ITL Limited needs to adjust its outsourcing strategy (third party sterilization contract) and currency movement problem immediately to address its medical devices and procedure packs for healthcare market in Australia while expanding their target market in North America, Europe and Asia. The company offers blood banking and hospital products to improve the safety of healthcare workers which have high demand in the public, private and different NGO based healthcare and hospitals. ITL’s strength includes a strong reputation as a market leader for its innovation (core competencies of the company), the creation of technological assets and highest consumer loyalty. Moreover, having a strong firm’s infrastructure and talent of people, ITL utilize the current and up-to-date technology and produce novel product. Among some of the weaknesses its supply chain process wasn’t satisfactory due to the poor implementation of outsourcing strategy. The company got a huge blow from its third party sterilization contractor in 2006 which adversely affect in the 2007 financial year with the sales down from $18 million in 2006 to around $17 million in 2007. The lack of consistence and reliable manufacturing contractors and poor supply chain process prompted ITL to take control of that part of business. In this regard ITL has addressed a number of significant changes under the restructuring initiatives which later proved as worthwhile decision. Because After a period of restructuring, the company have consolidated and grown the second half of the year 2007 to record revenue increase of 18% with an after tax profit of $1.5 million. Moreover, the company have been loosing huge amount of profit due to the currency movement problem which is still continuing.
ITL Limited needs to adjust its outsourcing strategy (third party sterilization contract) and currency movement problem immediately to address its medical devices and procedure packs for healthcare market in Australia while expanding their target market in North America, Europe and Asia. The company offers blood banking and hospital products to improve the safety of healthcare workers which have high demand in the public, private and different NGO based healthcare and hospitals. ITL’s strength includes a strong reputation as a market leader for its innovation (core competencies of the company), the creation of technological assets and highest consumer loyalty. Moreover, having a strong firm’s infrastructure and talent of people, ITL utilize the current and up-to-date technology and produce novel product. Among some of the weaknesses its supply chain process wasn’t satisfactory due to the poor implementation of outsourcing strategy. The company got a huge blow from its third party sterilization contractor in 2006 which adversely affect in the 2007 financial year with the sales down from $18 million in 2006 to around $17 million in 2007. The lack of consistence and reliable manufacturing contractors and poor supply chain process prompted ITL to take control of that part of business. In this regard ITL has addressed a number of significant changes under the restructuring initiatives which later proved as worthwhile decision. Because After a period of restructuring, the company have consolidated and grown the second half of the year 2007 to record revenue increase of 18% with an after tax profit of $1.5 million. Moreover, the company have been loosing huge amount of profit due to the currency movement problem which is still continuing.
