Winky Lux

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Case Study

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Winky Lux

How Winky Lux Scaled Despite Disruption in 2020

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We’re in place for the next doubling of the company. We’re not going to have to worry about implementing any new system. We’re going to be able to scale from where we are now, which is a really important thing as a COO to make sure your company’s ready to go to that next, next level.

Nate Newman, COO and Co-founder of Winky Lux

Meeting Growing Demand With Shrinking Supply

In March, right before COVID dominated the country, Winky Lux launched as many as 68 SKUs in almost every Target department store in the United States. This large, key growth initiative had been in the works for a long time, and COVID made replenishment efforts very difficult to navigate– as did the overwhelming success of the rollout. Target outsold anticipated demand, meaning that Winky Lux and their suppliers had to deliver more than anticipated to cover the actual sales. It was difficult, and scary at times, but also exciting and hugely successful.

Before SourceDay, we had emails, text messages, spreadsheets, WeChat, WeTransfer, and Skype—basically all the different kinds of communication. Things would get lost a lot. And then certain people wouldn’t be on a text message or an email, so the important people would miss stuff as well. It was very stressful and a little unorganized. Now with SourceDay, it’s more organized and easier for everyone.

Giana Tarpey
Supply Chain Manager at Winky Lux

Hitting Hot Trends at High Speed

Winky Lux was founded in 2015 to satisfy a demand for luxury in the beauty market at a value-oriented price point. Located in the Lower East Side of New York, they outgrew their facilities three times in five years. But their production space wasn’t the only thing they outgrew; they were outgrowing their technology as well.

Prior to moving to the NetSuite cloud ERP, Winky Lux was using QuickBooks and Fishbowl ERP, plus email and WeChat for communications and Shopify for eCommerce. Having so many systems was cumbersome and required multiple touch points every time something in the supply chain changed. They were overpaying for air freight, missing order fulfillment dates, and spending too much money on the labor associated with keeping systems up to date.

2:13 Play Video

The Challenges of Scaling for Winky Lux

Growing too fast is a great problem to have. Learn how Winky Lux scaled their processes, adopted new systems, and addressed rapidly increased demand for their products.

We manage purchase orders in NetSuite, so we didn’t know why we would need any bells and whistles, and then we started diving into SourceDay. We quickly understood what kind of advantages we would have by going with that.

Nate Newman
COO and Co-founder of Winky Lux

Winky Lux Gave Themselves a Tech-Enabled Makeover

After

  • Doubled the size of the business amidst unprecedented global disruption.
  • Changes in the PO process are now handled without manual dependencies.
  • Implemented and integrated SourceDay remotely with no negative impact to users or suppliers.
  • Exceeded expectations for fulfillment at Target, even in the face of severe disruptions.

BEFORE

  • Convoluted systems required manual effort to stay up to date.
  • Conflicting purchase orders sent to suppliers via email.
  • Unexpected costs of labor and air freight robbed Winky Lux of self-funded growth opportunities.

SourceDay is extremely user-friendly and organized. We really like how we can upload artwork to each item if we want. Our supplier can also go in there and change prices, change quantities, and then I either accept or reject them and they flow right over into NetSuite. There is less room for error.

Giana Tarpey
Supply Chain Manager at Winky Lux
manufacturing makeup

BENEFITS

Feather Light Implementation With Full Functionality

Winky Lux’s huge growth potential was being held back by the constraints of their cobbled-together technology portfolio. They needed to reimagine their enabling platforms quickly and with the future in mind. With a joint, simultaneous implementation of NetSuite’s cloud ERP and SourceDay, they built a centralized solution as agile as their own business model. Since both solutions are designed for swift frictionless implementation, Winky Lux’s business was not interrupted.

Integrating SourceDay and  NetSuite allowed Winky Lux to achieve speed, accuracy, and the supply chain predictability required to make good business decisions, even as conditions continue to change. They can now secure the materials they need – when they need them – to meet their fast-growing consumer demand. Changes are handled automatically, with little human intervention or worry about missed supplier updates and acknowledgements. 

graphic of 45 day production cycle stat

SOLUTIONS

Supplier Onboarding

The Winky Lux team knew they were in good hands when they started the SourceDay built-for-NetSuite certified integration. SourceDay took all of their business activity, organized it, and put it in a cloud-based solution that’s easy to use. SourceDay manages all of the fundamental elements of supply chain collaboration from quote to purchase order to shipment notification – all while keeping NetSuite up to date in real time. 

One of the other drivers for Winky Lux’s SourceDay implementation was the reality that each manufacturer communicates differently. They all have their own methods, challenges, delays, and logistics issues. Winky Lux was concerned that their suppliers might not be comfortable with the new platform, because they were so accustomed to communicating via email. While they aren’t the most tech-forward suppliers, Winky Lux faced no pushback or adoption struggles.

graphic of 100% growth stat

RESULTS

Operational Cost Avoidance

Winky Lux realizes financial benefits from their NetSuite / SourceDay implementation that can be measured in both money and time. When supplier deliveries are late, Winky Lux has to bear the added cost of air freight. Shipping by boat, their preferred method, costs a fraction of shipping by air, but it also takes 5-6 weeks rather than 4-5 days. 

Winky Lux does not have the option to miss promised delivery timelines, as unsold merchandise at big box retailers is ultimately shipped back or ‘charged back’ to Winky Lux. Managing the fallout from one critical supplier shipment that arrives late comes with unsustainable labor costs, freight costs, and shipping time. By implementing SourceDay, WinkyLux is able to avoid all of these costs without inconveniencing suppliers or customers.

I was confident QuickBooks would work, and then I was confident Fishbowl inventory and QuickBooks would work. It seems that when we grew and we added a whole lot of products, a lot of shipments, a lot of orders, we just outgrew these systems.

Nate Newman
COO and Co-founder of Winky Lux

Who We Are

SourceDay

SourceDay is a supply chain performance software that bridges the gap between the ERP and the supplier network, making it easy to manage changes throughout the direct spend lifecycle. For too long, change has been the only constant for manufacturers, distributors, and CPG brands relying on legacy processes to manage suppliers. With SourceDay’s suite of collaborative products, entire teams can trace a single part from PO issuance through delivery, giving organizations unprecedented command and control over their businesses. SourceDay has helped thousands of businesses prevent surprises in their supply chains and, in doing so, enabled them to ship billions of parts on time, uncover new cost savings, safeguard revenue, optimize operations and protect sacred customer relationships.

Winky Lux

Winky Lux was founded in 2015 with a JOYFUL mission to bring beauty lovers together with happier healthier products that delight every sense. We believe that the spirit of beauty is rooted in play and that thoughtfully produced products can be tools for self care, creative expression and even a way to spark new friendships. Our goal is to redesign the beauty industry into something more delightful. For us that means more transparent supply chains, closer customer relationships and ethically sourced ingredients that still provide real results! Join our party and see what all the pretty is about! Lots of love, Winky

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