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5 Key Reasons Why Distributors Should Invest in a Robust ERP
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5 Key Reasons Why You Need ERP Software in Distribution
5 Key Reasons Why You Need ERP Software in Distribution 700 500 Xcelpros Team

5 Key Reasons Why You Need ERP Software in Distribution

Distribution management, supply chain and logistics planning can be few of the most challenging areas for any wholesale distribution company. Especially today, implementing the correct solution has become much more affordable, offering significantly improved response times, increased efficiency, and stronger customer relationships. For more information see the full article here.

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How pharmaceutical companies get new products to market banner
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How Pharmaceutical Companies Get New Products to Market during Covid-19
How Pharmaceutical Companies Get New Products to Market during Covid-19 700 500 Xcelpros Team

Introduction

As the world continues to deal with one of the deadliest pandemics in modern history, governments are working overtime to protect their citizens from the deadly disease known as Covid-19.

With the potential impact of Covid-19 on pharmaceutical sales estimated to be huge, two types of drugs are being sought after:

  • Vaccines to keep humans from catching the disease
  • Therapies to treat people with the disease and help them recover

At the end of 2020, the U.S. Food and Drug Administration (FDA) modified its approval process for vaccines, issuing an emergency use authorization (EUA) to Pfizer-BioNTech for a vaccine to prevent coronavirus disease 2019 (COVID-19). The initial EUA applied to vaccines for people 16 and older. It was further modified on May 10, 2021 to include adolescents ages 12-15. The EUA lets the vaccine be distributed in the US. Similar documents were issued to Moderna, Inc. and Johnson & Johnson / Janssen. On July 9, 2021, Pfizer said it would seek approval for a booster shot to target the newer variants of the disease. The FDA and other regulators have, at this time, disagreed with the need for it. This could result in Pfizer share price climbing by as much as 66% in 2021, as suggested by analysts from investors.com

Companies might want to rethink their pharmaceutical product launch strategies. This change in the FDA approval process may require changes in pharmaceutical new product launch plans, prioritizing Covid-19 treatments over other medicines. These plans affect not only products sold in the U.S. but also in the Indian pharma market with its 1.4 billion residents (four times that of the U.S.).

Using enterprise resource planning (ERP) software can help pharmaceutical companies gain regulatory approval of their drugs and treatment plans.

By the Numbers

Expected 2021 sales from Covid-19 vaccine makers:

  • $15 billion-$30 billion: Pfizer/BioNTech (share price +1.8% for Pfizer, +156% for BioNTech)
  • $18 billion – $20 billion: Moderna (share price +372%)
  • $10 billion: Johnson & Johnson (share price +7.7%)

Five other companies are also making Covid-19 vaccines but none have been approved by the FDA yet. (Source: The Guardian)

Normal Drug Development Process

The normal pharma go to market strategy requires a clear long-term view since most medications take 10-12 years to go from the laboratory to the medicine cabinet. Full FDA approval requires six months of data plus another six months for review before official approval is given. These additional steps then come at the end of the drug creation journey:

  1. 1.Research and laboratory work begins.
  2. 2.Preclinical research and animal testing looks into the drug’s safety for human beings.
  3. 3.Clinical research begins on humans, typically comparing test results from patients getting the therapy to those receiving a placebo.
  4. 4.The FDA reviews the data and then decides to approve or disallow the medicine.
  5. 5.The FDA monitors the drug for safety once it becomes publicly available.

The Covid-19 vaccines are examples of drugs required to combat a crisis, one that has already killed more than 606,000 U.S. citizens and 4 million people worldwide. They present different pharmaceutical marketing challenges than existing medications.

“An EUA can be given if there are no adequate or approved alternatives,” WKYC of Cleveland, Ohio states. Pharmaceutical manufacturing companies still need to prove the drug is safe by thoroughly testing against thousands of study participants.

“The only difference really between the emergency use and the licensure is that volunteers are observed for a longer period of time to see the duration of protection and if there might be rare adverse events that occurred down the road,” WKYC quotes Dr. William Schaffner of Vanderbilt University as saying.

Figure:

Normal Drug Development Process

Difference Between EUA and Standard Approval

Drugs with full FDA approval have several major advantages over those with just an EUA, including:

  • The medications stay on the market after the pandemic is no longer an emergency
  • EUA-approved therapies must be pulled from the market
  • Medicines still in the development pipeline may be tested against newer, more drug-resistant, variants
  • The pharmaceutical manufacturer can market directly to consumers
  • After full approval, businesses can require all employees to be vaccinated, WKYC states

The FDA Requires Records

According to the FDA’s Code of Federal Regulations (CFR), Section 312.57

“Recordkeeping and Retention,” a drug sponsor (i.e., manufacturer), “shall maintain adequate records showing the receipt, shipment or other disposition of the investigational drug. These records are required to include, as appropriate, the name of the investigator to whom the drug is shipped and the date, quantity and batch or code mark of each shipment.”

Records must be kept for two years after the marketing application is approved or for two years after shipment and delivery of the drug for investigational use is discontinued and the FDA notified.

Traditional Recordkeeping is Cumbersome

Many pharmaceutical companies still use spreadsheets to keep track of records. However, they often get data from a single source or department. Multiple sources may mean mixed-up or missing records, slowing the approval process.

Typically, companies using older software tend to silo their data. Inventory has its records. Finance has its own. Sales and marketing have theirs.

The problem in terms of regulatory compliance is that none of this information is shared across departments.

