INTERNAL START-UP OF AN OFF-SHORE SUPPLIED RETAIL PRODUCT LINE
$100 MILLION RETAIL
A manufacturing company – recreation products
Private – Investment Fund
Years in business
The scope of The PEN Group, LLC’s engagement began in 2009 as an engineering assessment of supply alternatives for an injection mold product line.
Two options explored 1) develop in-house manufacturing capability or 2) buy an injection molding company capable of production the entire product line.
PEN provided a comprehensive business plan that investigated both options.
The company’s product line under review; resembled the “razor blade profile”, was growing at an annual 30% pace and had a off-shore source supplier base. The supply chain had 2 suppliers, however only one was considered stable.
PEN reverse engineered the manufacturing process requirements for the product. Based upon the reverse engineering findings PEN was able to develop a detailed business plan for each option.
Option 1: develop the in-house injection molding capability. PEN develop a turnkey plan and budget which outlined the; capital equipment, facility layout, staffing, mold design, quality plan an ROI.
Option 2: purchase an exist company. PEN conducted an analysis of capable companies. Included on the list were companies listed for sale as well as companies not listed. Onsite interviews, facility inspection and surveys were completed against a pre-determine profile. A business plan was completed for the 3 finalist selected.