Xcelpros

A Global technology and consulting services
ERP competitive advantage
  • Xcelpros Team
  • No Comments

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!

Register Now

How ERP solutions benefit pharmaceutical manufacturers banner
  • Xcelpros Team
  • No Comments

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.

Book Now

Managing Pharmaceutical Discounts, Rebates Chargebacks
  • Xcelpros Team
  • No Comments

Managing Pharmaceutical Discounts, Rebates and Chargebacks
Managing Pharmaceutical Discounts, Rebates and Chargebacks 700 500 Xcelpros Team

Introduction

The way pharmaceutical firms price their drugs and administer rebates and discounts, has put the industry in a potential governmental spotlight.

Key topics likely to be investigated include:

  • How discounts are set
  • How drug makers establish and monitor rebates
  • How pharma firms report their pricing details

Background

Around the world, pharmaceutical manufacturers are under increased pressure from governments and the public to reduce consumer drug prices. In some cases, the amount consumers pay for medicines has skyrocketed. One example cited by Endocrine.org is the cost of an insulin dose rising from $170 in 1987 to more than $1,400.

A 2019 Time magazine article attributes rising consumer drug costs to a complex drug supply chain. Pricing is set by a combination of pharmaceutical manufacturers, pharmacy benefit managers (PBMs) who serve as middlemen, and insurers.

Typically pharmaceutical companies set a non-discounted “list” or base price for each product. Many pharmaceutical companies offer discount coupons and rebates. Depending on a consumer’s health insurance coverage though, some patients may be forced to pay the undiscounted list price for specific medications.

According to Time, manufacturers provide discounts based on the drug and the buyer. Typically these discounts are in the form of rebates negotiated with individual PBMs. The PBM gets paid for its efforts to reduce the amount the manufacturer charges. The final price—which may or may not include any rebates or discounts—is then passed to the insurance companies, who in turn pass the pricing on to consumers.

In addition to negotiating pharma rebates, PBMs also wield power by determining where a particular drug appears on an insurance company’s hierarchy, Time states. These middlemen can make a given drug the most discounted, and therefore most prescribed, medication. They can also exclude it, forcing patients who want or need it to pay more.

Prescription drug price negotiations often happen behind closed doors, leaving patients and physicians out of the discussion despite the impact drug pricing has on the health and treatment of patients,” The American Medical Association (AMA) stated in a 2019 online article on how prescription drug prices are determined.

Raising the price of prescription medicines forces patients with limited funds to skip doses, split pills or abandon treatment, the AMA states. All of these actions, plus growing demands for prescription drug price reforms, are causing the U.S. government to further examine medicine prices.

Figure: 1Percentage of Revenue Spent on R &D

Importance of change management in erp implementation

Governmental Scrutiny

Federal government agencies such as the Department of Health and Human Services (DHHS) are paying extremely close attention to how much consumers actually pay. Agencies want to know if the actual prices reflect the research and development (R&D) and other costs of creating and manufacturing new products. Or are consumer prices a way for an unscrupulous company to use its hot new medication as a way to boost profits and stock prices?

The Biden Administration froze drug price reforms started by the previous administration pending further review. One reason for reviewing these proposals is the fear of higher insurance premiums, an online article by Joshua Cohen in Forbes states.

Cohen suggests that the Biden Administration may require health insurers “disclose current list prices and historical net prices for prescription drugs and provide patients with personalized estimates of cost sharing.

Figure: 2Amount of Revenue Spent on R &D

Amount of Revenue Spent on R &D

Setting Discounts

One way pharma companies can protect their integrity is by using Enterprise Resource Planning (ERP) software such as Microsoft’s Dynamics 365. ERP software allows pharmaceutical manufacturers to set various discounts and rules for each price break. For example, one rule in Dynamics 365 Commerce asks, “is a coupon required to obtain a discount?” A slider lets authorized users select Yes or No. When this feature is active, the discount only appears when a coupon or bar code is provided. This section also has “All discounts” and “Pricing and discounts management” workspaces, letting companies create customized discounts.

