What is ERP in Pharmaceutical Industry?
ERP in Pharmaceutical Industry is a comprehensive solution that connects internal autonomous processes in the pharmaceutical businesses, streamlines the day-to-day management of business operations, and improves coordination between different functional areas, such as manufacturing, inventory, supply chain, research & development, quality control, and sales.
ERP software helps pharma companies get real-time data insights, benefit from data consolidation, reduce dependency on manual work, and deliver superior-quality products. It contains a myriad of modules that help with production planning and monitoring, demand forecasting, work order management, and compliance, among others.
Key Functions of Pharma ERP Software:
- Integration
ERP system acts as a central system that integrates various business aspects and legacy systems to ensure everyone has access to the same information. It eliminates data silos and brings together different functions such as the management of inventory, production, purchases, sales, supply chain, and finance, under a single roof.
- Automation
ERP brings automation within business operations such as payroll management, accounting, invoice generation, and other tasks which helps the business in various ways such as reduced costs and lower processing time. By eliminating manual data entry, your employees can focus on more productive tasks and bring efficiency to their work.
- Accounting
Pharma ERP Software includes compliance monitoring tools that actively monitor regulatory requirements to minimise potential fines, penalties, and legal proceedings. It offers the ability to store, manage, and analyze financial data, accounts payable and receivable, and ledgers, besides handling complex operations such as taxation, and fixed asset management.
- Data Services
Collecting, tracking, and analysing business data, generating up-to-the-minute financial reports, trend identification, and various other data-specific operations become easier with the help of ERP. Such data services are helpful to lower the chances of data inconsistencies and discrepancies.
How Does ERP Help Pharma Companies Foster Innovation?
- Formula Management
Recipe and Formula Management is a crucial activity in the pharmaceutical industry. ERP solution provides state-of-the-art technology to handle recipe and formula management, new formula development, and cost estimations.
- Manage complex formulas in a unified system
- Track changes, maintain version control and consistency
- Benefit from error-prone formula calculation
- Utilise Information-sharing
ERP builds a single hub of information that gathers information from different sources and provides the most accurate and up-to-date information. The use of such a robust system helps make informed decisions.
- Easy sharing and collaboration of data across departments
- Enables employees to gain insights and avoid duplication of information
- Fosters quick access to data and seamless decision-making
- Regulatory Compliance
The pharma industry is a highly regulated industry with a lack of a stable policy framework. It is subject to regulatory scrutiny from time to time. ERP brings automated workflows, audit trails, and improves the traceability of data, which results in dramatic improvement in regulatory compliance and long-term stability.
- Promotes traceability, consistency, data accuracy, and documentation
- Strict adherence to the latest industry standards
- Keep track of new changes in the regulations and stay abreast with them
- Minimises Inventory Costs
Inventory costs are the expenditures associated with the storage, movement, and management of inventories. ERP brings visibility into stock levels, promotes accurate demand forecasting, optimises the storage space, brings visibility throughout inventory management, and helps minimise the cost of unsold finished goods.
- Promotes better planning and management of inventory
- Optimises supply chain management, and maximises efficiency
- Improves accuracy and reduces Out-of-Stock or Excess Stock situations which can hamper profits & sales opportunities, and increase costs
- Quality Assurance Framework
ERP enables pharma companies to develop a comprehensive product quality plan and maintain quality standards throughout the production, packaging, storage, and handling processes. It improves communication and collaboration at all stages of production, leading to improved data visibility, and prompt addressing of quality issues throughout the entire product lifecycle.
- Enables quick identification and rectification of errors to minimise return/ refund costs
- Improves brand image, customer satisfaction, and compliance
- Promotes actionable insights into product quality & testing
- Improved Supply Chain
ERP enables pharma companies to build vendor databases, track vendor performance, keep a bird’s eye on the inspection of inbound shipments, track deliveries, and take corrective actions to minimise delays.
- Brings end-to-end visibility into supply chain operations
- Improves collaboration with vendors and streamlines operations
- Break down data silos in the supply chain process
- Enhanced Collaboration
One of the significant benefits of using ERP is that it eliminates the need for constant back-and-forth emails and phone calls by streamlining cross-departmental information.
- Supports remote work, cross-functional teamwork
- Improves workforce productivity and promotes the sharing of ideas
- Promotes employee coordination and communication
- Centralised Repository of Information
ERP builds a centralised Single Source of Truth that enables employees to access data from anywhere, anytime, regardless of their device. It eliminates human errors and ensures the most accurate data is available to all, for informed decision making.
- Minimises data duplication and inconsistencies
- Facilitates seamless collaboration between teams
- Maintains data integrity and lowers the risk of errors and file integrity issues associated with data migration
- Better Resource Allocation
ERP ensures optimum resource allocation by checking resource availability and bringing disparate parts under one comprehensive system of information management.
- Supports process automation
- Provides a holistic view of organisational resources (including assets, and workforce)
- It helps reduce the wastage of resources and improves productivity
- Data Accuracy
With a centralised database that contains organisation-wide data, your company reduces the risk of duplicate or obsolete information. Access to the most accurate data helps you make strongly data-backed & informed decisions rather than assumptions.
- Provides access to accurate and reliable insights at all times
- Builds a foundation for organisational efficiency
- Supports informed decision-making
Summing Up…
ERP in Pharmaceutical Industry enables pharma companies to have better quality control, track batch and Lot, automate marketing campaigns, improve coordination between core business functions, and align with their long-term, strategic objectives.
Sage X3 is a future-proof solution that helps pharma businesses at every touchpoint from formula management, in-process quality checks, raw material availability checks, inventory forecasting, and financial management to compliance management. It helps improve productivity, improves organisation-wide integration of processes, and promotes operational efficiency & data accessibility, ultimately leading to improved profitability, growth, higher ROI, and operational excellence.
● Author Bio:- Sneha Rakte is a specialist in communication who excels at recognizing client requirements. She produces persuasive sales copy and high-converting content. She currently works with Sage Software Solutions, an industry leader in supplying small and medium-sized enterprises in India with high-quality ERP software and CRM solutions.
