ERP Consulting, Software & Services for Small & Midsized Businesses | Blog

Shaken, Stirred, and Streamlined: Tackling Co-Manufacturing Challenges With Technology

Written by Vision33 | Thu, Dec 05, 2024 @ 05:23 PM

With recent shifts in consumer preferences, the adult beverage industry is experiencing monumental change. Some producers are divesting themselves of manufacturing operations to focus on brand, which creates growth opportunities for existing co-packers and manufacturers who want to maximize their fill lines.

However, co-manufacturing is complex, and growth creates scalability issues. Juggling inventory, production schedules, warehouse space, quality control, and more for multiple customers is challenging. The right solution will tackle these challenges like a boss.

Production Scheduling

Managing production across multiple lines and locations for customers is like solving a 3D puzzle. Manufacturers must manage factors like inventory readiness, customer delivery schedules, bottle or can type, staff skill sets, tank duration and availability, and more. An integrated scheduling tool will make the job easier and keep you sane!

Inventory Management

Managing inventory from purchase to sale is infinitely more complex when doing it for multiple organizations. Poor demand planning and inaccurate inventory counts lead to operational delays from production to distribution. A robust inventory management solution with scanners and barcoding will protect your business from costly delays, waste, and customer dissatisfaction.

Warehousing

With contract manufacturing, warehouse logistics—including storing, shipping, receiving, and distributing inventory—are critical to success. Knowing where raw materials, packaging materials, and finished products are stored for every customer is just as necessary as knowing how much inventory you have on hand. Poor warehouse management leads to production or shipping delays and unhappy customers, so a flexible warehousing solution is essential.

Integration

Synchronizing data between multiple systems drives operational efficiency gains, eliminates data entry mistakes, and positions your business for scale. Integrating your enterprise resource planning (ERP) solution with apps like Shopify and Square and 3PL solutions like VIP and OSP increases efficiency and reduces operating costs.

Procurement

Purchasing raw materials on a client’s behalf is a value-add for some customers but adds logistical complexity to your operation. Manufacturers may opt to do all procurement, some, or none. Procurement services may require full-time staff to source vendors, negotiate bulk pricing, order materials, and manage delivery lead times. With proper planning, bulk purchasing will decrease costs and increase margins. You must also manage inventory lead times to keep production on track.

Quality Control

Quality control standards are crucial. Poor quality controls can generate mistrust, negatively affect brand reputation, and reduce profitability. Adhering to proper batch scaling, temperature controls, and processing timelines is critical. You must track, capture, and share this data with partners to create trust through transparency.

Multi-Entity Accounting and Reporting

Mergers and acquisitions are becoming common in the adult beverage market. If a company keeps legal entities separate, it must meet multi-company accounting and reporting standards. Data entry across multiple systems is commonplace and leads to costly, time-consuming errors. An intercompany accounting solution syncs those systems and flags intercompany transactions, accelerating reporting and eliminating data entry and costly mistakes.

Sales and Customer Relationship Management (CRM)

Customers are at the heart of everything you do. With customer details— from sales quotes and orders to production schedules—stored in a single system, you’ll have a bird’s-eye view of every customer to support them every step of the way.

Reporting and Analytics

Contract manufacturers require real-time visibility into the business and the ability to share financial and operational data with their clients. They’re also responsible for dashboards, pre-configured reports, and robust analytics, which should be accessible via a customer portal for ultimate transparency with customers.

Tapping Into Powerful Cloud ERP for Contract Manufacturing

Brutos by Vision33 brings unique value to contract manufacturers.

Brutos was developed for adult beverage manufacturers whose complex requirements can’t be addressed by entry-level solutions like O’Beer, Ekos, and Whisky5. Brutos harnesses the power of SAP Business One, uniting data from across your regulated beverage business by combining front- and back-office functions, such as accounting, sales, scheduling, production, packaging, brand management, inventory, and warehousing, in a single cloud-based solution with anytime, anywhere access.

Unlike other manufacturing solutions, Brutos is integrated and provides essential industry-specific capabilities like production management, scheduling, and app integration. Its feature set is uniquely positioned to help contract manufacturers scale.

"Replacing O'Beer with Brutos is one of the best decisions we've ever made. Not only does Brutos work as it's supposed to, but we are doing so much more with our system than before."

- Julie Wigley, COO at Red Truck Beer Company

A True Partner With Unmatched Experience

Whether you’re new to contract manufacturing or scaling existing co-packing operations, Vision33’s expertise can’t be matched. Unlike our rivals, we know the adult beverage industry, business processes, and SAP Business One like the back of our hand. Our consultative approach has guided thousands of companies through growth periods, helping them tackle logistical challenges and reach new levels of operational efficiency.

Learn More

Visit the page below to learn more about Brutos cloud ERP, and drop us a line with questions!