Overview

Inventory management in regulated industries, from nutraceutical fulfillment and storage and pharma-grade distribution center to functional foods and personal care products, is complex, demanding, and leaves no room for error. Accuracy isn’t just about efficiency; it's about consumer safety, regulatory compliance, and protecting customer trust.

One company that faces these challenges daily is NuGen Packaging, a full-service, end-to-end, 100% ecological and sustainable packaging supplier specializing in Nutraceutical, Pharmaceutical & OTC Products, Pet Care, Personal Care & Cosmetics, and Food & Beverage.

Yet despite NuGen’s commitment to maintaining the highest standards of consumer safety and building the supply chain infrastructure needed for its customers to scale their brands, their previous fulfillment provider was holding them back from scaling. Inconsistent reporting forced NuGen’s internal teams to focus on damage control instead of innovation and the growing needs of its customers.

The turning point came in 2022 when NuGen partnered with Customized Distribution Services (CDS). What began as an operational shift quickly became the foundation for sustainable growth. CDS introduced the discipline, visibility, and accountability NuGen needed to align its warehousing and distribution practices with its brand values.

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Case Study describing how NuGen, a packaging Company, was able to completely rely on CDS for inventory counts.

Through strict adherence to FDA compliant 3PL services and BRCGS-certified food-grade warehousing, transparent inventory management, and proactive customer service, CDS restored NuGen’s confidence in its supply chain. Every process from inbound inspection to outbound fulfillment was rebuilt around precision, compliance, and partnership.

The result was more than operational improvement; it was liberation. For the first time in years, NuGen’s leadership could focus on what they do best, supporting customer growth.

Challenge

Unreliable and Costly Inventory Management due to Warehouse Inefficiency

For NuGen, accurate inventory management and dependable communication were the biggest obstacles. Their previous provider’s inconsistent reporting and limited customer service made it difficult to plan production with confidence.

Inaccurate  Inventory Data

Before partnering with Customized Distribution Services (CDS), NuGen’s team spent considerable time in their previous warehouse managing what should have been routine operations. Inventory counts were frequently off, forcing the team to conduct their own cycle counts just to confirm stock accuracy. Product inspections became standard practice—not because they wanted to, but because they had to—to ensure quality and compliance before every shipment.

Compliance Visibility Challenges

The disorganization extended to the floor itself. Pallets were often misplaced, consuming hours of search time. Critical documentation, including Certificates of Analysis (COA) and Certificates of Compliance (COC), had to be manually verified and attached to shipments to prevent compliance lapses. These ongoing, manual interventions left less time for what truly drives the business forward—client engagement, innovation, and growth.

Unresponsive Customer Service

Additionally, how they communicated compounded the problem. There was no dedicated account manager or escalation process to correct issues or prevent them from recurring. Every problem required NuGen’s team to intervene manually, diverting resources from innovation and growth to damage control.

Under FDA GMP guidelines, every aspect of warehousing—from facility cleanliness and labeling to environmental control—plays a role in maintaining regulatory compliance and consumer safety.

What suffered most was confidence. Without accurate reporting or accountability, NuGen couldn’t rely on its provider’s inventory data or trust that urgent customer needs would be met. Rebuilding that trust would require a Warehouse and Distribution partner capable of delivering measurable accuracy, consistent communication, and complete transparency.

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Solution

Building A Foundation For Scalable Growth With Transparent Logistics

CDS implemented a structured fulfillment model built on compliance, accuracy, and proactive communication.

The Intersection of People & Technology

Recognizing that its previous fulfillment provider had been putting both compliance and client relationships at risk, NuGen began searching for a FDA registered warehouse in New Jersey and Pennsylvania , located near key East Coast ports to support imports and domestic distribution. The search led them to Customized Distribution Services (CDS), and after one visit to the South Brunswick warehouse and distribution center, the difference was unmistakable.

“You can eat off the floors. The warehouse is so clean.”- Marta Sylvester, Founder and CEO

From the outset, CDS demonstrates a culture of precision and accountability.

Transparent Inventory Management

CDS’s Warehouse Management System (WMS) provides real-time visibility and traceability, integrating directly with NuGen’s systems and those of its manufacturing and bottling partners. Any potential inventory issue, such as a misplaced pallet or discrepancy, is immediately investigated through both WMS data and human oversight.

CDS’s success lies in the balance between automation and human expertise. Technology and facility automation enable precision, but people ensure accountability.

Disciplined Compliance Standards

Each facility operates under strict Standard Operating Procedures (SOPs) that meet and exceed food-grade and pharmaceutical regulatory requirements, including FDA Good Manufacturing Practices (GMP) and BRCGS certification standards. Cleanliness, documentation, and traceability aren’t simply checkboxes; they are built into daily operations and verified through ongoing internal audits and third-party inspections.

At CDS, every shipment NuGen receives is handled and stored according to defined compliance standards. Products are separated from allergens and maintained in verified sealed storage to prevent contamination. If material is deemed non-compliant, it is placed in a quarantined section to await final disposition.

Dedicated Customer Support

CDS also assigned a dedicated Customer Service Representative (CSR) team to NuGen’s account, led by individuals trained to manage regulated supply chains with speed and transparency. 

When entire pallets of cardboard packaging arrive crushed or compromised, CDS employees don’t wait for a system alert—they spot it, immediately notify NuGen, and, when appropriate, rework and safeguard the product before it leaves the dock.

