Cosmetics are composed of mixtures of chemical compounds, widely known for enhancing beauty. A broad range of products, right from lipstick, nail polish, deodorant, to shampoo, soaps, tooth whiteners, etc., are produced massively to fulfil the ever-increasing demand of these products among people.
Moreover, studies have found that Egyptians and Sumerians have for thousands of years used cosmetics. According to a source, earlier,
- Kohl was used by Egyptians.
- Castor oil was used as a protective balm.
- Romans introduced skin creams made of olive oil and rose water.
However, in the past, due to scarce resources and limited understanding of skincare needs, minimum and a narrow range of cosmetics products were into use. But, over the time, major transformations happened in the cosmetics industry. Based on the enhanced understanding of different skin types and their specific requirements, manufacturers started developing products that cater to specific consumer needs.
While this presents a significant challenge in front of manufacturers to manage a vast array of formulations and variations tailored to specific consumer preferences related to flavour, skin type, and product type such as, oil, cream, powder, etc.
Although, increased demand calls new opportunities for manufacturers but, ensuring error-free operations throughout the supply chain and getting desired quality outcome is never easy.
This highlights the need for advanced technology that could ensure meticulous planning, precise execution of processes, maintain quality standards, and ultimately, deliver products that resonate with target customers. No technology other than an Enterprise Resource Planning (ERP) system tailored for the cosmetics industry would suffice.
Types of Cosmetics and Production Process-
The production process of cosmetics involves numerous intricate processes that need to be conducted precisely to get the desired outcome. As, even a small variation could hamper products’ properties and consistency, resulting in loss of resources and materials.
Have a look at a brief overview of the cosmetics production process-
- Formulation Development- Chemists formulate products using various ingredients such as oils, emulsifiers, preservatives, fragrances, and active ingredients to achieve the desired outcome.
- Mixing & Blending- In the process of creating cosmetics, specific ingredients are carefully measured and then mixed according to predetermined formulations or recipes. This mixing process results in the creation of consistent and uniform cosmetic products.
- Heating & Cooling- This is one of the prominent processes that results in melting or solidifying of the ingredients to achieve the desired texture and consistency.
- Sterilization and Preservation- To ensure safety, the manufactured cosmetic products undergo sterilization process and are preserved by adding anti-microbial agents.
- Packaging- All the finished products are packed in their respective bottles, jars, tubes, etc. and labelled with appropriate labels.
Challenges Cosmetics Manufacturers Face-
Due to the complexity of the industry and the diversified needs of consumers, cosmetics manufacturers face a host of challenges. Let’s have a brief look at some of the key challenges-
Regulatory Compliance-
Since the cosmetics directly come into contact with the skin, it is extremely important to ensure product quality and protect consumer health & safety.
Thus, regulatory bodies govern the cosmetics manufacturing organizations regarding ingredient safety, labelling requirements, and manufacturing practices. However, keeping up with the evolving regulatory requirements becomes challenging for manufacturers.
Ingredient Sourcing-
Manufacturing cosmetics require a wide range of materials, sourced from various suppliers worldwide. However, manufacturers face the major challenge in terms of sourcing quality ingredients that too on time and at affordable process.
Formulation Complexity-
With numerous ingredients required to manufacture a specific product, the cosmetic manufacturers often face the complexities of using these ingredients in precise proportions.
Moreover, the evolving consumers’ preferences and needs such as vegan or microplastic-free products, require manufacturers to alter their formulations often, which is a challenging task.
Production Adjustments-
Besides specific formulation requirements, sometimes brands must make last moment production changes according to the consumers’ preferences which requires a lot of calculations.
Making such huge production changes puts a significant challenge in front of manufacturers.
Timely Deliveries-
Customer satisfaction highly depends on “timely delivery” of their products. And for this, ensuring smooth, streamlined, and error-free processes is of utmost importance to meet the delivery deadlines. However, manufacturers often find this difficult.
Safeguarding Formulas-
Formulation sets you apart from the rest of the competition. It is therefore necessary to prevent formulas and recipe secrets from falling in the wrong hands.
How ERP solution provides a perfect makeover to cosmetics manufacturing organizations?
Overcoming all the aforementioned challenges require adopting a strong and robust technological support like ERP for cosmetics industry.
This type of integrated management system can automate and streamline processes, optimize production ultimately maximizing growth and profits.
Some of its major features include-
Managing Compliance –
By ensuring adherence to industry best practices, integrating & centralizing data, and automating compliance checks, a cosmetic ERP software keeps you up to date, no matter how regulations evolve—preventing organizations from hefty legal fines.
Managing Formulation-
A comprehensive Cosmetic ERP offers a complete formula management module that facilitates efficient creation and modification of thousands of formulas at a time.
Furthermore, apart from allowing to categorize intermediates, co-products, and by-products, this module also allows to embed QC tests, specific instructions, and costs as formula specifications.
Over and above, the other capabilities like effective version controlling, automatic formula sizing, substituting formula ingredients during ongoing production, etc. take the formulation game to a next level.
Handling Production Schedules-
ERP system allows cosmetics manufacturers to segment their production based on distinct categories such as shampoos, creams, lotions, etc. Individual and requirement-specific production schedules can be defined and managed for each product category.
It also allows to schedule future production runs before time, and track the progress of current production in real-time, enhancing working efficiency significantly.
Batch Manufacturing and Traceability-
ERP Software allows to track and trace batches of products throughout the production process. Through this, manufacturers can maintain detailed batch-related information such as usage of ingredients, batch yields, production dates, and quality control test results—facilitating easier product recalls in case of product issues or safety concerns.
Quality Assurance-
ERP system eliminates the chance of forgetting routine quality checks even for a day, which always exists when humans do it. It automates the process of putting quality checks at various stages of production, and even provides on-screen alerts at the time of deviations in processes and products.
Accurate Cost Calculations-
ERP for cosmetics manufacturing industry helps manufacturers estimate the cost of formulations based on ingredients prices, labour costs, and overhead expenses. This facilitates manufacturers to analyse profit margins and make effective pricing decisions.
Concluding Thoughts-
Now, you are aware of the wonders Cosmetics ERP Software brings to the cosmetics manufacturing businesses, lest you have selected the right ERP. And so, this makes choosing an appropriate ERP solution that is designed keeping in mind the needs of the cosmetic businesses.
Although the market is flooded with numerous options but, BatchMaster ERP is one software that is equipped with robust functionalities incorporated with experience and expertise gained from serving the cosmetic manufacturers from last 30 plus years. Contact our team of experts today to know more about it.
