Forecasting drives co-packer use

Stila Cosmetics produces distinctive packaging while also answering the need for speed by planning strategically for purchasing components through its contract packagers.

Sales forecasting is essential to this success.

Gretchen Rider, vice president of operations, says that best estimates of future sales projections are made, but contingencies are made in inventories to allow for flexibility. For example, some raw packaging components arrive at a contract packager’s facility or at the warehouse. They are decorated at the point when a retailer makes an order for products and packaging customized to its specifications. Such an approach may occur on the carton; apparel retailer J.Crew requires that packages of Stila products sold in its stores include the line “Stila for J.Crew.” PW

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