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Why It’s Smarter to Outsource Supplement Manufacturing

Outsourcing

Supplement outsourcing is on the high-rise due to a broad range of advantages. Outsourcing allows supplement companies to invest more time and energy into their Sales and marketing operations. Outsourcing allows for less involvement in the manufacturing process. Along with complete abstinence from the manufacturing, supplement companies can focus on offering customer-centric services to clients. Outsourcing offers immense profit-making opportunities to supplement manufacturers. Let’s find out why most supplement manufacturers prefer outsourcing in this blog post (1). 

The demand for nutraceutical products is going mainstream. There is a growing trend of gravitating towards holistic means of attaining health and wellness goals. Leveraging from this mainstream demand, sales of nutraceutical products reached beyond $200 billion and is estimated to reach $250 billion in the next year. With such a high production rate, most outsourcing companies have resorted to contracting manufacturing services. This saves time, money and human resources to a great extent and helps make improved sales outcomes for the business at hand (1).

Supplement Machine

Requires Cutting Edge Technology

Most companies resort to outsourcing in the supplement industry as they do not have the specialized equipment and staff to handle it. You need to gain a sound knowledge of the science and mechanisms at hand to run the equipment. Advanced capsules require cutting edge technology to fill them with liquid or powder. For this purpose, most supplement companies rely on the scientific ability of their manufacturers. Incorporating hi-tech devices into the production of food supplements allows for improved marketing and sales outcomes (2).

Supplement companies take help from manufacturers for meeting specialized requirements of their sales and marketing processes. You need to rely on the experts for operational and scientific lab-related work. Multi-tasking will end you nowhere in terms of meeting your sales goals at the end of the day. Supplement companies focus their expertise and focus on growing the sales and marketing processes (2).

For this purpose, almost 99 percent of supplement companies hand over the reins for product development and technical knowledge into the hands of their manufacturers. This allows them to focus on their key strength areas that are sales and marketing. This allows supplement companies to rake the highest profit margins for themselves. On the other hand, manufacturers focus on the internal technicalities of product development (2).

Cut Costs

Lowers Down Costs

The biggest advantage of supplement outsourcing is reduced cost burden on companies. There is potential for gleaning maximum profits from the sales and marketing process. Outsourcing offers time-sensitive and cost-effective approaches for ramping up sales outcomes for supplement companies. Partnering with the industry and product experts in manufacturing, allows supplement companies to focus on aggressively dominating the marketplace (3).

Outsourcing allows companies to keep up the highest quality and cost standards possible. Matching quality with cost is the burning need of most supplement companies. This allows supplement companies to dedicate their time and resources exclusively towards navigating the current market trends. By focusing on market research, companies are able to gain improved sales outcomes. Outsourcing allows companies to allocate their financial and human capital towards sales and marketing (3).

Through outsourcing, organizations are better able to keep pace with the growing needs of the market. Cutting down labor costs, allows supplement companies to reap the highest profits from their business processes. Allocating your resources towards core business processes is made possible only through outsourcing. The hyper-dynamic fluctuations in prices and quality can be balanced through outsourcing (3).

Need to Follow Strict Regulations

Outsourcing allows companies to remain devoid of the current FDA regulations. FDA’s Office of Dietary Supplement Programs requires strict adherence to guidelines. From ingredients to supplement guidelines, there is a foot-load of information that needs to be followed for nutraceutical companies (4).

Warehouse

Need for Warehousing and Logistics Facility

Outsourcing is helpful as supplement companies do not have to invest in multiple real estates across several locations. A warehouse facility requires specific sites and specialized staff for operating. Multiple warehouse facilities pose higher production and maintenance costs. Outsourcing allows supplement companies to save logistics and warehouse maintenance costs. The larger the processes a company caters to, the higher its chances of contracting expenses. Bigger companies undergoing expansion can take an enormous toll on their budget and expenses. Multiple warehouse facilities can also ramp of cost of logistics between several countries (4).

Outsource to save money on staff

Need for Industry and Field Experts

Another outstanding benefit that outsourcing poses for a supplement company is little to no investment of time and money on specialized personnel. With the boom of technology and data science, the exorbitant amount of industry expertise is of high priority (4).

Outsourcing saves large amounts of money, otherwise spent on lab scientists and research work for a supplement company. At the same time, through a partnership with leading manufacturers, they can always gain insights from scientific and industry experts in the field (4).

