Cosmetic manufacturing is an industry with unique challenges that range from the intensity of a continuously evolving marketplace to things like meeting good manufacturing process (GMP) standards and compliance with laws like the Food, Drug, and Cosmetic Act (FDCA). Cosmetic manufacturing software can go a long way toward helping you maintain a competitive edge in the cosmetics industry.

If your company is batch manufacturing cosmetics, you probably already have systems in place for your supply chain, processes, financials, sales, and customer care. But if these systems aren’t integrated, it may be difficult to gain accurate insights into your overall operations or adjust to changing customer needs. 

Stoneridge Software partners with client companies to implement customized enterprise resource planning (ERP) and customer relationship management (CRM) software solutions for cosmetics manufacturers using Microsoft Dynamics 365 and industry-specific batch manufacturing software like YAVEON ProBatch.

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What Is Cosmetic Manufacturing?

The FDCA defines cosmetics as “articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body . . . for cleansing, beautifying, promoting attractiveness, or altering the appearance.” Cosmetics products include makeup, moisturizers, fragrances, soaps and shampoos, deodorants, and even toothpaste.

Although cosmetics do not require regulatory approval from the Food and Drug Administration (FDA) before being brought to market, compliance with the FDA’s published GMP guidelines is strongly recommended. This involves properly maintaining your facilities and small batch cosmetic manufacturing equipment, training your personnel, creating and following standard operating procedures (SOPs), and safely storing and handling raw materials.

Cosmetic manufacturers must meet legal requirements for things like product labeling, warnings, and packaging. And, as the market changes, companies need to develop new products to meet consumer demand and remain competitive.

Small Batch Cosmetic Manufacturing

Most cosmetics are produced using small batch manufacturing, in which ingredients are mixed and packaged in batches. This is in contrast to continuous processing, in which ingredients are continuously fed into a system that produces a large quantity of a single product.

Although large corporations may use continuous processing, small batch manufacturing is the mainstay of the cosmetics industry; there are far more small- and medium-sized companies that operate as small batch skincare manufacturers than there are large-volume manufacturers.

The Need for Cosmetic Manufacturing Software

The myriad challenges of cosmetic manufacturing highlight the need for small batch cosmetic manufacturing software. A batch manufacturing ERP solution eliminates data silos, providing you with integrated information and analytics from all business areas—including your supply chain, operations, financials, accounts, and human resources systems. 

In addition, ERP software can assist you with inventory control, batch traceability, legal and GMP compliance, and material requirement planning (MRP).

How Can Dynamics 365 Help?

Microsoft Dynamics 365 is a modular suite of cloud-based software-as-a-service (SaaS) business applications that connect data, processes, and teams across your business to increase your company’s efficiency, productivity, and adaptability.

The benefits of Dynamics 365 include the following:

  • You can construct a Dynamics 365–based ERP solution with only the modules that your company needs and scale your usage as your business grows.
  • Dynamics 365 is built on Microsoft Azure, the tech giant’s cloud infrastructure service; this enables you to eliminate the need for on-premises infrastructure and information technology (IT) administration.
  • Microsoft created Dynamics 365 to seamlessly integrate with the familiar Office applications included in Microsoft 365; this enables you to access information from your CRM system directly within Microsoft Outlook, for example.

You don’t have to implement a cosmetic manufacturing ERP solution alone. Partner with Stoneridge’s ERP experts and take advantage of our decades of experience launching ERP systems.

Dynamics 365 as a Cosmetic Manufacturing ERP

To implement a Microsoft Dynamics 365 ERP solution for your cosmetic manufacturing company, you can select applications that apply specifically to your industry. Relevant applications include:

  • Microsoft 365 Business Central
  • Microsoft 365 Project Operations
  • Microsoft 365 Supply Chain Management

Some software companies produce industry-specific ERP software. Stoneridge can facilitate a Dynamics 365 deployment for your company that integrates tightly with YAVEON ProBatch, an ERP system designed for batch manufacturing. 

You can read more about ProBatch and Dynamics 365 Business Central as part of an ERP solution for batch manufacturers on the Stoneridge blog. The Stoneridge blog also provides an overview of the capabilities that Dynamics 365 and ProBatch provide for lot management for batch manufacturers.

