5 Common Pharmaceutical Manufacturing Challenges that can be resolved by an ERP Software

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Cut-throat competition, increasing governmental regulations, rising consumer expectations, and strict punishments for not following compliances are a few reasons that have made businesses across industries find ways to make a lasting impression in the minds of their customers. 

ERP software for pharmaceutical manufacturing companies has useful modules — such as agile decision making, streamlined workflow, centralized management, and data-backed analytics — allow pharma companies to differentiate themselves and build an appealing identity. 

Take a glance at the pharmaceutical industry. You will find various challenges, including but not limited to price fluctuations, rampant price wars, continuous innovation, predatory pricing, reverse-engineering of pharma products, the influx of new entrants, stricter government regulations and norms. 

Today’s customers are well-informed and know about their rights. Governments and reputed international organizations are codifying stringent regulations and are punishing detractors. Consequently, cases registered against pharma companies are rising. 7 Indian pharma companies, including big names like Zydus, Lupin, Dr. Reddy’s, are facing lawsuits from over 40 US states

Pharma ERP software enables companies to provide the best quality medicines at the lowest prices. They automate manufacturing operations, efficiently manage external stakeholders — vendors, suppliers, and distributors, bring down transportation costs, eliminate human errors, and enable pharma companies to adhere to compliances and regulations. Pharma ERP software provides a 360-degree perspective of the company and helps smoothly manage the affairs.

The following are the 5 benefits of ERP for the pharmaceutical industry:

1. Pharma ERP helps in Inventory and material management

ERP for the pharmaceutical industry allows inventory managers to monitor the inventory levels and control pilferage. It maintains real-time records for production materials. As soon as the quantity of raw materials goes below the set threshold, the pharma ERP automatically places an order with the vendor. It has a dashboard that provides insights, such as material usage and inventory levels periodically. Additionally, the pharma ERP also generates inventory status report regularly that helps save cost and manage expenses. 

Also Read: Why Pharmaceutical Manufacturing Is The Most Promising Sector Of The Upcoming Decade?

2. Pharma ERP helps in Sales and Marketing management

Pharma ERP software has numerous pre-defined templates that allow managing contracts and process sales orders efficiently. It maintains a massive repository of customer data and updates it regularly. Pharma ERP formulates competitive price quotes based on the following factors:

1. Geographic data

2. Demographic data

3. Behavioral data

4. Past purchasing pattern

5. Recent purchases

Once the sales order is ready, it creates automated workflows, thereby eliminating the need for humans. 

The marketing department can run promotional campaigns and monitor vital statistics in real-time. They can alter campaigns based on changing market patterns and implement strategies on-the-go. The ERP software for pharmaceutical manufacturing companies also breaks information silos and allows business-critical information to flow across departments. This enables departments to work as a cohesive force and further the interests of the company. A single window enables pharma companies to handle everything from one place and save time, effort, energy, and resources.

3. Pharma ERP helps in regulatory compliance 

As discussed in the opening paragraphs, governments across the globe are formulating stringent policies for pharma companies. Those companies that don’t adhere to mandatory regulations face severe punishments ranging from massive fines to shutting down their business. Pharma ERP software maintains a rigorous checks and balances system, validates protocols, manages bills and receipts, and clubs formulation and compliance management modules to ensure full compliance. It also manages essential documents that help perform audits and maintain statutory vigilance

Pharma ERP manages historical data and also provides analysis tools for appropriately estimating the future. Moreover, it enables all business stakeholders to store and retrieve critical data in one place and share it instantly. 

4. Pharma ERP provides improved traceability

Traceability is essential in the pharma industry. Various government regulations have made it mandatory and it also makes the manufacturing process efficient. ERP for pharmaceutical companies keep a detailed record of all historical purchases and track the movement of raw materials and finished products in and out of the system. It smoothens the audit trail process and enables the company to respond to product recalls in a short time — within a few minutes rather than days. 

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5. Pharma ERP provides exact product costs

Pharmaceutical manufacturing companies struggle in keeping track of operational and material costs. The absence of business-critical data makes critical decision-making challenging and creates obstacles in formulating best-quality product pricing strategies. 

ERP systems, on the other hand, map the final cost of manufactured products by accounting cost of raw materials, R&D costs, insurance costs, customer incentives, etc. It helps determine profitability. This is possible because they have multiple valuation methods that electronically capture expenses related to work in progress, overheads, labor, and ingredients. 

In general, pharmaceutical manufacturing creates no by-products. But in case they do, ERP systems consist of methods that capture these costs as well.


The Pharmaceutical industry in India is growing by leaps and bounds. To rise to higher levels, it requires the power of automation. ERP software for pharmaceutical manufacturing companies brings the power of automation that efficiently manages inventory and material management, sales and marketing, regulatory compliance, improves traceability, and provides exact product costs.  

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.

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