Customer Success Story: Transforming Constraints Into New Possibilities
NutraScience Labs proved to be “The Solution” for a successful dietary supplement brand facing a production issue due to non-conducive climate. A dynamic manufacturing & warehousing solution developed by us ensured complete product fulfillment for the client in a high-demand scenario.
The client was in need of a secondary manufacturing partner who would charge a fair price, to manage their excess production and fulfill the increasing demand for their product.
The ChallengeThe primary ingredient in the final product was sensitive to humidity, which posed a problem in production during the moisture-laden months. This period proved to be a bottleneck –
- It was almost impossible to manufacture the finished product during the humid summer months due to the resulting machinery and scheduling issues.
- The inventory and order fulfillment were being completely jeopardized, and they were not able to meet the increased demand.
- Precious time and material were being wasted.
- Profits were being eroded.
We created a long-term inventory and manufacturing plan after assessing the said constraints and completing a thorough analysis to exploit this bottleneck. Our finance team aligned with their experts to estimate the upcoming demand to produce enough inventory and warehouse it during drier months, to fulfill the requirement during the humid period.
- Understanding the Constraint
Understanding and exploiting the constraint to tailor production capabilities likewise was necessary to leverage the increasing demand. A strategy was devised that would turn the constraint into an advantage.
- Meticulous Planning
In partnership with the client’s production and finance team, a thorough analysis was conducted for steps involved in sourcing, manufacturing, scheduling, routing and dispatching the goods. The cost of holding the inventory and other warehousing expenses were estimated. Accordingly, a schedule was chalked out to plan the production in advance and meet the demand during non-conducive months. Goods were stocked according to their shelf life, estimated orders, and the lead times involved in delivering the products.
- Efficient Management of Resources
By maximizing the capacities during months when the climate was suitable for production, resources could be managed efficiently. During the off-season, the focus was shifted towards the maintenance of machinery, inventory management, and improvement of operational functions. The workforce was directed towards maintenance of stock, reducing wastage, and ensuring that stock levels were maintained as per current market demand.
A collaborative and long-term manufacturing and inventory plan that increased sales.
Our long-term inventory and manufacturing plan resulted in:
- Increased sales for the brand - since then, we have become the primary manufacturer for this brand.
- Increased viability of surviving competition – we have ensured that increased demand is being met, and the client has seen new levels of success.
- Efficient resource management – this has resulted in time and cost savings for the client and also provided then with room to focus on other areas that needed improvement.
Is your dietary supplement brand currently facing a constraint or obstacle that's preventing its growth? Contact NutraScience Labs for a holistic solution. Call (855) 492-7388 to speak with one of our representatives or send us your request for a free price quote.