production team and the recently added R&D department over the next few years. A new automation department will design and manufacture machines to automate the production process in Amersfoort.
“Our ambition is to double our activities in Europe in the next five years by expanding our product portfolio and producing and sterilising more of our products in the Netherlands,” says Rob.
Applied Medical currently employs 921 people in Europe, including a sales force of 264 across 17 countries. In Amersfoort, 150 people work in administration, 157 in sales, marketing and distribution, 58 in R&D and 292 in production.
This rapid growth will not only bring efficiency benefits and increase regional employment, but it will also address the critical need for better affordability in today’s squeezed healthcare market.