Dynamic 365 as a Cosmetic Manufacturing CRM

Dynamics 365 also offers a number of applications for CRM, including (but not limited to):

  • Dynamics 365 Sales
  • Dynamics 365 Customer Service
  • Dynamics 365 Marketing
  • Dynamics 365 Customer Insights
  • Dynamics 365 Customer Voice

Batch Manufacturing Cosmetics With Dynamics 365

You can reap many benefits when you pair batch manufacturing with Dynamics 365 as an ERP solution. We’ll cover three important benefits below.

icon lot management

Improve Development and Efficiency

Customer trends shift constantly, and the survival and growth of your cosmetic manufacturing business depend on your company’s ability to adapt and bring new products to market. Using Dynamics 365 Supply Chain Management you can streamline your product development process by managing multiple recipes, optimally sourcing ingredients, maintaining quality standards, and ensuring regulatory compliance.


Easily Scale Production

When all your business systems are integrated into Dynamics 365 ERP and CRM implementations, you can quickly recognize when it’s time to scale up your production. The production control module within Dynamics 365 Supply Chain Management connects product information, inventory management, and other aspects of the production process so you can optimize your processes and keep pace when demand increases.


Control Costs and Inventory

Dynamics 365 keeps information like ingredient inventory and ingredient costs at your fingertips, enabling you to optimize how much of each ingredient to keep in the warehouse or to tweak ingredient sources and amounts to maximize your margin.

Sustainability is important to consumers. A Dynamics 365 ERP solution provides you with tools for sourcing and tracing your raw materials down to each batch and even each customer. This kind of transparency in your supply chain boosts consumer trust in your brand.

Meeting Cosmetic Industry Standards

As mentioned previously, cosmetics do not need to be approved by the FDA—like prescription or over-the-counter drugs must be—before being brought to market. A company that produces a cosmetic product is responsible for ensuring its safety for consumers.

However, the FDA publishes a set of GMPs as a minimum standard for cosmetic manufacturers to meet or exceed. Cosmetic manufacturers seeking to increase consumer confidence in their brands can seek International Organization for Standards (ISO) 22716 certification, signaling compliance with internationally recognized GMP guidelines.

Although cosmetics do not need FDA approval, the production of cosmetic goods is regulated by the FDA through its application of federal laws; the two most important of these laws are the FDCA and the Food Packaging and Labeling Act (FPLA). These laws stipulate strict practices for labeling and packaging cosmetic products and including product warnings when necessary. 

The FDA has the power to enforce these regulations; the FDA can inspect cosmetic manufacturing facilities and test product samples to ensure product safety and label accuracy. Such inspections may be triggered by consumer complaints or reports of adverse reactions to a product.

Stoneridge Software Will Help Integrate Dynamics 365

Deploying ERP software is not an easy task. Migrating and integrating disparate systems and customizing applications to your business requires deep knowledge of both your business and the ERP software. That’s where working with Stoneridge as an implementation partner comes into play.

Our experts have decades of experience deploying ERP systems. In addition, Stoneridge is a Microsoft Business Partner—a designation that Microsoft only grants to companies that have demonstrated a high level of technical expertise in implementing Microsoft products. 

When you partner with Stoneridge, we’re with you for the long haul; we won’t disappear after your system is launched. We’ll walk you through the implementation stage, but we’ll also be there for you as you use your ERP system.

Choosing the Right Cosmetic Manufacturing Software Company

There are many cosmetic manufacturing software products available, so how do you know which one is right for your business? Implementing Dynamics 365 Business Central with YAVEON ProBatch gives you an integrated solution with all the basic needs of an ERP plus a slate of added features designed specifically for the cosmetic manufacturing industry.

There are a number of advantages to a Dynamics 365–based ERP system:

  • Microsoft is top ranked for the breadth of its ERP applications.
  • Microsoft Dynamics 365 is built on Microsoft’s Azure platform, a top choice for cloud-based IT infrastructure.
  • Dynamics 365 is integrated with Microsoft 365 Office applications, including iconic Office apps that your company probably already uses, like Word, Excel, and Outlook.
  • Using Dynamics 365 CRM solutions, you can eliminate data silos and interconnect every area of your business.
  • Dynamics 365 can be integrated with industry-specific small batch cosmetic manufacturing ERP applications like YAVEON ProBatch.

Reach Out to Stoneridge Software for a Long-Term Partner

Reach out to Stoneridge today for more information on implementing Microsoft Dynamics 365 ERP and CRM solutions for your cosmetic manufacturing business. 

When you partner with Stoneridge Software, we’ll be your cosmetic manufacturing consultant over the long term, helping you customize, scale, and adapt your ERP and CRM systems as your business grows.


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