Analysis of Pros and Cons of Small Orders of supplement manufacturing

In the health care product processing industry with traditional Chinese medicine, new resource substances, fruit and vegetable enzymes, probiotics, and minerals as the main raw materials, the number of small orders accounts for a considerable proportion, most of which are investments in the field of health food for the first time. By. From the perspective of an OEM manufacturer, this model has both advantages and disadvantages, and if it is not operated properly, it may backfire!

Analysis of Pros and Cons of Small Orders of supplement manufacturing-Pesicon

What is the starting point for small orders of health care products?

1. Reduce project risk: reduce the investment in the entire entrusted production project by reducing the number of contracted health care products as much as possible, and then achieve the effect of reducing risk. This should be the original intention of most investors. After all, it is the first time to set foot in the health industry, no one will give a clear answer on how deep the water is here, you can only try it yourself.

2. Product sales are limited: This situation is related to the industry the investor is engaged in or the customer group he already has. For example, Chinese medicine outpatient clinics process formula products, or regular health care institutions expand their business through products, etc. This kind of customers often design orders with reference to the factory's MOQ.

3. Product market testing: find a factory for small batch processing of compressed candies, solid beverages or substitute tea, obtain regular products in a short period of time, conduct market reaction tests, and then proceed to mass production.

The emergence of small orders for the processing of health care products is mainly due to the above three factors, which are actually to avoid risks. However, in the processing of small batches, there will be many factors beyond the control range, so that there is no way to get the desired product.

What are the disadvantages of processing small orders of health care products?

1. In terms of packaging materials: In the entrusted production of tablets, powders, granules, water pills and tea bags, not only the product itself will have a corresponding minimum order quantity, but also the packaging materials used will also have a minimum order quantity. For example, the minimum order for packaging bottles is usually 5,000 pieces, and the minimum order for aluminum foil bags is 300 kilograms. If you want to design a packaging solution for your own products, many packages may not meet the minimum order quantity. This means that you have to pay the same packaging material cost as a large order for a small number of products, so that the cost per unit of product will rise linearly.

2. Processing cost: The processing cost of food, special meal, and blue hat health food manufacturers is inversely proportional to the batch production volume, which is a common feature of production factories. Therefore, small orders are bound to correspond to the same start-up and clearance costs as large orders. If it is apportioned to the smallest sales unit, small orders of health care products will definitely not have an advantage. In this way, it is difficult for products to have strong competitiveness when they reach the terminal market.

What are the benefits of small-batch nutritional supplement processing?

1. Reduce the cost of trial and error: Of course, the lower the cost of trial and error, the better. This is indisputable. The advantages of small orders are indeed obvious.

2. Reduce inventory pressure: The shelf life of medicine and food homologous processing products is mostly 18 or 24 months. For products with slow circulation, small batch processing is undoubtedly the best solution to reduce inventory pressure.

Although the small-batch and small-order health care product OEM project has both advantages and disadvantages, combined with the minimum order quantity of various products corresponding to food manufacturers and the order quantity of packaging materials, it is reasonable to plan OEM OEM projects for tablets, tea bags and granules , can still reduce the risk.