The pandemic offered a grim reality for the pharmaceutical industry. With longer time-to-market product launches, the world grappled with supply shortages. Amidst the rising chaos, it becomes paramount for pharma companies to innovate and restructure their manufacturing facilities. ERP for the pharmaceutical industry is a viable solution to tackle complex market challenges. For instance, you must deal with compliance requirements, complicated supply chains and perishable items. In this regard, enterprise resource software will streamline your operations and ensure faster business redressal.
Let’s understand the important elements of ERP software before you buy one for your company’s expansion.
ERP – The Core Mechanism
Regardless of any pharma ERP software, it contains several key modules that streamline business operations across multiple departments. Here is a lowdown on the basic software structure.
1. Core Module
- Supply Chain Management – Controls the procurement, order processing, logistics and inventory management.
- CRM – The customer relationship management ERP for the pharmaceutical industry handles customer interactions, sales leads, and service requests across multiple checkpoints.
- Manufacturing – Tracking quality control, production, scheduling, and resource allocation.
- Financial Accounting – Automating financial transactions, budgeting, reporting, auditing and compliance.
- Human Resource(HR) – Payroll, employee benefits, attendance, data and performance.
2. Secondary Modules
- Project Management – Automated assistance in tracking projects, resources, planning, milestones and execution.
- Business Intelligence – Offers detailed analytics, insights, and market predictions in a single dashboard for informed decision-making.
- Quality Management – Managing the regulatory standards, inspection and compliance for top-order product quality.
- Procurement – Streamlining vendor management, contract operations, and purchasing processes.
- Inventory Management – Optimising inventory, stock and warehouse operations.
Now, let’s delve into the analytical modules of ERP for the pharmaceutical industry.
3. Connectivity and Integration
- API and Middleware – Integration with third-party applications, IoT devices, and other tracking devices.
- Mobile Connectivity – The benefits of enterprise resource planning are its seamless connection with mobile devices for on-the-go operations.
- Data Integration – Enabling quick data transfer between ERP modules and external databases.
4. Customisation and Security
- Strict Access Control – ERP gives user-based access to different individuals and departments. To protect sensitive data, customise workflows, user permissions, and system preferences.
- Data Security – Protect the data by deploying advanced encryption techniques.
- Flexibility – In ERP for the pharmaceutical industry, you will gain flexibility by configuring the software according to industry needs.
- Compliance Features – It ensures your business adheres to regulatory standards like HIPAA, GDPA, and COX.
Now, that we are on track for the working modules of ERP for the pharmaceutical industry, let’s dig deep into ways of choosing the best software.
How to Choose Pharma ERP Software
Are you looking for the best ERP for the pharma industry? With various vendors competing to capture the market share, your company’s ERP must match your business standards. To make a clear choice, ask yourself the following questions.
- What are the features of enterprise resource planning for pharmaceutical companies?
- What is the main goal of an ERP system?
- Will the long-term benefits outrun the initial cost? What is my budgetary allocation and do my staff require additional training to integrate the software?
Alternatively, different companies require ERP systems for various functions. Some perform batch tracking, inventory control, and pricing while others manage the workflows of daily tasks.
Keeping all factors in mind, you also need to understand industry-specific functionality like recipe and formula management, compliance and serial number tracking. Plus, there is vendor support, laboratory information management, cloud and on-premise integration. Here is a lowdown on additional features to consider for ERP in the pharmaceutical industry
- Ownership/Product Funding
- Quality of development/Business Strategy
- Ecosystem
- Native Functionality
- User Reviews
- Industry Share
- Scalability
With that said, let’s unravel the top ERP systems for pharma companies.
How to Compare Enterprise Resource Planning
Specialised solutions offer tailored features that are way better than generic alternatives. We’ll help you compare the best ERP systems available in the market in 2024. By listing the pros and cons, you will get a bird’s eye view of the ERP market.
But, before we begin, please note this list is subject to change. The user is expected to do their own research to invest in reliable software.
1. SAP S/4 HANA
A versatile ERP system, SAP is a global leader in catering to large-scale pharma companies. The single database and best-of-breed architecture enable companies to deploy transactional decoupling and multiple department needs.
Benefits of SAP
- It supports diversified models whether you are an assembler, dispenser, drug manufacturer, model repackaging or other assisted combinations.