ERP software works by creating a series of properties for simple pharmaceutical discounts and quantity price breaks. For example quantity tiers must be reached independently for each line or product.

Microsoft Dynamics 365 Commerce lets companies select between four types of discounts: “Discount,” “Quantity,” “Mix and match” and “Threshold.”

Users also have the option to determine which discounts compete on a transaction. Values are “Exclusive,” “Best price” and “Compound” with “Exclusive” always being calculated first.

Individual products or product variants can be selected along with categories, units of measure and many other variables. Other options include setting up sales lines and invoice discounts.

When there are issues with drug quality, the “Quality management” section establishes rules for pharmaceutical chargebacks.

Managing Rebates

Microsoft’s Dynamics 365 Supply Chain includes a “Rebate management module” with an important feature for pharmaceutical companies. “The setup on this page is shared across all legal entities and can be modified by users who have the appropriate security permissions,” Microsoft states.

This module makes it easy to create contracts, deals and agreements with customers and vendors. It lets firms calculate and keep track of rebates, deductions and royalties. The information is stored in a central location for easy review.

Rebates can be created for customers or vendors. The function also allows inputting notes about a specific deal. For example, a pharmaceutical rebate may be given to one company instead of another. A note can explain the reason like a long-standing business relationship.

Since pharmaceutical rebates appear to be a likely focus of government action, documenting a firm’s rebates makes it easier to show what is taking place.

Reporting

With transparency being a likely focus of governmental action on drug pricing, investigators may ask to see pricing reports. ERP programs like Dynamics 365 have a number of powerful reporting features. A Report Wizard lets users select from a series of previously created reports and update them. Tables and charts can be included.

A big part of Dynamics 365 Supply Chain is tracking the status of each rebate for reporting and inquiry purposes. Reports can be linked to web pages, static files and dynamic Office-based files that read data from a Dynamics 365 database. Reports are filtered using SQL or FetchXML queries depending on the software in use.

Summary

Consumer drug pricing is becoming a hot topic in Washington, D.C. Pharma manufacturers are likely to face increased scrutiny on how they set pricing. ERP programs like Microsoft’s Dynamics 365 let firms set and track rules for discounts and rebates, as well as generate all necessary reports.

Get a consultation on how to manage pharmaceutical discounts in dynamics 365 supply chain management.

Get Started

Rising data security risks in chemical plants
  • Xcelpros Team
  • No Comments

Rising Data Security Risks in the Chemical Industry
Rising Data Security Risks in the Chemical Industry 700 500 Xcelpros Team

Rising Data Security Risks in the Chemical Industry

Using technology to automate factories has the potential to revolutionize the biochemical and pharmaceutical industries, albeit at the expense of greater risk. Microsoft’s Azure cloud computing platform includes many security features designed to protect businesses in these sectors. For more information see the full article here.

Aiming to transform into a risk-free organization with Azure? Start the trial!

Get Started Now

Homegrown systems to modern ERP System
  • Xcelpros Team
  • No Comments

From homegrown to modern ERP System: Transforming your business
From homegrown to modern ERP System: Transforming your business 700 500 Xcelpros Team

Introduction

Homegrown enterprise resource planning (ERP) programs were created to use businesses’ information technology (IT) infrastructure to help grow and manage companies.

In the 1990s, the early adopters of homegrown ERPs spent millions of dollars to modernize their technology. Their goals were making it easy to run daily operations, increase competitiveness and find ways to be more efficient. The cost of developing such an ERP system was high, making Homegrown ERP systems a prized possession for larger corporations. Only those with a strong inhouse IT team and deep pockets could build and maintain them.

For some companies, the issue of deciding whether to use an ERP system and then picking one was deep rooted. Organizations that grew through mergers and acquisitions added ERP systems as part of the package.

