8 Logistics Tips For Cosmetic and Beauty Products
The United States is considered to be the most valuable market when it comes to skincare and cosmetics. Yearly revenue is approximately $84 billion in this market alone.
That means there is huge potential for profit if you can get your product in front of customers. The question is, how do you successfully do that?
Having the right logistics management plan in place is the first step. Without this, you can have the best product out there but no one will ever see it to buy it.
Here are 8 tips to help you design the most effective and cost-effective cosmetics supply chain.
1. Temperature Matters
Failing to store and ship cosmetics at the right temperature results in large amounts of waste. This is terrible for your bottom line.
Both your warehousing and transportation providers need to be able to adapt to the various temperatures required for different products.
This ensures that your product is in the optimal condition by the time it gets to the customer. It also ensures that the product reaches the customer at all.
If you have ruined product, delivery is now delayed as a replacement shipment is dispatched. In the meantime, your customers are getting more frustrated.
2. Stay on Top of Trends
In the cosmetics industry, demand is heavily influenced by the current trend. This poses a unique challenge for your logistics team.
Whatever is popular right now needs to already be on the shelves. Even better if it was on the shelves yesterday.
If there are delays in your supply chain that leave the door open for your competitor to come in with their product first. Having a dynamic and responsive supply chain will give you the edge.
3. What's Your Presentation?
The packaging you pick matters on many levels. First, the quality of your packaging needs to set the stage for your customer's impression of your product.
That first unboxing is what will influence the customer's perception of both the product and your brand. You want your product's packaging to arrive in the best condition possible.
Second, you want the packaging you choose to be conducive for shipping on a pallet. Try to pick a size and shape that will utilize the space well so that you can pack the maximum amount of product on each pallet.
This strategy will help you get the most out of your shipping budget.
4. You Want Some Security
Makeup is one of those items that while small, can be worth a lot of money. Because of this, your supply chain needs to be secure to prevent theft.
You need to do your research in making sure that every step of the distribution process is secure. This will prevent your product from magically disappearing before it ever gets to the shelf.
5. Prepare to Scale
Don't let yourself get too focused on finding a logistics solution that only satisfies your current need. You want your business to be successful, so hopefully, your distribution demands will continue to grow.
It is cost effective to look for a solution that can scale up and your company grows. This will save you time and money by not having to look for and change to a new solution each time you outgrow your current.
When looking for scalability, ask about the warehousing opens that are are available. You may need more warehousing space during certain times of the year like right before the holiday demand.
Then ask about how pricing works as your need arises. Ask about volume discount thresholds. You may find that there is a discount if you scale up just a bit.
6. Can You Handle All Kinds of Demand?
The cosmetics industry is unique in that customers vary widely from the individual consumer to large international retailers. Who is your target customer and is your supply chain equipped to handle them?
This may be an area that you look at in conjunction with the previous tip of scalability. Maybe right now you only ship to individuals who order on your website. You will eventually need to scale your business up to accommodate shipping
7. Can You Automate
Some of your products are trend-based, and you need to maximize sales while they are hot. Other products are considered essentials and will retain steady sales numbers.
For these steady sales products, you should consider automation. Your retail customers can create a steady recurring order. This will cut down on your processing costs and provide you with a level of security and planning knowing those orders are coming through.
On a smaller scale, this automation can happen with your individual customers. Educate them that makeup has a lifespan and should get replaced after a certain amount of time. You can help them with this by offering automated refills.
8. Build Relationships
A large part of the logistics industry is building relationships. As you develop a closer relationship with your logistics supplier you can begin to negotiate lower rates.
This also helps if you choose a company that can scale with you. This lets you develop the relationship long term as your business grows.
Having these strong relationships will also help in the event of an emergency. Let's say some product gets lost or destroyed, and you need to get a replacement out ASAP. Having that strong working relationship with your supply chain team means they are more likely to help you out.
Having a strong and dynamic logistics system in place means that you can take advantage of market trends. This means that your product will get in front of customers when it is in demand.
Logistics management needs to be something that will utilize resources to reduce shipping costs and maximize profits.
Let us help you design the ideal packaging for your health and beauty products.