ERP Software for Pharmaceutical Companies is in high demand as this industry is undergoing a massive transformation with the emergence of several new technologies and the need to further innovate in product quality, patient care and operational efficiency. The pharmaceutical industry has always been under pressure to invest in technologies that enhance product quality and patient care. These investments are projected to pick up steam in the coming months, fuelled by recent global events.
The COVID-19 epidemic, according to a new study, has advanced digital transformation in the pharmaceutical business by more than five years. Pharma companies have been investing substantially in different digital technologies, such as cloud computing and cyber security, as one of their main priorities.
Furthermore, many are exploring ERP Software for Pharmaceutical Companies as they look for methods to simplify procedures, increase efficiency, and comply with rigorous rules.
Today, we’ll look at the critical role of enterprise resource planning (ERP) in the pharmaceutical sector, including how we may utilize it, what it can accomplish, and what the future holds.
Importance of ERP for Pharmaceutical Companies
In the pharmaceutical business, there are severe regulations that must be adhered to by both big and small companies. Therefore, ERP and supply chain management systems are becoming more popular as a means of streamlining supply chain processes.
At every level of the production process, ERP sf may save you time and money. ERP software for pharma may help keep track of a variety of items, including raw materials, inventory, and packaging. Businesses may utilize these tools to get a better understanding of their operations while also enhancing their bottom line.
Because of the risk of human mistake, companies should avoid using out-of-date ERP systems or manual processes. Errors may put patients’ health at risk in certain situations. Because of this, we’ll need to improve how businesses operate.
For decades, operations were performed manually or via cumbersome software solutions that only monitored a workflow section.
As a result, team members faced several challenges, including
- Lack of visibility into end-to-end business processes
- Difficulty in tracking product batches across the supply chain
- The inflexible and inefficient manufacturing process
- Miscommunication throughout the supply chain and distribution channels.
Modern organizations are rapidly using technology to help them digitize and automate their operations.
ERP software for pharmaceutical companies, for example, can automate and improve every part of a pharmaceutical Company’s operations, including sales, quality assurance, batch manufacturing, inventory management, and back-office tasks (HR, accounting, etc.)
When an ERP platform is wholly embraced by the workforce and aligned with the organization’s strategic objectives, it may provide a slew of revolutionary advantages.
More efficient product management and tracking
- Easier to control stock levels
- Easier to monitor quality assurance levels
- Easier to satisfy regulatory requirements
- Easier to analyze and report data through ERP dashboards
- Fewer human mistakes
- Improved profitability
- Improved customer service
10 Benefits of ERP Software for Pharmaceutical Companies
The advantages listed above are significant, but they might be applied to many companies, particularly the healthcare industry. Let’s take a deeper look at how ERP can make a significant impact in the pharmaceutical industry:
- Formulation and Pre-Formulation are the first steps in the process.
The medication production process, understandably, is governed by tight restrictions. This contains instructions on how personnel should create and manage raw ingredients and how they should handle batch yields.
Employees must follow strict standards throughout the pre-formulation stage, which include:
- defining drug manufacturing methods
- scheduling drug production stages
- measuring drug production amounts.
They may also be able to do so without continually checking output, resulting in higher productivity.
- Costs of Drug Products
Several aspects go into determining the price of a prescription product. Companies must assess the costs of
- Purchasing materials
- Managing raw materials, among other things.
- Supply chain management
These expenditures are separately documented in distinct departments without a centralized ERP platform. As a result, if this data is altered or updated, the new values may take some time to sync. As a consequence, calculating ultimate product costs is inherently difficult.
With an ERP system, on the other hand, every authorised employees gets rapid, centralised access to the same data. This allows your finance staff to easily monitor cost elements across departments.
Three of the most significant issues to consider are inventory management, scalability, and flexibility.
Pharmaceutical companies have always needed to keep track of their inventories. This worry has been heightened by the present pandemic.
ERP allows businesses to track and manage commodities in real time. Serialization may also help with inventory management, reducing time-consuming bottlenecks and potentially catastrophic stock-outs. Most systems also include traceability capabilities, which enable companies to quickly recall products if required.
- Consider factors other than numbers.
An ERP system, as the name suggests, incorporates all aspects of your organization, not simply accounting and money. Accounting and invoicing, customer relationship management, inventory management, distribution management, and human resource management systems will all be linked into one single platform in a powerful ERP solution. Data is exchanged across all systems, resulting in useful cross-functional reporting.
- Enhanced Data Protection
ERP software for pharmaceutical companies provides significantly better data security than spreadsheets or entry-level accounting software. In terms of data security, both on-premise and cloud-hosted ERPs are equal. Furthermore, cloud-based ERPs are equipped with several sophisticated data security capabilities like as ransomware protection, data encryption, virus protection, and intrusion prevention.
- Enhance Customer Service
Whether you operate a B2B or B2C pharmaceutical Company, improving your customer experience and service is critical to increasing revenue, and ERP may assist in various ways. Your sales staff can manage, analyze, and modify client data with a contemporary ERP that includes a CRM to figure out your customers’ demographics, trends, and wants.
- Adherence to the law
Legislation and criteria are constantly evolving in all businesses, especially in the industrial and food & beverage industries. Failure to comply with them may be quite costly to your pharmaceutical Company. Aside from GAAP and IFRS compliance, sophisticated systems like Acumatica and Sage Intacct also help with paperwork, training, accuracy, reporting, security, and process management – all of which are critical components of complying with laws.
