Case Study: Lansinoh Laboratories

UPS and Lansinoh Nurture Customers with Single-Source Solution

Lansinoh Laboratories receives orders from all over the world for its premium products and supplies for nursing mothers. Proper nutrition for infant care was the priority when a mother founded the company in 1984. Today, this business that started in a home is now a global leader recognized for its outstanding products, customer service and responsiveness.

Lansinoh products can be found on the shelves of major retailers and in food and drug outlets, all because it relies on UPS's strong distribution network that operates throughout the United States, Canada, Europe, Asia and Latin America.

Business Challenge

Getting products to market efficiently was not always easy for Lansinoh. When product demand grew, the small company struggled with increasingly complex warehouse and distribution requirements. Adding to the challenge, since Lansinoh's core products are sourced in Thailand, the company soon found itself spending more time shipping to a larger number of destinations around the world.

With growing supply chain challenges, Lansinoh was forced to focus its limited resources on supply chain management functions such as identifying distribution channels, designing warehouse infrastructure and managing inventory, rather than on sales and marketing. Not only did this mean lost business opportunities, but it also placed a significant strain on Lansinoh's internal resources and personnel.

In 2002, Lansinoh Vice President of Operations Robie Aridi began exploring options for outsourcing certain warehousing and distribution functions so Lansinoh could focus on sales, marketing and new product offerings.

"We are a company of 25 people," Aridi said. "It was essential to free up internal resources to focus on our core business and find an expert to handle other functions." He hired UPS, which has managed Lansinoh's small-package needs since the company's beginnings in Portland, Oregon.

Lansinoh's initial challenge to UPS was to design a flexible supply chain and distribution process that could meet the needs of its global customer base which ranges from mom-and-pop stores to major retailers, health care centers and hospitals.

Solution

UPS worked closely with Lansinoh to develop and design a more efficient warehousing and distribution process from Thailand to the United States, the United Kingdom and Germany. Starting at origin in Bangkok, UPS coordinates all transportation, including international freight and customs brokerage. Lansinoh goods rapidly clear U.S. Customs bound for the UPS Supply Chain Solutions distribution facility in Harrisburg, Pennsylvania, where UPS provides a single-source solution to manage inventory, fulfill orders and ship across the U.S. and to export destinations. UPS also moves Lansinoh goods from Thailand to locations in Europe, Africa and the Middle East via ocean freight vessels.

After gaining efficiencies in warehousing and distribution, Lansinoh looked to UPS for other advantages. The company soon began using UPS Order to CashSM, which enhances Lansinoh's customer relations from the moment of order entry. Through Order to Cash, UPS handles processing, invoicing and accounts receivable collections to speed cash flow for Lansinoh.

Today, UPS provides an entire "port-to-door" solution for Lansinoh, including multiple distribution centers, inbound and outbound distribution, customs brokerage, order-to-cash services and inventory management.

"In the beginning, we were nervous about trusting someone else with such a critical part of our business — our relationships with our customers," Aridi said. "We started small but soon realized we could rely on UPS for more. We have a beautiful marriage with UPS. It's a relationship built on trust in their people and solutions."

Lansinoh's confidence comes from being able to access valuable information. Advanced UPS visibility tools keep Lansinoh informed and involved. With daily activity and customized reports, sales product recaps and inventory tracking from UPS, Lansinoh can rely on UPS to efficiently manage its global supply chain activities.

Results

Today Lansinoh is a company successfully managing its growth. In 2006 it launched its double electric breast pump and in 2007 it launched its manual breast pump. In 2008 it plans to launch three brand new products. Its business has more than tripled in the past three years — a feat the company could not have accomplished alone, according to Aridi.

"UPS has taken our business productivity and customer service capabilities to a whole new level," he said. Turnaround time, from order receipt to shipment delivery, has been reduced by several hours and in many cases by days. "Outsourcing the [UPS] Order to Cash function has allowed us to spend more time with our customers and focus on their business needs," said Aridi.

In 2007 Lansinoh's acquired ability to ship to wholesalers was a growth catalyst. Working with UPS, Lansinoh was able to expand its distribution capabilities from small packages to whole cases of products. Shipping directly to wholesalers opened a world of opportunity, putting more company products on more shelves in more locations around the world. No matter where the demand is located, Lansinoh's use of UPS's flexible and reliable solutions now allows it to benefit from new growth opportunities.

When asked how UPS has most helped his company, Aridi puts it simply, "We would not be where we are today without UPS."