Start-up an Off-shore supplied retail product line

Company Description: $100 MM manufacturing company

Markets Served: Recreation Products

Ownership: Private–Investment Fund

In Business: 75 years

Business Engagement Initiative:
The PEN Group, LLC was engaged in 2009 to conduct an engineering assessment of supply alternatives for an injection mold product line. We explored two options:

  1. Develop an in-house manufacturing capability
  2. Buy an injection molding company capable of producing of the entire product line

The PEN Group provided a comprehensive business plan that evaluated both options.

The company’s product line we evaluated resembled a “razor blade profile” and was growing at an annual rate of 30% utilizing an off-shore source supplier.  The supply chain included two suppliers with only one considered stable and reliable.

The PEN Group reverse engineered the manufacturing process requirements for the product line. Based on our findings, we were able to develop a detailed business plan for each option.

Option 1: Develop an in-house injection molding capability.  PEN develop a turnkey plan and budget which outlined the:

Capital equipment
Facility requirements and layout
Staffing resource plan
Mold design requirements
Quality plan
Specific ROI targets

Option 2: Purchase an existing company.  PEN conducted an analysis of capable companies. We included both companies that were listed for sale as well as companies not listed.  Onsite interviews, facility inspections and surveys were completed based on a pre-determine profile and a business plan was completed for the three finalists. A final decision was then made by the owner-team.

TO LEARN MORE ABOUT HOW WE CAN HELP YOUR COMPANY

Call us today at 585-389-1294

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