As sales increase from current levels, new demands are placed on the supply chains. To meet future needs, the company has already begun restructuring its internal routines. As a player in the health segment, logistical efficiency is a key factor as volumes grow.
We have focused a lot over the past year on strengthening our Supply & Operations function, with clearer forecasting, better planning and closer collaboration with our manufacturers, says Frida Asp, CEO of Elexir Pharma.
A large part of the practical work lies with the company's external logistics partners. To avoid bottlenecks, management has maintained continuous dialogue with the warehouse to ensure that capacity can be matched to the new goals.
Over the years, we have had regular future planning meetings with our 3PL partner to ensure that they also have the resources for our growth rate.
With the foundation in place, the focus is now on how daily operations can be made more efficient as orders increase.
Going forward, it's about continuing to develop the processes where we combine better data, clearer ownership and, in some areas, also automation to reduce manual work. The goal is to be able to scale volume without increasing complexity at the same rate, says Frida Asp.
Margins Secured with AI
When a company expands rapidly, challenges with profitability often arise. Keeping costs down while the organization grows is a puzzle that many e-commerce companies grapple with.
As we grow, there is always a risk that complexity increases and that is often where the margin is affected. For us, the challenge is less about product quality and more about how we work internally: staying focused, avoiding unnecessary complexity and working more efficiently over time, she says.
As a direct measure to solve this equation, the company is now turning to new technology and stricter frameworks for personnel.
That's also why we are currently investing in clearer structure, data-driven work and the implementation of AI – to be able to grow without the cost mass growing at the same rate.
The same mindset permeates the company's view of new hires. Instead of primarily hiring more people to handle the workload, they want to optimize the group that already exists on site.
We have built an organization that is adapted for the next stage of our growth, and our focus right now is to get full effect in that structure, says Frida Asp.
Bringing in new personnel is not excluded, but it should be done strategically when the right needs arise.
We will absolutely need to supplement with skills over time, but our ambition is to primarily grow by working smarter, not just by becoming more numerous.
The tools to achieve this are found in digital technology, which should function as a relief in everyday work.
For us, the development within AI and data means that we can remove much of what previously created friction and instead focus on what actually drives value. This makes the growth journey both more efficient and more exciting. What we are doing now is creating the conditions to be able to continue to grow, but in a way that is both profitable and sustainable over time, she says.
Gut Health and Longevity in Focus
To drive sales forward, products that meet customer interest are required. Previous investments in a sports series and goods aimed at women's health have borne fruit. Going forward, the company is looking at trends in the health segment to find the next step.
We continue to see great potential in the categories we already operate in, and our focus going forward is primarily to deepen our position there. At the same time, we see clear growth areas in segments such as longevity, gut health and women's health – where demand is increasing and where we already have a relevant base to build on, says Frida Asp.
The model for how these new articles will be presented to the market is already established and is based on experiences from previous product launches.
We have a number of launches in the pipeline that build on the same logic as our sports series – clear target group, clear need and a more modern communication. That is the direction we believe in most going forward.
Rolling Out E-commerce in Europe
A central part of the company's business model is the interaction between external retailers and its own sales channel. Although the company's own e-commerce is growing, it currently has a specific role rather than being the primary source of income.
Our own e-commerce accounts for a smaller part of the total turnover on the Swedish market today. At the same time, we see e-commerce as strategically important, precisely to build insight, test and develop our business going forward, she says.
The strategy at home is to let the different channels coexist in symbiosis, where e-commerce functions as a test kitchen for new ideas.
Our business is fundamentally based on our retailers, and it will continue to be on the Swedish market. At the same time, we see our own e-commerce as an important complement, both to strengthen the relationship with the end customer and to test offers, communication and products faster.
The goal is that the marketing of its own brand will ultimately generate sales across the board.
It's not about choosing one or the other, but about letting the channels strengthen each other. Our strategy going forward is to continue to drive demand in the market, which in turn benefits our retailers, says Frida Asp.
Outside of Sweden's borders, however, Elexir Pharma chooses a different route. There, its own web store takes the lead when new markets are to be conquered.
In parallel with that, we are now also starting an expansion of our own e-commerce in Europe, where we open up one country at a time. This allows us to test, learn and adapt to each market, instead of scaling too quickly without insight, concludes Frida Asp.