The Digirad Outsourcing Strategy

In early 2013, we made the decision to outsource production of our Digirad Ergo, X-ACT, and Cardius® XPO Series camera modules and gantries. We chose to partner with a local manufacturing company, Spectrum Assembly Inc. (SAI), known for its cutting-edge technology and equipment. This contract manufacturing arrangement allowed us to take advantage of highly specialized technology with both scalability and consistency of quality.

Why Outsource?

Digirad’s manufacturing partnership with SAI facilitates more efficient use of labor, faster turnaround times, and access to newer, state-of-the art equipment. SAI’s flexible, automated approach yields products with a consistent quality on par with the high standards we’ve set with our products over the years, which is vital to maintaining our clinical and electronic edge. Contrary to popular assumptions, outsourcing is actually a consistent driver in the quality of our camera modules.

Additionally, adopting a build-to-order system enables us, over time, to reduce our standing inventory and improve the availability of assets as we shifted to manufacturing on an as-needed basis.

In-House Quality Control and Reviews

Although it made sense to transfer production of camera modules and gantries to SAI, we chose to keep two of our key manufacturing processes in house: Head Integration & Testing and Final System Assembly & Testing. This selective focus grew out of our desire to apply our technical expertise and resources to those processes we do best. By having the final assembly and testing of detector heads and imaging systems done at our Poway facility we can verify, test and ensure that each new camera meets our high quality standards.

Looking Ahead

Contract manufacturing is a key component of our strategic plan to update and enhance our current products. As we find more effective ways to allocate our resources, Digirad is better positioned to take advantage of new opportunities for growth and expansion. Our partnership with SAI allows us to meet market demands while producing advanced solid-state nuclear imaging cameras of the highest quality.


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