Enterprise resource planning software (ERP) such as Microsoft Dynamics 365 Finance and Operations lets pharmaceutical manufacturers gather information from all of these different sources. The data is combined into one unified whole.

Dynamics 365 can then automatically generate labels. It allows companies to track everything from large batches to individual doses, making FDA compliance simple and easy.

Data comes into the ERP network from sources scattered literally all over the globe. Real-time information is available with the click of a mouse or typing a few keystrokes.

Dynamics 365 data is securely stored on Microsoft Cloud servers. It’s available any time, anywhere. Executives can obtain any record in the system quickly and easily, ensuring compliance with FDA regulations. This lets executives provide accurate data to regulators quickly and easily.

Summary

Covid-19’s death toll led the FDA to accelerate its approval process from 10-12 years to a mere matter of months. Moving forward, agile pharma go to market strategies that can adapt to these changing requirements will undoubtedly be more profitable. An effective ERP software solution such as Dynamics 365 helps pharma companies adapt, and be able to quickly provide any required regulatory documents in order to remain compliant.

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ERP in the Oil and Gas Industry
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ERP Solutions to Rev Up Oil and Gas Industry
ERP Solutions to Rev Up Oil and Gas Industry 700 500 Xcelpros Team

At a Glance

The Oil and Gas Industry is highly dynamic and volatile. Wars, politics and environmental concerns are some of the stressors affecting a capital-intensive industry. Centralized software that manages the nuances and intricacies will boost each company’s financial performance.

Enterprise Resource Planning (ERP) systems, which are becoming more common in many other industries, help to integrate all related tasks. One of the best examples is inventory and finance, letting companies know what they have and how much it’s costing them. ERPs help create a performance standard, letting companies set goals and use real-time data to know if they’re achieving them. Effective ERP solutions easily integrate tasks, manage risks, localize financial accounting and ensure quality checks.

Introduction

A slang term for crude oil is “black gold” because of its value. Oil is a pillar of the world economy, with prices playing a major role in determining the cost of goods and services around the globe. The industry’s size, complexity and high operating costs all demand organized management. Executives need to know where each asset sits in the pipeline. They need accurate, detailed data for planning and budgeting plus inventory and distribution.

Integrating ERP in the Oil and Gas Industry

More and more oil companies and refineries are starting to embrace ERP software solutions. Why? Because it addresses real-time business operations. Areas that benefit the most include:

  • Obtaining raw materials
  • Monitoring production
  • Managing inventory including spills, waste and burn-off
  • Tracking handling equipment

One major challenge facing oil companies is their broad distribution. For example, they can have production facilities in the Middle East and refineries in the United States, Europe and China. This means they have to maintain distribution routes almost everywhere.

Oil companies have an intricate supply chain that never stops working. This can add undue stress to both employees and equipment.

ERP software lets companies monitor operations from anywhere. They can know now, not in a week, the status of an oil field in Saudi Arabia or a tanker going through the Panama Canal. Modern ERPs help identify different ways to improve efficiency while boosting flexibility.

5 Key Reasons to Add an ERP

ERP solutions are the most viable option for improving production and overall management. Traditional companies in the Oil and Gas industry stand to gain significant advantages when they implement a modern ERP solution, including:

Figure: 1Key Reasons to Add an ERP

Key Reasons to Add an ERP

  1. 1.Ease of Integration: ERP solutions are designed to be stable, easily scalable and flexible. They function on-site and with cloud systems. ERP systems especially shine in asset planning and budgeting lifecycles. ERP solutions such as Microsoft Dynamics 365 easily integrate with a suite of related third-party programs. Instead of having a plant’s production department using one system and inventory management using something else, the entire operation is integrated into a single system. By having departments talk to each other, business meets its productivity standards, regulatory requirements and other deadlines.
  2. 2.Effective Risk Management: Risk management is a vital component of everyday business activities in the oil and gas sector. Geopolitical pressures, environmental concerns, social activities, asset damage, cost overruns for high-value construction projects, fines for non-compliance, cyber threats and protecting personnel: they all impact daily operations. Integrated ERP solutions let management identify potential risks. You can detect risks before they become expensive problems. Companies can balance and manage multiple operations simultaneously, ensuring they all run smoothly. By seeing how the supply chain functions in real-time, companies can prepare emergency contingency plans.
  3. 3.Efficient Project Management: A key advantage to ERP software such as Microsoft Dynamics 365 Supply Chain Management is its ability to manage complex supply chains regardless of their locations. An effective ERP helps manage both offshore and onshore operations, streamlining procedures driving basic business goals, helping to move raw materials to new markets. As individual shipments move from wells to refineries, ERP software lets companies adhere to regulations in every country and state along the way.
  4. 4.Localizing Financial Accounting: Oil and gas companies are aware of the huge capital investments, long lead times and unfavorable environments needed to extract and process their raw materials. Exploration and production frequently involve joint ventures to share the costs. Once the product is pulled from the ground, these companies face multiple regulations, compliances, currency risks, commodity pricing and other challenges as they move it from the wells to refineries and then to consumers. Efficient ERP solutions keep track of the regulations, taxes and fees in each region. They provide detailed financial records at every step.
  5. 4.Quality Control: Robust ERP solutions also integrate state-of-the-art engineering utilities matched with high-end total quality management (TQM) functionality. The result is a 360 degree view of quality issues, helping to address problems more quickly.

