A startup often challenges even when it makes a decision on its supplier selection. Having an established and experienced supplier like Samsung would be the best scenario, but often that’s not the case for most due to the huge market uncertainty.
Healcerion, which develops a portable ultrasound device (picture above), has faced similar problems. Its main concern is the quality level for both ultrasound and wireless imaging in order to get approved as a medical device. Of course, it tried a big and experienced supplier (A). Unfortunately, those (A) suppliers, who work with the big players like GE or Phillips, were not interested in Healcerion because of the small order quantity. As an alternative, Heacerion decided to work with a supplier (B) that is less experienced but willing to help on its technological performance. Although the supplier (B) doesn’t have as much reputation or experience as the (A) suppliers, it provides the performance experimentation that allows the device to improve to get FDA approval and eventually realizes the market. Healcerion and the supplier (B) currently are collaborating for a win-win game. Now the question is, what should the supplier (B) do to insure this relationship even after Heacerion grows?