30 Apr 3 Reasons Inventory Management Is Important For Supplement Companies
With any business, inventory management is crucial. If your company deals with nutritional supplements and nutraceuticals, then it’s even more important to have a tight control on things. Good inventory management is important not just because of the effect it has on your bottom line – there are serious health and safety considerations as well. Here are 3 reasons why every supplement company needs to make inventory management a top priority.
Keeping Up With Demand
Unlike a lot of products, supplements are something always in demand. When your customers are relying on your company for specific supplements on a regular basis, it’s important to have an accurate gauge on inventory counts. You can’t ship what you don’t have. This is especially true if your company offers a subscription service or ships regularly to certain customers. Not only do you have to have the supplies ready to ship on a monthly basis for your pre-existing customers, but you also have to be able to take into account the addition of new customers; having the ability to fulfill new orders as they come in.
Too Much can be Worse than Not Enough
The problem with running a product that has a set shelf life is making sure you have a proper rotation of your stock. Nutrition supplements have an expiration date which means older stock needs to be sent out first. The only way that works is a very careful rotation of products, requiring a strong control on your inventory, as well as good inventory management practices. Nutrition suppliers need to be especially careful as sending out expired, or close to expired products, can be a health risk to your customers which has the potential to result in a lawsuit or other legal action against your company.
Keeping up to Code
CGMPs or current good manufacturing practices, which were finalized in 2007, create a strict set of rules and guidelines for the manufacturing of nutrition and health supplements, insuring quality, purity, and strength. This is perhaps one of the most important reasons for strong inventory control. Any company found in violation of the CGMPs can be subject to punitive action from both the Department of Justice as with as the FDA. Supplement manufacturers, both large and small, need to be especially careful as being found in violation could result in your company being shut down entirely.
All in all, inventory plays a crucial role in the success of your company. With proper inventory management systems in place you can not only set your company up for success, but protect it from countless potential supply issues, delays, and possible legal action from being found in violation of the CGMPs. Much in the same way that your products help to promote the health of your customers, having good inventory control practices helps to promote the health and success of your company.