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ERP System Benefits (for Pharmaceuticals)

Marketing & General             Reduction in Order Processing time Ø       The ERP would help reduce order-fulfillment lead time for lo... thumbnail 1 summary
Marketing & General

            Reduction in Order Processing time
Ø      The ERP would help reduce order-fulfillment lead time for local distributors. This will be possible due to quick sharing of information, elimination of multiple entries of same order, reconciliation and reduction in manual work such as preparation of standard documents (gate pass, D/C, invoice) by having them generated automatically.

Ø      Quicker response time and realistic commitments
By having a real-time view of the finished goods stock status, the distribution department would be able to make instant and informed commitments to the distributors with respect to estimated time of order dispatch and the order quantities.

Ø      Quick response time to international distributors/buyers
The ERP can deliver substantial reduction in the time required to get back to the international customer with the earliest possible dispatch date of the order. The current average time is seven (7) days. By possessing real-time data w.r.t. the current and planned capacities, raw material stock, stock in transit, airline/vessel schedules etc, the processing of the customer order query could be done quickly and thus the overall response time could be reduced to 1-2 days.

Ø      Increase responsiveness to customers – (feedback regarding dispatch date/time-prod/cargo lines status, org response to change in specs-DB of std. BOM/BOL/Overheads, )

Ø      Transparency and visibility across operations (for better planning of resources, realistic and quick commitments to customers, sound organization-wide planning and quick response to events, greater inputs from stakeholders, increasing agility in operations)

Ø      Increase operational flexibility by enabling quick decision making, possible through real time flow of information

Ø      Reduce duplication of work and associated overheads (for. E.g. the current process requiring the distributor order specs to be entered thrice by distribution, finished goods store and finance)

Ø      Ensure consistency of specs and thereby reducing reworks/claims/returns/rejections etc

Ø      Increase reliability and timeliness of marketing forecasts through better analysis of all relevant parameters and timely updations.

Production Planning
Ø      Optimize production resources by providing a dynamic planning mechanism (via MRP II system) for the production floor that is in-sync with changing priorities in planning and vice-versa

Ø      Provide objective basis for taking resource acquisition decisions (via analysis of bottleneck operations)

Ø      Manage changes in product configurations with ease, quickly and through proper authorizations

Ø      Manage updated product-wise BOMS for determining basis of purchase quantities determination

Ø      Select optimized department routing for selected batches, based on real-time information such as current and planned loads, cost factor per department, processing time etc.

Materials Management
Ø      Avoid stock out situations thus preventing shocks for production planning

Ø      Provide valuable analysis of purchasing trends, supplier ratings

Ø      Optimized purchasing/reduced stocking through better production planning that suggests when which material would be required

Ø      Automatic generation of PO’s keeping in view pre-set purchase agreements with vendors

Ø      Maximizing aid in PO creation/discounts by availability of such info as business volume by vendor (past and current), rates and discounts offered etc
Ø      Proper inventory planning and layout to increase response, reduce preparation time and time-to-issue to production.

Ø      Facilitate vendor management by reducing frequency of shifts in order priorities

Ø      Sound cash flow planning and simulation by translating current & future orders into measures of std. revenues vs. expenditures

Ø      Automatic reconciliation to reduce duplication of work and chances of human error, thus increasing quality and reliability of reporting

Ø      Real time views of current outstanding balances for vendors and customers

Ø      The system can help reduce rejections and rework levels by providing timely intimations for corrective actions.

Ø      Detail log of QC analyses and reports to identify trends and similarities of occurrences

Ø      Control of movements of testing materials and chemical consumptions

Plant Engineering
Ø      Ensure implementation of and log results of machine maintenance schedules, reducing machine wear and tear

Ø      Dynamic feedback to production planning for realistic planning and vice-versa.

Ø      Production departments linked to PP and PE for immediate corrective actions in case of breakdowns, reducing wastage of production downtime


Ø      With an integrated system fetching data from inventory, HR, production floor etc, the overall costing process could be further refined to reflect actual costs incurred for each batch, rather than having the costing based on standard cost allocation principle.

Ø      The integrated system can also provide a real-time assessment of the costs incurred at each stage of a particular batch, prompting for corrective measures whenever required.