Plastic Storage Box
An educational product supplier had become involved with outsourcing the
wrong way and created a problem. They had been buying a particular plastic
storage box from a competitor. To no surprise, their shipments were late
and quality was less than it could be. This company decided to make it
themselves but found that to do this domestically was not cost effective.
So they looked for a foreign source. They found a “trading company” that
was set up to generate business for one factory in Taiwan. This trading
company sold them a plastics injection mold of poor quality and started
production of product in Taiwan. Because the tooling was of inferior quality
and would not run properly or fast enough, the trading company soon found
that they could not continue to manufacture and sell these plastic boxes
at the price originally quoted. This trading company talked the company
into paying for a second mold, which also turned out to be of poor quality.
When the second tool would not run good parts, the trading company just
threw in the towel and refused to run the parts any longer.
This educational product supplier asked TGC if we could
help. We immediately moved the second mold from Taiwan to
Hong Kong into an excellent toolmaker we had worked with
before. This toolmaker managed to rework the second mold
to a point that the mold would run acceptable, if not excellent,
parts. Since this was a low cost item, shipping was a significant
part of the final cost. Therefore, we moved the reworked
tool to a facility in Mexico to run temporarily until we
could have a new production mold made at a quality mold maker
in the U.S. When the mold was completed, we moved it to Mexico
to replace the inferior mold. The final quality of the product
was excellent and much better than the one that this company
had been buying from their competition. Their cost was about
40% less. Their volumes increased over 200% within 6 months.