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8 Herbal Products Manufacturing Challenges & Solutions

Introduction

In the dynamic world of herbal products, manufacturers face unique challenges that can impact product quality, consistency, and marketability. Ayurvedic contract manufacturing and herbal cosmetic manufacturers understand these challenges intimately and have developed innovative solutions to address them.

World Herbal Industry

 • Herbal Product Market: USD 80 billion

 • Annual Growth Rate: 7% 

• By 2050 will reach 6 trillion 

      -Source: EXIM Bank Report

The process of manufacturing requires concrete planning, strategizing, and execution to carry out the production process successfully. A series of tasks and processes are involved under the manufacturing hood which includes research and development, huge investments, maintaining stocks and resources, scaling, packaging, technicality, certifications, licensing, etc. To skip these and various other challenges faced during the manufacturing process it is advisable to get associated with a reputed and trusted Contract manufacturer for the production of your herbal products that will help you outshine and uplift your ayurvedic business.

A few common challenges that are encountered during the manufacturing process but are seamlessly taken care of by a contract manufacturing company include:

1) Requirement for Skilled Labour

Challenge: Production processes are long and tedious and require skills and knowledge. It is one challenge that is most commonly faced by all manufacturers whether it is a bulk manufacturing or a small workshop.

Solution: Contract manufacturers have contacts and connections that allow them to get skilled labor on board. Conduction of training programs by senior staff members and skilled labor can come in handy during such times to help freshers develop their skills thus mutually benefiting the community as well as meeting the gap of lack of skilled labor.

2) Market and Consumer Trends

Challenge: The change in market trends due to changing consumer needs can bring about a lot of fluctuations and challenges in the manufacturing segment.

Solution: To meet this challenge, contract manufacturers often design short-term contracts to be able to save on material costs and avoid losses for the investor at the same time. With changes in market trends, it is essential to change the scale of production which can always be mentioned during the contract framing. Manufacturers study market trends using R&D to help retailers and distributors build trustworthy and reliable brands using their latest and high-quality products.

3) Inventory

Challenge: Inventory management is one of the most critical aspects of running a successful business. Keeping an accurate inventory can be quite haunting when it comes to bulk orders and production.

Solution: Contract manufacturers keep an account of product requirements, specifications, and details to tailor-make the best possible outcome. This leads to efficient inventory management that allows them to supply orders and meet committed deadlines.

4) Increased Risks

Challenge: Selling directly to the consumers can involve a greater risk as it eliminates the middleman and puts the entire responsibility of manufacturing processes, marketing, supply chain management, research, and development on one shoulder. This can affect the business in the long run as an impact of change in market trends.

Solution: Contract manufacturing enables the manufacturing unit to practice its expertise at full capacity while allowing the retailers to primarily focus on marketing and selling the products.

5) Scalability

Challenge: This is one of the greatest challenges faced during the DIY manufacturing process as changing the type or upgrading the scale during in-house production can be quite a task for it may require further investment in machinery and equipment.

Solution: Contract manufacturing allows retailers to upscale the required quantity, design, or product type. The manufacturing unit can easily make the necessary changes in quantity, type, or quality, as per the retailer’s requirements due to the availability of equipment, labor, and resources.

6) Upkeep and Maintenance

Challenge: Maintenance and upkeep of machinery and equipment can be quite an expensive affair. With the increase in production, the costs of maintenance also go up due to the increased wear and tear.

Solution: Contract manufacturers ensure regular maintenance and care of their equipment and machinery to ensure the high quality and consistency of the products.

7) Automation

Challenge: Keeping an account and track of all the processes involved in manufacturing can be quite daunting and exhausting but is extremely critical to a business’s success. It is extremely crucial to ensure that the manufacturing processes and operations are accurately executed which often calls for technological advancements and solutions.

Solution: To ensure this, the contract manufacturers rely on technological advancements, artificial intelligence, and software which allows the company to meet and fulfill market demands and needs with high-quality and accurate products.

8) Return On Investment

Challenge: Every business enterprise aims to back greater ROI. In small-scale manufacturing, the production costs are high and are difficult to meet which leads to a low ROI.

Solution: Contract manufacturing allows retailers to outsource herbal products in the required quantity, whether large or small without having to worry about any production costs. Contract manufacturers on the other hand manufacture goods in bulk for different firms and retailers which allows them to back greater and higher ROI due to low production costs.

References:

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