Subcontracting production helps military equipment supplier to ’turn the corner’

The Requirement

Despite having an established product range - and a good reputation throughout the key military markets – this customer’s profitability was in decline. Opportunities for price increases were limited, and manufacturing costs continued to rise. SMS’ task: to help reverse the trend.

The Challenge

This company’s Finance Director had severe reservations regarding outsourcing. But when they received a generous offer for its factory site, the decision was taken to put SMS’ industry experience, procurement capabilities and flexible production processes to the test.

The Achievement

Outsourcing enabled the customer’s engineering department to retain full technical authority over its design documentation, whilst accelerating its responsiveness and product delivery times - improving service levels, and returning profits to their former levels.