5 Features to Look for in an ERP Solution

Now that you’re aware of some possible uses, it’s equally important to make sure these five features are in whatever ERP solution you choose. The Oil and Gas sector’s sensitivities create unique requirements from its ERP solutions. These following features continue to be increasingly related to real-time operations and complex business compliance issues.

  1. 1.Asset Control: Managing all assets—such as locating new resources, acquiring them, and then refining the products—is vital for efficient operations. When you’re trying to find the best ERP System for an Oil and Gas Company, you’ll want to make sure it defines and tracks your assets, monitors their usage and availability, manages all documents, integrates mobile apps and data, and submits reports.
  2. 2.Agile QA Processing: Quality assurance is the key to constant improvement, especially in the oil and gas sector. Finding more efficient ways to convert raw materials into finished products helps offset research and development costs.
  3. 3.System Integration: Integrating existing software is often a key decision point in getting an ERP up and running quickly. It’s critical to make sure that whatever ERP solution you choose meshes with the software your employees use daily, otherwise you may face delays while work-arounds are developed. The perfect ERP solution creates superior analytics using real-time data from different sources. This will include workflows and service calls.
  4. 4.Standardizing Data Processes: The Oil and Gas industry is heavily impacted by precise management of workflows and global market analysis. Effective ERP solutions use a standard data storage method. Using this method, companies can balance multiple projects no matter where they occur: upstream (exploration and drilling), midstream (transportation, storage and processing) or downstream (refining crude oil and purifying natural gas).
  5. 4.Compliance: Many ERP solutions fail to deliver when it comes to overseeing complex compliance issues. Not being accurate often causes problems over time. Effectively managing different government regulations—such as when a pipeline crosses national or state borders—is a key benefit of a robust ERP solution.

Final Thoughts

The best ERP solution for companies in the Oil and Gas sector is one that:

Companies that navigate smoote implementations often start training almost from Day One. Training employees early gets their buy-in and lets people learn how D365 can make their work lives easier.

  • Integrates with a company’s current third-party software
  • Tracks inventory, plans capital projects and creates emergency plans
  • Streamlines the data into a unified flow
  • Collects data from diverse systems scattered around the globe
  • Allows the data to be used by any division
  • Integrates information from devices equipped with industrial internet of things (IIoT) sensors
  • Aligns with your company’s requirements to ensure minimal waste and deliver the best results

Expect nothing less than perfection. Having the right ERP solution will help you achieve just that.

Book a assessment to get started with tailored ERP Solution for your Oil and Gas Company.

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How Modern Digital Tools Can Help Transform Biotech companies
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How Modern Digital Tools Are Transforming The Biotech Industry
How Modern Digital Tools Are Transforming The Biotech Industry 700 500 Xcelpros Team

How Modern Digital Tools Are Transforming The Biotech Industry

Every day we’re seeing major technological changes impacting the biotech industry. Today’s leading companies are leveraging modern biotech tools to help their businesses grow. See how emerging and evolving computer technologies such as AI, when combined with enterprise business applications, are helping biotech companies work faster with lower costs. For more information see the full article here.

Leverage the power of digital tools to stay on par with the competition. Start your digital transformation!

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Removing Roadblocks when Implementing Microsoft Dynamics 365
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Removing Roadblocks when Implementing the Microsoft Dynamics 365
Removing Roadblocks when Implementing the Microsoft Dynamics 365 700 500 Xcelpros Team

Recap

In a previous post, we looked at the basics of the high-level steps involved in adding Microsoft Dynamics 365. In this post, we will take a look at common implementation problems and ways to avoid them or reduce their effect.

It’s time for a change. Your company decides to modernize with Microsoft System Dynamics 365 Finance to automate and modernize your financial operations.

Now you need to make it work for you.

Four Challenges

The four main challenges that can impact an ERP implementation project’s budget and timeline are:

  1. 1.Applying experience with other enterprise resource planning (ERP) systems, expecting Dynamics 365 to behave the same way. It will not.
  2. 2.Users may expect certain functions built into D365 because of the previous ERP. These functions may have been customized to get where they are. Attempting to add them can keep the project from achieving its objectives and add constraints.
  3. 3.Wish lists items can also cause the implementation cost to go out of control. A Change Champion can reign in these wish lists to ensure the right amount of focus is placed to achieve the best possible result.
  4. 4.Using inaccurate information from other companies’ installations researching a different D365 module.

Being aware of these issues from the beginning will help avoid a failed ERP implementation.

Figure: 1Main Pitfalls affecting a project’s scope, budget and timeline

Main Pitfalls affecting a project's scope, budget and timeline

Common Problems and Causes

These are a few of the most common D365 implementation problems and their likely causes, each of which can frustrate executives and employees.

Problem Example Possible Cause
A tool or important feature was left out Payment terms are missing A scenario was misspelled or overlooked in the Design Phase
Legacy data upload is incomplete or corrupted Names are misspelled, dates are wrong, amounts are inaccurate, etc. Data was not input properly into the legacy system
A specific configuration is incomplete or not working properly Departments are not being notified when payments are made Lack of communication between staff and implementation team

The most likely cause for the majority of these issues is communication. For example, the implementation team did not clearly understand what was being asked, or different people requested changes to the same section.

A good way to resolve communication problems is by having the Change Champion review and approve the updates during the design phase. Customization best practices means having the Change Champion approve or deny all change orders and requests.

When data is not properly entered into the system, the business will need to search its records and recreate the missing material.

