Manufacturer change too late: What risks cosmetic brands take when they wait too long
Manufacturer change too late: What risks cosmetic brands take when they wait too long
12 min read
CEO & Founder at Labtree GmbH
Changing manufacturers is costly and time-consuming, which is why it is often postponed for too long. The problem: the later the switch, the higher the risk of delivery stops and loss of quality. When a change is overdue and how to structure the process.
The topic is short and compact
Repeated quality, delivery, or communication problems justify a change process.
Too late = delivery stop, regulatory gaps, deterioration in quality, commercial damage.
Structured transition takes 3–6 months and runs in parallel with existing production.
Repeated quality issues across multiple batches: not isolated incidents, but patterns
Delivery delays accumulate without any clear cause being identifiable
Communication becomes increasingly reactive; status inquiries receive delayed or vague responses
Incomplete documentation: in the event of regulatory inquiries, data cannot be provided, or only with a delay
Lack of flexibility regarding adjustments or innovations
Individual points among these are no reason to switch. However, if several occur simultaneously, a structured transition process is more sensible than continuing to hope.
Early signs that warrant a change
Repeated quality issues across multiple batches: not isolated incidents, but patterns
Delivery delays accumulate without any clear cause being identifiable
Communication becomes increasingly reactive; status inquiries receive delayed or vague responses
Incomplete documentation: in the event of regulatory inquiries, data cannot be provided, or only with a delay
Lack of flexibility regarding adjustments or innovations
Individual points among these are no reason to switch. However, if several occur simultaneously, a structured transition process is more sensible than continuing to hope.
Risks of switching too late
1. Delivery freeze. If the existing manufacturer fails or inability to deliver occurs, the brand is left with orders that cannot be served. In retail, this leads to listing sanctions.
2. Regulatory gaps. If documentation is missing or incomplete, safety assessments or PIF requests cannot be served during audits, posing a risk to market authorization.
3. Deterioration of quality. If the manufacturer is already showing quality problems, complaints and returns accumulate. This permanently damages brand perception.
4. Loss of trust with retailers. Retail chains evaluate delivery reliability. Repeated problems can lead to delisting, even if the cause is external.
How a structured change works
Transfer of formulations. Complete documentation of existing formulations, ingredients, processes, stability data. In case of poor documentation, the new manufacturer must reverse-engineer the formulation.
Regulatory handover. PIF, CPNP notification, and safety assessments are updated and transferred to the new manufacturer.
Start of production in parallel operation. Test batches at the new manufacturer while the old one is still delivering. Validation against the existing specification.
Controlled delivery handover. Phased transition, no hard cut. First batches from new source parallel to remaining stock.
Complete replacement. Former manufacturer is phased out.
Total duration: typically 3 to 6 months, depending on complexity.
What brands should look out for with the new manufacturer
Experience with Takeovers: Does the new manufacturer have a structured methodology for formulation takeovers?
In-house Development Depth: Can they reverse-engineer the formulation in the event of incomplete documentation?
In-house Formulation Base: Are alternative formulations available if the existing one cannot be adopted 1:1?
Integration with Production: Is scaling considered from the very beginning, instead of being set up from scratch after a successful takeover?
What Labtree offers as an acquisition partner
Labtree regularly takes over productions from other manufacturers. Three building blocks make the process structured:
In-house laboratory. Formulations can be analytically reproduced and stability-tested in the event of incomplete documentation.
Formulation base as a fallback. If the existing formulation cannot be adopted 1:1, our own formulation base (over 1,000 formulations) serves as a starting point for a comparable solution.
Parallel implementation. Regulatory handover, test batches and supply handover run in parallel, not sequentially.
In-depth sources: The legal basis for all cosmetic products marketed in the EU is the EU Cosmetics Regulation (EC) No. 1223/2009. In Germany, the health assessment of ingredients is the responsibility of the Federal Institute for Risk Assessment (BfR). Industry information and market data are published by the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW).
Conclusion
Changing manufacturers at the right time is risk management, not an admission of failure. The earlier the structural signs are recognized, the more structured the transition can be, and the lower the risk of supply halts, regulatory gaps, and commercial damage.
Related articles: Switching cosmetics manufacturers · Securing delivery capability · Verifying cosmetics manufacturers
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FAQ
Does Labtree have its own laboratory?
Yes. Labtree has its own development expertise, including a laboratory. This means that formulations can not only be selected, but specifically developed, tested, and adjusted. Additionally, smaller test batches can be produced in-house in order to validate products early on in real conditions and safely transfer them to production.
How long does a change of manufacturer take in cosmetics?
Typically 3 to 6 months, depending on the number of products, complexity of the formulations, and completeness of the transfer documentation. If the documentation is incomplete, this phase may be extended because formulations must be analytically recreated.
What happens if the existing manufacturer does not provide complete documentation?
The new manufacturer must analytically reverse-engineer the formulation; ingredients, concentrations, and processes are reconstructed in the laboratory. This prolongs the process, but is feasible given sufficient laboratory competence on the part of the new manufacturer.
Can products continue to be delivered during the switch?
Ideally yes, in parallel operation. The old manufacturer continues to deliver while the new one sets up production in parallel. This prevents any interruption in supply. If the old manufacturer is already unable to deliver, it becomes more difficult.
What role does the regulatory handover play?
The PIF, CPNP notification, and safety assessments must be updated to reflect the new production location and process. In the case of poor documentation from the previous manufacturer, this is often the most time-consuming part of the transition.
How do I prevent myself from experiencing this situation again?
When selecting a new manufacturer, specifically verify: in-house development maturity, in-house production, documented processes, and experience with long-term brand partnerships. Regularly monitor early warning indicators.
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