ERP for Pharmaceutical Industry
ERP for Pharmaceutical Industry is a one-stop solution to optimize your inventory levels, achieve quality excellence, and meet regulatory compliance.
What is ERP for Pharmaceutical Industry ?
ERP for Pharmaceutical Industry is a single integrated system of interconnected modules that transform critical aspects of your pharmaceutical business and streamlines various activities from formula management, raw materials sourcing, production planning, demand forecasting, shop floor control, and work order management to distribution.
ERP Software helps you manage end-to-end processes, coordinate the flow of information across different departments, and empower decision-makers with Business Intelligence, Data Analytics, state-of-the-art technology, and powerful reporting functionality. It serves as the backbone of modern pharmaceutical companies operating in a highly-competitive business environment.
Overview of Pharmaceutical Industry
India is the world’s third-largest producer of pharma products by volume and the largest producer of generic medicines globally. India is home to over 10,500 pharma manufacturing plants. According to the data released by the Government of India, the Indian pharma industry is estimated to be $50 Billion in size. It is expected to reach $130 Billion by 2030. Moreover, India is leading the vaccine battle globally. It is among the few countries supplying low-cost vaccines to the world.
What are the Major Challenges Faced by the Pharmaceutical Industry?
Inventory Mismanagement
Inventory plays a significant role in pharmaceutical companies. Sometimes, there is an acute shortage of medicines and other pharma-related products due to unforeseen circumstances like the recent coronavirus pandemic. In those cases, the inventory may fall below the set threshold. Also, creating & maintaining real-time inventory status reports on a ledger and placing orders manually with the vendor is time-consuming process.
Monitoring Regulatory Changes
Governments worldwide are coming up with stringent regulations to monitor pharmaceutical companies. If you fail to adhere to compliances, you may incur massive fines or risk shutting down your company. The Financial Management Software creates a system of checks and balances, in addition to generating and validating bills & receipts, and tracking regulatory changes.
Data Inconsistency
Building robust and long-lasting customer relationships is crucial for companies across industries. But for that, pharmaceutical companies require massive data repositories to formulate competitive price quotes. Without Pharma ERP, it becomes challenging to collect customer segments based on geographic, demographic, psychographic, and behavioral data.
Manual Product Traceability is Messy
Mandatory government regulations make product traceability essential for pharmaceutical companies. Therefore, pharma companies must maintain a detailed record of all product transactions, including historical purchases. They also need to track the movement of goods — raw materials from the vendor to the inventory of pharmaceutical companies and finished products from the warehouse to the end-user. Thanks to the Online Procurement Management System, this process can be completely transformed.
Determining Product Costs
Tracking operational, material, and manufacturing costs manually is challenging for pharmaceutical companies. On the other hand, ERP application in pharmaceutical industry calculates the final product cost by accounting for R&D cost, raw material cost, customer incentives, insurance costs, and much more.
Why Your Pharmaceutical Manufacturing Needs Sage ERP Software?
Unlock your true potential with Sage ERP Software and convert challenges into opportunities. It is a must-have solution that lets you embrace innovation and technology to fuel growth and success.
Sage X3 is a multi-dimensional solution tailored to meet the growing needs of pharmaceutical enterprises that have outgrown their basic legacy tools. If you’re looking for a flexible, customizable, and agile solution to meet your growing operational needs, look no further and deploy the best ERP Software for pharmaceutical industry.
» Why leading Pharma companies use Sage X3?
- Derive actionable insights for quick decision-making
- Achieve Bi-directional material traceability
- Expedite the procurement process and reduce costs
- Lower the risks of data discrepancies
- Deliver products with greater speed, accuracy, & confidence
- Gain a holistic view of operations across different units
- Multi-language, multi-currency and multi-country capabilities
Game-changing Features of Pharma ERP Software
Sage 300 ERP India allows users to create product categories based on the product’s management method — manufactured, purchased, generic, and sub-contracted, with their descriptions. You can define these products at a micro-level based on their unit of measure — Vial, Bottle, Strip, Ampoules. Also, users can enter the dimension, colour, expiry flag control, and the supplier’s code.
Purchase flow is divided into 3 categories:
→ General Material Purchase: Department users can raise a material requisition request for the required raw material to the storekeeper. Consequently, the storekeeper will check if the material is available in the warehouse using Sage X3’s in-house Material Requirements Planning (MRP) capabilities.
→ Raw Material Purchase: Sage X3 procurement software can automate the raw material purchasing process. Once a Purchase Order (PO) is created in the ERP software, it can move across multiple approval levels. The approved PO is forwarded to the vendor as soon as the user approves the PO through signature management in Sage X3.
