How Pharmaceutical Manufacturers Can Take Control of Their Supply Chain

The pharmaceutical industry faces significant challenges in managing the supply chain. The goals are far from simple: ensuring timely production and delivery of medications, meeting strict regulatory requirements and managing a complex network of vendors. In this complicated, high-stakes environment, pharmaceutical manufacturers increasingly need end-to-end visibility and tighter controls.

The right ERP can be a game-changer in regaining oversight of a spiraling supply chain. Here’s what you should look for in an ERP to get back control.

Vendor Communication and Collaboration

Effective communication and collaboration with vendors and partners are critical components of any successful supply chain, particularly in the pharmaceutical field.

The life sciences field is increasingly focused on building collaborative relationships, even as the industry grows more complex. The result of breaking down communication barriers is lowered risk and an increased speed to market. For example, partners can share knowledge about navigating regulatory complexities and removing production roadblocks. Establishing and communicating key performance indicators (KPIs) helps pharmaceutical companies manage these relationships.

Integrated, cloud-based communication tools should also enable real-time critical updates on orders, inventory levels and production schedules, making sure stakeholders are on the same page.

For example, a vendor portal allows a supplier to upload shipment tracking data, which a pharmaceutical manufacturer can view to adjust production schedules or inventory needs. The result: better transparency, visibility on lead time and fewer disruptions.

Tracking and Traceability

Pharmaceutical manufacturers must have an end-to-end view of their supply chain, from raw materials to finished goods. Modern solutions empower this level of traceability.

Production managers need to be able to detect delays, shortages or quality issues consistently and earlier in the manufacturing process—and be able to respond appropriately.

Enterprise resource planning (ERP) designed for life sciences includes batch and lot tracking to monitor from raw materials entering the facility to final product shipping. These systems track finished goods through the network with real-time information on where products are and when they should reach their final destination.

When selecting a platform, look for one that integrates barcode scanning and RFID technologies. In the unfortunate event of a quality issue or product recall, the manufacturer can swiftly identify the batch or lot affected, trace it back to the source, and take corrective action. This rapid identification reduces potential harm to consumers and minimizes any financial and reputational damage associated with recalls.

Compliance and Regulatory Reporting

Lot tracking is essential for ensuring compliance with Good Manufacturing Practices (GMP), Good Distribution Practices (GDP) and other regulatory standards, as it provides the detailed documentation regulators require. Some platforms allow automated record creation, creating a single source of truth.

Traceability is fundamental to regulatory compliance in the pharmaceutical industry. Governing bodies mandate that manufacturers maintain comprehensive product origin, production and distribution records. A centralized database lays the groundwork for an audit trail of materials and products throughout the supply chain. Imagine a hub that integrates with other industry-specific platforms and includes all crucial information on suppliers, production dates, batch numbers and shipment records. This is now possible.

Inventory Visibility

Another critical need for pharmaceutical companies is maintaining real-time visibility into inventory levels across multiple locations and warehouses. With the right tools, you can prevent stockouts that disrupt production or overstocks that lead to excess holding costs.

You’ll also want to improve warehouse management with tools that streamline picking, packing and shipping. With real-time updates and barcode scanning integrations, your employees can quickly locate items, reducing the time spent searching for inventory. Automated workflows improve order accuracy and ensure timely deliveries while minimizing labor costs.

Demand Planning and Forecasting

Better demand forecasting capabilities allow pharmaceutical manufacturers to forecast demand based on historical data, seasonal trends and market conditions. Manufacturers can synchronize procurement and production activities in ways that reduce lead times, minimize risk and align with market demand.

Quality Control

When evaluating potential technology for your production, make sure quality control is part of the solution. Look for a solution that automates policies, standards and best practices. Allow quality engineers to perform inspections and record results straight from the floor. A proactive approach ensures that only safe, compliant products reach your end-users.

All quality data should be centrally stored, making generating reports that demonstrate compliance easy. Seamless integration between other systems improves operational efficiency while ensuring every product meets your required quality benchmarks.

In the event of a recall or quality issue, your software should also provide the real-time data you need to quickly trace affected batches or lots and minimize the impact on consumers and your business.

Automation and Process Efficiency

Automate key procurement, production, inventory and vendor communications processes. For example, generate purchase orders based on predefined stock levels or demand forecasts. Real-time inventory updates facilitate accurate stock management. You can also automate vendor communication, so your suppliers receive up-to-date orders and shipment schedules.

Automation lowers the risk of errors and lessens the load of your team.

Advanced Analytics and Reporting

What if you could have real-time visibility into every aspect of operations, from inventory levels to production efficiency from one centralized dashboard? Advanced analytics and reporting are vital for gaining actionable insights into supply chain performance. Too often, however, these critical details are tied up in siloed systems and even in the heads of your employees.

Prioritize customizable dashboards that allow you to monitor critical metrics and track performance in production, order fulfillment, procurement and vendor management. Quickly identify potential bottlenecks, inefficiencies or compliance risks.

Artificial intelligence (AI) amps up the impact, spotting outliers in supplier performance, lead times or cost fluctuations. The result: sourcing optimization, more successful vendor negotiations and overall cost efficiency.

Sikich Optimizes the Supply Chain with SuiteSuccess for Life Sciences

NetSuite offers all the features we’ve described—and more. This cloud-based AI-driven platform is purpose-built for the complexities of life science supply chains, including:

• Supply chain management for improved inventory control, demand planning and procurement.
• Lot and serial tracking of raw materials and finished products for compliance and traceability.
• Batch production management with real-time monitoring and quality control.
• Regulatory compliance with built-in tracking and reporting.
• Financial management and budgeting ensure accurate cost management and profitability tracking.
• Warehouse automation to improve efficiency and reduce human error.
• Demand forecasting with advanced analytics to forecast and optimize production.
• Quality controls automate safety and efficacy standards via integrated management processes.

Sikich brings extensive implementation and optimization experience to pharmaceutical companies seeking a solution to their supply chain challenges. Our team understands the regulatory, compliance and operational challenges faced by your business and can tailor NetSuite for a faster and more effective deployment.

Reach out to Sikich today to discover how our solutions can help your business thrive.