The supplement manufacturing industry often faces misunderstandings regarding how and why things are handled a certain way. These misconceptions can have significant consequences on the brands working with supplement manufacturers. These include wasted resources and different strategic problems, which often result in missed opportunities and falling short of business goals.
In the following sections, you’ll read about the most persistent myths regarding supplement manufacturing. The guide clarifies how things look in reality, with the goal of empowering B2B brands to make better-informed decisions.
Myth #1: “All Manufacturers Use the Same Ingredients and Formulations”
Reality: If you look at the label, it could be the same ingredient list. However, there are many differences between different manufacturers. For starters, the research and development processes vary significantly. Manufacturers might also partner with different suppliers, which affects ingredient sourcing and quality. The facilities that companies have available can influence the production process, along with quality control measures applied. Some manufacturers use ingredients tested by independent third-party organizations, while others stick to in-house testing.
Why this matters for supplement brands: The product quality can significantly depend on which manufacturer you select. It’s vital to talk to multiple companies and ask questions related to their ingredient sourcing, production facilities, and quality control standards. Some manufacturers might offer lower-cost production because their ingredient sourcing is far less reliable, while others employ rigorous testing to meet the highest industry standards. You can look for certificates to confirm that a manufacturer maintains ingredient potency and purity and sticks to Good Manufacturing Practices (GMP).
Myth #2: “Cheaper Is Always Better”
Reality: For a manufacturer to offer a good price to the brand, that means their production costs have to be even lower than that. Some manufacturers cut corners to maintain an attractive price, which compromises overall product quality. That means they may not stick to the highest standards when acquiring your raw materials, they may utilize low-quality ingredients for your order, or they may not conduct strict third-party testing. The manufacturer might even lack some certificates that prove they meet certain standards. Low-quality manufacturing can lead to product recalls and legal issues due to non-compliance. All this can compromise the brand’s reputation or even sink a brand’s operations.
Why this matters for supplement brands: From a brand’s perspective, you want to keep the initial investment costs as low as possible. And while that’s understandable, it’s important to consider that you’ll likely receive a lower-quality product. If you picked the private label formulation, you can expect harsh competition. If another brand offers better quality without a significant price difference, the odds are that users will pick it instead of your product. That’s why your focus should be on balancing cost-effectiveness while achieving rigorous quality standards, and not only about keeping the costs minimal.
Myth #3: “Lead Times Are Entirely Out of Your Control”
Reality: Numerous factors can affect lead time. It all begins with the availability of raw materials, but there are also regulatory checks and scheduling the production. From the production start, it might take weeks or months until the production is complete. But with the right amount of planning and preparation, it’s possible to avoid delays. Many manufacturers apply proactive planning and use forecasting tools when scheduling their production. Reliable manufacturers guarantee transparency and have backup plans in case potential delays occur.
Why this matters for supplement brands: It’s vital to understand how you can potentially affect lead times for the product. It all starts by choosing a manufacturer that has realistic and transparent production timelines. That means they give you a timeframe when they will deliver, and it helps if they agree to pay penalties if they don’t meet that deadline. Many brands have a forecasting system that anticipates demand, which is how you can decrease last-minute rush orders. That means even if the lead time extends a bit, you won’t be affected.
Myth #4: “Private Label Means No Differentiation”
Reality: Private labels use pre-approved formulas, but that doesn’t mean slight custom tweaks aren’t available. Some manufacturers might offer some room to modify the ingredients or at least the dosages offered. Additionally, private label products mean that the brands put their name, logo, and colors on the label. The similarity to other supplements in this category will only be visible if a consumer reads the nutritional panel on each bottle side by side.
Why this matters for supplement brands: The way to differentiate is to focus on aesthetics. That means you want to think strongly about the packaging design and what you’ll write on the label. A great marketing strategy will rely on the space on the label to further promote the product in a certain way and help it sell. But that marketing must be done so in a way that is compliant with all rules and guidelines, otherwise your products and brand may face hefty fines or even be forced to close down the operation. Additionally, you can look for manufacturers that allow minor tweaks to the formulation.
Myth #5: “You Have to Overorder Inventory to Secure Good Pricing”
Reality: It’s a common business practice for manufacturers to be ready to lower the price per unit for those who order large quantities. However, many manufacturers offer flexible pricing and adjustable minimum order quantities (MOQs) to meet the needs of different brand sizes. Some manufacturers focus on smaller brands and offer special pricing tiers for them.
Why this matters for supplement brands: Overordering can become a huge financial problem, especially if you fail to sell the entire product stock before the expiration date. Additionally, large orders cause storage issues, especially for those with limited warehouse sizes. You can try to negotiate the MOQ with prospective manufacturing partners. Manufacturers value long-term partnerships, and they might be willing to offer better prices if they are aware that you’ll be relying on them in the long run.
Myth #6: “Compliance Just Means Slapping on a Label”
Reality: The process of placing that label on the product is complex and requires adhering to strict standards. Manufacturers must provide detailed documentation and execute batch testing to confirm quality control and consistency. The facilities, machinery, and production process should all adhere to the given standards. These standards can be the Good Manufacturing Practices from the FDA, or NSF from the National Sanitation Foundation, or many others worldwide. So, this is more than a label. It’s a clear confirmation that the manufacturer is complying with strict regulations.
Why this matters for supplement brands: Working with a manufacturer that has acquired different certificates likely means that it prioritizes regulatory compliance at every stage. That means the manufacturer undergoes detailed testing for ingredient purity, potency, and facility regulations. You should also partner with manufacturers who are aware of constant regulatory changes and those dedicated to staying one step ahead when it comes to meeting the latest regulations.
Conclusion
Although they might seem similar, once you scratch beneath the surface, it’s clear that not all manufacturers are created equal. Understanding the details of the production process, from ingredient sourcing to factors contributing toward the total cost, is the way to choose the most suitable manufacturer for your brand. Debunking common myths shows that only the most reliable manufacturers maintain top-quality standards and offer the best possible product for the cost. Knowing the facts helps pick the best possible partners, and that’s how you help your brand achieve long-term success.
Work With SMP Nutra For Your Supplement Manufacturing Needs
SMP Nutra is the leading US-based facility for all things supplement manufacturing. With the best lead times, competitive pricing, clear communication, order status tracking, and more, the experience of getting products made has never been easier.
SMP Nutra has an extensive collection of 800+ stock product formulas, so you can easily launch a new product or expand on your current product line. If you do have a custom formula or want to create one, SMP is capable of helping you with that as well.
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