Other Common Implementation Problems

One of the most common reporting issues deals with those at the end of a month. For example, Inventory shows 10 barrels at $10 each were used. However, Finance shows 9.2 barrels were used, resulting in a dollar discrepancy.

This is the kind of issue best brought up during user access testing (UAT) when the implementation team can define cell properties. That way, inventory and finance agree.

D365’s Finance module has detailed reporting options. The ability to input data depends on a person’s security roles, privileges and duties. For example, someone who wants to “Generate financial reports” must have that role, privilege and duty assigned to them.

When a user needs to generate a report and can’t do it, they should talk to the system administrator or security administrator, Microsoft states.

Reports used data input into the system. When data is not being accurately added, reports will reflect the inaccuracies.

An excellent way to resolve these issues is by involving the training team early and often. Have them create training materials and then have users perform the tasks in the UAT environment to ensure everything works as designed.

Following Methodology

D365 implementations follow a strict methodology. Problems occur when executives or employees try to get around the system. Seeking an easier path by using a method from the legacy system usually causes problems with D365.

Dynamics 365 is set up logically – Form follows function, step follows step. Trying to go from Step 2 to Step 6 without performing the intermediate actions is a recipe for trouble.

Microsoft has its own “Sure Step Methodology” as part of its ecosystem. This methodology:

  • Is designed specifically for Microsoft implementations
  • Defines key activities and deliverables
  • Provides tools and templates

Focusing on the ‘To Be’

Change, no matter how beneficial, is always stressful. Many people are comfortable performing tasks a certain way. They are uncomfortable doing it differently.

When employees focus on the “As Is,” which is how tasks were done with the legacy system, they get bogged down and have trouble adapting to D365. Instead, they need to consider the “To Be,” which is the end goal.

For example, Inventory uses one legacy system and Finance uses something different. Some fields are identical but others are different. In D365, both departments must change how and where they input data.

By focusing on the “To Be,” the end result of implementing D365 is a leaner, more accurate and more profitable business that benefits both departments.

Here’s an example of “To Be.”

  1. 1.Intelligent financial information using data from multiple sources permits intelligent operations.
  2. 2.Intelligent operations lead to improved productivity.
  3. 3.Improved productivity leads to faster fulfillment, which leads to timely delivery.
  4. 4.All of these steps lead to increased profitability, which funds improvements in everything else.

The Value of Microsoft Dynamics

One way to implement change management is by explaining some of the values inherent in Microsoft Dynamics.

These values include:

  • Empowering employees, giving them real-time access to actionable data
  • Driving faster innovation
  • Facilitating smarter decisions with user-based workspaces
  • Delivering real-time responses to customer demands
  • Reducing transportation costs and increasing delivery accuracy
  • Scaling up or down as the business changes
  • Using mobile phones, tablets and other devices that let employees perform more tasks where they work

Summary

Implementing Microsoft Dynamics 365 is often looked at as complicated, or fraught with problems – but only if you let it. Taking a forward thinking approach focusing on your “To Be” goals helps the implementation move forward faster.

Companies that navigate smoote implementations often start training almost from Day One. Training employees early gets their buy-in and lets people learn how D365 can make their work lives easier.

Having a Change Champion helps keep the implementation on time and on budget.

Anticipating problems before they occur allows managers to head them off. Change will occur. Instead of resisting, workers are better off spending that energy on learning how to maximize their value.

The overall result will make your company more efficient, more agile and more profitable.

Get More Done

Improve your chemical, pharmaceutical or life science business by updating your ERP to Microsoft Dynamics today. Visit www.xcelpros.com (a Microsoft Gold Partner) or call 1-855-411-0585 to learn more.

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Making your Dynamics 365 implementation successful
Making your Dynamics 365 implementation successful 700 500 Xcelpros Team

Scenario

Your chemical or pharmaceutical company has an outdated, outmoded, clunky legacy enterprise resource planning (ERP) system. Finance is complaining that Inventory is unable to produce the right numbers. Sales is wondering why nothing ships on time. Departments and executives are angry at each other because their individual systems work just fine but nothing works together.

It’s time for a change. Your company decides to modernize with Microsoft System Dynamics 365 Finance to automate and modernize your financial operations.

How do you make D365 work the way you want it?

Installation of D365 ERP is a Process

Implementing Microsoft Dynamics 365—or any other ERP system—is a process. It takes time. It’s not a matter of just downloading some software, letting it run and then “boom,” your company is up and going.

There are as many as three tiers and four production stages.

Tier 1 looks at the “out of the box” Dynamics 365 solution. Is it going to work for your company as is? For existing companies, especially those with legacy systems, the odds are that your D365 will require some customization. At a minimum, your staff will need at least some training on Dynamics 365 to be able to successfully perform their jobs.

Tier 2 is known as “the Sandbox” because this is where your staff gets to play with Dynamics 365’s wide array of features. Sample customer data—purchase orders, sales orders, etc.—is loaded. This tier is also where your experienced employees examine the product closely. For example, a person who inputs purchase orders can see how D365 performs this function. Is something you need missing? Let an implementation professional know so they can modify the program.

The final environment is Production – a live environment where business will perform its functions.

