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Ostomy: Upstream outsourcing increased downstream resources.

Situation

  • An ostomy business customer selling Tytex branded products as well as producing own garment range was spending a lot of time on sourcing materials, dealing with supplier and managing a small scale production  himself.
     
  • The result was limited focus and resources left to drive the commercial organisation and sales 

Action

  • Based on Tytex's strong product performance and an excellent customer relationship with Tytex, the customer decided to outsource the design and manufacturing of all main products to Tytex to reduce complexity and free up cash flow.
     
  • A joint transition plan with key deliverables and milestones were agreed and implemented

Outcome

  • The manufacturing switch was completed within nine months and according to agreed product specifications.
     
  • Due to the released ressources, additional sales people were hired and the marketing budget was increased
     
  • Customer was now able to spend more time on promoting sales and marketing  - and spend more time on his customers.
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