27 Feb 2023

What Role does Pharmaceutical Manufacturing Software play in the Pharmaceutical Industry?


Surbhi Bhatia

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Pharmaceutical Manufacturing Software

All major and minor industrial sectors face massive changes in the current situation, as the COVID-19 pandemic remains a threat. The same applies to the pharmaceutical manufacturing sector, which faces more business challenges than ever.

Pharma companies worldwide needed help with changing regulatory, traceability & quality control requirements. They also had to deal with radical healthcare reforms, increased process complexity, changing consumer reforms, and volatile market trends.

Industry 4.0 disruptions and digitization have had profound consequences for the industry. These challenges, together, have pushed pharma manufacturers to their limits and forced them back to the drawing boards.

What is ERP?

Enterprise Resource Planning software program that allows you to manage your business, finances, and accounting daily. It streamlines processes and helps you coordinate activities to improve your day-to-day operations. ERP is essential for both small and large businesses. ERP software is vital to daily operations, productivity, and record-keeping. It increases efficiency and accuracy, saving you significant time and mistakes.

 It is possible to feel overwhelmed by all the activity and not have any tangible or profitable results.

ERP systems provide data integrity and can eliminate duplicate data by providing a single source for certainty. In addition, this software’s potential will allow you to streamline the process and increase data visibility.

You can eliminate the need to have different spreadsheets and databases that are manually mixed to create reports when it comes to top app development company finance and management.

ERP software comes to your rescue

Manufacturers must have a solid IT infrastructure to leverage the abundance of data in these difficult times. In addition, they must have the best ERP software available to stay ahead of the pack.

ERP software is designed for the pharmaceutical industry. It controls, connects, and integrates all departments and internal processes and automates essential functions like planning, procurement, inventory management, manufacturing, business intelligence, and planning.

It also allows manufacturers to keep track of sensitive operations within their organization, such as compliance, expiries, and costing. This increases transparency and allows for the smooth operation of all pharma manufacturing units.

Please continue reading to learn more about ERP software’s roles in pharmaceutical manufacturing companies through its various modules.

1. Formulation

Pharmaceutical manufacturing software plays a vital role in the pharmaceutical manufacturing industry. Formulas result from extensive research and must be followed precisely without room for error.

An ERP system for pharmaceutical manufacturing allows manufacturers to manage all aspects of the formula, from storing and retrieving every recipe, revising it and maintaining numerous manufacturing instructions. It also offers other essential functions.

2. Global integration possible

Different pharma companies around the world make the majority of pharmaceutical products. Therefore, global integration is a requirement. Therefore, good pharmaceutical manufacturing software should offer integration options in real time.

It should be able to handle conversions related to the difficulties posed by different time zones, currencies, and languages. These could be time-consuming and taxing if manually converted.

3. This helps you meet all regulatory compliance

Pharma manufacturers need to keep up-to-date with the latest industry and compliance standards. The pharmaceutical ERP software has a module that helps to manage compliance in light of dynamic regulatory changes.

An ERP for pharmaceuticals industry workflows, approval controls, and audit trails. This ensures that pharma companies comply with all local and global regulatory compliances. It also performs vigilant audits.

4. Assists in Quality Control and Traceability

Pharma manufacturers are committed to producing pharma products that are safe and suitable for consumption. Therefore, they must be able to identify and correct any problems in their manufacturing plants quickly.

An ERP system for pharma with robust Quality Control (QC & traceability functions) ensures complete conformance to expected results. It allows only approved materials to be sent, rejecting and sending out the unsuitable ones for quarantine. It also provides for the tracing and tracking of ingredients which facilitates product recalls.

5. Supports inventory and supplier management

Good pharmaceutical manufacturing software helps manufacturers ensure that their inventory is sufficient to meet current demand and forecasts. It also allows you to monitor and control pilferage and create triggers for replenishment, procurement, materials usage, inventory status changes, and other actions.

An ERP software solution for the pharmaceutical industry permits manufacturers to only purchase raw materials from suppliers verified by the system. In addition, the software only accepts safe and high-quality raw materials from authorized vendors.