This direct communication ensures that every urgent request, shipment, or audit requirement is met quickly and accurately. As a result, NuGen’s leadership, including owner Marta, now works closely with CDS’s team as an extension of their own operations, collaborative, responsive, and aligned around shared goals.

This human oversight, combined with technology-driven accuracy, has allowed NuGen to scale safely. New SKUs are added seamlessly, production timelines remain uninterrupted, and every shipment leaves the warehouse fully documented and compliant.

 

Results

Restoring Confidence Through Measurable Precision

The impact of NuGen’s partnership with Customized Distribution Services (CDS) marked a turning point for their operations and was both immediate and lasting. 

Within months, CDS’s processes restored inventory accuracy and compliance reliability for NuGen’s operations—transforming what had been a drain on resources into a foundation for growth.

Through automated monthly cycle counts, CDS achieves and maintains 99% inventory accuracy, allowing NuGen to eliminate its annual full-warehouse manual audit. This shift reduces labor hours, improves operational efficiency, and frees NuGen’s internal team to focus on innovation and product development rather than inventory troubleshooting.

Inventory Accuracy & Audit Elimination

CDS consistently achieves 99% inventory accuracy, enabling NuGen to eliminate its annual manual audit, restore confidence in inventory reporting, and rely on real-time system data for operational and compliance decisions.

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End-to-End Visibility and Audit-Ready Traceability

Real-time tracking through CDS’s Warehouse Management System (WMS) provides NuGen and its manufacturing partners complete transparency into product movement—from inbound containers at the Port of New Jersey to final shipment at the customer site.

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Controlled Storage Practices That Protect Product Integrity

Product integrity is safeguarded through disciplined storage practices. Allergen-sensitive materials are isolated in sealed environments, while damaged or compromised packaging is proactively placed in a quarantined area awaiting resolution. These practices eliminate contamination risk and preserve product value.
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A Dedicated Account Team Operating as a True Partner

The dedicated team of industry-trained Customer Service and Account Managers has become an extension of NuGen’s own operations. They provide hands-on support for daily order management, freight coordination, and compliance documentation. When urgent customer requests arise, the CDS team is responsive, accurate, and proactive, qualities that redefine a warehouse and distribution partnership from transactional to collaborative.

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Conclusion: Scaling Safely with a Trusted Partner in Regulated Warehousing

In industries where precision defines success, there is no margin for error. For NuGen, partnering with Customized Distribution Services (CDS) means more than solving an operational challenge; it means rebuilding confidence in every shipment, every count, and every client relationship.

By aligning technology, transparency, and human expertise, CDS delivers a fulfillment model that not only protects consumer safety but also empowers business growth. 

What began as a logistical necessity has evolved into a trusted partnership built on shared values: accountability, quality, and integrity.

Today, NuGen continues to expand its capabilities, confident that CDS will uphold the same uncompromising standards that have made it a leader in regulated warehousing and distribution. Together, both companies demonstrate what’s possible when precision becomes a promise.

That standard defines CDS and drives its promise of Excellence in Every Case.

Is your current 3PL holding you back with inconsistent data and compliance gaps? Don't let warehouse errors stall your growth. Schedule a 15-minute Logistics Audit with the CDS team to see how we can bring 99% accuracy to your regulated supply chain.

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Eliminate inventory errors and compliance gaps

Schedule a 15-minute Logistics Audit to show you how we can bring 99% accuracy to your regulated supply chain.

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Frequently Asked Questions?

How does a 3PL guarantee inventory accuracy for regulated products?

A high-performing 3PL achieves inventory accuracy through automated Warehouse Management Systems (WMS) and scheduled cycle counts. By replacing annual manual audits with real-time digital tracking, providers ensure production-ready inventory and eliminate the costly "shrinkage" common in manual warehouses.

What are the FDA GMP warehouse requirements for nutraceutical packaging?

FDA GMP (Good Manufacturing Practices) for packaging warehouses include strict adherence to SOPs for cleanliness, environmental controls, and lot-level traceability.

Facilities must be audit-ready at all times, with digital storage for Certificates of Analysis (COA) and Certificates of Compliance (COC) for every shipment.

How does a distribution partner handle a product recall or quarantine?

Effective 3PLs use FEFO (First-Expired, First-Out) logic and digital tagging to instantly isolate non-compliant material. Quarantined products are moved to a physical and systemic "hold" area, preventing them from entering the supply chain while maintaining full documentation for regulatory reporting.

What should I look for when switching warehouse and distribution providers due to poor reporting?

When switching to a new warehouse and distribution 3pl prioritize technological transparency and dedicated account management.

Ensure the new provider offers a client-facing dashboard with real-time data sync, preventing the communication gaps and reporting delays that disrupt production timelines.

How is allergen-sensitive packaging stored in a multi-client warehouse?

Allergen-sensitive materials are protected through product segregation and verified sealed storage. Leading warehouses use WMS-driven "zoning" to ensure incompatible products are never stored in adjacent racks, eliminating cross-contamination risks.

Can a 3PL handle seasonal spikes in nutraceutical distribution?

Scalable 3PLs manage volume spikes by utilizing flexible labor models and automated forecasting tools. Look for partners with facilities near major ports (like NJ/PA) to minimize lead times during high-demand periods like the Q4 holiday season.

What value-added services are essential for "production-ready" inventory?

Essential VAS include kitting, labeling, and inbound inspection. By inspecting for transit damage (like crushed cardboard) upon arrival, an experienced warehouse and distribution 3PL ensures that only "clean," compliant components are delivered to your production partner's lines.