Background

Essential Wholesale & Labs, located in NW Portland, is a leader in the manufacturing and sale of natural and organic personal care products. The company provides custom formulating and contract packaging for businesses of all sizes and offers a wide range of services from concept to shelf-ready finished products. Its customers range from sole proprietors buying their readymade bases and finished goods to fill and label themselves, to custom formulating services, contract filling services, testing services through third-party labs, and business development consulting. The company has grown rapidly to its current size, approaching seven million in annual sales, and continues to experience rapid growth both domestically and abroad.

50
Jobs Created and Retained
$700,000
New and Retained Sales
$400,000
Cost Savings

The Situation

Product manufacturing, conducted in a vintage building, faces significant operational and layout challenges. Further manufacturing challenges erode efficiencies; at any time a wide array of products are in production at virtually any run size. Company leadership is seeking guidance on plant layout, process engineering, inventory management, operations management and general business practices in a fast growth environment.

The Solution

OMEP provided a combination of training, coaching and consulting to help Essential Wholesale & Labs meet its rapid growth challenges and support customer service needs. With an emphasis on lean philosophy and fundamentals, OMEP supported Essential Wholesale & Labs to realize capacity gains, increased first-time quality, reduced working inventories and timely order to cash cycles. More specifically, Value Stream Mapping was conducted on all product families.

The Results

Projects resulting from the initial mapping effort stabilized the manufacturing platform and generated additional capacity with greater scheduling flexibility.  Follow-on mapping of the order entry and shipping processes revealed disconnects between Essential’s financial and ERP software, resulting in improved inventory tracking. Current projects focus on adjusting and optimizing the company’s filling and distribution processes.

OMEP is an invaluable partner, bringing needed focus and expertise into our manufacturing processes. The impact has been far reaching; everything from lower inventory to more consistent quality and much greater response time. OMEP’s approach transfers knowledge and expertise to our internal team, so we just keep getting better.

John Landforce
President

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