Case Study: Tremendous Adversity
The owner of a small, online e-commerce website was having trouble keeping her inventories stocked. This well-educated and driven entrepreneur had formerly contracted with another manufacturer to produce and deliver products to her business for fulfillment. Ten months had passed since she had placed a $35,000 down payment and order of product with the manufacturer, but the product was not forthcoming.
The situation had become dire when stock-out warnings had be to be placed on all product pages across the business’ website. Her innovations catered to a market niche that was ready and willing to purchase. Without a manufacturer she could rely on, however, she had to turn to a provisional laboratory and processing area in her own home to fill orders.
On February 12, 2012 BPI received a call from this entrepreneur, and with urgency, BPI set out to develop samples of her formulas for approval. The first step was to have BPI convert the formula processing instructions, which were optimized to work with household processing implements, into large-production, processing instructions.
Her inventories began to fill and the stock-out warnings were removed from her website. But, this is where the story gets interesting.
Second, BPI worked with the entrepreneur to create thoroughgoing specifications for product design so BPI could ensure quality control on all production.
Her inventories began to fill and the stock-out warnings were soon removed from her website. But, this is where the story gets interesting.
Because of the client’s embattled condition, BPI made the unprompted decision to streamline the product ordering process. BPI sourced all supplies, materials, and packaging for her orders, then negotiated lower prices, resulting in an overall lower unit price for her manufactured product. BPI even located a product fulfillment house locally in Salt Lake City that could receive her website orders and ship the product.
The fulfillment house was able to alert BPI about redline inventory conditions. BPI accordingly completed logistics and produced the purchase order for the customer to sign. Once the order is signed, all raw materials and packaging are ordered, produced, and delivered to the fulfillment center where orders from her website can be fulfilled.
In spite of the client’s desperate plight, stock-outs will not threaten her company again. Her formula designs and company’s marketing are owed the credit for the success of her products, and BPI Labs is honored to share in her achievements.
Today the client’s online business is thriving. Even more, the client has had the thrilling opportunity to begin stocking a major, national retail outlet with her products.
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