- Enhance Productivity
One of the key advantages of ERP is how simple it is to use. An ERP can help you optimize your pharmaceutical Company operations and automate data processing the most efficiently and effectively possible. ERP software reduces paperwork and the risk of human mistakes, which may interfere with productivity. Many manual processes may be automated, giving workers more free time and enabling them to focus on more productive duties. Your employees will be able to complete their tasks more quickly and efficiently.
- Use the cloud to access data from any location.
ERP systems may be deployed as a web or mobile application using cloud technologies, depending on your requirements. You may access your data from any computer or mobile device with an internet connection.
This gives your pharmaceutical Company more flexibility and mobility, particularly if you have team members that work in various towns, remotely, or in the field. You can make data-driven choices fast and stay ahead of the competition if you have up-to-date, accurate information at your fingertips.
- Insightful Reports and Dashboards
One of the essential advantages of ERP Software for Pharmaceutical Companies is its better understanding. Having all of your data in one place allows you to evaluate your pharmaceutical Company processes and determine what makes sense and what may be improved.
You may eliminate inefficient procedures and understand the many ways you can boost efficiency and build a better cash flow with the aid of valuable reports and analytics.
ERP suppliers also provide business intelligence (BI) solutions, which enable companies to obtain better knowledge and analytical insight into their operations. You’ll be able to make better business decisions based on accurate and timely data.
- Adaptable and Scalable to Your Pharmacy.
ERP Software for Pharmaceutical Companies have scalability and adaptability to your business’s size and changing nature is one of its most significant advantages. Many small firms are hesitant to even explore an ERP because they believe only expensive one-size-fits-all options are available.
Best-of-Breed and Best-in-Class ERP systems enable organizations to create a tech stack tailored to their specific requirements, resulting in a unique solution. Customizing and integrating certain capabilities is critical to ensuring efficient business operations.
This means you only pay for the modules, add-ons, and connectors that directly benefit your organization, rather than an all-in-one solution with numerous capabilities and systems you don’t require.
Aspects to Consider while Selecting an ERP software for pharmaceutical companies :
- Material and Inventory Management Done Right
Material waste at different levels of inventory has a detrimental influence on a firm’s profitability. We may control material waste, and we can monitor inventory levels with the aid of ERP Software for Pharmaceutical Companies. It assists in determining the material needed for production, establishing objectives, setting procurement and replenishment targets, and displaying material management, all of which aid in inventory level optimization and, as a result, minimize waste to some degree.
- Management of Documents
It’s critical in this highly regulated business to keep track of all data and paperwork for future analysis and audit inspections. The ERP system aids in the organization of data that is now maintained in silos to fulfill compliance and regulatory vigilance requirements.
- Management of the Formulation
The drug formula is valuable to pharma manufacturing SMEs, but it may be devastating if it is stolen, misused, or lost. The Pharma ERP solution enables manufacturers to document formula management, including the list of ingredients used, how we used them, tracking ingredient details, and storing and securing formulas with approval workflow. Restricted access is also made available.
- Processing in Batches
According to cGMP criteria, WE must make the medications in batches rather than in a disorderly manner. ERP that can readily distinguish and manage the various forms of medication manufacture in batches is quite beneficial. Printing BMR and MBR as well as SOPs are just some of the features that the Pharma ERP for SMEs offers.
- Traceability of lots
If anything goes wrong in the traditional sense, it’s difficult for producers to pinpoint the source of the issue and then take the appropriate steps, which slows down production. The lot traceability function in ERP gives manufacturers a 360-degree view of medicine production from procurement through distribution and sales, allowing them to conveniently handle recall situations and issue product recalls quickly if necessary.
- A Game-Changer in the Industry
It’s no wonder that the pharmaceutical sector is paying attention as technology changes how we conduct business. Strict laws, complicated procedures, and a demanding clientele characterize this industry.
As ERP’s importance in the pharmaceutical sector grows, influential business executives will be ready to embrace these new technologies and execute the required business process reengineering to match their operations with the latest technology.
Our ERP consulting team can guide you through the following phases starting with essential planning and ERP software selection.
The Importance of ERP in Post-Corona virus Manufacturing
According to the World Bank, the COVID-19 epidemic has impacted businesses worldwide, with global GDP likely to decrease by 5.2 percent in 2020. The World Bank describes this as “the biggest global recession in decades” in its Global Economic Prospects report released in June 2020.
Tourism, fashion, and banking, as well as Manufacturing, have been particularly susceptible. Shipping delays have hampered the supply of resources and raw materials. Safety regulations have prohibited manufacturing facilities from working at total capacity, canceling regular and big orders. Consequently, there are shortages of everything from medications to food to clothes.
Given COVID-19’s tremendous influence on the manufacturing industry, it’s no wonder that stakeholders are developing long-term strategies and plans for rebuilding the initiative and laying a foundation that will provide much-needed stability.
Enterprise resource planning, or ERP, combines important pharmaceutical Company activities and operations into a centralized system worth examining in this respect. Cost savings, better efficiency and production, decreased risk and human error, and rapid growth are just a few of the advantages of ERP.
ERP serves as the basis for post-coronavirus production in various ways, and these are significant areas where a cloud ERP system or cloud CRM solution may help.