In an earlier post, we looked at five trends affecting the nutraceutical industry in 2019 and beyond, promising to dive further into each as we continue the series. We first considered All Things Cannabis, and how cannabis businesses can capitalize on the trend. Another prominent trend in the nutraceutical industry is global expansion. While North America remains the hub of this industry, other markets are predicted to grow at an even faster pace, enticing more Canadian nutraceutical companies to dip their toes in the global marketplace. As you step into new markets, it is essential to maintain visibility into your finances, ensure compliance wherever you operate and leverage tools that improve supply chain activities and continue to deliver great workforce experiences. What does it take to succeed in the global nutraceutical marketplace? In particular — what do you need from your organization’s accounting or ERP software? Here are our five must-haves to help you go global the right way.
- Compliance tools
Regulations covering nutraceuticals vary tremendously worldwide. Major markets including Canada, the US, China, Japan, the EU, India and Latin America all categorize and control the sale of nutraceuticals differently. Of course, you may want to secure legal help interpreting the rules, but you’ll also need to be able to build compliance functionality into your ERP. Global compliance requires flexibility and configurability in your ERP solution. In order to meet and prove new and changing compliance mandates your organization needs business management software with powerful, flexible reporting tools backed by rock-solid manufacturing control and tracking.
- Flexible logistics
To succeed globally, nutraceutical enterprises need sophisticated and agile supply chain logistics to supply the precise ingredients when and where they are needed. In addition, the lack of harmonized rules means that nutraceutical companies must adapt their go-to-market logistics to meet the regulations of each country—varying the nutritional claims, labeling and even the formulas depending on rules and consumer preferences. A nutraceutical ERP solution with global capabilities provides the forecasting, material requirements planning (MRP), supply chain management, formulation control and ingredient tracking your organization needs to operate successfully in multiple markets.
- People management
Global expansion greatly complicates human resource management for nutraceutical companies. With both local and global personnel, companies must ensure their compliance with a myriad of rules and regulations relating to talent acquisition and talent management. With the right Human Capital Management (HCM) solution designed for multinational organizations, you can centralize people data into a single solution—accessible from anywhere—supporting and promoting both your local and global recruiting, management and retention efforts.
- Track and trace
Manufacturers and distributors of nutraceuticals need to be able to track and trace all ingredients in their products, and a growing global corporate footprint only elevates the requirement for end-to-end lot traceability. A nutraceutical ERP application can track the life cycle of products and lots including raw materials being used, test results, certifications, allergens, sell-by dates, and product specification performance. It can also provide extensive quality control capabilities allowing you to track quality data on both products and their components from purchasing through inspection, manufacturing, stocking and sales.
- Multinational capabilities
It sounds obvious to ensure your nutraceutical ERP application provides multi-national capabilities if global expansion is in your plans. However, many nutraceuticals start small, often using entry-level, off-the-shelf accounting software — recognizing later that additional functionality is needed to support multinational operations. A nutraceutical ERP solution with multi-currency, multi-language, multi-company and multi-legislation capabilities builds in the scalability and extensibility needed in order to be efficient, productive, accurate and compliant in a global marketplace. The nutraceuticals industry is poised for tremendous growth, and much of that growth will happen outside of your home market. By investing in a global nutraceutical ERP solution, you can be assured your organization is ready to capitalize on all the world has to offer.