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Guide April 16, 2026 · Guidance Team

• ✓ Track how much time you spend on operations; if it's over 25%, consider hiring.
• ✓ Monitor inventory accuracy and COGS closely; inconsistencies indicate a problem.
• ✓ Don't wait until operations are completely broken to bring in dedicated staff.
• ✓ Hire an operations manager who can build systems and manage relationships, not just tasks.

You're Spending More Time on Logistics Than Strategy

Initially, managing purchase orders, tracking ingredient shipments, coordinating with co-packers, and reconciling production runs falls on your shoulders. This is manageable when your brand is small. However, if you find yourself spending more than 25% of your week on these tactical operations tasks, it's a red flag. Your time is best spent on sales, marketing, product innovation, and securing new retail accounts. When you're constantly putting out fires related to inventory or production, you're not building the business. An operations manager can take over these critical but time-consuming responsibilities, freeing you to focus on strategic growth.

Inventory Levels Are a Mystery, Not a Metric

If you frequently experience stockouts of key ingredients or finished goods, or conversely, have too much expired inventory sitting in a warehouse, your inventory management is broken. This problem is compounded when you have multiple co-packers and raw material suppliers, especially with international sourcing. You need real-time visibility into stock levels across all locations. Relying on spreadsheets for lot traceability and inventory tracking becomes unsustainable and error-prone. Tools like Guidance provide real-time inventory levels and end-to-end lot traceability, making it clear when manual tracking is insufficient and a dedicated person is needed to manage the data and relationships involved.

Your COGS Are Unpredictable and Eating Margins

Without a dedicated operations person, understanding your true Cost of Goods Sold (COGS) can be incredibly difficult. Are your Bill of Materials (BOMs) accurate and updated with actual purchase prices? Are you properly accounting for landed costs on imported ingredients? Do you know the exact yield from each production run at your co-packer? Small variances, like a 2% drop in yield, can significantly impact profitability. If you're constantly surprised by production costs or finding your margins eroding, it indicates a lack of control and oversight. An operations manager will implement systems to track these metrics accurately, ensuring predictable costs and healthy margins.

Compliance and Quality Are Becoming Major Headaches

For organic food brands, managing organic mass balance documentation is a constant task. With upcoming FSMA 204 regulations, tracking Critical Tracking Events and Key Data Elements from raw material supplier to finished goods shipment is non-negotiable. If you're scrambling before every audit or worried about recall preparedness, you need dedicated expertise. An operations manager will ensure all compliance requirements are met, quality control processes are followed, and documentation is meticulous. This protects your brand's integrity, avoids costly fines, and builds consumer trust, especially crucial for sensitive categories like organic food.

Operations Are Blocking Your Brand's Growth

You're getting calls from major retailers, but you hesitate to commit because you're unsure if your supply chain can handle the increased volume. Production scheduling delays, co-packer communication breakdowns, or inconsistent product quality are preventing you from scaling. Your existing operational setup is reactive, not proactive. When operations become the bottleneck for sales and market expansion, it's a clear signal. An operations manager can build the necessary systems and processes to support significant growth, ensuring your brand can take on new opportunities without collapsing under the weight of its own success.

Essential Skills for Your First Operations Manager

When hiring your first operations manager, look beyond someone who just executes tasks. You need a strategic thinker who can build and refine systems. They should have experience managing relationships with co-packers and suppliers, negotiating terms, and troubleshooting production issues. Strong analytical skills are vital for interpreting data on inventory, COGS, and production yields. Look for someone with a continuous improvement mindset, always seeking efficiencies. Prior experience in CPG, even with a smaller brand, is highly beneficial. They should understand the unique challenges of food manufacturing, from shelf-life to ingredient sourcing complexities.

See How Guidance Handles This

Guidance is a CPG operations platform built by the CEO of Claros Farm. Apply to join the design partner program.

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