Faster Product Release Meets Demands of Global Markets Celsis International helps CoValence Laboratories cut five days of cycle time Introduction leadership as a most nimble contract manufacturer. “We have several pieces of equipment in R&D that help speed up launches,” said Melinda Wochner, CMO and Vice President of Marketing at CoValence. “And we tell all our new customers that we use the Celsis rapid method to give them faster turnaround.” But it wasn’t always that way. Traditional microbiological projects a global market of USD $19.2 billion by 2015, largely due to new distribution channels such as online retail. Increasing regulatory requirements, extended delivery times, higher ingredient costs and quality pressures continue to create a must for companies to adopt more efficient product release testing. Traditional microbial test methods requiring an average five-day wait Normal, dry, oily, sensitive, combination—there is a science behind understanding a person’s skin type, just as there is a science behind personal care formulation. Thousands of ingredients, competition for mindshare and growing consumer demand make this market more complex than ever. Custom and private-label contract manufacturer CoValence Laboratories navigates this complexity with ease, capitalizing on its ability to formulate, produce, fill and now test cutting-edge skincare products much faster than its competition. With its OTC formulations built from scratch and based on specific requirements—i.e. natural colors, no animal testing, active botanicals, CoValence reduced product hold times by five days after implementing rapid detection paraben-, phthalate-, technology from Celsis International. sulfate- and gluten-free— CoValence Laboratories’ process product testing takes about five time for results are no longer a involves the careful selection and days to confirm the absence of sensible option today. combination of an almost endless contamination. Add at least another With a growing international supply of ingredients. day if, like CoValence once did, you presence, CoValence needed to reduce “We are different than other send your product samples to an its product turnaround time to be companies. We love science—the outside testing lab. That is six days competitive overseas. It recognized science behind skincare and the of wait time and overhead in the the value of faster product release to science behind how we measure manufacturing cycle. meet such increased global demand. what we do,” said Peter Vlcek, COO “We make products to order, so if a and Vice President of Operations Industry Challenges client needed a product quickly, we’d at CoValence. “In terms of what’s Increases in disposable income hurry and make it,” Vlcek explained. going to be the next big thing in skin and new consumers in emerging “Then we’d be on the phone to tell care, we don’t wait to hear what new markets are two of the factors leading them that we could deliver it, but ingredients our clients want us to use. to a growth in global demand for they couldn’t sell it yet. To lose an We come up with our own ideas. Not cosmetics over the next five years, extra five-to-seven days in turnaround many contract manufacturers patent according to IBISWorld’s 2013 time while waiting for test results ingredients. That really sets us apart.” “Global Cosmetics Manufacturing was a real pain. I looked at things in So, too, does their investment in Market Research” report. In addition, terms of the Theory of Constraints,” the right equipment to continue their Transparency Market Research he continued, referring to a www.celsis.com With the Celsis system, not only is CoValence alerted to potential contamination faster, it can recover and replace product faster, further improving its customer service levels. management improvement method of finding simple solutions to complex problems. “It’s all about identifying the bottlenecks. In our case, we would make the product quickly, but then it would sit in our warehouse for six days,” said Vlcek. In the case of a contamination, it was even worse. “Everyone’s been there—when there’s an incident and you need to tell the customer that their product won’t be ready for another week. We could make it, but then we still had to hold it for testing again. I wanted to make it on a Wednesday and ship it on a Friday instead of having to hold it over the weekend and lose all that time,” he said. “I did a lot of research and Celsis kept coming up,” said Vlcek. “From my perspective, the rapid method had to be reliable and I needed to understand how it works. Celsis Added Operational Benefits of Rapid Product Release Testing: ■■ Reduces working capital requirements ■■ Decreases stock carrying costs ■■ Saves warehouse space ■■ Streamlines the supply chain ■■ Improves recovery from contamination events ■■ Increases inventory turns made the most sense in terms of what it offered. We knew we had to implement it for our own business, because we analyzed what we were spending on outsourcing our testing.” Process Solution CoValence decided to adopt a Celsis Rapid Detection system. Compared to outsourcing, Celsis was able to save CoValence five days of hold time, providing the confirmation needed to release product in about 24 hours. For those customers who needed their products faster to take advantage of a market opportunity or a slotting space that opened up, CoValence’s use of the Celsis rapid system was a welcome change. Nonetheless, the manufacturer faced obstacles in bringing the system in house. For example, to bring in the Celsis system, CoValence had to build a micro lab from the ground up. Fortunately the small footprint of the Celsis instrument did not require much space. Once that was done, two additional staffers were hired for the lab. Neither had any experience with rapid methods, but the system was easy to learn and easy to operate. A Celsis representative was on site for three days for installation, system qualification (IQ/OQ) and staff training. The Celsis rep also worked with the lab staff to jumpstart validation, a process that, for www.celsis.com CoValence, took longer than expected due to the extreme number of customized formulations. While products are often grouped for validation purposes, CoValence’s produce-on-demand manufacturing model meant it did not necessarily have “like” products available for validation testing at the same time. “We have so much customized work that we constantly had to change formulations and each had to be validated,” said Vlcek. “I didn’t comprehend how much work would go into validation and the cost of running both side by side. Now that’s come way down and we’re seeing the benefit. There is a real time savings.” Results CoValence reduced the quarantine wait time on finished goods from six days to one day without sacrificing quality or safety. This allowed the manufacturer to ship faster to clients, enabling them to hit the market faster and to invoice earlier. Before the Celsis implementation CoValence had a lot of product waiting in bays to pass micro testing; now it uses less labor to keep up with leads times while continuing to advance its skincare products through innovation. “Once CoValence started releasing product with Celsis, they realized the immediate benefit of freeing up warehouse space that was previously dedicated to quarantined inventory. Equally important, and as a great selling tool for them, they were delivering faster turnaround to their clients,” said Christine Kreitzer, Home and Beauty Industry Director, Celsis Inc. In competitive industries, process manufacturers will have to increase efficiencies to meet growing market demands. Rapid product release systems such as Celsis Rapid Detection will continue to gain adherents, as they provide greater product velocity through faster timeto-market release.