The Challenge

Production Insourcing

This leading safety products manufacturer had a long established relationship with a sub-contractor who was sourcing and assembling a part of its product range. Intellectual property (IP) and quality issues lead to our client ending this relationship.

THE RESPONSE

TXM identified all the 100+ components and processes involved in manufacturing this range of products and located qualified and suitable alternative suppliers. TXM then managed an RFQ process to select new suppliers in Australia and China and managed the establishment of these new supply relationships along with setting up processes to source and assemble the products.

THE RESULTS

An annual cost saving of $1m or 30% of total spend was achieved. Supply of the product was transferred from the subcontractor to in-house manufacture with minimal supply chain disruption. Quality and protection of our client’s IP was significantly increased.

Contact TXM today to find out how we can transform your business.