A 20% cost reduction without changing the product
Established supplement brand (Canada) · Produced in British Columbia
An established Canadian brand had outgrown the manufacturer it started out on, and was coordinating ingredients, jars and lids across several vendors itself. We reproduced the product exactly with a manufacturer that had capacity for it, bought the ingredients at source, and took the vendor management on. Total cost came down 20%, and every batch order gives them about eight hours back.
- Lower total cost
- 20%
- Saved on every batch order
- 8 hours
- Vendor to manage instead of several
- One
The brief
The brand was already selling. It had started the way plenty of small brands start, by producing through another brand's manufacturer relationship, which gets a first run made quickly but leaves you on somebody else's terms. By the time they came to us they had outgrown it, and wanted a manufacturer with capacity for their volume and better pricing and terms of their own. They were also doing all the sourcing themselves. Ingredients came through a middleman, jars and lids came from elsewhere, and holding those threads together took a round of coordination before every batch could be made.
Find a manufacturer with room
We placed the product with a manufacturer in our network that had capacity for the volume they were doing, on better pricing and terms than the arrangement they were leaving. The facility has room for them to keep growing into.
Reproduce the product exactly
Nothing about the product itself could change. Their customers had been buying it as it was, and a move that altered the formula or the packaging would have cost the brand more than the transfer saved. We reproduced it exactly and matched the packaging, sourcing jars and lids identical to the ones they were already using.
Buy the ingredients at the source
Their ingredients had been arriving through a middleman. We buy direct instead, which takes a layer of margin out of every batch.
Take the vendor coordination off them
All of it now runs through vendor relationships we already hold. The brand places a batch order with us rather than lining up ingredients, jars, lids and a production slot separately. Those eight hours an order are coordination they no longer do.
The outcome
The product their customers buy is unchanged. Underneath it, the manufacturer has capacity for the volume they are doing now, the ingredients come from the source rather than through a middleman, and the packaging arrives with everything else instead of being chased separately. Their total cost is down 20%, and a batch order takes about eight hours less of their own time than it used to.
We work under NDA, so this client is described rather than named. That is deliberate: the discretion we extend to them is the same discretion we extend to you.
What this run used
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