Supplement Supply Chain Needs Transparency, Compliance Software Now

    Posted by Skye Lininger on Nov 5, 2018 1:59:51 PM
    Transparency

    Managing compliance for raw materials, suppliers, and label claims can be the bottleneck cutting off the flow of getting new products to market. It’s common knowledge that the conventional process for qualifying suppliers and collecting compliance information has long been inefficient, but most have no idea how widespread the problem is.

    We spent years talking to hundreds of dietary supplement veterans. We spoke with everyone from C-suite executives to day-to-day plant workers to home office personnel, and they all told us the same thing. They’re overwhelmed–with the paperwork, tighter regulations, and changing consumer demands. Even worse, when someone walks out the door, they take a lot of institutional knowledge with them.

    We learned that a mid-sized dietary supplement manufacturer manages thousands of raw materials from hundreds of suppliers, tens of thousands of documents, juggling up to a million data points. We also learned that to do that, most manufacturers rely on emails, phone calls, spreadsheets, and even printed files. Individual departments often have their own systems with siloed data. In fact, one manufacturer told us their data was stored in seven different systems.

    Former Alacer Chief Financial Officer Larry Batina, explained, “Staying compliant with regulatory and label claims issues requires significant labor to maintain multiple in-house tools (discrete spreadsheets, emails, and paper), review relevant governmental websites, and rely on vendor-supplied information. Maintaining compliance is very time-consuming, fraught with potential errors and omissions; and requires significant senior management time.”

    This year, we were acquired by TraceGains, the industry leader in cloud-based supplier compliance and quality management solutions for the food, beverage, and supplement industries. As part of TraceGains, we’re now able to offer a comprehensive suite of software solutions built on an advanced network platform. With TraceGains, companies can automate and streamline their processes through instant information sharing and collaboration throughout the supply chain, fueling digital transformation and product innovation.

    Batina agreed that a centralized database with supplier, science, and label claim information would simplify processes and allow businesses to go faster. In other words, the way many companies do business today is risky, unnecessarily expensive, and slow—especially with increasing demands for compliance.

    TraceGains’ suite of solutions includes a compelling ROI, more than paying for itself through efficiency gains, quicker time-to-market, and audit risk reduction. As with any software implementation, there’s some upfront effort on your part to get TraceGains up and running, but that should be no excuse to wait. As Zig Ziglar put it, “You don’t pay the price for success, you pay the price for failure. You enjoy the benefits of success.”

    Here are some real benefits once TraceGains is implemented:

    Cost Savings

    • Reduced resources required for administrative compliance data management.
    • Fewer tools needed to manage compliance data and documentation.
    • Cloud-based software without the need for updates, maintenance, or hardware management.

    Productivity Gains

    • Single repository for collaborating and managing compliance with suppliers and internal teams.
    • Less email and phone time spent requesting data and documentation from suppliers.
    • Centralized and digitized compliance data for easier searches, queries, and reports.

    Risk Reductions

    • Increased insight into the state of supplier and raw material approvals.
    • Decreased audit risk with regulators and customers.
    • Risk assessment scorecards on suppliers and the items they supply based on factors critical to your business

    Competitive Advantages

    • Quicker response to compliance-related customer requirements.
    • Faster time-to-market for new products with automated compliance processes.
    • Scalable software that grows with your company.

    If you’re involved in any aspect of manufacturing dietary supplements, find out how we can help you save time and money—and get a better night’s sleep. Most importantly: do it now. What are you waiting for?

    Tags: supply chain, Supplements

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