Presentation on theme: "Because the future is not disposable? Mike Hyslop."— Presentation transcript:
Because the future is not disposable? Mike Hyslop
Overview The South African Market History of Priontex Market Penetration Strategy Threats Business Growth Strategy Is the Future Disposable?
The South African Market Private SectorGovernment SectorTOTAL Population7 million42 million49 million Health Spend52%48%100% Cotton dominated market – internally processed High performance disposables Priontex – outsourced sterile re-usable drapes and gowns
History of Priontex Started in 2001 by Dr Stefan Metzker Vision: In response to need for affordable improved protection – Develop and manufacture microfibre barrier drapes and gowns – Local and export markets Result – A World class PU laminate was developed – An OR sterile drape and gown services business 2006 – International partner: Micronclean Worldwide Priontex now has an internationally recognised laminate and OR laundry/ cleanroom services business employing over 140 staff with turnover of over EU 5million
Market penetration strategy Challenges – To convince clients of the need for the services – To outsource an in-house service – To prove cost effectiveness Solutions – Built strong relationships in the OR environment – Developed a costing model – Track and monitor post implementation – Prove operational reliability. Key selling features – COST EFFECTIVENESS – Operational efficiency – Reduced head count – Reduced infection risk – Environmental benefits
Threats Strong rand benefits disposables imports- competitive pricing Inhibitive cost of servicing outlying clients Pressure to cut cost of healthcare Conservative decision making process
Growth strategy Position business as true solution provider Flexible production facilities Willingness to innovate and combine disposables and re-usables Build strong relationships, excellent services cost effectively Innovate – Example – gown packaging
Gown packaging CONSUMABLES COSTSRe-usableDisposable High Performance GownR6.50R2.30 Potential saving to clientR4.20 (EU 0.42) PACKAGING DIFFERENCES Wrap paper <50% of size in disposable Outer wrap for disposable ¼ of cost of wrap paper No plastic wrap around pack for disposable No indicator strip inside the disposable pack Cheaper & smaller labelling for disposable
Is the future disposable? Conclusions Re-usables are here to stay, but So are disposables! Environmental benefits must be exploited, but will need legal backing to be effective Mutual benefits must be sought, through elimination of waste internally and at clients. Review over-engineering Risk exists in SA to convert from cotton directly to disposables Be relevant, be flexible.