LollaCup, an innovative infant/toddler straw sippy cups that are BPA-free, has recently gone famous after an episode on Shark tank in April 2012. Their value proposition of targeting infants and toddlers with a point of difference on health issues made them extremely popular. Yet, this popularity also caused an issue in the supply chain.
Originally, the packing and shipping of products ordered online was done by the owners of Lollacup, Hanna and Mark Lim, in their own living room. But as the order increased significantly after their appearance on TV, they decided that something has to change. Ultimately, the owners decided to “outsource their orders to a third-party logistics provider, known in the business as a 3PL, in exchange for a percentage of revenue.” Quoting Ms. Lim saying that, “We’re probably going to save about $50,000 this year doing it this way,” and that “Once we went the 3PL route, it could have been easy to say, O.K., that’s done. But instead we kept questioning and evaluating. We still are.”
This is a great opportunity for their business to develop and grow. Since Lollacup’s target market is internationally ranged, it is a good idea that they update their supply chain and produce a faster way of packaging and shipping.
Sources:
http://lollaland.com/whats_lollacup.html
Children’s health: http://children.webmd.com/news/20080212/so-long-sippy-cups-hello-straws
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