Case Studies COTY | Case Study: Packaging
When you’re one of the world’s leading beauty products companies with multi-channel distribution covering all channels and price points, your requirements for product assembly and distribution are quite complex. One solution? Find a business partner that produces results — on-time, in-full, meeting customer demands. That’s why Saddle Creek Logistics Services stands above the rest.
The Business Challenge
In the retail world when Halloween candy and pumpkins are on display, Coty Inc. is heavy into advanced planning for an entirely different holiday — the following year’s Christmas season. And after the New Year, Coty’s mass retail outlets and grocery store customers provide purchase forecasts for the company’s hugely popular product displays and giftpacks. Displays need to be assembled, and a wide variety of products in various shapes and sizes need to be properly packaged and prepared for distribution – that’s where Saddle Creek comes into play.
For nearly two decades, Saddle Creek has handled Coty’s packaging needs — including display and gift pack assembly. These operations are space and labor intensive. Every one million gift sets generally requires 45,000 square feet of space. Saddle Creek swings to a high of around 250,000 square feet at the peak of a season to a low of 50,000 square feet. An average gift set line takes about 20 people to run. Saddle Creek runs 16 to 18 lines during the busy season.
Saddle Creek accommodates Coty’s complex requirements for fluctuating warehousing space and an army of assembly workers. The team handles 56 million pieces of product to produce 7 million sets, made up of 600 finished SKUs. All this is done each year during an intense peak period between June to September. Coty appreciates the increased flexibility and inventory control that Saddle Creek provides.