How a dietary supplement PLM reduced label procurement costs by 55%

1. LabelDrive case study: how a dietary supplement PLM reduced label procurement costs by 55%

2. For many private label manufacturers (PLMs) of dietary supplements, managing label production is an overwhelming process marked by inefficiencies, lengthy lead times, high cost MOQs, tiered pricing that hurts small brands, and excessive costs. However, one forward-thinking nutraceutical PLM recently shared its experience of how it revolutionized its entire label procurement workflow by partnering with LabelDrive—a game-changing solution offering agile, on-demand digital label printing. • This case study illustrates the remarkable transformation in procurement efficiency, cost reduction, and operational scalability achieved through LabelDrive’s innovative platform.

3. The challenges faced by dietary and supplement PLMs • Prior to adopting LabelDrive, the manufacturer faced several common challenges inherent to the traditional label procurement model: • Lengthy turnaround times: Labels often took 2-3 weeks to produce, causing bottlenecks in their production schedule. • High MOQs and hidden fees: To secure better pricing, they had to order labels in bulk, resulting in sunk costs and costly excess inventory. • Limited scalability: As a growing business, they struggled to manage an increasing number of client orders and product SKUs. • Inefficient proof management: Proofing required constant back-and-forth emails, resulting in wasted hours and delayed production. • Inventory waste: Compliance updates and client-driven changes often rendered bulk label orders obsolete, leading to unnecessary waste.

4. Enter LabelDrive • To tackle these issues, the manufacturer turned to LabelDrive, which provided a digital-first, turnkey solution for label procurement. What they found was a platform designed not just to meet their immediate needs but to pave the way for long-term operational efficiency, scalability, and sustainable growth. • The LabelDrive Solution: • Fast turnaround: Labels are produced and shipped within 48 hours. • No MOQs: Flexibility to order only the quantities needed for current production with low flat pricing for any volume. • Centralized management: A user-friendly digital procurement platform for visibility, tracking, and managing orders for dozens of clients.

5. Reduced waste: On-demand ordering to minimize inventory and eliminate outdated stock. • Streamlined proofing and quality control workflow: Digital proof approvals, with a two-step quality approval process (PLM and client), replaced email-based workflows, resulting in a reduction of approximately 15 hours per week in procurement time. • Key benefits realized by the manufacturer • Unmatched time savings • Before LabelDrive, the procurement team spent hours managing emails, status updates, quotes, and proof approvals, often sending 5-10 emails per order. The estimated time savings with LabelDrive is ~ 15 - 20 hours per week. Additionally, with LabelDrive, proof approvals and order submissions were reduced to one email, and soon, this would be reduced to zero emails.

6. According to the manufacturer, labels are now delivered approximately 7 days faster on average compared to their previous setup—a significant improvement that helps them meet tight production schedules and saves hours per week. • “Getting labels shipped within seven days was once considered a rush order for us. With LabelDrive, a 48-hour turnaround has become the new standard.” • Significant cost reductions • The elimination of bulk order requirements allowed this nutraceutical PLM to avoid overstocking labels and eliminate unnecessary costs. By ordering exactly what they needed (with no minimum order quantities, or MOQs) through the LabelDrive digital procurement platform, they estimated a 55% reduction in total label procurement costs. • Flat pricing on all orders, regardless of size, provided transparency and simplified budgeting—a significant contrast to tiered pricing that penalized smaller run orders.

7. Enhanced visibility, scalability, and flexibility • The manufacturer noted LabelDrive's ability to manage an expanding client base alongside growing product lines effortlessly. With the platform, they’ve been able to: • Centralize label procurement and gain order visibility across 80 clients • Scale operations from 10 to over 80 client accounts. • Easily handle product variations, including different sizes, flavors, and formula tweaks. • This scalability has also benefited their clients, enabling them to quickly launch new SKUs without the operational headaches, costs, and waste of bulk label procurement. • “On LabelDrive, I can manage 80+ clients in a single interface. This platform provides the scalability and flexibility I need, both for onboarding new clients and growing existing ones.”

8. Substantial waste reduction • Thanks to the on-demand ordering functionality, the manufacturer’s inventory waste dropped by over 65%, from approximately 30% waste down to under 10%. This has been especially critical given the high frequency of label changes driven by compliance updates and market demands. • “Previously, we’d throw away outdated label stock following every minor compliance change. Now we only print what we need when we need it.” • Improved interdepartmental visibility • LabelDrive’s white label centralized digital procurement dashboard brought unparalleled transparency to the entire procurement process, allowing stakeholders—from supply chain managers to accounting teams—to track order status in real-time. This has all but eliminated the barrage of status update emails that previously overwhelmed staff.

9. “Visibility has transformed our operations. Teams can see exactly where everything stands—no more endless back-and-forth emails, file attachments, or last-minute scrambling for updates.”

10. Why LabelDrive stands out • Here’s how LabelDrive compares directly to traditional label procurement:

11. This side-by-side comparison highlights LabelDrive's position as the superior choice for nutraceutical PLMs seeking to streamline operations, reduce costs, and adapt to a rapidly changing industry. • A solution designed for the future • By adopting LabelDrive, this nutraceutical PLM has not only optimized its procurement process and realized significant savings but also implemented a future-proof solution that aligns with ESG goals, supports on-demand operational models, and fosters market agility. For procurement leaders, the lessons are clear—smaller, nimble, more innovative, faster, and more sustainable is the path forward. • LabelDrive isn’t just another supplier—it’s a strategic partner that's transforming how procurement is done in the nutraceutical industry. Are you ready to take your label strategy to the next level? Book your demo today.