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Case Study: Difficult Transitions

  • May 21, 2018
Case Study: Difficult Transitions

The Background

A large, multi-million dollar brand in Salt Lake City was engaged with another personal care manufacturer in the Salt Lake City area in the development and production of a new personal care kit comprised of 4 skin care products. This would be the brand’s first foray into the personal care market, making this product launch an especially important company milestone.  The deadline for the kit’s introduction into the market was fast approaching, and the client was beginning to realize that the new kit wouldn’t be delivered on time. The client mentioned their complications in a meeting with a local packaging supplier, and the supplier confidently recommended BPI Labs as a manufacturer they should contact.

Disappointment Realized

The brand then called BPI’s president to assess our capabilities and discuss new project development for future releases.  Shortly after the phone call, the brand learned that their introductory kit had been delivered with a 20% shortage on one of the items. This would mean the brand couldn’t deliver on 20% of the kits!  This is where the story takes an interesting turn.

 


…would be unable to deliver on 20% of the kits they were planning to introduce into the market! This is where the story takes an interesting turn.


 

Unexpected Providence

The item BPI’s client had been shorted was a hand wash. Our client’s marketing department, having just learned of the conversation their company had with BPI, called our company president back and asked if BPI could quickly make up their 20% shortfall. Because BPI Labs has created many hand washes, we also happened to have some hand wash material in stock. After quickly qualifying the material, overnight shipping a sample for their approval, and receiving packaging for their job, BPI had the job filled, packaged, and delivered in under 2 weeks.  BPI’s client was delighted with the response and was able to make a full introduction into the market on time; the milestone was achieved!

 

Transitioning Gets More Complicated

Not long after this episode, BPI’s client decided to source all production of the kit items to BPI, and the client requested that BPI duplicate all the formulas for the kit. BPI was able to complete duplication work on 3 of the 4 items easily but we recommended that the client seek to purchase the formula from their current supplier in order to maintain a continuous user experience with the fourth product.

BPI then consulted with their new client on how to acquire a formulation, including: processing instructions, exact weight on weight percentages, material specifications, and other oft-forgotten details. The formulation was eventually purchased, but with one troubling outcome. After the purchase, the previous manufacturer would not release the fragrance rights to the formulation! Without the release, the fragrance supplier could not supply BPI with the necessary proprietary ingredient. BPI then turned to its supplier relationships to duplicate the fragrance, and a substitute was quickly identified as being identical to the one BPI’s client had to abandon.

Conclusion: BPI Labs Competes on Extra Effort

The customer’s foray into the market was not only on time but entirely successful.  BPI now produces all four items for the kit, and many other personal care products for its client.  BPI’s client has now transitioned all of its products into turnkey production and their volume has increased as their products succeed in the market.

 


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