Aptean > Case Studies > A Healthy Dose of Made2Manage Revitalizes Vita Health

A Healthy Dose of Made2Manage Revitalizes Vita Health

Company Size

1,000+

Region

America

Country

Canada

Product

Made2Manage ERP system

Tech Stack

Microsoft
SQL-based servers

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Pharmaceuticals

Applicable Functions

Discrete Manufacturing

Use Cases

Inventory Management
Predictive Replenishment

Services

System Integration

About The Customer

Vita Health Products is one of the largest manufacturers of natural health products and over-the-counter (OTC) medications in Canada. The company's more than 500 products are available under private label or generic brands at most of Canada's major retailers such as Wal-Mart, Costco, Loblaws, and Shoppers Drug Mart. The 1997 acquisition of Vita Health by leading U.S. vitamin and supplement supplier Leiner Health Products has served to strengthen the company's position as Canada's leader in providing the most complete line of high-quality OTC and natural health products. As a leading pharmaceuticals manufacturer, the company must maintain tight inventory control over time-sensitive raw materials and finished goods. Products must be distributed well before their expiration dates or the company risks losing customers, incurring wasted inventory costs, and eroding its position in the marketplace.

The Challenge

Vita Health Products, a leading manufacturer of natural health products and OTC medications in Canada, was struggling with its aging AS/400 system that could not meet the company's growing business demands. The company was having difficulty maintaining inventory control, keeping product on the customer's shelf, and managing cost inputs. Without forecasting capabilities, Vita Health was forced to carry more product inventory, thus increasing carrying costs and the potential for waste. The company was also suffering serious customer service problems and losing a substantial amount of business. The lack of a real MRP environment meant that forecast demands and work orders were determined and managed primarily through an extensive manual analysis via spreadsheet. This was time-consuming and costly, and it was clear that the company needed to make a change from 'business as usual'.

The Solution

To address the 'growing pains' of its expanding operations, Vita Health turned to Made2Manage. The Made2Manage ERP system was chosen for its strong functionality, industry-standard technology, broad compatibility, and local support. The system provided Vita Health with the tools it needed to get its business under control and aggressively expand again. With Made2Manage, Vita Health was able to easily identify and locate its oldest input materials and use them first in the production process, reducing inventory obsolescence and carrying costs. The system also provided visibility to see all the cost inputs, all the way down to the component level, allowing the company to focus on its costs and see where business opportunities lie. Looking ahead, Vita Health is anticipating greater inventory accuracy by implementing M2M Demand Forecasting.

Operational Impact

Regained credibility with customers and saw substantial sales growth.
Able to continue to grow the business without substantially increasing the existing overhead infrastructure.
Gained more control over inventory processes.
Able to easily identify and locate oldest input materials and use them first in the production process, reducing inventory obsolescence and carrying costs.
Gained visibility to see all the cost inputs, all the way down to the component level.

Quantitative Benefit