In this way, supplement outsourcing companies can leverage their sales and marketing tactics by gained expert guidance. This allows outsourcing companies to fill in the technical gaps and accelerate their commercial options. With a laser-sharp focus on sales and marketing operations, outsourcing companies can navigate the untested waters through the help of their manufacturing partners (4).

Opportunities for Innovation

With the provision of more resources towards sales and marketing processes, integrated technology can be utilized to stack high-profit margins for outsourcing companies. Utilizing cutting-edge technologies for market success is only possible when all resources are not allocated in one direction alone. The capability of an outsourcing company to integrate technology within its sales and marketing processes, allows them to stand apart from competitors (4).

Innovation is only possible when supplement companies allocate laser-sharp focus towards their marketing technologies. Nutraceutical companies can reap enormous profit margins beyond the technical and financial arena. outsourcing allows supplement companies to make groundbreaking innovations and exceed expectations. Supplement manufacturers and suppliers develop a strong long-term relationship (4).

Contract manufacturing for supplement outsourcing allows for innovation opportunities. Companies can focus on creating exclusively tailored food supplements. Flexible outsourcing options allow ample opportunity to innovate for supplement companies. Employing technology for marketing strategies, allows outsourcing companies to explore uncharted boundaries. The development of mutual partnerships between supplement manufacturers and suppliers accelerates the growth of a supplement company exponentially (4).

Supplement Ingredients

Knowledge and Availability of Ingredients

Supplement outsourcing allows you to reach high-quality ingredients at a low price. Enhancing the functionality of Ingredients at a low price is at the heart of why most supplement companies lean towards outsourcing. Each supplement ingredient belongs to a certain region, climate, and grading mechanism. Acquiring a sound knowledge of these specific differences in ingredients and products can be quite tough (5).

Efficiency

Drives Efficiency

The manufacturing process comes with a lot of challenges that need to be addressed accordingly. There may be inefficiencies in the production process that need to be properly addressed and handled. If a supplement company has to focus on manufacturing and sales processes simultaneously, the efficiency of the company derails to a great extent. A company may not have the technical specialty or warehouse facility to drive the manufacturing process. It is much more convenient for outsourcing companies to invest solely in driving sales and marketing. This will boost the supplement business efficiency further up a notch with little to no loss of financial resources (5).

By joining hands with a supplement manufacturer you can channel more resources into the sales funnel. Efficient production, maintenance, and delivery of the product is made possible. The biggest advantage of outsourcing is saving an exorbitant amount of financial and technical resources that would otherwise have been spent in looking after the manufacturing, storage, and logistics. By joining hands with a supplement manufacturing contracting company, you can focus maximum resources on innovation and improving business efficiency (5).

Contract Manufacturing

To Sum It Up…

Investing in contract manufacturing helps supplement companies to approach their business processes in a customer-centric way. In addition, it helps lower down costs, improve business efficiency and rake high profits through a joint partnership with supplement manufacturers. Without draining financial and technical resources into the manufacturing process, it saves a supplement company tons of money and polishes the product through driving innovation and efficiency rates (5).

Choose SMPNutra For Your Outsourced Supplement Manufacturer

If you want to create a groundbreaking nutraceutical brand that exceeds client expectations, choose SMP Nutra.  Contact us today to take full advantage of our custom made and exclusively tailored contract manufacturing services so that you can become invincible in the nutraceutical industry (5).

References

  1. https://www.nutritionaloutlook.com/regulatory/how-fsma-changed-outsourcing-industry-dietary-supplements
  2. https://www.nutraceuticalsworld.com/issues/2019-03/view_features/nutraceutical-brands-find-relief-in-outsourcing-manufacturing/
  3. https://pdfs.semanticscholar.org/129a/be8097ff646b3e8a1ceabd0eeecfd6f2700a.pdf?_ga=2.34016673.1804820373.1575564092-1384346634.1571749762
  4. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5639890/
  5. https://www.prnewswire.com/news-releases/superior-supplement-manufacturing-presented-with-the-prestigious-dow-packaging-silver-award-for-innovation-300797650.html

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About Author

Will Cartwright

Will is a Co-Founder of SMP Nutra, founder of GetKnownPros, and owns a handful of supplement brands. Will has extensive knowledge of trends in the nutraceutical industry after contract-manufacturing for hundreds of brands. Will has spent the last decade learning the best online marketing & brand-building techniques for supplement & vitamin brands and enjoys sharing this unique knowledge with his nutra-entrepreneur community.

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