Company Description – Capsule Factory Nutraceuticals is a leading contract manufacturer in the Canadian nutraceutical industry, offering custom formulations, single-ingredient products, and Private Label stock formulas for sports nutrition and natural health products. For over 15 years, Capsule Factory has been the trusted manufacturer for numerous North American and global brands, specializing in capsules, tablets, soft gels, powder supplements, and liquid and bottling solutions. Licensed by Health Canada, all products are manufactured on-site in a world-class, 95,000 sq. ft. facility, where both raw ingredients and finished goods undergo rigorous testing to meet the highest quality standards. 

Project Description – Over the past three years, Capsule Factory has achieved strong sales growth and clear potential for continued expansion. However, this progress was hindered by an outdated, custom-built MRP system that lacked integration with ERP and accounting platforms. As a result, the company was unable to add production shifts and relied heavily on two full-time data entry associates to manage core operations. 

With DCC’s support, Capsule Factory implemented a modern ERP system to automate demand planning, scheduling, and production tracking. This reduced manual workload, mitigated operational risk, and enabled real-time visibility into key metrics and performance indicators, making it easier to meet growing market demand. 

Project Impact & Potential Outcomes – As a result of DCC’s support, Capsule Factory has increased production efficiency by 30% and expanded its full-time workforce from 65 to 75 through the implementation of a new ERP system. Production throughput has improved by 10% due to automation, enabling management to upskill two employees into more advanced roles. Product line optimization has reduced downtime by 5–12%, and lot error rates within the traceability system have decreased by 10%. 

Over the next two quarters, the company anticipates a 30–50% reduction in paper consumable usage with the elimination of paper-based reporting. As the full benefits of modernization are realized, annual sales are projected to grow by 10% this year, directly attributable to the Technology Demonstration Program (TDP).