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6 Ways Cosmetic ERP Software will Streamline Your Business Operations

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Cosmetic ERP Software
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What is Cosmetic ERP Software?

Cosmetic ERP software is a comprehensive software solution specifically designed to meet the unique needs of cosmetics and personal care companies. It automates various processes and helps cosmetics manufacturing companies proactively react to business challenges.

Cosmetic Manufacturing ERP is business management software for the cosmetics and personal care industries. It offers multi-level formula management, quality control, lead management, and other features that assist cosmetic companies throughout different processes. Companies can create custom formulas, track inventory levels, monitor warehouse transfers, keep generating financial statements, and benefit from every other aspect of business processes.

Overview of the Cosmetic Industry

The cosmetic business market in India is valued at $13.74 Billion as of the financial year 2022. It is expected to become $15.7 Billion by 2026, growing at a CAGR of 0.0435%.

Here are some factors responsible for the growth of the cosmetics industry:

  • There is a rising trend of personal grooming among the Indian populace
  • Increasing disposable income among urban Indians
  • Rising trend of the working women’s population
  • Increasing availability of cosmetic products on online shopping platforms
  • Growing focus on skin care to prevent skin problems such as acne and pigmentation

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Challenges Faced by The Cosmetic Industry
  • Building Brand Loyalty

Building brand loyalty can be a challenging task. Indian consumers tend to stick with well-established brands and are hesitant to switch to lesser-known, newer ones, even if they offer better value for money.

  • Price Sensitivity

The cosmetic market in India is highly price-sensitive. A customer’s decision to buy or not to buy a product is influenced by the change in price. Price Sensitivity is the degree to which this decision is influenced by the price. A higher price increase discourages a highly price-sensitive customer from buying the product or switching to another brand.

  • Counterfeit Products

Another major challenge in the cosmetics industry is low-quality counterfeit Chinese products. These products often hurt customers’ health and trust. They can also damage the brand’s reputation and hinder sales.

  • Higher Competition

The cosmetic market in India is open to international players, a significant number of which are well-established brands with a huge capital base, resources, manpower, and dominating power. This poses a significant challenge to small and medium-sized domestic players.

  • Cost of Adopting Sustainable Practices

Cosmetic manufacturers are under pressure to adopt sustainable practices that have a positive impact on the environment and society. However, the cost of implementing such sustainable practices can often be higher.

  • Storage Problems

Some cosmetic products are perishable. They need to be stored at a certain temperature to keep them fresh. If they are exposed to unsupported or extreme temperatures, it can compromise their ingredients’ formula. Cosmetics manufacturers require refrigeration and modern warehousing facilities.

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Future Trends in Cosmetic ERP Software

  • Organic and Sustainable Beauty Products

Increasing awareness about safe, sustainable, and eco-friendly beauty products has created a new demand for wellness-infused beauty products. As a result, manufacturers are focusing on sustainable products that contain ingredients that are organic, safe, and less harmful to humans and nature.

  • Personalized Skincare

Personalized skincare is the use of unique skincare solutions based on the individual’s skin type. They are free of ingredients that cause sensitivity and reactions in individual skin tones. People suffering from acne, hyperpigmentation, or rosacea can benefit from such solutions.

  • Virtual Try-outs

Virtual tryouts involve the use of Augmented Reality (AR), predictive analysis, and similar technologies. This involves using virtual makeup apps to build a realistic virtual representation of the customer’s face or body. Customers can see how different beauty solutions look on their faces or bodies before they commit to buying or using them.

  • Anti-aging Components

The anti-aging components in modern beautifying solutions contain essential ingredients and vitamins such as Vitamin A and Vitamin C. These delay premature signs of aging and remove lines and wrinkles. They may also contain different acids that remove dead skin cells and improve texture.

  • Influencer Marketing

Many beauty brands partner with social media influencers through different means, such as giveaways, sponsored tweets, and live video streaming. This helps them drive new leads, engage with a large follower base, and benefit from instant feedback and the social media craze.

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Features of Cosmetic ERP Software

  • Procurement Management

The procurement management system in cosmetics ERP optimizes the raw material procurement process. It helps manage vendors, automatically generates purchase invoices, drafts credit memos for unpaid invoices, and schedules the next procurement of raw materials. Ultimately, cosmetic manufacturing companies benefit from the improved rate of production and reduced operational costs.

  • Production Planning

ERPs help companies plan production cycles, determine optimal product mix, analyze machine usage, identify and reduce waste, optimize every stage of the production process, and execute reliable and timely production processes to stay competitive in the rapidly evolving industry.

  • Quality Control

The supply chain management tools in cosmetic manufacturing ERP software perform quality checks at every checkpoint, thus ensuring effective compliance with various international standards, tackling quality control challenges, and building high-quality products. Ultimately, it improves the customer experience by providing more value for their money.

  • Shelf Life Management

Many cosmetic products are date-bound. Products that have passed their expiration dates are often ineffective or dangerous for human use. Shelf life management is a crucial feature of ERP application that ensures products are sold before their expiration. Not only does it help reduce waste, but it also safeguards customer interests.

  • Scalability

ERP solutions offer integration with several e-commerce platforms to capture customer information at various points in the shopping journey, drive new leads, and accommodate growing business needs. Companies can use lead management solutions in ERP to reach potential customers and convert leads into sales using targeted email and phone campaigns.

  • Regulatory Compliance

If a company doesn’t comply with regulatory requirements, it can invite penalties, legal lawsuits, or worse, lose its business license. ERP enables companies to stay up-to-date about the latest regulatory requirements to prevent the consequences of non-compliance.

Benefits of Cosmetic ERP Software

  • Batch Tracking and Lot Traceability

Cosmetics manufacturing software enables batch tracking of inventory or lot traceability, which is a process of classifying similar inventories to effectively track and monitor them later. The purpose of batch tracking and effective inventory control is to detect the origin of errors and product defects while inventories are transferred throughout the production and distribution channels.

  • Business Intelligence

The business intelligence tools in ERP let your company design reports in a way that is preferred by management. The management can track stages of the manufacturing process, get a broad scope of inventory management, and get an in-depth and accurate financial status of the company.

  • Multiple Pricing

Creating and managing multiple pricing lists becomes easier with ERP solutions. It provides flexibility to define multiple pricing plans, merge different pricing plans together to form a kit, and manage discounts and promotions.

  • Brings Efficiency to after-sales services

ERP reduces manual data entry tasks during the after-sales process. It provides one-click access to the customer’s information, enables the business to track service appointments, and allows access to past communications to pave the way for higher customer satisfaction.

  • Efficient Handling of Inventories with Short Lifespan

Enterprise Resource Planning software helps with the better planning, control, and management of perishable raw materials, which reduces waste and manufacturing costs.

  • Brings Innovativeness

Cosmetic software transforms the traditional paper-based system into an efficient digital system that consolidates data from all departments in real-time. By making the workforce more creative and innovative, the company gains a competitive advantage in terms of increased productivity, cost savings, and growth.


An ERP system helps meet the specific needs of your cosmetic business so that you can make the best operational and strategic decisions, reduce costs, and maximize revenue.

Sage X3 is a must-have piece of high-tech software for small start-ups and mid-sized cosmetic companies dealing in today’s competitive marketplace. It provides an accurate 360-degree overview of your business operations with customized dashboards and reports so that you can run your business with confidence

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