6. Supports sample management, clinical trials, and commercialization

The pharma manufacturing process is a complex one that requires extensive clinical trials and rigorous sample testing. As a result, it is possible to make costly mistakes by manually keeping a record of the samples. Pharma companies use ERP for pharmaceutical industry to manage these records and trial histories in one central database accessible at any time for audit purposes.

An ERP for  pharmaceutical industry helps manufacturers manage the multi-layered, complex processes involved in creating a product, getting approval, and even launching it. It supports commercialization. It helps with manufacturing, sales, marketing, production planning and distribution, and quality management.

7. Production is permitted according to cGMP norms

A pharma ERP software helps ensure that manufacturing operations follow cGMP standards. This software allows manufacturers to keep the MBR records of pre-production to ensure that production meets industry standards.

The entire production process data can be stored in the Batch Master Record. This can be used to compare the MBR to audit purposes and to identify deviations. If found, NC/CAPA can fix it.

8. It ensures data security

Data security is vital for pharmaceutical manufacturers that invest a lot of money in research and development.

A Pharma ERP software provides a variety of security protocols, including access controls, data encryption, audit trails, and electronic signatures and passwords to prevent fatal security breaches.

What are the benefits of ERP in the Pharmaceutical Industry?

Technology has a profound impact on our lives and work. Every day, there are many changes in the economic and commercial ecosystem. As with all major and minor industries, the pharmaceutical industry is undergoing significant changes to adapt to these times.

The global challenges facing pharma companies include the following:

  • Increasing process complexity.
  • Shifting customer behavior.
  • Healthcare reforms.
  • An increase in data.
  • The need for infrastructure to use it.

Pharma companies see ERP as a way to improve their IT infrastructure and use cutting-edge technologies resulting from these shifting paradigms.

This brings us to ERP’s main benefits to the pharma industry. Let’s take a look at them:

  • Costing of product

Many factors influence drug costs, such as vendor cost management and supply chain tracking, raw materials master management, procurement costs, and procurement cost management. These departments work in isolation and require time to make changes or reach other branches.

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An ERP system allows data access to be centralized and creates a network of connections between operations to encourage concurrency. Well-captured data is critical to accurately defining product costs. In addition, any changes can be reflected in the system. This helps companies to make informed decisions.

  • Regulatory Compliance

Compliance with regulatory requirements is a concern for all pharmaceutical companies. These laws can impact the brand and consumer trust but also have safety implications. There are also regional variations in regulations and standards.

  • You can track your inventory in real time and organize it efficiently

To ensure a seamless supply chain, pharmacies must manage their inventory effectively and avoid stock-outs. We have witnessed the efforts of governments around the globe to ensure that COVID vaccines are available to all. They also manage stockpiles to ensure that they reach the population quickly.

An ERP system can use real-time track and trace, serialization, and serialization to manage inventory and avoid improbable mistakes. Reduced waste can help with inventory control and cost reduction.

An ERP system can significantly reduce product recall rates due to its high-quality traceability features. It also facilitates bidirectional end-to-end traceability from raw materials to finished goods.

  • Marketing and Sales Management

ERP software is perfect for contract management and instant sales orders. Pharma ERP software allows you to coordinate sales and marketing activities while maintaining customer records. It generates accurate quotes and automatically migrates information for sales orders to drive promotional campaigns with a higher ROI.

  • Insightful Scalability

Controlling supply chain volatility is essential for drug production. The company management must understand the causes of these problems and take responsibility for any release failures. Companies must also be aware of predicting product demand to change manufacturing capabilities.

An ERP can help you coordinate your business activities effectively and make it easier to use data to predict future improvements. With a robust ERP system for pharmaceutical businesses, companies can achieve their goals through data processing and predictive analysis .

  • Batch and Distribution Management

ERP systems allow manufacturers to monitor batches remotely and track work progress. It helps to keep track of the final delivery. It scans collections based on available materials through an in-process quality control mode.

The system allows accurate business decisions through batch monitoring and real-time batch monitoring.

  • Record Management

These compliance requirements are a significant concern for the pharmaceutical industry. Companies must also keep track of all historical information regarding each procedure and any documentation associated with future audits and analyses.

This highlights the importance of ERP software for distributors and manufacturers of pharmaceuticals. Implementing an ERP system is a great way to streamline manufacturing and increase ROI( Return on Investment).