→ Promotional Items: Promotional products include diaries, pens, perfumes, etc. Tracking these products is essential because they add up to the inventory cost. With Sage X3 ERP, you can follow which product was issued to which customer.
Inventory Management System of Sage X3 provides a single platform through which users can manage the whole inventory — from raw materials to finished goods. A request screen contains all the supplier quotations and RFQs. Moreover, the purchase receipt feature allows replenishing the stock from the warehouse. Further, the software also tracks the quality inspection when the goods are received. If the quality of goods is not up to the mark, they are returned to the supplier, and a purchase return requisition is raised in the ERP system.
Sage X3 ERP in pharmaceutical industry efficiently manages warehouse products using a set of product codes for batch tracking. Warehouse Management software also keeps locations with similar criteria under one group. Users can view items stored inside each warehouse. They can dispatch them to the required distribution centre or arrange for a pick-up by wholesalers or retailers. The best part is that each transaction is recorded in the software. Moreover, you can also create various tabs in the dashboard, such as promotional goods, near-to-expiry, samples, expired material, and many more.
Pharmaceutical products are assigned batch numbers whenever there is an outward or inward material movement. Therefore, inventory valuation is done on an actual basis. Sage X3 ERP software for pharmaceutical industry comes with powerful LOT management capabilities, real-time inventory costing, and support different methods (FIFO method and LIFO method, just for instance).
You can also assign an expiry date to the batches that have been produced through the First Expiry First Out (FEFO) basis. It helps allocate batches to a work order or a sales order automatically. However, users can manually assign batches if they want to change the LOT allocation.
Sage X3’s quality control module allows the user to track the quality of the entire manufacturing process — from the purchase of raw materials to manufacturing finished products. The quality assurance mechanisms in your ERP provide both the Manufacturing receipt and PO receipt. The system has a technical sheet containing the products’ specifications that are supplied to the user. This sheet helps perform quality checks.
Sage X3 also allows updating the testing parameters at every product master. So, you can update different Pharmacopeia, such as the Indian Pharmacopeia, and US Pharmacopeia, using Sage X3.
To start with, first create a sales quotation entry. Then, execute stock allocation to order followed by the delivery entry. Finally, generate your sales invoice. You can select from a range of customer categories such as :
- Doctors
- Stockists
- Government bodies
- Hospitals.
Key Benefits of ERP in Pharmaceutical Industry:
Real-time Supply Chain Traceability
Sage X3 ERP in pharmaceutical industry offers real-time traceability benefits that easily track goods throughout the entire lifecycle. It also offers a complete suite of supply chain management tools that allow pharmaceutical companies to-
- Integrate sales management, including sales workflows, automated transactions, invoicing, and logistics
- Purchasing management, including audit trails, supplier details, expenditure authorization, etc.
- Inventory management, including count management, stock data, consumption analysis, etc.
- Provide visibility into inventory levels, optimize distribution processes
- Provides a way to accurately track, trace and view the status of batches, inventory, and processes throughout the entire supply chain
- Ensure compliance with industry regulations and optimize production processes
Meet End-to-End Regulatory Requirements
With the ever-increasing regulatory requirements, companies must ensure they are compliant with all applicable guidelines.
The Sage X3 ERP for pharma industry offers a comprehensive suite of solutions that streamlines the entire process of achieving and maintaining compliance with the various regulations.
- Complete visibility into their compliance activities and programs while managing their compliance efforts and improving their overall performance
- Simplifies the audit process by providing an automated workflow management process
- Automates work processes, ensuring accuracy and efficiency in operations
- Tracks and records information about inventory, production, and financials
- Ensures proper security and data protection as it is equipped with advanced encryption technology
Data Security
Sage X3 business management software can provide access control for user accounts and limit access to certain functions and data. This useful feature in Cloud ERP makes sure that only authorized users have access to the data and reduces the risk of unauthorized information being accessed or altered.
It also –
- Provides an audit trail that allows companies to keep track of data
- Provides strong encryption of data at rest and in transit
- Offers automated backups of data and ensures all vital data is stored securely
- Reduces the amount of manual labor required to back up data
Assure Top-notch Product Quality
In today’s time, brands are realizing the importance of producing high-quality and safe products that meet industry standards. ERP ensures that your final product goes through rigorous quality checks at every level to identify and rectify defects as soon as they’re discovered. Ultimately, this reduces the instances of customer returns. While ERP cost may seem like a significant investment, it pays off in the long-run.