Typical ERP implementation has 4 major phases (which could still change based on the implementation):

Figure: 1Primary Phases of Dynamics 365 Implementation

D365 finance supply chain management

  1. 1.Scoping and blueprinting: This is where Xcelpros SMEs help your company determine which Dynamics 365 features and modules are best suited to achieving your goals. The topics you’ll want to discuss include:
    1. a.Your pain points
    2. b.The issues you have now
    3. c.What you would like to accomplish
  2. 2.Design and development: This phase involves configuring Dynamics 365 to install the features you need to run your business. For example, there may be specific fields—like part of a formula—that aren’t currently a part of D365. This field needs to be programmed and added to the software. Other fields may be worthless. You want them removed to avoid confusion.
  3. 3.User acceptance testing (UAT): This is where your employees get to work with Dynamics 365 in a hands-on environment similar to the Sandbox but configured for you using generated test data. This is used to determine:
    1. a.What questions do your employees have?
    2. b.Do the modules behave the way they are designed?
    3. c.Is something you need missing?
  4. 4.Going Live: D365 is now ready to go. The production environment is fully set up and the master data is loaded. Actual sales orders, purchase orders, production orders and inventory data are ready. It’s finally time to make the change.

Implementations Take Time

Dynamics 365 implementation timelines can vary greatly from organization to organization –

  • 0 days: The amount of time a company is effectively out of business during the implementation process
  • 3 – 9 months: The time for a rapid implementation involving three entities: two chemical and one pharmaceutical
  • 10 months to 2 years: The time a typical full implementation takes when a company converts from a legacy system

Selecting an Executive Change Champion

One of the biggest obstacles to a successful implementation is having too many people making the final implementation decisions. Being known as “the person who brought our company into the 22nd Century” is a glamorous title. Many executives may want to assume the Change Champion role or at least give their input.

An old proverb says, “a camel is a horse designed by a committee.” This can be interpreted as letting too many people make requests and changes will:

  • Add confusion
  • Add costs
  • Delay the implementation

Confusion occurs when departments are not aligned on feature requirements or if there is change resistance. Some standard phrases of change resistance are – “The old way of doing things is just fine” or “This is what we are used to”

A Change Champion is a single point of contact, not a committee. They act as a relay and buffer. They relay information and requests from other executives and employees to the implementation team. They also relay requests from the implementers to the company. They act as a buffer between the legacy users who are resistant to change and the people working to improve the company through modernization.

A Change Champion:

  • Is a proponent of change in the company
  • Supports and defends the Dynamics 365 implementation
  • Is able to make difficult decisions
  • Is accountable and fully involved

They understand and are able to explain how Dynamics 365 will undoubtedly make the company more efficient and profitable, and how it stands to make everyone’s lives—from the chief executive officer to the people unloading truckloads of supplies—a whole lot easier. They’re able to explain how change will come whether people like it or not.

The Champion explains how Dynamics 365 can eliminate bottlenecks and remove redundancies.

This person is ultimately accountable for ensuring the right features are selected and installed. They are the ones with the authority to sign change orders to be able to spend money where it provides tangible value to your firm.

They make the call whether or not to add a customization or use what is already supplied. Is a feature a “must have” as in it’s required for the company to work properly or a “used to doing?”

“Used to doing” features are ones based on how the legacy ERP system operates. Employees are “used to doing” a particular task in a specific way. They resist change even without understanding that D365 makes their lives easier overall.

Training is Critical

The most successful ERP implementations occur when training teams are involved from the start. Some companies ignore it, expecting their employees to figure out the new system on their own. Others start training after the implementation process is well underway. Both of these scenarios delay getting Dynamics 365 running smoothly. They also increase resistance to the new product and its new way of doing things.

As employees begin using D365 starting in Tier 2, Xcelpros’ trainers are able to show them how to perform basic steps, and then build on what they learn. For example, have trainers use Step-Action tables to document the steps for adding a new customer. Which fields are completed first? Which are done automatically? What does someone do if an automatic field is blank?

Starting training early pays big benefits later. Employees learn that their ideas count. As they begin to use Dynamics 365 in a Sandbox environment, they become more comfortable with it without the risks involved in a live production environment. Documenting a regular process and then having employees perform it lets the trainers see what they need to update for your staff. Maybe an employee spots an unnecessary or confusing feature or a critical one that needs to be added. Getting this done early on can save your company valuable time and money.

What’s Next

Understanding the ins and outs of Microsoft Dynamics 365 is a big step towards a successful implementation. As is understanding the importance of a change champion, and the role they play. In an upcoming post, we’ll take a look at common implementation problems and some of the best ways to either avoid them or reduce the impact they pose.

Book a consultation with our D365 experts for a successful Dynamics 365 Implementation.

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Supply Chain Disruptors
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Major Supply Chain Disruptors
Major Supply Chain Disruptors 700 500 Xcelpros Team

Introduction

Parts of the global supply chain saw major disruptions in 2019 and more in 2020. Companies looking to ensure their supply chains remain intact have two choices: They can plan, prepare and be ahead of the trends, or stay in a wait-and-see mode.

Forward thinking companies are using analytics found in today’s enterprise resource planning (ERP) software to anticipate changes in customer behavior and balance their supply chain. They are closely watching fuel prices for changes that might make obtaining raw materials and shipping finished products more expensive. They are verifying that the quantity of product leaving their facilities meets demand while avoiding compromising quality.

Three supply chain disruptors in 2021 include:

  • Transportation costs
  • Covid-19 fallout
  • Increasing visibility into product compliance

Figure: 1Major supply chain disruptors in 2021

Major supply chain disruptors in 2021

Transportation Costs

US logistics costs dropped 4% to reach $1.56 trillion, or 7.4% of 2020’s $20.94 trillion gross domestic product (GDP). The pandemic forced many global supply chains to screech to a halt and then start back up. Again and again.-CSCMP’s State of Logistics Report 2020

Let’s take a look at the first disruptor: transportation costs. The strong economic growth of 2018 caused commercial transportation costs to rise. 2020’s pandemic made transportation worse as demand continued while the availability of truck drivers and airline flights plummeted. Those were just two of many activities impacting pharmaceutical and chemical companies’ supply chains.