It also monitors batch properties such as expiry date, manufacturing date, etc. At the same time, it was optimizing and upgrading daily business activities like sales operations, production batch, quality control, etc.

  • Supply Chain Management

Supply chain management, or SCM, is the successful management of supply chain operations to gain competitive advantage and customer satisfaction. This involves the management of all aspects of the manufacturing process and the delivery of the final product.

Also ReadLogistics Software Development: Features, Benefits, Trends, and a Lot More!

The company establishes a network to transport the product from its raw material suppliers to businesses that deal directly with clients. The pharmaceutical supply chain involves many stakeholders, including suppliers, wholesale distributors, and pharmacy benefit managers.

Pharmaceutical companies are in a highly dynamic environment. Ineffective supply chains can cause harm to patient health as well as the trust of the public.

These companies benefit from an ERP because it allows them to trace their production processes, examine manufacturing procedures and maintain transparency in inventory monitoring. As a result, companies are also better equipped to respond to changes in demand.

  • Management of Marketing and Sales

ERP software works flawlessly for managing instant sales orders and contract administration. Pharma ERP allows you to manage customer records and coordinate sales and marketing efforts. It generates accurate quotations to help you drive promotions that improve your ROI and automatically migrate the information for sales orders.

  • Cost Reduction

If ten people are employed to complete ten tasks, the company will spend for each one. You can achieve the same functions with a system that doesn’t require too many people. This dramatically reduces company costs. The pharmaceutical ERP reduces costs and preserves product effectiveness.

Essential Pharmacy Management System Features

  • Prescription Control

Because prescriptions are hard to read and illegible for patients, they can be confusing. In addition, the drugs can be challenging to read, which is another reason the correct medication is not being administered. The software makes it easy for pharmacists to scan prescriptions multiple times. In addition, the software allows the pharmacist to save a copy of the medicine for future reference and to reorder medication when necessary.

  • Alerts & SMS

With the help of pharmaceutical manufacturing software, pharmacists can get prompt notifications and warnings about whether customers are likely to purchase the medication. He can set up SMS notifications to remind patients to buy the next dose. This feature is an excellent addition to pharmacy software. It increases client relationships.

The client can also reply to the message to request a refill. Once the pharmacy has delivered the medication, the patient can continue to take it.

  • Commission Management for Doctors and MR

Commission management is one of the essential components of pharmaceutical manufacturing software. It is vital to track which prescription was written by which doctor and which medical representative sold which medication at the pharmacy. Calculating the commission earned for each drug or medication sold at the pharmacy is easy.

  • Reporting

Reporting capabilities are essential for any business. Pharmacists interact daily with many clients, sales reps, doctors, and patients. However, it takes time to remember every detail. The pharmacy software was created to make it easy to save all data so it can be analyzed later for growth-oriented plans. These reports provide valuable information on which areas of the business are performing well and which areas need improvement.

  • Management of Reorders

Every pharmacist can identify reorder points and when they should be replenished. This information is essential for maintaining order and knowledge. The software alerts the pharmacist when the stock reaches the minimum level so that they can place a reorder. Pharmacists can specify the minimum and maximum stock levels. The algorithm can also recommend the best purchase based on offers from nearby providers, saving you even more.

  • Expiry Control

A pharmaceutical manufacturing software must have expiry management capabilities. In most cases, pharmacies suffer huge losses due to outdated products. In addition, it is difficult for pharmacists to keep track of every medication because many drugs are bought in bulk and have different expiration dates and MRPs. Therefore, many medications that have expired after being purchased in size must be disposed of.

A pharmacy can be prompted to return expired medications to their supplier by setting up an expiry monitoring software. As a result, the goods are also not wasted, which saves significant money.

  • Digital Resource

All are adhering now to the new standard for social distance. However, although customers prefer to pay online, there is a greater risk of contracting many diseases. Pharmacists should offer digital records to ensure their safety and health to enable customers to pay online without contacting anyone.

  • Transparency & Traceability

Every manufacturer must keep an eye on every aspect of their manufacturing process to ensure that the pharma industry is at its peak. If something happens to one of your products, you need to know what happened and when. Your pharma ERP software should allow you to indicate ingredients from the procurement through to the supply chain and closing sales.

