Is price checking and maintaining your Nutraceutical products profitability a daily headache?

To understand if you are a company who falls into this trap, let’s first fact check to see if you have any of the most common problems:

  • An ERP/MRP System which is separate from your quotation system or purchase system?
  • A ‘manual’ method of calculating your product costing using basic spreadsheets and calculators, in turn leading to a ‘manual’ method of calculating your sale price?
  • A lack of visibility of the effect material cost price changes have on the profitability of your products.
  • An ‘ad-hoc’ schedule for ‘remembering’ when a product should be re-costed for the customer without set dates or triggers which would help this process.
  • Difficulty in understanding how the labour charges for the production can differ between different production methods/machinery.

Nutraceutical Management Made Easy

If your company can tick the box next to any of those, then unfortunately you are indeed one of the companies who are currently falling into the trap of being so focused on getting on with business, and selling your product range – you lose sight of the profitability of your product range.

This can be serious for your company as all too often a full order book can look to the untrained eye that your business is doing really well. It may be very difficult to obtain your competition price structure and therefore your only visibility and guide for your own pricing and placement within that market can be by looking at your own products. However without the profitability set correctly against your products, you and your staff become ‘busy fools’ – working to maintain an ever-reducing profit margin without any visibility of how that is being eroded over time.

The only way to truly solve this kind of problem is to setup strict guidelines within your company.

Examples of this could be:

  • When a material price rises – staff should re-evaluate all products using that material and adjust cost prices accordingly
  • When a quotation is raised for a customer, staff should check against the products to see the last time the selling price was re-calculated – if it’s outside a set time you have identified – a new costing and pricing calculation should be undertaken by your staff.
  • If you introduce a new machine or change staffing costs within your business affected products should be re-costed accordingly.

 

If your current systems do not allow this kind of action to be performed automatically, it could be time for you as business to consider the impact this gap in your abilities is actually costing your company.

 

It may be that you as a business are crying out for an integrated system which could handle all of this for you, within the wider environment of handling the rest of your business as well – however you feel the costs of implementing such a system would be too great?

 

I’m here to tell you that that’s simply not the case.  With our system – Receta – the actual costs of implementation in terms of both the actual costs of the software AND the staffing costs needed to complete the integration/start-up of the software are by FAR outweighed by the savings in terms of efficiencies and improvements to your bottom line.

 

Why not contact us now at info@receta.co.uk and arrange for a free demonstration.  We will arrange a screen-share meeting at a time to suit you and tailor our demonstration to show you the key features which overcome the problems you currently face in your nutraceutical business.

 

Is maintaining consistent productions of your capsules, tablets or powder mixes your Achilles heel?

A lack of ability to control your productions consistently is for many companies an on-going problem which many ERP systems cannot help with.

This ‘black-hole’ in your company’s infrastructure could be the main problem when it comes to maintaining the quality of your product range, your desire to constantly improve your relationship with your customers, keeping on-top of your GMP requirement and could also be taking up most of your quality assurance staff time  dealing with problems.

Is maintaining consistent productions of your capsules, tablets or powder mixes your Achilles heel?

All of the above is costing your company serious cash!

In many companies, this ‘black-hole’ is filled by non-industry specific software or even worse –basic spreadsheets and word documents – if this is you – there is only way the quality of your products are going to go – down!

Consider the following scenario:

You deal in mg and mcg, and in some cases also CFUs and IUs.  You also deal with extracts and purities.  You also need to record capsule weights during products and generate reports showing yields, timings and more, you also need to have a ‘Master’ production sheet outlining exactly how this product should be made.

Even if you are lucky enough to be able to handle most of that within one piece of software, I can bet that at least one part of it is either a) not consistently observed or b) has be completed in a manual capacity outside of your core system.  Put simply – it’s costing you money.

I’ve seen all sorts of work-arounds for these problems – even in some cases where for each and every production, the ‘master’ record for the formulation has to be manually re-calculated as the software being used isn’t specific enough to deal with mg/mcg! However regardless of the work-around there is always a ‘human’ element whereby a member of staff is double checking data across multiple systems or documents and it is precisely THIS manual management which is the crux of the problem.

