Empowering efficiency for distributors and wholesalers: The shifting role of personal care ingredient partners

Published: 9-Aug-2024

There’s no doubt that in today's high-pressure personal care market, which increasingly demands seamless global operations, distributors and wholesalers face a multitude of challenges that test even the most established businesses. Rob Carr, Managing Director at Stephenson explores the subject

From fluctuating consumer trends to evolving regulatory requirements, businesses supplying products such as soap bases to their customers have many different plates to spin – and it all comes down to maximising efficiency and protecting profitability. Every decision that a personal care ingredient distributor makes carries weight, and amidst mounting challenges, the ability to deliver efficiency and safeguard the bottom line becomes not just important, but essential.

It’s here that the supply chain makes the difference. At Stephenson, we’re no stranger to partnering with complex multinational distribution networks, and we fully understand the challenges that our customers, wholesalers as well as brand owners, are up against. It’s this experience that shapes not only our product development but the way we operate. Those of us that have been in the cosmetic and personal care fields for a long time will remember when supply chains were fundamentally simpler. Now, they contain many different moving parts, particularly when supplying internationally. However, a lot of development work goes on behind the scenes at a company like Stephenson, which makes the entire commercial process simpler. When we develop a product that becomes part of the Stephenson range, we’re not just thinking about the performance and quality that results in a stellar end product for consumers, we’re also thinking about how we’re adding value to distributors and making it easy to do business.

As an example of this in action, look no further than our premium Melt & Pour bases. Whether you supply to small artisanal businesses or large-scale manufacturers, our collection of 30 soap, conditioner and solid shampoo bases makes it easier than ever to create innovative, decadent and beautiful bars.

Offering a fantastic strategic advantage for our customers, we design our Melt & Pour bases with versatility in mind, so whatever direction consumer trends head in, our distribution partners are always equipped to meet them. In turn, this flexibility adds a new layer of efficiency for distributors, as the same core soap base range can flex and adapt to a beautifully diverse range of products – manufacturers need only add fragrance, essential oils and other desired additives.

In a further example of how base selection is driving success for our customers, certain bases in our diverse collection can be used to create RSPO Mass Balance and Segregated- certified products. These accreditations confirm adherence to standards set by the Roundtable on Sustainable Palm Oil, helping distributors and their customers to meet consumer demand for products designed with sustainability in mind.

So, why now? What makes this the perfect time for wholesalers to explore how bases from Stephenson are the foundation of business success?

The answer lies in market growth – the personal care market is gaining momentum once again. Figures from global intelligence powerhouse Statista predict that the worldwide personal care market will see a robust and sustained compound annual growth rate (CAGR) of 3.3% 1 to 2028, from an estimated global value of $282.8Bn in 2024. 3.3% seems more conservative at first glance, but it indicates a strong foundation for personal care brands to build on, and ample opportunity to accelerate through innovation.

Of course, to capitalise on growth, distributors need the stock in hand – they can’t sell bases they don’t have. As we all know, efficiency isn’t just measured in product rolling off a production line, it’s in having inventory when and where you need it. We’ve seen the importance of this first-hand through our global expansion, which now sees us supplying to more than 325 customers worldwide, across more than 60 countries. When it comes tosupply chains, the best partnerships thrive on making it simple. When wholesalers selling personal care bases think ‘surety of supply’, they think Stephenson.

Another way that businesses supplying into the personal care sector can boost their efficiency is through versatility. It’s usually not efficient for a business, for example, to be sat on large volumes of inventory, typically as a result of enormous MOQs. It’s also inefficient in terms of space, which is particularly challenging when space is at a premium and the distribution workforce is stretched to capacity.

Here, we can take a few cues from industries that excel with ‘just in time’ manufacturing. To show this benefit in action, we can point to the 1kg trays and 11.5kg packs that our Melt & Pour bases can be supplied in. These unit sizes are specifically chosen to help our customers maximise their commercial potential providing the flexibility to fulfil orders of every size, without undue bulk. In turn, this is reducing lead times downstream for our customers’ customers, and minimising costs, both fantastic advantages to have.

What ties our products, activities and approach together is our ‘more than’ attitude. We go beyond the role of a supplier, to deliver products that go beyond the role of ingredients. We take a lot of pride in what we do, and the name we’ve built in the personal care industry. By partnering with our team, distributing partners get extra safeguards in their business efficiency, and are aligning themselves with an ally dedicated to environmental stewardship and social responsibility.

As a fearless innovator, our habitual experimentation and relentless pursuit of innovation at Stephenson keep us, and our customers, at the leading edge of the personal care industry. As our Melt & Pour range demonstrates, we’re laser-focused on the success of our customers.

Our message to wholesalers and distributors hoping to make waves and drive success is that they must push their ingredient suppliers to work harder in delivering value and efficiency, particularly while there’s so much abundant opportunity in the personal care market. With the right ingredient partner in place, it’s never been easier to capitalise on an engaged consumer market and give brand customers what they need.

1 Beauty & Personal Care - Global | Statista Market Forecast

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