Among the current transportation issues are:

  • 20% – 25%: The national van truckload tender rejection rates (the percentage of electronic requests for capacity declined by carriers) since August 2020
  • 20%: The van truckload spot rate increase in February 2021 affecting 10%-20% of trucking market freight volume
  • 12%: The increase in retail fuel costs in February 2021

Pandemic quarantines meant fewer consumers were making trips to stores. This in turn boosted online orders through companies such as Amazon.com, boosting pressure on the commercial transportation sector.

Figure: 2Current transportation issues

Transportation Costs Effected By Disruption

Truck Driver Availability

Truck driver availability is another major issue plaguing supply chains. Commercial transportation companies are facing major challenges recruiting and keeping drivers, including:

  1. 1.Attracting new talent with 57% of the workforce now 45 or older and 23% 55 or older
  2. 2.Losing 62% of potential workers to warehouse jobs, which are being filled by people under 45
  3. 3.Dealing with workers wanting a work-life balance that requires short trips when demand is for more long haul (over 250 miles) drivers
  4. 4.Posting more jobs than hiring by a 9:1 ratio
  5. 5.Skill and experience gaps between the desired and available drivers
  6. 6.Reducing truck driver job posting activity between 2019 and 2020 by 38%

Adding to this issue are safety regulations limiting drivers to work no more than 14 out of every 24 hours.

Recruiting Drivers

To address the rising shortage of drivers, freight companies are providing incentives to attract more people into the field and increase employee retention. Methods listed by SHRM include:

  • Raising pay so that private fleet drivers now earn an average of $86,000 a year up from $73,000 in 2014
  • Broadening the applicant pool by recruiting women, military veterans and younger drivers
  • Being flexible with time off

Other Transportation Woes

Another growing supply chain transportation issue points to international regulations impacting ocean-freight based shipping. At the start of January 2020, new limits came into play in order to protect the environment and improve air quality. IMO 2020 restricts the amount of sulfur in the fuel oil used by ships. The previous emission limit was 3.5%. Under IMO 2020, this compulsory limit drops to 0.50%.

The emission limit was reduced to 0.10% in four emissions control areas:

  1. 1.the Baltic Sea
  2. 2.the North Sea
  3. 3.the North American area covering parts of the U.S. and Canada and the U.S. Caribbean Sea cover Puerto Rico and
  4. 4.the U.S. Virgin Islands

Reducing the sulfur content of fuel oil helps minimize sulfur oxide emissions that negatively impact human health and contribute to acid rain.

Compliance is expected to boost container shipping fuel costs by $25 billion – $30 billion through 2023, according to a report by BCG.

Covid-19 Fallout

To date, the Covid-19 pandemic has killed more than 4 million people worldwide, more than 606,000 in the U.S. alone.

  • 72% of businesses across trade, finance, plus health and education systems reported a negative effect. 17% of that was a significant negative effect.
  • 3% of firms reported a significantly positive effect
  • 8% of firms reported a mostly positive effect

Firms reporting a positive impact were in the life sciences sector, especially those producing essential products such as vaccines, Ernst & Young’s report noted.

Increasing Visibility into Product Compliance

Compliance in the supply chain is nothing new. Companies in every sector conform to Occupational Health and Safety (OSHA) regulations plus state and local versions. Pharmaceutical companies work on FDA compliance every day.

What is new however, is increased visibility.

Especially when dealing with large, diverse supply chains that might involve hundreds or thousands of suppliers, many companies are switching to integrated networks. Using these networks, though, requires retraining the workforce to adjust to the new digital way of doing business.

“Increased visibility is the TOP priority over the next 12-36 months and a top 3 priority in the next year,” a 2021 report from Ernst & Young states.

Ernst & Young’s survey found that 63% of companies were investing in increasing automation such as using internet of things (IoT) connected devices, machine learning and artificial intelligence (AI) to boost productivity and increase efficiency.

Using enterprise resource planning software lets companies achieve a 360-degree view into supplier performance, customer review and manufacturing outputs while crunching millions of data sets. ERP systems are designed to help companies anticipate potential problems and find solutions before the issues become acute.

For example, a chemical manufacturer installs sensors on reactors that can alert production staff when temperature changes occur. An alert sent from the sensor through SMS messaging directly to maintenance and production crews can let them take action before an expensive batch is ruined.

ERP software such as Microsoft Dynamics 365 Supply Chain Management allows companies to stay on top of issues before they become problems.

Key Takeaways

  1. 1.While a global economic boost is great, we find there’s always a downside that leads to a challenge. A strong economy is great for supply and demand for business, however the shortage of qualified workers to fill those jobs can cause significant issues
  2. 2.There is an increasing concern for disruptions that are beyond human control. Things like the recent COVID pandemic, along with the resulting damages are factors that companies may never have planned for, but we now know the risk exists.
  3. 3.The strong global economy has resulted in a trade war, affecting imports and exports across the globe. The ongoing tariffs between the US and China doesn’t just affect those countries, the entire world will have to deal with the effects of increased import costs.

For more information on implementing Dynamics 365 Supply Chain Management to manage your supply chain disruption in your company, book a consultation with our expert.

