Bioelectronics Corp (BIEL)

[srinsocal]

I believe bulk device shipping was normal until the KT Tape orders Tantalos

BIEL's staff could grab the appropriate box/attachment method for each order and add the ActiPatch from a bulk supply. When your purchase orders start reading 35,000 units you need to upgrade your assembly line.

Weighing 9 grams it takes 111 ActiPatches to equal one kilogram. Shipping is more efficent in bulk but the manpower to do assembly is a lot higher in the US vs China.

KT wanted a shelf ready product so BIEL or KT produced the 'clamshell' box and probably had CICD fill the boxes with the devices they manufactured. Pallets of the Wave were shipped direct to KT in Utah, ready to distribute with no further prep needed.

Going forward all large distributor orders, think STADA's MENA, will have reduced transit time and a lower cost by having CICD do packaging and direct ship to the customer.

IMO. when our volume OEM Partners like SAI Brands need to add their own sleeve or wrap to complete their 'Powered By ActiPatch' product it would be cost effictive to have have it done in China also.

Some may lament the reduction in the Frederick office involvement but the large orders BIEL is receiving require production changes and that is a good thing.