Business Overview
Outback Kitters is a manufacturer and distributor specialising in American truck accessories. They offer a wide range of products, including bull bars, roof racks, brackets, wiring harnesses and suspension systems. The company imports and manages the Australian market for leading U.S. brands, alongside producing their own products through third-party manufacturers. Outback Kitters aims to provide high-quality, competitively priced products, with a focus on local support, stock holdings and efficient distribution.
The Challenge
The key challenge Outback Kitters faced was the high cost of manufacturing in Australia, which made it difficult to scale the business. While local manufacturing allowed for quality control, the price point left little room for profit margin and hindered their ability to compete against competitors. The need for a more cost-effective solution while maintaining Australian quality was essential for business growth.
Additionally, Outback Kitters sought a supplier who could collaborate on unconventional product designs and provide flexible solutions. Their focus was on getting products like bull bars with pre-installed accessories, which would reduce installation time and improve efficiency for their customers.
HMWS’s Role
HMWS stepped in to bridge the gap between local support and cost-effective overseas manufacturing. They provided a dual advantage: the local presence and stock holding to reduce downtime, as well as overseas manufacturing capabilities that offered better pricing without compromising quality. HMWS began working with Outback Kitters by providing wiring harnesses and accessories, which laid the foundation for a successful collaboration. Over time, the partnership expanded to include bull bars, which led to a significant reduction in production costs. HMWS’s manufacturing process allowed Outback Kitters to access Australian-quality products at more competitive rates, creating a pathway to scale their business.
The Solution
Initially, Outback Kitters provided their designs, which HMWS reviewed and optimised based on manufacturing capabilities. For instance, HMWS improved the manufacturing process of the bull bars to include pre-installed accessories, which reduced installation time by 50%.
HMWS also provided flexible stock holdings, ensuring that products could be sourced locally in Brisbane and internationally, reducing delays and currency fluctuation risks. This approach made it easier for Outback Kitters to maintain consistent product availability and offer more competitive pricing to their distributors.
Key Outcomes
- Cost Reduction: The partnership resulted in a 33% reduction in the cost of producing bull bars, allowing Outback Kitters to offer better pricing to their dealers without sacrificing their profit margins.
- Improved Efficiency: With pre-installed accessories on their bull bars, installation time was reduced by 50%, making their products more attractive to customers looking for quicker solutions.
- Revenue Growth: Outback Kitters anticipates their in-house products will account for 50% of their revenue within the next year, doubling their current contribution. This shift is expected to increase overall profitability.
- Brand Portfolio Expansion: Outback Kitters are foreseeing a portfolio growth of over $1 million in the first year of their collaboration with HMWS, largely driven by the success of their new product lines.
Working with HMWS
Outback Kitters has found working with HMWS to be a seamless and collaborative experience. The flexibility and expertise shown by HMWS during the design and production phases allowed them to overcome significant challenges and optimise their product offerings. HMWS’s ability to take Outback Kitters’ designs and improve them to suit their manufacturing processes without requiring extensive changes was a key differentiator.
The local support, the ability to hold stock in Australia, and the transparent communication throughout the process were critical to the partnership’s success. According to Mike, the founder of Outback Kitters, HMWS has not only helped bridge the gap between local support and overseas manufacturing but has also provided a level of accountability that ensures products meet the high standards required.
Testimonial:
“HMWS came through as the perfect solution to bridge the gap between local support and overseas manufacturing. There’s a level of accountability with local businesses to ensure the overseas products meet the standards and quality we need. I couldn’t be happier with the results.”
“The effort they’ve put into refining our designs and creating prototypes has exceeded our expectations, and we look forward to continuing to work with them as we scale up.”
– Mike, Outback Kitters
This partnership has been a pivotal factor in Outback Kitters’ continued growth and success in the Australian market, combining innovation, cost-efficiency, and local support.