If you’ve stuck with me this far, well done! You’re obviously eager to hear about how you can fix this problem for yourself!

The answer is very easy actually – you need to move your business to a single system, specific for your Nutraceutical business which can handle everything in one-place – PLUS it will also handle everything else you need to do in your business – Things such as your customer relations, your incoming enquiries, your quotes, sales orders, invoices and more.

As the director of Receta – an ERP Cloud-based solution specifically designed for the Nutraceutical industry, you’re going to expect me to say that our solution will fix all of these problems for you – and you’re right – Receta will do all of that and more.

However, it’s not just about your choice of software – it’s more about you making the decision that there IS a better way to manage your ingredients, formulations and productions.  It’s about making the choice that the initial time spent moving to a better solution such as Receta is time well spent when you consider the long term benefits of improvement in accuracy and efficiency!

Within Receta not only do you have the power to control your formulations within a piece of software which understands the differences between things such as purities and extracts, you also get to take advantage of your unique production “methods”. Commonly referred to as a “Master Production Record/Sheet” – this would usually be a document, manually authored which outlines the individual steps needed to produce an individual batch of your formulation, something which in many cases will be largely ignored by your staff! With Receta we take things further – not only does it help you choose the steps you need (no more manually writing your Master Production Sheets), it will also allow you to maintain a record of which staff member produced/completed which step in which production! Staff improvement plans and quality investigations become a breeze.

 

Why not contact us now at info@receta.co.uk and arrange for a free demonstration.  We will arrange a screen-share meeting at a time to suit you and tailor our demonstration to show you the key features which overcome the problems you currently face in your nutraceutical business.

Nutraceutical QA & Traceability? Could you react the right way in a crisis?

Let’s imagine for a second that you are required to issue a recall against a product you have manufactured or you’re being audited for particular industry certification such as GMP or ISO – Are you confident you have the systems in place to be able to robustly carry out the tasks required?

Could you ‘hand on heart’ guarantee you have all of the required traceability for your productions and incoming stock, or have any confidence that your carefully crafted quality production instructions are being carried out correctly every time ensuring the quality of your products?
Even if you ‘are’ confident on both counts – it’s always worth considering if anything should be improved to further protect yourself into the future.

It may not be immediately obvious what parts are missing in your quest to QA/Traceability success, so let’s break things down into the basics:

Traceability:

So what does traceability mean for a Nutraceutical Company?  Simply put, it means that you should be able to provide:

  • A full record of all movements of all stock you hold and have held in the past
  • A full record of all productions (of any kind)
  • Provide full searchable records of all productions by batch
  • Provide full searchable records of all productions which contain specific materials
  • Provide full searchable records of all production which contain specific batches of specific materials
  • Be able to issue a report detailing any of the above for uses in cases such as recallsAside from the above, you should also have robust and linked incoming purchase order management and quarantine systems to surround your production management.

QA

At it’s very core, QA (Quality Assurance) is the idea behind putting in place a way of preventing mistakes and defects during your productions.  It usually is seen as part of an overall desire by the company to improve their offering and is also generally one of the areas audited when attempting to gain approval for standards such as the ISO 9000 framework.
In many cases, real world examples of QA involve setting master production records (a journal outlining the specifics of a production), training manuals and staff training on machines, quality checking at all points throughout productions and a general awareness within the business of the requirement to keep the standard of the outgoing products to a very highest achievable and how to go about it.

How do you fare?

Many of your clients will look to your QA systems and traceability when they are deciding where to place their next business. If you don’t currently have systems in place which meet the above requirements, then you could already be putting yourself at a disadvantage to your competitors!  It’s a common issue that GMP and/or ISO certification is seen as a basic requirement by nutraceutical buyers and without complete QA/Traceability systems in-place those standards would be out of reach for many Nutraceutical manufacturers.

How do your systems talk to each other?

