Pharma companies face a variety of pressures from complying with regulations to creating and producing innovative, cost-effective products. To manage these complex business challenges, companies must take a proactive approach to compliance, improve product safety, and anticipate, analyze, and respond to market demands. And, here comes the role of technical tool i.e. supply chain management system.
Yes! Supply chain management (SCM) system is uncompromising in today’s highly dynamic and competitive business environment.
Read on to see the top five benefits it offers in the pharma industry
1. Maximize manufacturing performance, increase profitability
SCM system efficiently handles the working of bulk plus private manufacturers, contractors and loan licensors supporting their unique manufacturing requirements.
Keeping industry and legislative regulations as the foundation, SCM system successfully meets GMP and helps manufacturers deliver high quality, FDA, ICH and WHO-compliant products. Formula security, formula version control, 21 CFR part 11 compliance and complete lot traceability are the other additional factors that SCM offers manufacturers stronger control over the business.
Also, it provides immense batch-processing capabilities to meet various mix-mode needs of pharmaceutical manufacturers. Handling formulas with complete details- ingredients, their quantities, UOMs, manufacturing instructions, product types as soft gels, capsules, etc. makes the process seamless. Restricting material issues based on QC statuses, ability to execute QC along with production, and embedded QC instructions assure the delivery of high-quality products to the fullest.
It also captures the real-time batch monitoring information and SOP activities through “inspection plan” and “inspection checklist” features to ensure high quality. It supports Electronic Batch Ticket, Electronic Weigh Sheet and electronically signed Batch Manufacturing Record that helps manufacturers to remain a step ahead of their competitors.
2. Avoid Recalls, Gain Customer Confidence
With SCM, the Quality Assurance and Control team can easily perform quality checks, take approvals from QA Managers, incorporate Inspection Plan, take Corrective and Preventive Actions (CAPA) and are empowered to restrict the poor (failed) quality items enter production or go out of the warehouse to the market. This not only makes sure that your customers get the right quantity and quality of products but also protects your business from cheating by suppliers.
Moreover, it supports speedy recalls, keeping pharma manufacturers ready all-time for unexpected audits. Thus, ensuring significant cost-savings.
3. Optimum Inventory, More Capital Saving
SCM maintains a single view of inventory everywhere, so there is a clear visibility of available stock. The accounting books are updated on each and every inventory transaction. Thus, prevents a mismatch between actual inventory in the warehouse and in your books.
Complete Warehouse Management, support for cycle counts and physical counts, Mobile/Handheld device support for warehouse management, safety stock, expiry date, shelf life management, issue, docking and shipment are some common requirements of most pharma manufacturers efficiently handled by SCM system.
This not only empowers manufacturers with greater control on operations but, helps them achieve 20-30% reduction in unproductive inventory. Results:
- More free cash for your operations
- No extra and unnecessary spend on dead inventory
- Saving on cost of capital on the inventory
- Saving on carrying cost on those unproductive inventories
Managing inventory at every stage of supply chain helps to balance demand and supply measurements along with your operations. Consequently, you can save money and run an efficient business with higher levels of customer satisfaction.
4. Right Material at Right Price
SCM system handles your procure-to-pay cycle including vendor management and evaluation, contract handling, quotes and order creation, receiving, and automated invoicing. Its integration with MPS/MRP and Production poses a significant impact on the quality and level of inventory.
Accuracy in receipts endowed by it cuts time wasted on cross-checking and in turn enables more receipts in less time. This assures fewer returns and better use of resources. Where on one hand, reminders of due payments help avoid fines and interests; the regular maintenance and update of payment terms, on another, helps avail discounts plus save money.
Research suggests that 2-6% reduction in procurement spend and a nearly 10% higher save on off-contract procurement spends can be achieved through supply chain logistics management. These are certainly game-changing figures for pharma manufacturers.
5. Close More Deals, Earn More Revenue
SCM system captures complete order-to-cash cycle – from maintaining extensive customer information, generating detailed sales orders, picking, packing and shipping for SOs, invoicing, receiving payments for generated invoices, tracking receivables on unpaid invoices, promotional discounts, etc. You also can generate Packing Slips, Bill of Lading and such automatically. This streamlines and automates your entire sales cycle to make it error free and efficient. Moreover, it even prevents delay in shipment and helps you retain your loyal customers.
Additionally, you can have improved visibility on salesperson performance, commissions, thus you can take steps to engage them better with prospects thus increasing sales.
Ultimately, helps you get more customers and earn more revenue.
Most of the Pharmaceutical companies have already implemented SCM system and relishing its benefits. So, wait not! Implement SCM system. You’ll also be amazed with its results.
For more details on a Supply Chain Management Software, you may visit Batchmaster.