Optimizing Supply Chain and Inventory Management

Formology Lab, a prominent private label and contract manufacturer in the beauty industry, approached us to optimize their supply chain, inventory management systems, and accounting workflow. Our team acted as Cin7 consultants, breaking down the optimization process into several projects, including process flow mapping, SKU master updates, and inventory corrections. Through our ongoing support and development of inventory analytics and financial reporting, we helped Formology Lab maintain efficient operations and healthy cash flow, ensuring they meet customer demands and continue to grow in a competitive market.

Client Background

Formology Lab, based in the USA, is a full-service private label and contract manufacturer led by seasoned beauty industry veterans. The company guides brands from initial concept through formulation, regulatory compliance, and marketing strategy, all the way to manufacturing, filling, and shipping. As a trusted partner for several globally recognized beauty brands, Formology Lab relies on robust supply chain and inventory management systems to maintain their reputation for excellence. They reached out to us to review and optimize their existing systems and processes to better meet their operational needs.

Objectives and Goals

Supply Chain Optimization: Review and optimize Formology Lab’s existing supply chain and inventory management systems to improve operational efficiency.
Accounting Workflow Enhancement: Streamline accounting workflows to ensure accurate financial reporting and cash flow management.
Ongoing Support: Provide continuous support for day-to-day operations, ensuring the smooth execution of supply chain and accounting tasks.

Challenge

Issues Faced by Company

Outdated Process Flows: Inefficient process flows were hindering the company’s ability to manage inventory and meet customer demands effectively.
SKU Management Issues: Inconsistent SKU management led to inventory inaccuracies, complicating order fulfillment and procurement planning.
Inventory and Accounting Discrepancies: Discrepancies between inventory data and accounting records affected the accuracy of financial reporting and cash flow management.
Operational Inefficiencies: The lack of streamlined processes created bottlenecks in both supply chain management and day-to-day accounting tasks.

Issues Faced by the Client

Inefficient Process Flows: Existing process flows were outdated and not optimized for the company’s growing operational needs.
SKU Master Inconsistencies: Inaccurate SKU management resulted in inventory discrepancies, affecting procurement and fulfillment processes.
Inventory Number Discrepancies: Incorrect inventory data led to challenges in maintaining accurate financial records and managing cash flow.
Operational Bottlenecks: Inefficient workflows created delays and bottlenecks in both supply chain management and accounting operations.

Business Impact

Inventory Management Issues: Inaccurate inventory data led to overstocking or stockouts, impacting customer satisfaction and fulfillment timelines.
Cash Flow Disruptions: Discrepancies in accounting and inventory records affected the company’s ability to manage cash flow effectively.
Operational Delays: Inefficient processes slowed down operations, increasing the complexity of day-to-day tasks and reducing overall productivity.

Our Approach

Initial Assessment and Discovery

Initial Review: Conducted a thorough review of Formology Lab’s existing supply chain, inventory management, and accounting systems, identifying key areas for improvement.
Project-Based Optimization: Broke down the optimization process into multiple projects, including process flow mapping, SKU master updates, inventory corrections, and Cin7 training.
Ongoing Support: Provided continuous support for inventory analytics, financial reporting, and day-to-day operations to ensure long-term efficiency and accuracy

Strategy and Planning

Process Flow Mapping: Mapped out existing process flows to identify inefficiencies and areas for improvement, creating a clear plan for optimization.
SKU Master Updates: Standardized SKU management to improve inventory accuracy and streamline procurement and fulfillment processes.
Inventory Corrections: Implemented inventory corrections to align data with actual stock levels, ensuring accurate financial reporting and cash flow management.
Cin7 Training: Provided training to Formology Lab’s team to ensure they were equipped to manage the optimized systems effectively.

Implementation Details

Process Flow Mapping (Initial Phase): Conducted a detailed analysis of existing process flows, identifying bottlenecks and inefficiencies that needed to be addressed.

SKU Master Updates (Follow-Up): Standardized SKU management, correcting inconsistencies and improving the accuracy of inventory data.

Inventory Corrections (Ongoing): Regularly reviewed and corrected inventory numbers to maintain alignment with actual stock levels, ensuring accurate financial reporting

Cin7 Training and Process Improvements: Delivered Cin7 training to Formology Lab’s team, enabling them to manage the optimized systems and processes effectively

Solution Deployed

Tools and Technologies

Supply Chain and Inventory Optimization: Optimized supply chain and inventory management systems to improve operational efficiency and accuracy.
Accounting Workflow Enhancement: Streamlined accounting workflows to ensure accurate financial reporting and cash flow management.
Ongoing Support: Provided continuous support for day-to-day operations, including inventory analytics, order-to cash cycle management, and financial reporting.

Services Offered
  • Supply Chain and Inventory Management Optimization
  • Accounting Workflow Streamlining
  • Cin7 System Consultation and Training
  • Inventory Analytics and Reporting
  • Ongoing Operational Support

Results Achieved

Improved Operational Efficiency

Successfully optimized supply chain and inventory management systems, reducing bottlenecks and improving overall productivity.

Accurate Inventory Management:

Standardized SKU management and regular inventory corrections led to accurate inventory levels and improved fulfillment processes.

Enhanced Financial Reporting:

Streamlined accounting workflows ensured timely and accurate financial reporting, supporting better cash flow management.

Sustained Operational Support:

Ongoing support enabled Formology Lab to maintain efficient day-to-day operations, meeting customer demands and driving business growth.

Conclusion

Our partnership with Formology Lab underscores the importance of a comprehensive approach to optimizing supply chain, inventory management, and accounting workflows. By swiftly addressing inefficiencies and providing ongoing support, we helped Formology Lab enhance their operational efficiency, accuracy, and productivity. This enabled them to continue delivering high-quality products to their customers while maintaining healthy cash flow and financial stability in a competitive industry