Power Tool Portfolio Transfer: Strategic Outsourcing of Corded and Battery Families
After several years of joint evaluation, the power tools supplier decided to outsource both battery-powered and corded product families to VIDEOTON in order to remain price competitive. The scope included multiple legacy products approaching end of life, requiring a flexible and cost-efficient manufacturing solution.
- Driver: Cost-driven portfolio transfer
- Member company: VT Elektro-PLAST Kft., Hungary
- Country of origin: Germany
- Production Area: 1400 sqm production / 700 sqm warehouse
- Direct headcount: 40-60
- Suppliers / PNs taken over: 300 / 1380
- Product Variants: 155
- Transfer time: 6-9 months
Background of the transfer project
VIDEOTON was already in contact with the customer and jointly evaluated the opportunities for several years. To remain price competitive, the customer decided by the end of 2023 to outsource both battery-powered and corded product families, including several legacy products nearing end of life.
VIDEOTON's solution
With sufficient production space available, the project focused on move-in and setup. However, limited availability of incoming materials delayed the production ramp-up by 3–4 months. Once sufficient materials were secured, production increased rapidly.
