Third Party Manufacturing of Nutraceuticals

What To Know Before Choosing A Third Party Manufacturing of Nutraceuticals?

Third Party Manufacturing in Nutraceuticals - With the increased demand for quality dietary supplements, the nutraceutical sector has witnessed tremendous growth and is expected to continue in the future. Branding and marketing a nutraceutical requires a lot of effort and many firms prefer using third party manufacturing to streamline the processes. Nevertheless, as with any other business decision, picking a partner requires tremendous care. It is always a balance between product quality, compliance with regulations and the business’s long-term strategies. The wrong choice can cause some major headaches resulting from supply chain issues, poor product quality and even regulatory breaches further down the line. In this blog, we will discuss the core elements that require attention when selecting a nutraceutical third party manufacturer.

Defining Third Party Manufacturing in Nutraceuticals

In this, brands outsource the manufacturing part of their products to a third party. With third party, a company stands to save on capital expenditure and investment and also push branding, enabling speed to market. From their end, the manufacturer takes care of the ingredient sourcing, formulation, packaging and even regulatory responsibilities.

The use of contract manufacturers is very popular and preferred by many established brands and start-ups, primarily because of improved access to modern production techniques and equipment. Nevertheless, it is important to work with a manufacturer who can ensure quality, adheres to Good Manufacturing Practices and can develop innovative and effective formulations.

Key Factors to Consider Before Choosing a Third Party Manufacturing Nutraceuticals

  • Regulatory Compliance and Certifications: Nutraceuticals are among most restricted industries and manufacturers need to adhere to very specific guidelines. Wherever you intend to market the products, make sure the manufacturer has certifications like ISO-GMP approvals. That guarantees that the facility is kept at a certain level of quality and safety. If a manufacturer has all the required licenses and regulatory clearances, then you can be assured that your products will be manufactured as per the set standards and will be market compliant.
  • Manufacturing Capability: To decide on manufacturer, check equipment and technology used in production and their infrastructure. The presence of advanced manufacturing equipment typically indicates high quality product output. 
  • Quality Control and Testing: Pick manufacturer that perform strong quality checks at all levels of their production process which includes sourcing raw material and packaging of final product. Enquire whether the company have facilities for product testing. These facilities should be done to ensure the safety, potency and purity of the supplements. 
  • Raw Material Sourcing and Ingredient Transparency: The potency and effectiveness of any nutraceutical product would be determined by quality of raw materials procured. Any trusted manufacturer must source high grade ingredients from certified suppliers. With ingredient documentation, there is proper accountability and guarantee that products are industry standard compliant and contaminant free. 
  • Customisation Services: If you are looking to enhance your brand presence, look for manufacturers that allow unique formulation of your nutraceuticals. Make sure the manufacturer is capable of incorporating your marketing and business strategies with custom formulation. Thus, packaging, sizes, styles or branding give you the power to create greater market presence.
  • Production Lead Time and Supply Chain Management: Delivering the right product at the right time is important for business sustainability and customer retention. Check with manufacturer on order fulfilment capabilities and production lead times available to them. 
  • Cost Structure and Contract Terms: Take into account cost structure that incorporates raw materials, production, packaging and shipping. The undesirable costs should be eliminated so that more accurate financial plans can be prepared. Review the contract terms as well, from minimum order quantities to payment terms and even exclusivity agreements. If the contract is favourable, it is bound to aid effective long term relationships.

Conclusion

If you are looking to partner with Third Party Manufacturing Nutraceuticals, Ambico Ayurvedic Health Care source high-quality herbs, minerals and other natural ingredients ensuring purity and potency in every formulation.

Back to blog