Sage ERP software in India for manufacturing enables maintaining accurate quality assurance for pharmaceutical companies by-
- Serial numbers
- Stock status (Inspected, Accepted, Rejected)
- Batch and sub-batch numbers management
- Downstream and upstream management
- Expiration and re-inspection data management
Sales and Marketing Management
Pharma ERP software has numerous pre-defined templates that allow for managing contracts and processing sales orders efficiently. CRM System maintains a massive repository of customer data and updates it regularly. Pharma ERP formulates competitive price quotes based on the following factors:
- Geographic data
- Demographic data
- Behavioral data
- Past purchasing pattern
- Recent purchases
Once the sales order is ready, it creates automated workflows, thereby eliminating the special intervention from humans.
Efficient Project Management
The Project Management is an important benefit of the Pharma ERP Software. It provides superior tools for project planning, monitoring, and tracking, which are critical for the seamless execution of projects and reducing delays & potential bottlenecks. Decision-makers can also track the time spent on each task, assign priorities, and gain a comprehensive report of project performance.
- Enhanced project planning & forecasting
- Track project costs & compare them to pre-planned goals
- Efficient resource planning (human resources & assets)
- Identify bottlenecks in the entire process and take corrective measures
- Improve departmental collaboration for efficient execution of the projects
Adherence to Government Regulations
Sage X3 keeps you updated with latest regulatory changes and avoid fines and penalties. It offers amazing multi-country and multi-legislation support to comply with local laws and tax regulations.
⇒ Here’s how ERP for pharmaceutical industry empowers your pharmaceutical business:
- It oversees contract manufacturing guidelines that frame rules on the purity, identity, strength, and quality of medicines meant for human consumption.
- It keeps control over data integrity movements such as:
- Trackable workflows that can be validated
- Audit trails at outsourced facilities
- Increased demand for control data accuracy
- It also monitors any changes or updation made in universal generic drug standards by international regulatory institutions.
- Ensure strict adherence to the industry requirements and Govt regulations.
- Automate key processes and reduce human errors.
- Ensure your contractual requirements are met on time.
Keep Track of Different Units of Measures
It’s a common practice in Pharmaceutical manufacturing businesses to buy raw materials in one unit of measure, store them in warehouses in another, convert them into finished products in one more, and finally sell them in another. It is possible only due to ERP systems.
Sage X3 selects the appropriate weighing system and then converts values instantly. This helps to assess cost in terms of weight, potency, size, solid percentage, etc.
→ Here’s more about Sage X3’s robust framework for unit conversion:
⦁ Map Units of Measure (UOM) with corresponding costs
⦁ Supports multiple conversion factors across different UOMs
⦁ Minimizes the potential for errors & discrepancies in calculation of stock
⦁ Improves accuracy in the pricing and invoicing
FAQ
What is Pharma ERP Software?
ERP for Pharma Industry is a specialized software that enables master production scheduling, batch product tracking, sophisticated inventory management, bi-directional material traceability, quality & compliance management, and various other functionalities to grow faster and evolve & adapt to changing market dynamics.
How Does ERP for Pharma Industry Support Production Planning & Scheduling?
ERP Implementation aids with production planning, capacity planning, and resource management, all of which result in minimal lead times and on-time production activity without disruption. With ERP Pharma, your organization will benefit from reduced cost, reduced waste, lower machine idle times, and improved efficiency & productivity. Preplanned production activities often result in consistency in the quality of the final output and improved brand reputation.
Does Pharma ERP Software Help with Product Recalls of Potentially Risky Drugs?
Product Recall is a process of taking back goods from the market after the discovery of defects or potential safety hazards. ERP for pharmaceuticals in India keeps a complete database of all the products including the source of their raw materials, and brings full visibility into the supply chain operation. It helps you build an Action Plan, and better handle the recall process to minimize harm, comply with the regulatory standards, and preserve brand reputation.
How Does ERP Software for Pharma Industry Help Pharma Companies with Demand Planning?
Demand planning (also called Demand Optimization) is a crucial marketing strategy adopted by businesses of all types and sizes. Effectively planning and forecasting demand is key to reducing inventory storage costs, and preventing yourself from running out of stock. Pharma Manufacturing Software allows businesses to predict market sentiments, forecast demand for their products, determine Elasticity of Demand, and keep up with the latest trends & patterns to ensure maximum customer satisfaction.
How Sage X3 Manage Credit Sales?
The sales order is fed into the Sales Management System of Sage X3, supplemented with a delivery and sales invoice. Also, maintaining appropriate control over the sales of pharmaceutical products is required by drug law authorities. Sage X3 pharmaceutical manufacturing software has many features like Drug license expiry date, Drug license number, and credit control that allow checking these statutory records conveniently. This pharmaceutical ERP also has a fail-safe mechanism. It can put an order on hold if the earlier records don’t match the required sales order. The order can be un-holded again once the approval process is complete. Therefore, there is no possibility of a data entry error.
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