What Role Does ERP Play in Supply Chain Management?

What Role Does ERP Play in Supply Chain Management?

Supply chain management is fundamental component of business success. The past few years have demonstrated the importance of robust supply chain processes, including the security of raw materials and the optimization of business processes to maximize operational efficiencies. Although no industry sector is immune to market-related changes driven by supply and demand, the pharmaceutical industry in particular has suffered enormous flux associated with ongoing trade disruption and global economic uncertainty as drug prices continue to rise and clinical trial failures become increasingly common.

What is an ERP System?

Many industry professionals believe modernizing business operations is the key to shoring up commercial supply chain operations and ensuring a continuous supply of drugs are available to the market.

Enterprise resource planning (ERP) software is one avenue that could prove integral to the future of supply chains. ERP software provides a valuable information system that helps companies assess and optimize supply chain operations. Businesses use ERP in supply chain management to characterize the myriad factors that could affect the provision of goods and services. Cost of products or services; inventory management; vendor selection and procurement. ERP in supply chain management is a truly end-to-end solution that allows companies to manage their entire value chain and optimize it accordingly.

ERP solutions typically include a suite of administrative tools that help business hone their competitive advantages. These services go beyond the raw material to the finished product pipeline; encompassing every aspect of a business, including financial management and human resources.

How ERP Enables Modernization of Medicine

Strategic supply chain management requires careful engagement with a range of stakeholders and a seamless flow of data between various business processes. This is challenging in any industry, but the various chemistry manufacturing controls (CMC) and regulatory affairs inputs affecting drug development make supply chain optimization a daunting task. Many established cloud-based ERP solutions that automate key supply chain management tasks for commodity markets do not transfer to the biomedical sector. However, ERP solutions specialized for the pharmaceutical market are value-add expenses that enable fully-optimized supply chains, cost savings by minimizing product and ancillary expirations, improved vendor quality, reliability, and integrity and more. These activities typically fall into one of two brackets: value-adding, by directly improving product or supply chain quality; or cost-cutting, by eliminating bottlenecks and inefficiencies. There is also an intrinsic value to be found in having a compliant, consistent end-to-end process.

Modernizing primary and secondary activities throughout the drug development process is essential to maximizing revenue through cost optimization and increasing profit margins. More importantly, it underlies the success of pharmaceutical companies in delivering high-quality products to patients. They are the end user of any drug product, after all, and all pharmaceutical business activities should be undertaken with a focus on patient wellbeing alongside profit generation. ERP solutions in supply chain management can be fundamental toward that initiative.

Looking for Supply Chain Management Services?

DS InPharmatics specializes in advanced supply chain management services for biopharmaceutical applications. Specializing in end-to-end assessments and optimization, with expertise in regulatory affairs consulting, chemistry manufacturing controls, and quality assurance, we are uniquely positioned to help pharmaceutical companies create value in their supply chains. Contact us today to learn more.