Jeff Swartz CEO at Ohio Business Roundtable | Official website
Jeff Swartz CEO at Ohio Business Roundtable | Official website
Bath & Body Works has transformed its production process by reshoring operations to a dedicated "beauty park" near Columbus, Ohio. This initiative allows the company to manufacture and distribute products in just 21 days, significantly reducing the previous three-month timeline. The park houses ten manufacturers across millions of square feet, employing 5,000 people during peak production.
Susanna Zhu, a supply-chain executive at Bath & Body Works, likened the company's role to that of a "composer and a conductor of a symphony." The reshoring effort began in 2008 and required negotiations with suppliers who were initially hesitant about relocating. Rieke Packaging, for instance, moved its pump production from China to Ohio after considering the potential benefits.
Chief Executive Gina Boswell emphasized the advantage of having corporate executives close to key manufacturers: "That’s magical, especially when you need speed and agility," she said. The proximity facilitated rapid problem-solving and product development during the pandemic when competitors faced shortages.
Despite challenges such as high costs and environmental regulations in the U.S., Bath & Body Works' model has proven successful for its specific product range. However, it may not be easily applicable to industries like semiconductors or raw steel due to their complex supply chains.
The New Albany beauty campus has attracted other businesses as well. Intel plans to establish a semiconductor plant nearby, which is expected to bring additional local suppliers. While labor shortages remain a concern for some manufacturers on site, Bath & Body Works continues to leverage its unique setup for fast product rollouts.
Nicholas Whitley of KDC/One highlighted the efficiency gained from co-location: “Within literally a week, that’s what’s getting shipped.” Tom DeCicco from CCL Label noted that certain product details are best evaluated in person rather than via digital communication.