Outsourced Manufacturing Project - Energy Sector Client

Executive Summary: Strategic Outsourcing Engagement
Client: Australian electrical components manufacturer
Project Value: AUD 22.0M (annualised spend baseline)
Duration: Delivered within 12 weeks

PROECT BACKGROUND AND CALLENGE:

The client seen downward trend in sales revenue for FY 21 & 22 & identified a loss in market share due to new competitor entries. The Australian market was becoming increasing competitive and a new strategy needed to implemented to recapture their market leading position. After careful analysis it was decided to target three categories for potential outsource manufacturing of key product lines (printed circuit boards, cable assemblies, and low‑voltage switchgear) to a reputable partner to reduce cost, improve manufacturing capacity, and support growth in the Australian market.

Requirements: maintain product quality and IP protection, achieve reliable lead times for JIT supply into Australian assembly, and transition manufacturing with minimal operational disruption.

HUNTERSTONE SCOPE AND APPROACH

End‑to‑end outsourcing program: business case & TCO modelling, supplier market mapping, RFx management, technical supplier pre‑qualification, factory audits, pilot production and capability transfer planning, commercial negotiation, contract structure (service levels, IP & warranty), and implementation governance.

Supplier engagement: invited 20 prospective manufacturers; shortlisted and audited firms across four countries (Vietnam, Malaysia, Thailand, China).

Technical controls: defined product design for manufacture (DFM) adjustments, test protocols, tooling transfer specifications, and an IP/procurement governance framework including escrow and technical audits.

Logistics & go‑to‑market: designed consolidated freight, local Australian final‑assembly and testing cell, and safety stock policy to protect against disruption.

OUTCOMES AND COMMERCIAL IMPACTS

Manufacturing partners selected and onboarded with staged capacity ramp‑up; all production pilots completed and first commercial shipments delivered on schedule.

Final awards and verified annualised savings:

PCBs — awarded to supplier in Vietnam: AUD 1.20M savings; achieved quality targets and on‑time pilot completion.

Cable assemblies — awarded to supplier in Malaysia: AUD 0.95M savings; established automated production line and reduced defect rates.

Switchgear — awarded to supplier in China: AUD 0.60M savings; delivered tooling transfer and compliance to Australian electrical standards.


Aggregate annualised client savings: AUD 2.75M against baseline manufacturing cost.

Operational benefits: lead times to Australian assembly reduced by ~18% through synchronized production scheduling and consolidated freight; first‑pass yield improved through jointly implemented quality controls; local final‑assembly retained in Australia preserving high‑value jobs and enabling rapid customer response.

Strategic outcomes: long‑term supply agreements with performance SLAs, strengthened IP protection and contingency sourcing, and enhanced competitiveness in the Australian market leading to accelerated commercial bids and new OEM opportunities.

WHY THIS ENGAGEMENT SUCCEEDED

Clear alignment of commercial, technical and IP objectives from project outset.
Rigorous supplier qualification and in‑country audits ensured capability and compliance.
Phased implementation with pilot runs and Australian final‑assembly mitigated production risk.
Commercial terms linked to KPIs drove accountability and continuous improvement.

Summary
Hunterstone delivered a rapid, low‑risk outsourcing program that achieved AUD 2.75M in annualised savings, improved supply reliability and quality, preserved strategic local capability, and positioned the client for growth in the Australian market. The engagement demonstrates Hunterstone’s ability to execute complex manufacturing transitions in Asia‑Pacific while protecting commercial and technical interests of Australian manufacturers