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3 Key Decisions To Make When Choosing Your ERP for Nutraceuticals

3 Key Decisions To Make When Choosing Your ERP for Nutraceuticals

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3 Key Decisions To Make When Choosing Your ERP for Nutraceuticals

Feb 21, 2022

Daniel Erickson
A bottle being filled by pills.

The nutraceuticals market is booming. Consumers’ increased focus on health and wellbeing has boosted the sales of nutritionally beneficial foods, beverages and supplements significantly. In fact, the market is forecast to grow by more than 8.5% year-on-year between now and 2025.

But increased demand is putting more pressure on nutraceutical manufacturers’ production capabilities. And many organizations are wondering whether now is the ideal time to embrace new operational technologies. But choosing an ERP for nutraceuticals is not a snap decision.

To help your manufacturing company find the right-fit nutraceuticals ERP software, here are three key questions to consider in your shortlisting process.

General Manufacturing ERP or Specialist Nutraceutical ERP?

With so many solutions available on the market, it’s easy to become ‘choice blind.’ Do you choose a generic ERP platform or something purposely-designed for nutraceutical manufacturers?

A general manufacturing ERP can deliver tangible benefits, such as increased production efficiency, improved inventory management and process automation. So even if you choose generic software, your manufacturing process will become quicker and leaner.

However, many manufacturers choose to invest in a dedicated nutraceuticals ERP solution, because it offers a number of features specific to the production of health foods and supplements. These include:

  • Formula Management: Precision production is critical to nutraceutical manufacturing. A dedicated nutraceuticals ERP platform includes formula management capabilities to standardize the creation of nutraceutical products. In addition, formula management enables manufacturers to centrally document revisions to formulas and recipes, automatically calculate ingredient quantities based on batch size, and convert units of measurement for accurate production.

  • Quality Control: Nutraceutical manufacturers are subject to intense regulation, which makes quality control of critical importance. A dedicated ERP solution supports the production of industry-compliant products by enabling organizations to create workflows and checklists for every product. Putting these quality control measures in place ensures manufacturers create FDA-compliant products, packaging and labelling to document mandatory information such as allergens and nutrition facts.

  • Traceability: Meeting FDA regulations is only part of the challenge; manufacturers also need to create detailed batch records for a clear audit trail in the event of an investigation or issue. Investing in an ERP for nutraceuticals creates greater visibility and accountability by assigning lot numbers to enable forward and backward lot traceability from original supplier to end shipping destination. And this level of insight also supports quick, effective product recalls.

  • Supply Chain and Inventory Management: Even the best-run manufacturing organizations can be impacted by supply chain issues. Nutraceutical ERP software enables manufacturers to understand the impact of raw material availability to mitigate cost and wastage. Choosing a dedicated nutraceutical ERP solution also enables manufacturers to move away from first in, first out (FIFO) and last in, first out (LIFO) inventory management towards an intelligent system that factors-in the shelf life of active ingredients.

On-Premise or Cloud-Based ERP for Nutraceuticals? 

Whether you’re opting for a dedicated ERP for nutraceuticals or a general process manufacturing ERP, choosing an on-premise or cloud-based system is your next critical decision.

Opt for on-premise and the software is installed locally, which means it needs to be managed on-site and can only be accessed through specific devices. Some nutraceutical manufacturing companies choose this option because it seems cost effective at installation stage, however software upgrades and technical support can prove to be expensive.

Additionally, with on-premise ERP software, employees need to be on-site—and with new Aptean research revealing that 35% of pharmaceutical and nutraceutical manufacturers find giving remote working employees access to data and systems a challenge, this may not be the most practical choice.

Alternatively, a cloud-based nutraceuticals ERP can be managed and accessed from multiple locations and devices, which enables a cost-effective, flexible working setup. It also ensures that every employee is using the same software and data insights to do their job, connecting end-to-end production and ensuring a clear audit trail for industry compliance. Our blog post on the compelling case for cloud manufacturing ERP has more information on the benefits of cloud-based software.

Established Nutraceutical ERP Provider or New Market Entrant?

If you’ve made the decision to invest in a cloud-based ERP for nutraceutical manufacturing, there’s only one choice left to make: which technology vendor to partner with. And this decision is just as critical as your actual choice of software.

An inexperienced software provider doesn’t have the detailed knowledge of nutraceutical manufacturing needed to help you to extract maximum value from your investment. So it’s often beneficial to choose an established vendor, rather than a new entrant to the ERP market.

When you’re shortlisting ERP solutions, ask each vendor about their track record in the nutraceutical industry. A company with strong credentials will be able to share relevant case studies and testimonials, to demonstrate how their nutraceuticals ERP has helped other manufacturers improve production speed and efficiency.

For example, Aptean’s tailored nutraceutical software helps organizations adapt quickly to industry and consumer changes, without compromising on quality control or FDA compliance. It’s specifically designed to meet the needs of nutraceutical manufacturing companies.

Are you Ready for What’s Next, Now®? Book a free consultation with our industry experts today to explore our nutraceuticals ERP.

Ready to increase efficiency and ensure compliance?

We’d love to show you how nutraceutical companies like yours are benefiting from ERP technology.

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