Covered in this article:
- Loop faced a common challenge: high costs, limited inventory, and other seasonal struggles that can stunt growth during peak sales periods.
- Partnering with Manufactured helped Loop transform its supply chain and inventory strategy, reducing Loop’s per-unit costs by over 20%.
- Inventory financing enabled Loop to stockpile supply for Q4 demand spikes.
- With Manufactured’s help, Loop achieved record Q4 revenue, first-time profitability, and a strong future outlook.
The holiday season is the most wonderful time of the year—unless you’re a growing business trying to keep up with seasonal demand spikes. Brian Gannon, founder and CEO of the digital frame company Loop, knows this struggle all too well.
Loop’s innovative wifi-enabled frames allow families and friends to stay connected by sharing photos, videos, and messages remotely. But despite strong consumer interest, Loop initially faced challenges with high production costs, limited working capital, and few resources to focus on critical R&D or supplier relationships. This made it difficult for Loop to scale up to meet seasonal sales peaks.
``Manufactured transformed our manufacturing and inventory strategy,`` Gannon explains. ``With lower COGs and the right financing, we finally had the supply to match our strongest sales quarter.``
With high per-unit costs, limited working capital, and few resources to manage overseas manufacturing, Loop constantly faced inventory shortages during peak Q4 sales periods. Without enough supply to meet holiday demand, Loop was stuck in a cycle of stunted growth.
Enter Manufactured, an online platform providing manufacturing, inventory financing, and distribution solutions tailored to the needs of growing brands. Manufactured immediately stepped in to overhaul Loop’s supply chain operations.
By taking over Loop’s vendor relationships and leveraging their network to onboard a more efficient contract manufacturer, Manufactured enabled Loop to rapidly boost production without sacrificing quality. Streamlining the supply chain also allowed Loop to reduce per-unit costs by over 20%.
Manufactured also provided critical inventory financing so Loop could produce at higher volumes to meet seasonal demand spikes. With greater access to working capital, Loop could stockpile enough inventory ahead of Q4 to avoid shortages during peak selling periods.
``Manufactured handled all the supply chain and QA so we could focus on software innovation,`` Gannon explains. ``Financing also lets us make larger purchases at lower per-unit costs.``
The results speak for themselves. By optimizing its supply chain operations and inventory planning with Manufactured’s help, Loop achieved its highest revenue ever in Q4, turned a profit for the first time, and entered 2023 in its strongest position yet.
Loop’s story demonstrates how Manufactured’s comprehensive manufacturing, inventory, and financing solutions empower growing brands to scale up intelligently. For B2B clients facing seasonal supply and inventory challenges, Manufactured provides the operational expertise and working capital to turn obstacles into profits.
SEE ALSO: Brian Gannon of Loop joins the re:COGs podcast:
Tune in for authentic conversations with founders and experts across CPG, food, fashion, and other industries and discover insights you can apply to tackle your own business challenges as you scale up operations.
Read about Loop’s experience working with Manufactured:
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