Case Studies > Vita Health Products Grows its Product Line and Customer Base with Aptean Industrial Manufacturing ERP

Vita Health Products Grows its Product Line and Customer Base with Aptean Industrial Manufacturing ERP

Company Size

1,000+

Region

America

Country

Canada

Product

Aptean Industrial Manufacturing ERP

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

Quality Assurance

Use Cases

Inventory Management
Predictive Replenishment

Services

System Integration

About The Customer

Vita Health Products is one of Canada’s largest manufacturers of natural health products and over-the-counter (OTC) medications. Founded in 1936, the company offers more than 500 products under private label or generic brands at most of Canada’s major retailers such as WalMart, Costco, Loblaws, and Shoppers Drug Mart. In 1997, Vita Health was acquired by leading U.S. vitamin and supplement supplier Leiner Health Products, which strengthened its position as Canada’s leader in providing a complete line of high-quality OTC and natural health products. Product quality is paramount to the continued success of Vita Health. As a leading pharmaceuticals manufacturer, the company must maintain tight inventory control over time-sensitive raw materials and finished goods.

The Challenge

Vita Health Products, a leading pharmaceutical manufacturer in Canada, was facing challenges with its aging AS/400 system. The company was struggling to maintain inventory control, manage cost inputs, and keep products on the customer's shelf. The lack of forecasting capabilities forced Vita Health to carry more product inventory, thus increasing carrying costs and waste potential. The company was also having difficulties in tracking product expiration dates and tracing lot information. The situation became more critical after Vita Health purchased Stanley Pharmaceuticals, which effectively doubled sales volumes and SKU counts. The company realized that its existing system could not meet the growing business demands.

The Solution

To address the growing pains of its expanding operations, Vita Health turned to the Aptean Industrial Manufacturing ERP. The solution stood out due to its industry-standard technology and broad compatibility, which made it easier for users to learn and operate. The Aptean Industrial Manufacturing ERP provided robust functionality to solve Vita Health's lot control problems. The company could now easily identify and locate its oldest input materials and use them first in the production process, reducing inventory obsolescence and carrying costs. The solution also provided visibility to see all the cost inputs, all the way down to the component level. This allowed Vita Health to focus on its costs and see where business opportunities lie by identifying and directing resources to the company’s core competencies and sub-contracting out operations that add less value to the bottom line.

Operational Impact

Vita Health has significantly grown its operation in a short time.
The company has regained the credibility it lost with its customers and has seen substantial sales growth.
Vita Health can continue to grow its business without substantially increasing the existing overhead infrastructure.
The company is anticipating greater inventory accuracy with demand forecasting tools in the Aptean Industrial Manufacturing ERP.

Quantitative Benefit

Year-over-year EBITDA increase of 93%
Year-over-year production increase of 25%
Year-over-year increase in job order size by 60%
Overall inventory investment has remained flat while year-over-year sales have increased by 16%
Finished goods inventory turns have increased from 5.95 to 7.57