Pharma ERP Software: Definition, Top 5 Vendors, & How to Choose The Best One

Pharma ERP software streamlines operations for companies by integrating processes like production, inventory, sales, and compliance. It enables businesses to meet industry standards while optimising workflows.

With several vendors in the market, finding the right one is crucial. In this post, we’ll explore the top 5 pharma ERP vendors and provide tips on how to choose the best solution for your needs.

What is Pharma ERP Software?

Pharma ERP software is a specialised ERP designed for the pharmaceutical industry. It integrates and automates various business processes, including production, supply chain, inventory, quality control, compliance, sales, and financial management.

Key features of pharma ERP solutions often include:

• Ensures adherence to industry standards like Good Manufacturing Practice (GMP), and International Organisation for Standardisation (ISO).
• Manages detailed tracking of production batches and product recalls.
• Monitors quality control and product testing processes.
• Streamlines procurement, distribution, and logistics.
• Optimises raw material and finished product inventory to prevent stockouts or overstocking.
• Coordinates manufacturing processes, ensuring efficiency and minimising waste.
• Helps manage critical documents like certificates, and audit trails.

According to McKinsey, challenges like the COVID-19 pandemic, rising prices, geopolitical issues, and new treatment methods make it essential for pharmaceutical companies to rethink their long-term plans for sourcing, manufacturing, and supply chain management. These factors show the need for flexible ERP solutions that can adapt to changes and help with better decision-making.

How Can Pharma ERP Software Solves Industry Challenges

This table shows how pharma ERP software tackles critical industry challenges, helping healthcare companies increase efficiency, reduce costs, and stay ahead in a highly regulated environment.

Top 5 ERP Software for the Pharma Industry

Each of the below ERP systems offers unique features tailored to solve the specific challenges of the pharma industry. That makes them valuable assets for businesses aiming to thrive in a competitive landscape.

1. Microsoft Dynamics 365

Microsoft Dynamics 365 offers a tailored ERP solution for the pharmaceutical sector, integrating finance, supply chain, and compliance management. It helps companies navigate the complexities of drug development and distribution while ensuring regulatory adherence.

Key features:

• Pharmaceutical inventory management: Support tracking of controlled substances, expiry dates, and recall management, ensuring products are safe and compliant.
• Financial management: Streamline accounting, automate financial processes, and unify financial reports into one place.
• Advanced analytics for drug efficacy: Provide insights into product performance and market demand based on real-time data.

2. Odoo

Odoo is a highly customisable ERP platform with integrated modules for the pharmaceutical industry. It is ideal for small to mid-sized pharma companies seeking an affordable solution that can grow with them.

Key features:

• Procurement: Automate purchase orders, supplier management, and inventory replenishment to streamline the supply chain.
• Inventory man​agement: Provides real-time visibility into stock levels, batch traceability, and expiration tracking.
• Sales management tools: Manage customer orders, pricing, and invoicing. Integrated CRM for managing relationships with healthcare professionals and pharmacies.
• Document management for compliance: Easily manage and store essential documents required for regulatory compliance.

3. Sage X3

Sage X3 offers comprehensive production management capabilities, making it ideal for pharmaceutical manufacturers. It includes advanced tools for production planning, scheduling, and work order management, enabling companies to streamline their manufacturing processes.

Key features:

• Quality control: Integrated tools to automate quality control processes, ensuring product safety and consistency throughout the manufacturing process.
• Pharmaceutical production planning: Advanced production planning tools that optimise resource allocation and reduce waste.
• Multi-site management: Support operations across multiple facilities, providing centralised control over production and distribution.

4. SAP

SAP allows pharmaceutical companies to track individual batches of drugs through every stage of the supply chain, ensuring full visibility from raw materials to end products. It helps comply with global serialisation regulations to prevent counterfeit drugs from entering the supply chain.

Key features:

• Clinical trial management module: Streamline the management of clinical trials, from planning to execution and reporting.
• Supply chain management for pharmaceuticals: Comprehensive tools for managing the supply chain, including sourcing, production, and distribution of pharmaceuticals.
• Product Lifecycle Management (PLM): Manages product development from conception through clinical trials to market launch, ensuring regulatory compliance at every stage.

5. Oracle

Oracle ERP Cloud is a powerful solution for the pharmaceutical industry that supports regulatory compliance, streamlines supply chain management, and enhances quality control. It offers advanced data analytics, real-time batch tracking, and automated processes, helping pharma companies improve operational efficiency.

Key features:

• Quality control management: Ensure rigorous quality checks at each stage of drug development and manufacturing. 
• Advanced financial analytics: Provide deep insights into financial performance specific to pharmaceutical operations, helping in strategic decision-making.

How to Choose the Best Pharma ERP Software

Selecting the right pharma ERP software is essential for meeting regulations and improving efficiency. Here’s how you can achieve that:

Case Study: How KBX-PH (My-Medicine) Transformed Operations with ERP

Founded in 2020 in Myanmar, KBX-PH (My-Medicine) was established to provide millions of people with real-time access to quality, affordable healthcare through a comprehensive digital health platform. Leveraging Odoo ERP, My-Medicine achieved significant operational improvements, automating 70% of its workflow and realising an 80% boost in overall efficiency.

Challenges faced by My-Medicine:

• Disintegrated data: Prior to Odoo, My-Medicine utilised various disconnected tools for eCommerce, appointment scheduling, and inventory management, leading to inefficiencies and limited functionality.
• Manual processes: The reliance on Excel for inventory tracking resulted in time-consuming and error-prone manual updates, particularly when processing customer orders.
• Complex sales management: Managing customer orders across multiple platforms made it challenging to maintain accurate inventory levels and respond to customer needs promptly.
• Inefficient reporting: The lack of centralised data hindered the generation of timely reports, making it difficult to analyse sales performance and optimise strategies.

How Odoo ERP helped My-Medicine:

• Centralised operations: Odoo integrated eCommerce, sales, and inventory management into a single platform, automating processes and reducing the time spent on manual tasks.
• Automated workflows: With Odoo, every verified sales record automatically triggers purchase orders and stock allocation, significantly enhancing operational efficiency and accuracy.
• Real-time stock management: The integration allows the Customer Experience team to access accurate stock levels in real-time, improving service delivery and customer satisfaction.
• Comprehensive reporting: Odoo generates automated reports that provide insights into sales performance, helping My-Medicine refine its strategies and identify opportunities for growth.
• Customisation capabilities: Utilising Odoo Studio, My-Medicine tailored reports to meet specific business needs, enabling detailed analysis of sales and marketing effectiveness.

Implementing a robust pharma ERP solution can lead to significant improvements in productivity and competitiveness. That sets the stage for future growth and innovation in your business.

Pharma ERP Software - Frequently Asked Questions (FAQs)

How long does it take to implement Pharma ERP software?

Implementing Pharma ERP software can vary widely based on factors such as the system’s complexity, the organisation’s size, and the business’s specific requirements. The process usually includes planning, setting up the system, moving data, testing, and training users. Having a clear plan and working with experienced vendors can make the transition easier.

What is the best ERP software for pharma businesses?

The best ERP software for your business depends on your company’s size, specific needs, and budget. Microsoft Dynamics 365, SAP, and Oracle are popular choices for large enterprises, while Odoo and Sage X3 are ideal for small to mid-sized companies.

What are common challenges during implementation?

Some challenges include system customisation, data migration, user training, and ensuring compliance. Working with an experienced implementation expert can mitigate these risks and ensure a smoother process.

Reference:

• McKinsey (2022). Emerging from disruption: The future of pharma operations strategy