What are the challenges in the pharmaceutical industry?

Every industry has challenges, and the pharmaceutical manufacturing industry is no exception. We will discuss the most common challenges and how ERP software can help you overcome them.

Let’s take a look at each one.

  • Quality Control

Quality control is a crucial part of the pharmaceutical industry. Quality control is a critical component of the pharmaceutical sector. Pharmaceutical drugs must be promoted as consistent, predictable, and clinically effective. In addition, more precise and complex analytical methods are being developed to evaluate new and improved pharmaceuticals rapidly.

Because every production stage impacts the quality of the medicine, it is difficult to measure this characteristic in pharmaceutical preparation. Therefore, verifying authenticity and accuracy through ongoing inspections and final product testing is complex.

This is a crucial fact that all employees must receive the correct training. They should be taught the basics of quality assurance. They must be taught the basics of quality assurance, such as wearing PPE when entering production facilities and following the aseptic procedures.

Market demands require pharmaceutical companies to produce high-quality, safe products. In addition, they have to ensure that product quality is consistent and that errors are not found.

  • Marketing Challenge

Pharma companies are constantly challenged with marketing their products. The increasing demand for speed to market is exacerbated by the fact that projects are often transferred from one location to another to finish subsequent processes within the supply chain.

These delays have been made worse by COVID-19’s after-effects. As a result, companies continue searching for a manufacturing partner to help curb these delays. In addition, Pharma companies need help with trying to market their products.

  • Skilled labor shortage

A company’s success can be directly attributed to its skilled and competent workforce. This is especially true for a pharmaceutical company that makes drugs for people.

A skilled workforce is critical to the industry’s future. The pharmaceutical sector requires workers with extensive education, training, experience, and a wide range of skills. Therefore, the pharmaceutical industry must increase its investment in highly-qualified personnel to continue growing.

We can define skilled labor or qualified workforce as those skilled in specific areas or subjects. Therefore, the ability to hire qualified personnel will determine the industry’s productivity.

Training employees helps them acquire the skills they need to participate in their daily responsibilities. Companies can monitor employees’ skills and help them overcome any pitfalls. Higher productivity is associated with better-trained staff. Pharma companies can find it challenging to find suitable candidates for their jobs.

  • Manufacturing lacks flexibility

With the narrowing of drug targets, the patient population can vary. Therefore, a drug or medicine that targets a subset of the patient population reduces its market share. This reduces the manufacturing requirements.

This means that drugs must be made to treat rare diseases regardless of how small the population they affect. This requires flexibility in manufacturing and developing the drug.

Although large companies can mass-produce pharmaceuticals, they are limited in the number of drugs or orphan drugs that can be used to treat rare diseases.

Companies want to be flexible and incorporate integration into their day-to-day operations to allow for flexibility. In all areas of the pharmaceutical industry, faster, more precise, and transparent processes are becoming increasingly important. However, this is still a problem for companies, as small batches of products and their supply can be costly and difficult to track.

  • Supply Chain disruption

A business does not have to worry about supply chain problems, and pharma companies don’t need to be introduced to this term. However, there are constant efforts to reduce supply chain disruptions within the sector.

The pharmaceutical supply chain is more complex than other industries and is subject to strict regulations. Because the supply chain comprises many suppliers scattered over different locations, it requires close cooperation between suppliers. The supply chain must also be transparent, which can pose a problem to the pharma industry.

Even though pharmaceutical companies manage to optimize their processes for the best results, technical problems can still impede progress. As a result, they adapt their strategies and make the most of their resources to reduce the impact on their supply chain.

Businesses must invest in monitoring software, although we live in a digital age. An ERP system can help organizations determine the location of products through the targeted modules and track the state of their supply chains.


Pharmaceutical manufacturing companies are looking for a system to integrate all their business modules, including inventory and employee management.

An ERP system that is focused on pharmaceutical distribution software can be a great option. It’s also future-proof and suitable for many businesses. Moreover, it can be tailored to your needs, which is the best thing about it. Our ERP provides a futuristic outlook to help develop and grow your business. Connect with Techugo, an on demand app development company .

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