Cosmetics & Personal Care
QuickBooks®
The business of contract manufacturing is fast-moving, complex and demanding. Because each client is a stand-alone business, a contract manufacturer must possess the expertise and specialized equipment to satisfy multiple entities and be able to plan production schedules according to multiple needs. Brand Labs USA is a contract manufacturer that was already succeeding in the skin care and nutrition industry. But they needed a software partner to help them turn adequate success into unlimited growth potential.
David Pollock has been in the health and beauty industry for over 30 years. His background showcases an impressive list of partnerships and industry recognitions, he’s a sought-after keynote speaker, a published author, and he was a leader in the safe beauty movement long before social media elevated it to a global stage. So when he founded Brand Labs USA a decade ago, success was almost guaranteed. And for the most part, that was true.
A few years into operation, Brand Labs had built a reputation as more than just a contract manufacturer — they became known as a creative house for developing new products. They partnered with roughly 20 well-known brands and had the complex inventory to prove it. “We have our own inventory of raw materials, chemicals and ingredients, we stock packaging materials that we supply to our clients, and a lot of the bigger brands have their own packaging that we’re responsible for as well.” As a full-service custom brand solutions firm, Brand Labs USA was capable of handling every aspect of formulating, manufacturing and marketing for their clients. And yet they knew they could still improve.
David Pollock, CEO at Brand Labs USA
Despite their success, David was ready to scale operations to the next level. “We were doing quite well. But as we grew, our inventory got out of control. You can’t manage a business on a napkin forever,” he remembers with a smile. With his team of leaders, David upgraded their software, started using cloud-based spreadsheets, and tried out several inventory modules. Still, a more integrative solution was needed. “Admittedly, I had never heard the word ERP before,” David said. But the search was on.
David remembers that the search committee ran into a significant roadblock right away. “A lot of our team had worked with big platforms like Fishbowl and BatchMaster at their previous jobs. They said, ‘If you go with those systems I’m not going to be able to help you,’ and that scared me.” His team had lived experience that told him bigger is not always better. So when they found Wherefour, it seemed too good to be true. “Wherefour checked all the boxes — functionality, usability, and affordability but we still didn’t believe it was possible. We still had doubts, so we made a big list of questions and got together with the Wherefour team for a demo.” David and his team were blown away by the demo. “That was a pivotal point for our company,” he says.
Though the functionality of Wherefour’s platform would prove to be a game changer, the Brand Labs team still had reservations. The team was skeptical that the work required for onboarding would pay off in the end. But David has one word of advice for companies who are facing this decision right now: “Commit.”
Brand Labs started using Wherefour’s inventory management features and improvements were immediate. And the best part? Wherefour’s team was there every step of the way. “Once we all agreed, we never looked back,” David remembers.
Now that Brand Labs has been using Wherefour for a few years, David has a new challenge: pinpointing the area of biggest improvement. “Wherefour has allowed us to be more efficient in every aspect of our business. From inventory to cashflow to scheduling to project management, everything is more efficient,” he says. “And the biggest feature is that all of our departments have eyes on what we’re doing.” David credits the simplicity of the user interface with the company-wide efficiency. “My entire team can see what’s going on. Everybody has eyes on the system.”
David Pollock, CEO at Brand Labs USA
It’s not only a feeling of improved teamwork and transparency, Brand Labs has data to support it. “Since implementing Wherefour, we’ve seen a sales increase of 15-20% and a reduction of inventory on hand of 20-25%,” reports David. When production timing and purchasing schedules are improved, cashflow is optimized and profitability follows. “But it goes even further,” he says. “Our quality control department now has the ability to use control points which has increased our testing thresholds.” The ability to perform mock recalls and on-demand reporting are just two functions that ensure data is accurate and accessible at all times.
Traceability is foundational to Brand Labs’ operations, as they adhere to multiple layers of regulatory compliance. “We’re routinely audited by the State of Florida, FDA, and SGS to the standards of ISO22716-2007. Additionally, most of our clients do independent audits on us, and we pass every time.” The enhanced traceability allows Brand Labs to excel at production planning, too. Some of their big brands use big ERP systems, but Brand Labs is able to anticipate their needs. “Because of Wherefour, we can actually plan their inventory better than they do,” says David.
Implementing Wherefour’s cloud-based ERP system has been a game changer for Brand Labs USA. “Wherefour has allowed me to reduce my operating expenses, reduce my inventory on-hand, increase my margins and increase my sales,” says David. And those are just the tangible benefits. David knows that there are bigger benefits already at play. “We’re growing, and with Wherefour better organizing us, it’s allowing us to continue to grow.”