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Securing Quality Supplement Supply Chains

Good health is on the minds of Americans. And proactive preventative measures top the list. According to the CRN (Council for Responsible Nutrition) 2021 survey, dietary supplements are now considered mainstream with 4 out of 5 Americans taking one or more. In addition, CRN reports that 55% of supplement users added new supplements to their supplement regime in 2020.

Between the global pandemic, increased nutrition education, and a marginal rise in discretionary income: the supplement market has never been hotter. But, how well an individual brand performs comes with a catch. With the increased nutritional education, consumers are more aware than ever of supplement quality markers. And they are willing to pay more for certified sustainable and organic products.

How to Measure Supply Chain Quality?

Educated consumers understand stating something is high-quality does not necessarily make it high-quality. Given supplements are regulated more like food than medicine, the Food and Drug Administration (FDA) leaves manufacturers and distributors responsible for evaluating the integrity, safety, and labeling of their products.

Supplements must comply with specific regulations. They cannot be misbranded or adulterated. And they must be manufactured, packaged, and labeled according to outlined good manufacturing practices (GMP).

GMP requirements ensure identity, purity, quality, strength, and composition of dietary supplements. In addition, the 2011 Food Safety Modernization Act requires any supplement sold in the United States to meet the set safety standards regardless of where ingredients are produced or where the supplements are manufactured.

However, in the end, the FDA does not approve dietary supplements before they are marketed to the public.

To build a purely high-quality product to meet consumer demand and scrutiny, brand owners must hold manufacturers and supply chain producers accountable. Here are 8 ways to ensure your supplement contains the highest quality ingredients:

  1. Be specific about your product’s formulation, expectations, and target audience. (Is it for the organic market, the Halal market, etc.?) Put it in writing and make it part of your contract purchase order.

  2. Learn how to read and understand a certificate of analysis (CoA). CoA gives the product identity and testing results, lot and batch numbers, and the name and location of the supplier.

  3. Prioritize verifying identity with trusted third-party laboratory testing. Also, test for harmful microbes, heavy metals, and pesticides. This extra testing adds cost. But it also reduces recalls and improves customer loyalty.

  4. Invest in understanding laboratory testing for specific materials and what the test tells you about the quality.

  5. Validate transparency with chain-o- custody documentation. (Was the product handled and stored to maintain product integrity?)

  6. Be wary of the lowest bidder. The lowest bidder may be cutting quality to reduce the price.

  7. Build trusting relationships with suppliers, manufacturers, warehouses, and distributors.

  8. Reject material not meeting your specifications and hold suppliers responsible by making official complaints to the FDA when warranted.

3 Ways to Improve Your Supplement Supply Chain Like all markets, current affairs leave the supplement market facing supply chain issues. In 2020 alone, the Federal Reserve estimates as many as 200,000 businesses went out of business. And that is just the beginning in contemplating supply chain issues as the US and other countries have dealt with economic, environmental, and political upheaval since the pandemic started.

Supply Chain Management (SCM) relies on three foundational elements that require a concerted effort in the current climate. These include planning, purchasing, and delivery.

Planning

Long-term planning means knowing who supplies what, envisioning supply disruptions, and discovering solutions to meet your demand.


Analyze the data or use scenario planning strategies to determine where your resources are best spent. This way, instead of guessing, you have plans to deal with a supplier who goes out of business or a large customer initiating significant changes.

Supply chain planning should focus on the following 5 factors.






  1. The raw materials to meet customer demand.

  2. The desired quality of the materials.

  3. Delivered raw materials are in good condition to meet customer expectations.

  4. Materials are delivered to the correct location at the expected time.

  5. The best raw material price for desired quality.

Purchasing Fewer suppliers increase the scramble to acquire some products. In today’s climate, you should establish supply chain and delivery partnerships, stock valuable inventory, and locate and contract with additional suppliers to support your business needs. To determine which components or raw materials to stock, follow the 80-20 rule, known as the Pareto principle. In most cases, 80% of revenue comes from 20% of the products. Concentrate on purchasing and storing materials that generate the bulk of your business revenue.

In forming partnerships, make personal connections. If a valued partner knows you want to develop a mutually beneficial relationship: they are more likely to meet your supply needs first.

Delivery

With the current situation, the just-in-time inventory mindset may cause interruptions to production if supply delivery is disrupted. The right amount of buffer stock should be determined when calculating economic order quantity and reordering time frames.

Quality Manufacturing with Origin Nutraceutical

Origin Nutraceutical is dedicated to manufacturing the highest quality supplements at the best price. We operate with National Sanitation Foundation (NSF) GMP certification, denoting our commitment to meeting and exceeding FDA standards. Origin also maintains kosher, halal, and organic certifications.

Customer service is the origin of success. We seek to build partnerships with clients, raw ingredient suppliers, laboratories, and other businesses involved in producing a high-quality supplement.

We meet the current supply chain issues by relying on our pre-established raw material suppliers. We are also constantly reaching out and searching for additional suppliers that meet our quality demands and specifications. We believe in open, honest communication and in being a transparent manufacturer.

Contact us today to meet all your dietary supplement manufacturing needs.


Sources:

“CRN Reveals Initial Data from 2021 Consumer Survey on Dietary Supplements.” CRN: The Science Behind the Supplements. 2021. https://www.crnusa.org/newsroom/crn-reveals-initial-data-2021-consumer-survey-dietary-supplements

Isaacson, David. “Seven Steps for Ensuring Quality Across The Supply Chain. Supply Chain Brain. 2021. https://www.supplychainbrain.com/blogs/1-think-tank/post/33046-seven-steps-for-ensuring-quality-management-across-the-supply-chain

McCue, Ian. “How to Identify and Mitigate Supply Chain Risks.” Net Suite: Brain Yard. 2021. https://www.netsuite.com/portal/business-benchmark-brainyard/industries/articles/cfo-central/supply-chain-risks.shtml

“Dietary Supplements.” Food & Drug Administration. 2022. https://www.fda.gov/food/dietary-supplements

“Supplement Supply Chains Quality Standards.” National Product Insider. ITB-SupplyChain-Download-1221.pdf

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