Stabilising an Escalated OEM Dependency and Restoring Strategic Planning Security

Key results at a glance
– Contractual stability restored after nearly two years of escalated negotiations
– Planning and decision-making security despite ongoing dependency
– Noticeable emotional and operational relief for the management team

Initial situation

The client is a mid-sized OEM supplier for medical technology devices, integrated into global supply chains.
– More than 70% of total revenue depended on a single, globally operating OEM
– Regulatory environment: ISO 13485, FDA requirements, worldwide marketing of end products
– High economic relevance of the customer combined with limited negotiating leverage

Challenge

Over a period of almost two years, the dependency led to an increasingly unstable situation.

– Unreliable call-offs caused severe fluctuations in production and workforce planning
– Repeated hiring and layoffs put significant strain on organisation and company culture
– Contract negotiations became deadlocked, emotionally charged and prone to escalation
– The owner-managed leadership team faced sustained psychological pressure, impacting decision-making and resilience

Approach

The objective was not merely to sign a new contract, but to regain control over a structurally asymmetric customer relationship.

Role & governance

• Neutral, moderating and structuring role between the parties
• Close collaboration with a specialised legal counsel
• Clear separation of responsibilities: moderation and scenario structuring vs. legal decision-making
  
  
  Structured execution

– Comprehensive contract review to identify critical risks, call-off mechanisms and escalation points
– Development of a robust call-off and planning logic instead of ad hoc decisions
– Scenario-based analysis (operational, financial, organisational)
– Preparation and moderation of key negotiation phases to actively de-escalate tensions
– In parallel: implementation of a self-help system to reduce dependency over the medium to long term


Results & evidence

The acute crisis was stabilised and transformed into a manageable, controllable situation.
– A new contractual framework with clear and reliable terms was successfully concluded
– Escalations were stopped and collaboration became predictable again
– Planning security restored, even though short-term dependency remains
– A realistic five-year roadmap defined to diversify customers and revenue streams
– Management regained clarity, composure and strategic decision-making capability

Important: The contract did not eliminate the dependency – it made it sustainable and manageable while alternatives are being built.