Background
In the realm of premium fragrance, skincare, and self-care products, Hawthorne stands as a prominent brand recognized for its excellence. With a diverse range of offerings spanning fragrance, skincare, shampoo, deodorant, and self-care products, Hawthorne operates through a network of two co-manufacturers. These products are distributed nationwide, reaching retailers across the United States, such as Target and Nordstrom. Overseeing this intricate logistical operation is a longstanding incumbent with which Hawthorne has worked for over six years, with one year left in the contract.
Action
To enhance operational efficiency and cost-effectiveness, our intervention centered on fostering supplier competition and streamlining network operations. We initiated this endeavor through a rigorous RFP process, meticulously created to encompass comprehensive requirements. This included an in-depth analysis of inbound and outbound shipment profiles, laying the groundwork for engaging with over eight suppliers across the United States. Leading logistics providers, including national suppliers such as Worldwide Express, CH Robinson, Saddle Creek, and ShipMonk were among the participants in this selection process.
Outcome
The outcomes of this strategic initiative were multifaceted. Firstly, a detailed spend analysis provided invaluable insights, offering visibility into key requirements. Concurrently, the RFP framework facilitated complex scenario analysis and constructive dialogue with suppliers. The execution of the RFP, marked by active engagement and participation from diverse suppliers, underscored the collaborative spirit of this exercise.
Among the results was a remarkable achievement: a reduction in costs of over 29%, signifying substantial savings for Hawthorne. This tangible outcome not only solidified the efficacy of our approach but also underscored the potential for significant operational enhancements within the supply chain.
The optimization of Hawthorne’s supply chain represents a testament to the power of strategic procurement in network optimization. Through meticulous numerical analysis and collaborative engagement with suppliers, significant cost savings were achieved while fortifying operational resilience.