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The future of the chemical industry involves technology
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The future of the chemical industry involves technology
The future of the chemical industry involves technology 700 500 Xcelpros Team

At a Glance

Technology is becoming a driving force in many industries and the chemical industry is no different. It’s easy to say the future of the chemical industry will continue to involve new and emerging technologies. Among the most cost-effective ways is through enterprise resource planning (ERP) software.

Among the industries benefiting the most from ERP systems’ integration of supply chain management are:

  • Manufacturing
  • Healthcare
  • Pharmaceuticals
  • Plastics

Introduction

Tech will spur innovation in the chemical industry, a global management consulting firm, states.

“Historically, the chemical industry has generally been a slow adopter of new digital or analytics technology,” a McKinsey & Company report on the state of the chemical industry asserts. “Still, new digital approaches can provide incremental and relevant benefits (mostly around asset and commercial productivity).”

Among the chemical industry trends highlighted in the report are:

  • Productivity gains from using artificial intelligence (AI) in production, marketing and sales plus research and development.
  • Competitive advantages from having robust real-time information on sales, costs and inventories.
  • Increasing performance transparency around chemical products, management teams, individual activities and business lines.
  • Using process automation to change the way chemical companies think about complexity, scale and sourcing of administrative activities.

“While it continues to be unlikely that the chemical industry at large will experience a revolution, the evolution it faces will be continuously accelerating in speed and eventually significantly change the way things are done,” McKinsey states.

Other Ways Tech Boosts Chemicals

In addition to the business advantages cited by McKinsey, six other reasons why chemical companies are boosting their investment in technology are:

  • Cloud storage and information sharing
  • Advanced maintenance analytics
  • Reduce, reuse and regenerate
  • Yield, Energy and Throughput (YET) analysis
  • Globalization
  • Value Maximization

Cloud storage and information sharing lets wide-spread companies keep their divisions informed. For example, Sales in the U.S. can tell Procurement in India what to expect. That way Procurement has time to manage inventory.

Advanced maintenance analytics lets production facilities predict when a machine will break, Europe-based AG Chemi Group reports. By monitoring wear points, employees can replace worn components before they break. This reduces machine downtime by 30% – 50% and boosts machine life by 20% -40%.

Connected sensors, which are used by the Industrial Internet of Things (IIoT) to send data to company networks. Company engineers can evaluate the data to pinpoint the components most likely to wear, order replacements and have them ready to install.

Managing and reducing chemical waste , reusing products and materials and regenerating natural systems is part of the circular economy, which the Ellen MacArthur Foundation states, helps companies redefine growth by focusing on positive society-wide benefits. The circular economy model builds economic, natural and social capital, the foundation claims. AG goes further and states that chemical companies can take advantage of current trends in chemical engineering and process technology to increase efficiency, lower raw materials consumption and reduce manufacturing costs by reducing chemical waste.

YET analysis focuses on improving efficiency by reducing bottlenecks. Using information from literally millions of data points, companies can model the production process and identify areas for improvement.

Globalization is part of how the world now operates. Suppliers and customers are literally spread all over the globe. As a recent example, a ship stuck in the Suez Canal delayed 12 percent of global trade for more than six days. U.S-based companies depending on pre-production materials from Europe were stuck waiting, delaying production.

Value maximization refers to the idea that, “The economics of specialties production (such as chemical manufacturing) may demand maximizing output of a high-value product, while commodities production may prioritize holding down costs, but the former is typically built on the latter. Put simply, the businesses may have two separate profit and loss accounts, but they are connected to the same pipes,” AG Chemi quotes Valerio Dilda from the Polytechnic University of Milan as saying.

This method helps maximize profit generation in complex production systems and supply chains.

Figure: 1New Technologies in Chemical Industry

New Technologies in Chemical Industry

One Way To Update

A fast, easy method for chemical production companies to update their technology is by investing in ERP software. The integrated suite of programs allows chemical companies to access massive volumes of information, control it, massage it and use the insights for planning, inventory control and other business tasks.

One such product is Microsoft Dynamics 365’s family of programs.

Running on Microsoft Azure in a distributed, cloud-based environment, Dynamics offers secure computing, versatility and customization capabilities. Cloud computing offers greater security, meaning that patented chemical products and formulas are more secure than on a company’s own network.

The Supply Chain Management program includes these core concepts:

  • Asset management
  • Cost accounting
  • Cost management
  • Inventory management
  • IoT Intelligence
  • Master planning
  • Procurement and sourcing
  • Product information management
  • Production control
  • Sales and marketing
  • Service management
  • Transportation management
  • Warehouse management

Summary

The chemical industry tends to lag behind other segments in terms of modernizing its operations. Failing to keep with technology can cost companies through missed opportunities and poor inventory management. ERP software like Microsoft Dynamics 365 for Supply Chain Management or Finance are two of many options.

Book a consultation to future proof your chemical company using the latest technology.

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ERP competitive advantage
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Rethinking Your ERP Strategy to Gain a Competitive Advantage
Rethinking Your ERP Strategy to Gain a Competitive Advantage 700 500 Xcelpros Team

Rethinking Your ERP Strategy to Gain a Competitive Advantage

Investing in a good ERP system is a big responsibility for any company that needs a flexible system paired with rapid responsiveness looking to increase their business opportunities. Adhering to a few simple and practical guidelines can make this process a simple task, allowing executives to more effectively manage the risks of modernizing their ERP solutions to gain a competitive edge in the market. For more information see the full article here.

