The pharmaceutical industry always remains under immense pressure to produce top-notch products to improve patient care. For improving the quality of the products, pharmaceutical businesses must embrace technological innovations to improve efficiency. According to sources, the digital transformation has occurred rapidly in the pharmaceutical industry after the Covid-19 pandemic. In the last few years, most pharmaceutical companies have invested heavily in cloud computing, digital technologies, and cybersecurity.
With the digital transformation, the pharmaceutical industry has also started realizing the importance of professional ERP software. An Enterprise Resource Planning (ERP) tool can help pharmaceutical companies in many ways.
The Role of ERP in the Pharmaceutical Industry
ERP can simplify and automate various tasks for a pharmaceutical business. Pharmaceutical product manufacturers can use the ERP software to manage inventory, track the availability of raw materials, plan product packaging, and many more. A robust ERP tool can boost the manufacturing capacity, and it will eventually drive high profitability.
The legacy ERP system or manual resource planning is time-consuming. Nevertheless, the manual process induces various human errors. The digital ERP system will omit all human errors and compliance mistakes. Therefore, pharmaceutical businesses can avoid paying hefty penalties for committing errors. The emergence of digital ERP systems can help businesses in the following ways.
- Improve visibility in the end-to-end business management process
- A seamless approach to track products on the supply chain
- An efficient resource planning for bolstering production
- Omitting all miscommunications across the supply chain
Other benefits of ERP systems for the pharmaceutical companies will be discussed in detail in the following section.
Formulation and Pre-formulation Management
Every country has a strict regulation process for the pharmaceutical drug manufacturing industry. Companies should adhere to those regulation guidelines. Failing to remain compliant with the state’s guidelines can lead to the cancellation of the license for the pharmaceutical manufacturers.
Through formation and pre-formulation, the pharmaceutical manufacturers maintain compliance. The formulation and pre-formulation stage should include the following things.
- Defining the drug production procedure
- Scheduling the stages of the drug production process
- Maintaining the quantity for producing drugs
Pharmaceutical companies can deploy advanced ERP systems like Dynamics 365 to automate the formulation and pre-formulation processes. As a result, it will save time for the business. Nevertheless, machine-based automation omits the possibilities of errors.
Evaluating and Optimizing the Costing of Drugs
The medicinal drug manufacturing business depends on various factors and guidelines. Such factors and guidelines have an impact on the cost of the product. Calculating the operating cost for product production helps pharmaceutical businesses to determine and optimize the prices of the final products.
An advanced ERP system helps pharmaceutical companies to calculate the expenses associated with the production. Typically, the ERP software comes with the following features to aid in expense tracking and management.
- The cost of procuring raw materials from different sources
- The cost involved in storing the raw materials
- Supply chain management cost
A centralized ERP system will display all these costs on one platform. Therefore, manufacturers can understand all expenses associated with the process. Depending on the expenses, the price of a product can be optimized.
Efficient Inventory Management
For pharmaceutical manufacturers, inventory management is an essential thing. An advanced ERP system comes with a real-time inventory tracking facility. Companies can increase productivity through efficient inventory management. Manual inventory management leads to errors, and the process is time-consuming. Businesses often fail to get up-to-date inventory information through the manual process.
Using Dynamics 365 applications for pharma industrywill improve the inventory tracking system. Real-time inventory tracking will help the manufacturers to maintain continuous production, which eventually brings better profitability.
So, these are some benefits of integrating a digital Enterprise Resource Planning (ERP) tool with a pharmaceutical business. A business can improve production efficiency to a significant extent with the help of such a tool. Nevertheless, supply chain management will obtain a higher accuracy through the advanced ERP systems.