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ACCELERATING INNOVATION

within premium SKINCARE

P R O J E C T PA R T N E R S


SECURING

double-digit GROWTH through supplyTRANSFORMATION chain The fastest growing beauty and personal care brand in North America in 2017 , Rodan + Fields remains committed to innovating within the premium skincare market


S

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kincare has become big business.

anti-aging, dry, sensitive, or oily

Looking and feeling good, both on

skin, Dr. Katie Rodan and Dr.

the inside and out has become a

Kathy Fields founded Rodan +

significant market and led companies to vie

Fields to support the growing

against one another to not only attract new

gap for dermatological products

customers, but also retain a solid customer

within the adult skincare market.

base in the process. In North America, the

With over 200,000 independent

premium skincare market is set to reach

consultants across the US, Can-

$9.9bn by 2021, with the US accounting for

ada and Australia, Rodan +

15% of global premium skincare sales alone.

Fields has gained over 2mn cus-

However, whilst the majority of adult skin-

tomers, and is projected to

care products focus on areas such as

continue to drive double-digital


thenext five years.

Disrupting traditional business models

“This has been a great challenge

Originally selling the business to Estee

for us,” explains Bryan Wayda,

Lauder in 2003, the founders bought back

Chief Supply and Service Officer

the business upon witnessing a number of

at Rodan + Fields.

areas converging together which provided

“When we’re growing at an aver-

a unique opportunity to further disrupt the

age of 60% or more over the

beauty market. The emergence of social

last 10 years, we have worked

media in the mid-2000s led companies to

closely with our supply base

look at transforming traditional business

to address this in a comprehen-

models and address the ongoing chal-

sive way.”

lenges within brick and mortar retail stores.

growth across its operations for

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Diane Dietz, CEO


“We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields “The founders saw an opportunity to look at the direct selling model in a very disruptive way, which broke some of the rules of traditional direct selling and created how we operate today with our consumer connected commerce model,” says Wayda. “In a traditional direct selling model, the company would sell to a distributor, and the distributor would collect products, sell to

Break the Cycle of Acne | UNBLEMISH Regimen | Rodan + Fields

customers, collect the money and do the administrative work. “Our model flipped it upside down, where we said, ‘why not let us do a direct to consumer shipment, order management and payment process’. This allows consultants to do what they do best, which is connect to their networks, identify new customers and provide a personalised customer experience by helping them find the right skincare products and grow their business.” w w w. r o d a n a n d f i e l d s . c o m

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Product innovation By launching a multitude of regimen-based products, Rodan + Fields continues to focus on four key areas: lines and wrinkles, brown spots and discolouration, acne and sensitive

‘The fastest growing beauty and personal care brand in North America in 2017’

skin. However, the so-called ‘Amazon effect’ has significantly impacted its supply chain capabilities and created ever-growing consumer expectations. “We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers,” adds Wayda. “Everybody expects everything faster than

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they ever did before, and so we’ve made a strategic move to put a warehouse in the most strategic location to get products out faster.” Responsible for Rodan + Fields’ end to end supply chain operations, dealing directly with consultants and customers, as well as the product management for new products, Wayda has streamlined the commercialisation and industrialisation of existing products whilst bringing new products to life. “Our plan was to add one new product every couple of years in the first several years, so that we grew organically and both our consultant base, as well as our internal team, gained a good understanding of our core

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products. In the last couple of years, how-

Nonetheless, to enable further

ever, we’ve accelerated this.

growth, it remains imperative

“Our products are fairly technical and highly

for the supply chain to work

effective with the types of ingredients and

with those who can support its

the formulas used. It’s been a change for our

ambitions to further scale.

organisation to introduce new products

“Many of our suppliers were

quickly, bring them to market and commer-

great suppliers when we were

cialise them in a strong way. It’s been part of

a $100mn business. They fit us

the culture shift of how we operate the busi-

really well because they had

ness.”

flexible batch sizes. In many cases, they offered opportuni-

Supplier drive

ties for us to do things that

Partnering with AT Kearney across its con-

were unique as a small player,

tract manufacturer rationalisation, Rodan +

but as we scaled, their fit

Fields has sought to follow a typical strategic

became better suited for play-

sourcing process; starting from a request for

ers who looked like what we

information (RFI), leading the way to award-

used to look like, so we had to

ing the business and transitioning for

make some tough decisions,”

technical transfer.

notes Wayda.

‘In North America, the premium skincare market is set to reach $9.9bn by 2021, with the US accounting for 15% of global premium skincare sales’ Mircro-Dermabrasion Paste - Jar w w w. r o d a n a n d f i e l d s . c o m

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“Through a seven-step process, we

use of technology has strongly

made some decisions to partner

underpinned Rodan + Fields’ sup-

tighter with some players because

ply chain operations. Upgrading its

they had scaled their business with

outdated enterprise resource plan-

us. It was a venture within contract

ning (ERP) system to SAP, the

manufacturing to find the right part-

company has also sought to partner

nerships to produce our product

with a number of new players to

and co-innovate with us for the

provide further visibility, lower costs

future.”

and guarantee high quality outcomes.

Exceptional technologies

By partnering with DHL, Rodan +

Throughout its transformation, the

Fields has not only overhauled its

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contract manufacturing operations,

Fields to gain further expertise,

but also its distribution capabilities.

enhance its order management

“Our partners need to manage high

platform, add value and reduce the

volume of orders alongside our

risk for the business in developing a

ongoing growth. Our partner is DHL

system in house.

in the US, and we’ve also got part-

Additionally, by building effective

ners in Canada and Australia as

relationships with contact center

we’ve opened up those markets,”

providers, the company has

Wayda says.

enhanced its outsourcing pro-

Implementing a state-of-the-art

cesses and improved its customer

warehouse management system

and consultant support.

(WMS) by DHL has allowed Rodan +

“We’ve also partnered with a new

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“Our partners need to manage high volume of orders alongside our ongoing growth. Our partner is DHL in the US, and we’ve also got partners in Canada and Australia as we’ve opened up those markets” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields


contact center outsource provider in the last year to make sure that we have someone who can scale with us and offer us global opportunities as we continue to grow, leveraging the knowledge and the input that we receive across multiple geographies,” adds Wayda.

Entrepreneurial spirit As Rodan + Fields continues to expand, the business will continue to explore further global opportunities in markets which fit its strategic skincare portfolio. “The products are fantastic and remain core to our founder’s mission. Customers and consumers love our products, they’re highly

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efficacious and serve the purpose they’re intended to serve,” acknowledges Wayda. “The future is even more exciting when we think about the opportunity to transform the business to fit a truly global market place. A global supply chain will be a really unique opportunity for our business to grow,” he concludes. “It changes the dynamics of how we look at things when we think of scaling ourselves to be a business that can be double the size or even more than what we are today. “One of our big opportunities to continue to transform the supply chain, which will help the business evolve in the next several years.”

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HEADQUARTERS 60 Spear Street, Suite 600 San Francisco, CA 94105 T 415.273.8000 www.rodanandfields.com

Brochure - Rodan + Fields  

Business Chief - USA

Brochure - Rodan + Fields  

Business Chief - USA