Them and us

Cosmetics Design Europe again:

This is about a manufacturer who is based in two places in the UK. Southern England and South Wales.

Article here

Now a bit of history, COSi is the company who bought the Bodyshop manufacturing department way back when. They’ve been doing contract manufacture ever since at the Littlehampton site, and a while back they bought the ex Revlon plant at Maesteg.

Now why is this an issue? Well its indicative of a general malaise in the industry in the UK.
I believe strongly that we should have manufacturing industry in the UK. I have fought long and hard in the companies I have worked in to keep products sold in the UK made in the UK. Therefore I like the idea of COSi doing just that.
However, in my experience the company has been run badly. They have taken on way too many people in non-productive office jobs, and forgotten the fact that their major customer (Bodyshop) has been free to go elsewhere for stock, in the same way that they (COSi) have been free to make for other people.
The writing really was on the wall when L’Oreal took over the late Mrs Roddick’s business.
L’Oreal are one of the biggest manufacturers in the world. They have plants all over including places in Wales, France and God only knows where else. If they put their mind to it, they could stock Bodyshop for a years sales with little effort from one of the bigger manufacturing plants. The products don’t claim to be complicated, so they can be knocked out quickly.

So with that writing on the wall, what did the CEO do? Go searching for more business? Keep his existing customers by keeping them fully stocked and providing great service that would keep people coming back for more?

err no.
To quote the article
“In addition to the lower than expected sales figures Cosi was hit recently by the decision of a large US customer not to renew its contract with the struggling company.
Chief Operating Officer, Stephen Bracegirdle, said the company is facing a number of serious challenges and that they were fighting hard to keep the jobs in Maesteg.
The company was reluctant to blame market conditions for the current situation and is currently working hard to consolidate its operations and set itself on the road to recovery. “

The large US customer was probably pissed off, and as Mr Bracegirdle doesn’t sound particularly Celtic, he probably thinks that a few taffs on the dole doesn’t mean much.
Trouble is he blagged £9million off the Welsh Assembly to expand and take on people, no doubt helped by the factory next door shutting up shop and going to Poland.
So lets see then. Nobody sourcing products wants to know you, cos quite frankly you’ve pissed them off, you’ve pissed off an area with a long memory, you’ve pissed off a regional parliament, and because of all that the people you need in the supply side of the industry will be reluctant to sell you materials at trade rates, as they don’t know if they’ll get paid.
Prehaps he ought to get out and leave the company to someone who can run it.

So what you might say?

Well when you’re doing your shopping in Boots or the Supermarkets, or wherever for that gift pack of smellies for one of your loved ones, have a look on the tab and see where it is made.
If its not made in the UK have a thought for someone who is going to have a pretty shitty Christmas this year, as they couldn’t compete with a Chinese worker being paid a bowl of rice a day