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ENTERPRISE RESOURCE PLANNING OF A

PHARMACEUTICAL COMPANY






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INTRODUCTION
The pharma industry is perhaps one of the most sensitive and critical one with contrasting
dynamics and updates taking place each day. It is showing a remarkable progress by inventing new and
cost effective solutions. Not to forget the strict standard codes, governmental policies and flawless
productivity that compels the industry to incorporate advance technique to strategize their capability. No
doubt, when effective performance, quality parameters and volume production are the concerns,
technical advancement is inevitable.
Today compliances, batch processing, financial transactions, global accounting compliances,
taxing systems, research methodologies, clinical trials have seen a sea change which gives us the
glimpse of challenges associated with the unprecedented growth. To meet these new regulations
documentation, processes, information security play a critical role. This challenge is answered with the
advanced IT platform called Enterprise Resource Planning or ERP. While usage of ERP software is
widely accepted in western subcontinent for some time now, but it has caught the attention of Pakistani
pharmaceutical domain recently. Nevertheless, the introduction of this advance technology platform has
accelerated a new wave of transformation in the pharmaceutical sector.



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The flexibility and balanced process management of enterprise resource planning have
tremendously helped pharmaceutical companies to augment the processes with specific objectives. The
real beauty of ERP is the industry wide applicability from pharma companies to the end of their supply
chain. Now when we consider the Pakistans scenario and the complexity of the supply chain the first
thing we need to acknowledge is that a standard ERP platform may not be relevant here. What we
need is an integrated solution customized to meet the specific needs of the industry. Here it is
essential to mention the criticality of the Pakistans pharma industry.
The success of the industry today depends on the crucial factors like
Process efficiency
Reduced time to market
Deep penetration of drug in the remotest part of nation
Optimizing the cost
Reducing wastage
Maintain product availability
Remain flexible to meet emergencies


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Ideally meet these entire criteria while keeping optimum inventory. So a streamlined and
integrated process can push the growth factor of the industry to higher scale both in terms of production
and reach.

Standard Operating Procedures of Pharmaceutical Industry
Creation and use of GMP equipment logbooks
HPLC Calibration
Operation, calibration and maintenance of electronic analytical single pan balances
Aseptic Technique Guideline for Manual Operation in a Biological Safety Cabinet, under
Laminar Flow Hood or in a Clean Bench
Hosting Regulatory Inspections
Preventive maintenance (PM) procedure
Annual product review
Supplier certification program
Change control system
Calibration of dissolution test apparatus (USP apparatus 1 and 2)
Deviations (failure investigations, non-conformance)
Creating, reviewing, approving and issuing an SOP
Calibration program
GMP document management
Corrective and preventive action (CAPA)
NDA field alert
Supplier audit program
Product Recall


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Self-inspection program
Training
Batch reprocessing and reworking for API (active pharmaceutical ingredients)
Investigation of complaints
Handling of OOS results
Returned drug products
Classification evaluation approval of cleaning agents
SOP for refrigerated shipment
Pest control program
Handling of chemicals, reagents and solutions in laboratories

Business Processes within a Pharma Company
A standard pharma company has to maintain departments right from production, R&D, quality,
marketing, storing, purchasing, logistics, finance, maintenance, inventory management and control to
mention a few. The dynamic scenario prevalent in the pharma industry calls for a process which is not
only optimizes resource but increase productivity, efficiency and quality.
Needless to say this is the phase when Enterprise Resource Planning (ERP) comes in action. A
well aligned ERP system reorganizes procurement of resources, minimizes wastages and enhances
performance manifold times. The software automates complete cycle right from delivery, tracking,
payments, supply management, analytics and resource management to a holistically developed decision
support system. In a short span of time ERP has evolved pharma industry drastically by integrating the
entire business processes, organizational objective and future plans under single umbrella. The genius of
ERP is its solid architecture, interactivity and industry centric functionality which eases operation while


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delivering outstanding result. Perfect ERP software aids a pharmaceutical company to gain high ROI by
minimizing OPEX considerably.






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Flowchart of Supply Chain Process in a Pharmaceutical Company







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Distribution & Logistics System
Marketing & sales
Point of sales
Purchasing
Inventory management
Logistics
Human Resources Management System
Manpower planning & recruitment
Personnel management
Training
Payroll
Manufacturing & Quality assurance System
Routing
Bill of materials
Master Production Scheduling
Rough-cut capacity planning
Capacity Requirement Planning
Materials Requirement Planning
Production Order Processing Systems
Shop Floor Control Systems
Quality Assurance & Procedures
Costing & Pricing System
Financial Management & Control System
Accounts Receivable (AR)
Accounts Payable (AP)


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PDC management
Fixed Assets Management system (FA)
General Ledger (GL)



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