In 2019, the cosmetics and personal care market size was valued at $380.2 billion, and by 2027, it\’s projected to reach $463.5 billion. For many people, cosmetics have become an essential part of their lifestyle. That being said, a lot is involved in managing a cosmetics and personal care business, and an ERP system can help. Here\’s how:
Benefits of ERP for Cosmetics & Personal Care
An ERP will give you more control over product development and production. It can help you improve your planning and scheduling, balance your inventory, and reduce costs and variances. In addition, it can help maintain your compliance with industry standards to avoid fines and penalties. We will explain more below:
Quickly Develop New Products and Product Lines
You will have the tools to quickly develop and introduce new products and product lines to the marketplace, from minimizing your usage of petrochemicals to developing new herbal and botanical products. The advanced programming offered by ERP systems reduces the amount of time spent. It mitigates your risk of errors from manual calculations in designing, updating, and approving products for your customer base.
Increased Control of Inventory
An ERP system provides you with control over your inventory and space utilization by providing accurate demand planning and production schedules. This way, you don\’t have to worry about not having enough or having too many of your raw materials or finished goods. You know what\’s needed to produce, when, and which raw materials you need to create those finished goods, and when you need to order.
Rapidly Scale Up (or Down) Production
An ERP system automates your batch and keeps production flowing appropriately. Meaning you don\’t have to intervene manually. Production becomes streamlined because the system can adjust recipe sizes and schedule production batches. You don\’t have to be concerned with delays, risks/costs associated with changeovers, or operational downtimes. An ERP system will facilitate the establishment of a program to improve your current processes, keep production equipment at its ideal settings, and ensure that you can meet demand increases (or decreases).
Avoid Customer/Industry Fines & Penalties
There are several regulations and mandates to follow in the cosmetics and personal care industry. An ERP system can help ensure that you remain compliant with these regulations. Some of these include FDA, FD&C Act Section 201, ISO 22716, and EC 1223/2009, to name a few. These are mandates related to labeling, lot traceability, recall requirements, safety reporting, and shipping documentation.
If a recall is required, you can utilize bi-directional lot tracing to report the suspected products within a few minutes instead of days. You can prepare your team with mock recall programs with customers and suppliers.
Additionally, you can establish a quality program to avoid color match issues and order shortages. Plus, when you have an audit trail of critical business transactions that is thorough and easy to access, you remain in compliance with the record-keeping requirements of your auditor.
Reduce Costs Related to Product Development
An ERP system provides you with the ability to manage costs during product development. Production scheduling and demand planning reduce costs related to excessive labor and inventory and costs associated with changeovers and equipment clean-downs. Having a quality program in place when you receive customer shipments reduces costs related to returns.
Let Goldfinch Help
As you can see, there are many benefits of an ERP system for businesses in the Cosmetics and Personal care Industry. This industry has many facets; likewise, many things can go sideways. However, when you have Goldfinch ERP in place, you can quickly develop new products and product lines, keep better inventory control, and scale up or scale down production. In addition, you can avoid customer/industry fines and penalties and reduce costs related to product development.