Beauty News | Creating Strategic Alliances in Cosmetic Manufacturing
Creating a strategic alliance with your contract cosmetic manufacturer could be one of the most important decisions you can make. Finding the right fit with your manufacturer should be more than just about the price or promise. Strategic, operational and financial elements should be critical concerns before you take step in committing to a cosmetic manufacturer. Consider it like a marriage.
Strategic Fit
Does the contractor share your strategy and long term vision? While outsourcing allows you to focus on your business, sales and market development, a contractor who doesn’t have the ability to meet your volume demands now and as you grow and expand, can send your business backwards quickly. Critical issues to evaluate when looking at the right ‘fit’ is lead times for production, capabilities, their flexibility when your demand ramps up, and how they see you as part of their business.
Operational Fit
Does your manufacturer have the operational capabilities to develop and produce your products? There is no one size fits all clients model. If you have a tinted product, does the contractor have colour matching skills and colour cosmetic manufacturing facilities to ensure firstly quality and then consistent colour matching batch to batch. When your production is delayed due to poor planning by the manufacturer, and you have no stock to supply your retailers, the operation fit will be a key element to reflect upon. A good manufacturer will pass on projects where they don’t have the skills, ability to deliver or manufacturing equipment to meet your project standards, timelines and quality.
Financial Fit
Production and development costs are an important factor consider, but not the only factor. Are you benchmarking the same quality, delivery times and outcomes from one quotation to the next? Think strategic and operational issues. When you have poor quality or consumer complaints/returns, small difference in quotations will pale into insignificance. Is the ‘made in’ element an important aspect of your marketing? Costs will vary based on the complexity, quality outcomes demanded and country where the product is produced. Understanding your financial model is critical to your brand’s success.
Time for a Change?
New Laboratories doesnt have a one solution fits all approach. We look at your requirements with a 360 view to your current needs and the future of the relationship. New Laboratories research, formulation and manufacturing capabilities maybe the right fit for your brand. Contact us today to discuss your needs.