Nutraceutical Knowledge

Inventory Management: Key For Health Supplement Distributors


inventory-01.jpghealth supplement distributors 1.jpg

Health supplement dropshippers and companies selling supplements online are in major demand as the vitamin,
supplement and health products industry grows more robust than ever.

This is because the consumer public has become keenly aware of the importance of being proactive about their health.

Many have come to depend upon these products for numerous aspects of their health and well being.

Because of this, businesses selling private label supplements online must be mindful of their inventory at all times. Partnering with the best health supplement distributors is one aspect of success in this area. It’s crucial to keep inventory stocked with all of your items at all times. When this doesn’t happen, customers must endure the disappointment and stress of not having access to their favorite products. Their quality of life can suffer, as can your business reputation.

The Importance of Inventory Management For Supplement Companies

Inventory management is crucial to all businesses. A customer ready to make a purchase is the culmination of all phases of the sales funnel. It is the goal of all marketing and what drives your sales. Not having items in stock and ready to ship is simply unacceptable.

This is even more essential to a vitamin, supplement and nutritional products business.

The following are some of the most important reason for supplement company inventory management:


Meeting The Demand For Nutritional Supplements

Unlike many products or business areas, supplements lead to an ongoing demand. Some products are bought once or twice in a lifetime; health products are purchased on an ongoing basis, and when that bottle or package is close to empty, customers are ready to order more.

Because of this, it’s crucial for vitamin and supplement companies to always have an accurate gauge on inventory amounts. If it’s not in stock, it cannot ship. Customer demand cannot be met, leading to a cascade of problems.

Loss of Vitamin and Supplement Benefits

In this scenario, customer disappointment can be profound. They may not receive more supplements in time to continue the positive benefits they’ve been receiving. It could even be detrimental to their health. One of the most important and foundational aspects of inventory management is the health and well being of your customers. If you drop the ball on inventory management, their health could suffer. This should be the primary motivator for inventory management.

Loss of Valuable Customers

If your customer cannot purchase the supplements they need from you, they will go elsewhere. Plain and simple. It is a matter of supply and demand. Even if your products are highly specific and/or private label, having something similar is better to many buyers than having nothing at all. If you aren’t on top of inventory management, you will lose customers.

health supplement distributors 2 .jpgProtect Your Supplement Brand's Reputation

The sad truth is that customers are more likely to talk about a brand when they have been let down or disappointed than when they have had a satisfactory experience.

Because of this, you could get a cascade of negative reviews on social media and around the Internet when you are out of stock on key products.

These reviews can stay around the web for a long time and tarnish your brand reputation going forward.

There is also a flip side to running out of stock due to poor inventory management: having too much product in stock. In some cases, having a surplus can be even worse than not stocking enough (although they’re both pretty bad.)

The Risks and Hazards of Too Much Inventory

Nutrition supplements have a shelf life along with a specific expiration date. They must be rotated and kept in order so that products are sold in plenty of time before this date. Not managing inventory in this manner can lead to the following issues:

Ordering Too Much

Poor inventory management can lead to ordering too much of some products as well as not enough of others. If there isn’t sufficient demand, these products will sit on your shelves until they must be discarded. Your company will take a loss on these expenditures.

Violation of Current Laws and Codes

Current CGMPs (current good manufacturing practices) for vitamins, supplements and nutritional products were finalized in 2007. These rules and guidelines help to ensure purity, quality and appropriate product strength. Violating these CGMPs can lead to action taken by the FDA and the U.S. Department of Justice. In this case, a lack of effective inventory management could lead to the shutdown of your business. 

The Elements of Effective Supplement Inventory Management

So, what must companies selling supplements online do to achieve this? The following are some of the components of a successful inventory management strategy:

health supplement distributors 3.jpgAn Organized Warehouse. Is your warehouse set up for staying organized? Do you have practices in place to ensure proper rotation of stock and awareness of what products are ready for reorder?

Intelligent Stock Placement. One effective approach is to arrange products so that the top sellers are the most accessible (at eye level on the shelf, etc.) This will also optimize the productivity of your staff.

The Best Health Supplement Distributors. You also want to make sure you have partnered with true professionals you can rely on. Favor proven, dependable health supplement distributors so that you get your orders on time and with consistent quality.

StockNutra's interface can be the solution to your inventory management concerns. Stocknutra's simple interface and reward point program makes it easy to automate your supply chain and avoid any inventory disasters. 

In addition to reward points, member benefits of StockNutra include tiered pricing, price matching, low order minimums, high volume discounts, annual bidding, tax exemption, and much more.

Contact StockNutra to get started and avoid the pitfalls of poor inventory management!

Sources:

  1. http://www.kablefulfillment.com/3-reasons-inventory-management-is-important-for-supplement-companies/
  2. https://www.scanco.com/top-five-benefits-of-a-good-inventory-management-strategy/