If you are lucky enough to be able to say that you DO currently have robust systems in place and are happy they meet the requirement – the next question to ask is – do they communicate with each other?  Do they communicate with other possible systems you may be running such as your CRM, your ERP?

In the event of let’s say – a recall – could you automatically generate a list of affected customers within your CRM from the data from your recall report?
In the event of a QA issue – could you automatically inform all interested parties via your ERP what the issue was and how it should be dealt with?

Or would you be reduced to manually syncing your data from multiple systems into a single spreadsheet each and everytime an action needs to be taken?

If any of the above has made you aware of a potential feature gap in your business – now is the time to fix it!

As the director of Receta – an ERP Cloud-based solution specifically designed for the Nutraceutical industry, you’re going to expect me to say that our solution will fix all of these problems for you – and you’re right – Receta will do all of that and more.
However, it’s not just about your choice of software – it’s more about you making the decision that there IS a better way to manage your QA/Traceability AND the initial time spent moving to a better solution such as Receta is time well spent when you consider the long term benefits!
Why not contact us now at info@receta.co.uk and arrange for a free demonstration of Receta?  We will arrange a screen-share meeting at a time to suit you and tailor our demonstration to show you the key features which overcome the problems you currently face in your nutraceutical business.

Is your Formulation Management costing you money?

It is true to say that in many nutraceutical businesses – keeping accurate records of formulations can be a time-consuming job and something which can keep even the most fastidious production manager up at night!

Typically, formulation creation and management might consist of:

  • Cross-referencing several excel spread-sheets against previous formulations or customer specifications
  • Checking against ingredient specification sheets from your suppliers
  • Double checking dosages against regulatory NRV’s
  • Manually calculating correct dosages between extracts, purities and more.
  • Manually converting between mg/mcg/iu/cfg.

All of that just to generate an accurate specification sheet for your latest product – sound familiar? We’ve haven’t even touched how that specification is then converted into an accurately manufactured product!

Suddenly all of the additional requirements you need to have in place simply to produce a formulation appear to have crept up on you overnight and you’re now trapped in the situation where you and your staff are spending countless hours trying to keep on top of everything.

If you are lucky enough to have moved on from excel and the like, onto something such as an ERP program, I’m willing to bet that you have to constantly work outside of your main software simply to ‘re-discover’ the actual formulation specifications.

Common problems are:

  • Generic ERP software not capable of understanding the differences between mcg/mg
  • Not enough decimal places to keep formulations accurate when produced
  • Inclusion of capsule shells into the mix requiring ‘hack’ quantities being added into the mix to simply get the whole thing to hang together when it comes to reducing stock quantities correctly.
  • Discrepancies between the originally calculated formula and it’s storage in different areas of your software solution

Don’t be afraid if you currently fit within either of those two scenarios – it’s all too common.

Things don’t have to be this way – you can decide to make the change for your business and improve your efficiencies ten-fold and stop hemorrhaging staffing costs keeping on top of this problem.

If you choose to carry on as you are you can be sure of two things:

  1. Your time/salary spend for staff to keep on track of your formulation isn’t going to reduce any time soon.
  2. The inaccuracies of the methods you are currently using will at some point fail to manage a job correctly and you’ll be spending even more of your business’ hard-earned cash trying to put right an incorrect formulation batch mix or an incorrect stock reduction in your ERP.

So how do we correct this problem?

As the director of Receta – an ERP Cloud-based solution specifically designed for the Nutraceutical industry, you’re going to expect me to say that our solution will fix all of these problems for you – and you’re right – Receta will do all of that and more.

However, it’s not just about your choice of software – it’s more about you making the decision that there IS a better way to manage your formulation AND the initial time spent moving to a better solution such as Receta is time well spent when you consider the long term benefits of improvements in accuracy and efficiency!

Why not contact us now at info@receta.co.uk and arrange for a free demonstration of Receta.

We will arrange a screen-share meeting at a time to suit you and tailor our demonstration to show you the key features which overcome the problems you currently face in your nutraceutical business.