- Flawless financial integration for large-scale, publicly traded companies.
- Presence of best-of-breed products like SAP Hybris for pharma eCommerce, Callidus Cloud for CPQ, and DSAP EWM for warehouse capabilities.
Cons of SAP
- Limited last-mile functionality and longer implementation process.
- Reliance on ISV solutions making it cost-prohibitive for small and mid-scale pharma companies.
- Complicated control processes and approval flaws.
2. SYSPRO
This is perfect for small and mid-sized pharma distributors due to niche-specific applications and faster attention to detail. It’s a subsidiary-level solution for entities with discrete manufacturing capabilities.
Benefits of SYSPRO
- Independent and inbuilt product management capabilities.
- Different business models for drug manufacturers, and laboratories.
- Robust supply chain, finance, and cost capabilities with multi-layer support.
- Beginner-Friendly
Cons of SYSPRO
- It doesn’t allow data sharing and isn’t fit for companies with a presence in multiple countries.
- Limited DSCSA compliance requiring custom add-ons and functionality.
- Technical issues and not suitable for advanced integration.
3. Oracle Cloud ERP
Oracle excels in the large enterprise segment and caters to premium clients. It can deploy global pharma capabilities in a single database. Unlike SAP, Oracle has a higher market share and win rate making it a friendly ERP for the pharmaceutical industry.
Benefits of Oracle Cloud
- Robust core features for international trade and supply chain planning.
- Rich product model, enabling multi-level support for different manufacturing capabilities.
- Pharma-specific functionality with a high penetration rate.
Cons of Oracle Cloud
- Complex procedures and an entry barrier for small-scale pharmaceutical companies.
- It can get resource-intensive putting pressure on existing systems.
- Longer implementation time.
4. ECI Deacom
It only targets small pharma and manufacturing companies in the eCommerce segment. This is the best ERP for the pharmaceutical industry in terms of product alignment, and technical, and financial capacity.
Benefits of ECI Deacom
- Specialised capacity catering to eCommerce and DTC companies.
- Efficient last-mile capabilities for pharma manufacturers and distributors, including quality control, and formula management.
- Modern interface and SQL-based data integration with top-notch technical architecture.
Cons of ECI Deacom
- Limited financial and inventory control management makes it suitable for smaller pharma companies.
- It supports only process manufacturing with no guarantee for a discrete system.
- Inadequate infrastructure and less pricing and leaner costing layers for multi-layered companies.
5. SAGE X3
The best ERP for the pharmaceutical industry, SAGE is for companies looking to upgrade their basic operational support. With an exhausting number of workflows, companies turn to SAGE X3 to power their ERP game.
Benefits of SAGE X3
- Deeper ecosystem for product validation and quality improvement.
- Out-of-the-box product suite capabilities.
- Suited for production and distribution.
Cons of SAGE X3
- Smaller pharma companies will find it difficult to handle this ERP system.
- It needs additional custom building to enhance integration.
- Limited best-of-breed architectural capabilities.
Wrapping up, this list will make it easier for you to choose among the best alternatives for ERP for the pharmaceutical industry in 2024. Remember there may be changes based on newer product announcements and the latest updates. Therefore, it’s best to do your own research and invest wisely.
FAQs – How to Compare and Choose ERP for Pharmaceutical Industry
Which SAP is used in pharmaceutical companies?
SAP HANA offers real-time visibility in the supply chain operations of pharma companies to ensure the quality of medical products.
What are the three types of ERP?
ERP systems include cloud, on-premises, and hybrid integration based on the company’s server system.
Is ERP a type of CRM?
CRM and ERP can share common functionalities but they are different software built for performing different functions.
Which is the best ERP for the pharma industry?
The best ERP is one that matches your business requirements, budget, and scalable quantity.
Conclusion
The pharmaceutical industry oversees the research, manufacturing, and development of essential medicines. To maintain compliance with strict regulatory standards, ERP systems enter the picture. The best ERP for the pharmaceutical industry is one that matches your preferences and budget.
To tackle similar supply chain challenges, an expert-driven approach is needed to stay on top of your game. Qodenext is your next-door logistics expert to solve your supply chain and last-mile delivery problems. Feeling confused? Give us a nudge and we will be happy to help you.
