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How SAP Business One simplifies the complex flow of the Pharma industry?

by Shailendra Kumar 2 months ago in tech news

A Pharma company has many processes and each process is critical and each of them is interdependent.

A Pharma company has many processes and each process is critical. And each of them is interdependent. At a very high level, the process flow in a Pharmaceutical company looks like this:

  • The marketing team comes with the order.
  • The production unit looks for the raw material in the inventory.
  • If the raw material isn’t available, the inventory department purchases the raw materials.
  • Then the production department schedules the production.
  • After the production, the medicines go to the QA/QC department.
  • And then, the batch of medicines is released to the warehouse.
  • The warehouse ships the medicines to the Franchise/C&F.

The Accounts department audits all these processes. It has to keep track of the purchases, sales, salaries, and fixed expenditures.

A Pharma ERP software like SAP Business One will act as a unifying thread among these departments working in silos.

In the absence of SAP Business One, the Pharma company has to use more than one software. It can lead to low visibility of data, poor data entry, lack of compliance, laggy production, and unwanted costs and expenses.

We can precisely say that an ERP system (Enterprise Resource Planning) works as the central nervous system for any manufacturing company. It connects the entire organisation’s processes- purchase, inventory management, planning, sales, and marketing. The real-time data is gathered from all departments and made available to other departments as per requirement. Thus, it enables transparency and smooth functioning of all divisions and the organisation as a whole.

SAP Business One- the best ERP software in India for Pharmaceutical Industry

SAP Business One is one of the best Pharma ERP software available today. It is a comprehensive software that provides 360-degree support by meeting all the requirements of the Pharma industry. It automates almost every business unit function- finance, operations, human resources, etc.

1. Ensure a Smooth 360-Degree Production Process Flow with SAP B1

After working closely with SAP B1, we are in awe of how SAP handles the production process. SAP Business One has three main modules to help a Pharma company ensure a smooth process flow.

  • With the Bill of Materials module, the production unit can ensure which raw materials will be needed and in what quantity to produce a certain quantity of a medicine.
  • Once the BOM is created, the Pharma company can go ahead and create a production order.
  • While creating the production order, the production unit can specify and schedule each routing stage (steps to produce a medicine).

2. No Need to Manually Monitor Raw Material Usage and Production Yields

Once we specify what raw materials are needed to produce a certain amount of medicine with BoM and Production modules, the quantity of the raw materials is automatically adjusted. We can also specify the warehouse from which the raw materials should be picked.

This negates the need for manual raw material stock updates using loads and loads of Excel sheets.

3. Maintain Regulatory Compliance Hassle-free

An ERP system can help your business grow and provide a competitive edge. It ensures compliance with statutory norms, quality assurance, and Good Manufacturing Practice (GMP) norms and validation calls. Since SAP B1 is a specialised Pharma ERP software developed particularly for the Pharma industry, it maintains all the formalities and rules of the industry and government.

So, for example, the Indian Drugs and Cosmetics act 1940 mandates accurate record keeping of the raw materials usage and process flow. With SAP Business One, you don’t need to manually keep the records. The Bill of Materials and the Production module can automatically do that for you - in the form of printed summary, digital records and much more.

4. Define Product Costs

Determining drug cost needs accountability and accuracy. It consumes a lot of time. Several factors like raw material management, procurement cost, tracking supply chain, vendor cost management, and many more variables must be considered. In addition, any changes in these variables have to be communicated to other branches. All these can be done with SAP Business One easily.

To summarise, we can say that implementing the best ERP software of India, such as SAP Business One, helps in accelerating production, streamline operations, manage costs as well as maintain the global standard of the healthcare system. From raw materials purchase to defining the product cost, from salary to sales - it can manage everything more powerfully. For example, while creating the Bill of Materials and Production Order, the Accounts Department has the power to accept or reject the fixing of the quantity of a certain raw material. It also has immediate control over the fixing of prices of certain finished goods.

tech news

Shailendra Kumar

Shailendra Kumar is an experienced Financial Consultant and Tech Reviewer who has 6+ years of experience in the field of finance, business, and technology. He is very passionate to write about Finance, Business, Technology, Gadgets etc.

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