Case Study #3: Korres Compliance Challenge J&J
Korres Natural Products had worked with Capacity LLC for almost a decade, growing from a very small niche player into a national brand. Today, its products are known around the world.
When the company was purchased by a major multinational corporation, however, the playing field changed overnight and Capacity was required to change with it.
Challenge
When Johnson & Johnson acquired the manufacturing and licensing rights to the brand, it needed a third-party warehousing and logistics provider that knew the existing business and could also support the growth it was expecting to drive.
J&J also needed a logistics provider that could comply with its strict Current Good Manufacturing Practices (cGMP) and other requirements.
Without adherence to such compliance stipulations, no 3PL could expect to do business with a corporation of this size. Anyone who has grown up in the medical device or pharmaceutical sector knows just how crucial this is.
Solution:
We quickly rose to the challenge presented by J&J, enhancing our existing warehousing and fulfillment capabilities to meet J&J’s complex requirements. We took the logistics burden off of our client's team, enabling its management to focus on sales & marketing, as well as other core competencies.
As J&J radically ramped up the Korres business and began shipping for the Home Shopping Network, the company required a multi-tiered integration to its Enterprise Resource Planning (ERP). This required an extensive expansion of Capacity LLC’s assembly efforts and the implementation of all of J&J’s compliance requirements.
Every area of our business has been subjected to Johnson & Johnson’s strict requirements for external manufacturers and partners, mandating Standard Operating Procedures (SOPs) for the complete range of our operational and support activities.
Capacity LLC has increased the number of in-house engineers, enhanced business continuity planning, and radically expanded its offerings in numerous ways. We met the challenge of our client’s expansion by expanding ourselves.