Sabon - Case Study

The Company

Sabon, a chain of bath products and cosmetics based in Israel, offers consumers a wide selection of unique cosmetic products that are visually stunning as well as tantalizing to the senses. Their products, which are handmade in the Israeli countryside and beside the Dead Sea, are appealing for their natural look and nostalgic feel.

The Challenge

Entering the U.S. market in 2001, Sabon began by operating their nationwide import business out of a NYC apartment by employing 2 men and a delivery truck to manage everything from custom clearance and storage to distribution and internet fulfillment. Sabon's rapid success in the American market forced it to reevaluate its limited setup and to quickly gear up for larger orders and a bigger operation.

The Solution

GAM provides Sabon with complete supply chain management, managing its products from the time shipments arrived to the United States until the time the products hit the U.S. retail stores. GAM manages everything including the logistics of customs clearance and delivery from the docks, to GAM's temperature controlled storage facilities. GAM provides Sabon with its own storage space and with a customized shelving system to maximize the use of space and reduce costs.

Sabon’s inventory is promptly bar coded and new inventory is recorded within 24 hours to assure accurate inventory control and to avoid shortages or surpluses. GAM also prompted Sabon to change its drop shipment method to pre-set delivery times to retailers.

The Results

By switching to fixed delivery times, and with the use of advanced inventory management technology, GAM helped Sabon save 40% on its supply chain costs and streamline the relationship with its vendors nationwide.