Why is ERP Needed for Pharmaceuticals?


For businesses to survive in the modern-day world, they need to adapt to quick decision-making strategies centralized management systems and streamline their business processes. To facilitate this forward movement, ERP (Enterprise Resource Planning) and ERP software is the most useful tool. It is true that depending on the nature of operations, each business industry will have its own set of requirements for choosing ERP software relevant to their work. The pharmaceutical industry and every clinical trial supply company under it is not different in this regard and it too has its unique set of requirements.

However, one fact that remains the same is that like every other global industry, the pharmaceutical one too relies largely on ERP for its processes. In this article, we will delve into the details of why ERP is crucial for pharmaceutical processes.

ERP- A Solid Support for Pharmaceuticals

If we look at the statistics of the pharmaceutical industry from the past few years, we’d note what drastic transformations have occurred. Perhaps the stringent production regulations and the extreme competition in markets is much responsible for it.

However, the truth remains that pharmaceutical companies are now no longer dealing with uninformed customers. This very reason makes it imperative for each to ensure the highest quality of standards in all of the pharmaceutical processes.

In fact, it is not only the presence of highly informed customers now: the pharmaceutical companies also have to pit against global players for which they need highly organized processes and faster production. When companies can manage to do these two vital things while complying with every regulation that exists, only then can they gain a competitive edge in the market.

And here is where ERP software plays the biggest role. The software ensures that the pharmaceutics has a robust tool to automate and integrate all of their key functions and processes. ERP not only helps this particular industry integrates and consolidate their manufacturing processes across several units but also helps them trace sensitive operations.

Such operations include everything that’s happening across the organization, including costing, formulation, quality, productivity, expiry management, compliance, and lots more. We know the pharmaceutical industry is an exceptionally dynamic one yet we cannot disregard the fact that its practices have a very stringent compliance system.

Therefore, the ERP that pharmaceuticals use is a system that never fails to deliver actionable and accurate information in record time. By choosing a competent ERP system, each pharmaceutical company can ensure that their business is benefitting from the highly organized procurement processes as well as the slashed production and delivery time.

Not just that in fact, a robust ERP will also help the organization manage its finances competently while keeping a firm check into its overall supply chain and payments. Here is a summary of all the key benefits of an ERP system for a pharma company:

  • Sending automatic alerts across multiple departments to reduce operational work.
  • Running microbiology tests by managing outsourced lab testing.
  • Running information reporting across various levels.
  • Ensuring quality management, including Certificate of Analysis, in-process inspection, and IPQC.
  • Eliminating wastage by consuming FEFO based material and sending expiry alerts.
  • Managing BPR/BMR quite effectively according to the GMP.
  • Using yield reconciliation for WIP’s batch tracking.
  • Tracing bi-directional material in real-time.
  • Compliance management.

ERP Increases Productivity- A Closer Look

Like we mentioned above, the fastest way forward for pharmaceutical companies is to keep expanding their productivity, optimizing their competitive advantage, and streamlining their operations. Since all of this is nearly impossible to manage virtually, they need to rely on modernized solutions, such as ERP to manage it all.

Here the ERP solutions are proving the most advantageous because they assist in vital functions such as sales, quality assurance, batch production, accounting, and inventory control.

Here are some of the most predominant challenges that all pharmaceutics encounter in the absence of an ERP system:

  • Increasing efficiency of distribution and supply chain collaboration
  • Making production processes more flexible
  • Tracking their batches accurately and completely
  • Having an absolute overview of all their processes

An ERP is that one marvelous solution that helps pharmaceutics overcome all of these challenges. Describing ERP as the skeleton of the pharmaceutical business wouldn’t be wrong. It is the backbone these days to ensure the business runs smoothly on a daily basis.

Let us not forget at this point how very difficult it is to manage just any segment of the pharmaceutical business. There is no margin for error at all in this business and one must have the utmost control of departments, including discrete manufacturing, process-focused manufacturing, supply chain planning, product traceability, HR/payroll, inventory, and quality control.

Hence, when a pharma business uses the ERP software correctly, they will see a positive impact on virtually all of the departments. In the long term, the business will enjoy streamlined workflows, improved productivity, enhanced efficiency, and reduced production costs.

ERP Solution- How to Choose it

ERP is primarily a solution for all pharmacy management and its main objective is to reduce the workflow of every such company. If you belong to a pharmaceutical organization and need a solution to dramatically improve your business operations, then this software is what you need.

Here are some things to consider when you need an ERP system for your company:

Consider how far your budget can stretch. Have you allocated enough amounts to cover its expenses? Do you think you can manage with a lesser good yet more cost-friendly alternative solution? Your answers will help you determine how much you need an ERP solution.

List down your requirements and the extent of regulations under which your operations are running. Then determine which ERP is necessary for your level of operations, which modules you want to add, and to target, you wish to achieve with the software.

Final Thoughts

Markets are running at the highest competition currently and ERP software is the essential component that can help pharmaceutical businesses stay afloat. The massive global competition demands that pharmaceuticals consider re-engineering their core processes and bringing their quality up to par. An ERP software is undoubtedly a step up in scaling and boosting the pharma industry.


  • Why Pharmaceutical Companies need an ERP?. [Internet]. [Cited May 2021]. Available from: https://www.uneecops.com/why-pharmaceutical-companies-need-an-erp/#https://www.softwareadvisoryservice.com/en/blog/erp-for-the-pharmaceutical-industry/
  • Compare Pharmaceutical ERP Software. [Internet]. [Cited May 2021]. Available from: https://www.erpfocus.com/pharmaceutical-erp.html#:~:text=A%20pharmaceutical%20ERP%20should%20control,and%20other%20compliance%20manufacturing%20bodies.

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