Pharma companies are subject to a range of pressures, from compliance with regulations to the creation and production of innovative, cost-effective drugs. Companies must be proactive to meet these business challenges. Here comes the technical tool, i.e. Supply chain management system.
Yes. In today’s dynamic and competitive business environment, supply chain management (SCM), is uncompromising.
Continue reading to discover the top five benefits that it brings to the pharmaceutical industry
1. Maximize your manufacturing performance and increase profitability
SCM system supports the unique manufacturing needs of private and bulk manufacturers as well as contractors.
SCM system is built on industry and legislative regulations. It helps manufacturers produce high-quality, FDA, ICH, and WHO-compliant products. SCM gives manufacturers greater control over their business through formula security, version control, 21 CFR Part 11 compliance, and lot traceability.
It also can batch process large quantities of ingredients to satisfy different mix-mode requirements of pharmaceutical manufacturers. Formulas can be handled with all details – ingredients, quantities, manufacturing instructions, product types, soft gels, capsules, and so on. This makes it easy to manage the entire process. You can restrain material issues based on QC statuses and the ability to execute QC alongside production. Also, embedded QC instructions ensure that you receive high-quality products.
To ensure quality, it also records the batch monitoring information and SOP activities via “inspection plan” and “inspection checklist”. It can support Electronic Batch Ticket, Electronic Weigh Sheet, and Electronically Signed Batch Manufacturing Record. This allows manufacturers to stay ahead of their competition.
2. Avoid Recalls, Gain Customer Confidence
SCM allows Quality Assurance and Control to perform quality checks, get approvals from QA Managers and incorporate Inspection Plan. They can also take Corrective and Prevention Actions (CAPA), and limit the entry of low quality (failed) items to production or the marketplace. This ensures that your customers receive the correct quantity and quality products. It also protects your business against suppliers’ cheating.
It also supports rapid recalls, which keeps pharma manufacturers available for any unexpected audits. This allows for significant cost savings.
3. Maximum Inventory, Greater Capital Savings
SCM provides a single view of inventory for all locations, so stock can be easily viewed. Each inventory transaction is updated in the accounting books. This prevents misalignment between the actual inventory in your warehouse and what is in your accounting books.
SCM system can handle all common requirements for pharma manufacturers, including complete MHRA approved warehousing UKpharmaceutical warehousing management, cycle counts and physical counts, mobile/handheld device support for warehouse management safety stock, expiry dates, shelf-life management and issue, docking, and shipment.
This allows manufacturers to have greater control over their operations and helps them reduce unproductive inventory by 20-30%. These are the results
- Cash flow for your operation will increase
- There is no need to spend extra on inventory that is already dead
- Stock inventory can be reduced at a lower cost
- Reduced carrying costs for unproductive inventories
You can balance supply and demand by managing inventory at all stages of the supply chain. This allows you to save money, run a more efficient business and provide better customer service.
4. Right Material at Right Price
SCM systems manage your procure to pay cycle, including vendor management, evaluation, contract handling, and quotes, order creation, receipt, and automated invoices. The integration of SCM with MPS/MRP/Production has a significant impact on the quality and quantity of inventory.
It reduces time spent on cross-checking receipts and allows for more receipts in a shorter time. This ensures that there are fewer returns and better utilization of resources. Reminders of payments can help to avoid interest and fines, but regular maintenance and updating of payment terms can save you money and allow you to get discounts.
Research shows that supply chain logistic management can reduce procurement costs by 26% and save nearly 10% on off-contract procurement. These figures are a game-changer for pharmaceutical manufacturers.
5. Close more deals, earn more revenue
SCM system records the entire order-to-cash process. This includes maintaining customer information, creating detailed sales orders, picking and packing, shipping SOs for SOs, invoicing, receiving payment for invoices generated, tracking receivables for unpaid invoices, discounts promotional, etc. Automatically generate Packing Slips and Bill of Lading. It automates the entire sales process, making it efficient and error-free. It also prevents delays in shipping and helps you retain loyal customers.
You can also have better visibility on the performance of your salespeople, commissions and can therefore take steps to engage prospects better, increasing sales.
This will ultimately help you gain more customers and generate more revenue.
Many Pharmaceutical companies already have SCM systems and are enjoying the benefits. Don’t wait! Use SCM. It will amaze you with the results.