Thinking of restructuring your ERP strategy to boost your bottom line? Get started with XcelPros!

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How ERP solutions benefit pharmaceutical manufacturers banner
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How ERP Solutions Benefit Pharmaceutical Manufacturers
How ERP Solutions Benefit Pharmaceutical Manufacturers 700 500 Xcelpros Team

Introduction

Speed and accuracy are fundamental for any business, including the pharmaceutical industry. Microsoft Dynamics 365 for Finance and Operations (F&O) offers an intelligent cloud-based solution tailored to meet the pharmaceutical industry’s needs.

With the help of Dynamics F&O, pharma companies can reduce regulatory burdens, introduce automation, boost productivity and build a secure environment focused on achieving high-value work.

Pharmaceutical companies often prepare medicines with diverse formulas. Much of the focus is placed on raw material quantities, yields with constant and variable scrap percentages, and operations within production. Pharmaceutical companies need an enterprise resource planning (ERP) system that monitors functions such as procurement, production and supply chain operations.

Microsoft Dynamics F&O Features for Pharma

Feature Function
Product quality and safety Manage:

  • Multi-stage tests of raw materials
  • Lot expiration, stock aging and re-testing requirements
  • Supplier information such as vendor batch details/ expiration dates on raw material batches
  • Integration of quality management to inspect incoming raw materials
Sales and promotion management Manage:

  • Leads, prospects and customers
  • Delivery orders, sales contracts and export invoices
  • Discounts and price lists, including competitor analysis
Processing and packaging
  • Trace inventory including lots, batches and serial numbers
  • Generate bar code labels for packaging and shipping
  • Integrate with real-time data collection systems like PLC and SCADA
Financial control
  • Provide insights on intercompany purchases and sales
  • Track batch costing for planned vs. actual

1.CRF 21 PART 11 Compliance

Pharmaceutical companies are constantly searching for ERP systems that offer 21 CFR part 11 compliance. This FDA rule requires companies treat electronic records and signatures like paper records and handwritten signatures. Companies keeping any electronic records are required to comply with the regulation.

Pharmaceutical manufacturers require software that’s able to meet changing regulations. Integrated Pharma ERP systems track document revisions. They provide an audit trail of comments stating how members or groups interact with the documents. Effective software also boosts data security and includes intelligent document control.

Pharma manufacturers are using digital documents instead of paper for daily operations. 21 CFR Part 11 requires a legally bound signature to ensure its integrity. Microsoft Dynamics F&O includes this function. ERP software lets company owners relax in terms of digital document authenticity and validity. When an ERP system checks for electronic signatures, it looks for notarization, non-repudiation and integrity.

2.Inventory Management

Pharma companies constantly face inventory management challenges, including temperature control, inaccurate counts, poor warehouse management, imbalances in inventory supply, and even failure to shed excess inventory. A powerful ERP program helps eliminate these common problems.

Tracking expiration dates is another part of inventory management. When done incorrectly this can quickly add up to big costs for pharma companies.

An effective ERP inventory program such as Microsoft Dynamics 365 Supply Chain Management not only tracks inventory shelf-life, it can also track and trace lots, batches and individual products. This solution from Microsoft is also able to verify batch potency, generating notifications to the business owner about their products’ quality.

Dynamics Supply Chain Management also goes well beyond visual inventory counts. Using barcodes or QR codes, employees with handheld scanners or cell phones can use its mobile supply chain management features. These include recording real-time inventory counts during operations. Chief executive officers can verify inventory at any time, including pick and put away or when raw materials are consumed.

Figure: 1ERP for Pharma

ERP for Pharma

Another part of keeping accurate inventories is generating reports, like those dealing with aging. Reports provide a breakdown of inventory quantities and values by various dimensions such as batch, serial number, site, warehouse, location and license plate number. Dynamics Supply Chain Management includes many reporting features.

3.Transparency and Traceability

In the pharmaceutical industry, transparency and traceability is a complex issue. Companies need to keep track of product families, dosages, lot numbers, schedules, strengths, global trade item numbers (GTIN) and National Drug Code numbers. The Supply Chain Management module tracks product code, NDC number, brand strength and dosage.

Pharma firms also need end-to-end lot traceability. This comes in handy for recalls. Dynamics Supply Chain Management can notify all customers who receive the recalled batches without forcing employees to struggle through mountains of paperwork.

4.Quality Control

Quality control in an integrated ERP manages testing on raw materials, intermediates and finished products. Using an ERP to compare data ensures that raw materials meet agreed-upon standards.

For example, an ERP can quickly identify and provide the list of affected or remaining lots, and can even provide supplier details. Every pharma manufacturer wants to know their products are in compliance with FDA requirements to avoid penalties and fines.

5.Shipping

Dynamics 365 Supply Chain Management includes powerful lot and batch tracking functionality. It lets department leads monitor batches from the start to in-process quality control (IPQC). Executives have a program that reports delivery status as soon as items are scanned into the system.

Final Thoughts

Moving forward, the Pharmaceutical industry will continue to face increasingly stringent regulations. Companies seeking to keep up with ever-growing innovations in market trends, changes in the health care sector and rising global competition will need all the help they can get. An enterprise resource planning solution like Microsoft Dynamics 365 helps companies overcome these challenges everyday, while simultaneously reducing costs, streamlining operations and most importantly, helping businesses remain compliant.

Book a assessment to get started with tailored ERP solutions for pharmaceutical manufacturing.

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