Other companies dealt with classic cases of “Software Snowballing” where an ERP was mixed with other software, none of which was designed to share information. This method of mixing stand-alone products drastically raises the cost of integration. It makes sharing data more complex while also adding expensive software licenses and product maintenance costs.

The good news is that was the old day. Older ERP systems lacked the flexibility and rich features of today’s modern ERPs.

Industry Speaks

During 2019’s CPhI North America 2019 Convention on Pharmaceutical Ingredients conference held in Chicago, Xcelpros staff met with decision-makers from organizations who are neck-deep in older homegrown ERP systems. These companies find themselves having vital resources slowly but steadily drained.

The people we spoke with unanimously agree that ERPs of the past are adding inefficiencies and straining existing resources. These companies recognize the importance of an effective ERP. They want to convert their investments into a program that promotes growth, collaboration and efficiency.

Early adopters were encouraged by what their ERPs brought to their companies. They kept adding more resources to the system. Over time, some critical functions started unraveling. For example, the accounting module could not keep pace with global standards such as generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). This inability to keep up leads to non-compliance issues.

From a maintenance standpoint, vendors of older systems started focusing on newer technologies. Companies with old programming tools and operating systems were left high and dry. In some cases, key personnel were tasked with maintaining an ERP on the verge of retirement. Most of our guests realized that updating a legacy system wasn’t practical since the technology is dated. With challenges outweighing the benefits, most of our guests at the CPhI were looking for a newer alternative.

Cost of Staying in Denial

One major issue for companies with homegrown legacy ERPs is the stack of standalone software. Each piece handles one part of the organization’s business processes. Licensing costs to maintain these programs often results in expensive bills at the end of every fiscal year.

The result, or what we call “the cost of staying in denial,” is severe. It grows with every passing day. Some of the common challenges faced by enterprises using homegrown ERPs are:

  1. 1.High costs to benefit ratio in maintaining legacy systems compared to modern products.
  2. 2.Incompatibility with popular business applications such as Microsoft Office 365, stifling collaboration.
  3. 3.Expensive integration required to perform regular tasks such as sales visualization. This often leads to high latency.
  4. 4.High people costs to maintain older tech that is already retired or will hit its end of life soon. In addition to the tech, the people who know to maintain it may also be leaving, putting pressure on newer staff who are hesitant to learn outdated products.
  5. 5.High costs of using a private datacenter to run the application, which is expensive. Many telecom firms worldwide are selling them to private companies. This includes Verizon and AT&T in the US.
  6. 6.Disruptions to normal business operations caused by upgrading the older ERP system. It is a time-consuming, expensive process.
  7. 7.Lack of collaboration because stand-alone applications limits growth opportunities and competitiveness.

To sum up the challenges, it is a typical case of application explosion with disjointed data sources also known as “the problem of too many.” Randomly applying partial solutions over time sucks up computing resources, increasing the overall cost of ownership.

It’s Time to Retire Legacy Systems

The companies Xcelpros spoke to at CPhI agree that their legacy systems are eating into their productivity and their limited resources. We wondered why, when chief executive officers and other top managers were aware of these issues, they had not already moved on to a modern ERP system.

Our research uncovered these issues:

  • Replacement costs and other economic considerations
  • A regressive mindset of, “if it ain’t broke don’t fix it”
  • Resistance to change management
  • Emotional attachments

It’s Too Expensive to Replace

We found comments about the perceived cost of a new ERP system were interesting, mainly because they were inaccurate. However, costs associated with switching to a new system were the most frequently cited reasons by our guests at CPhI’19.

This mindset and myth challenges years of ERP systems providers showing that new ERP systems typically save them money.

A current ERP such as Microsoft Dynamics 365 Finance and Operations actually costs up to 50 percent less than an on-site legacy system for a 100 employee company, business application provider Skyward Techno states.

When ERPs were first introduced about 30 years ago, their main feature was a uniform database that could sync information across business functions. It would ease decision making, the manufacturers claimed.

It was true … briefly. After ERPs came other targeted business applications. They include human resource management (HRM), customer resource management (CRM), product lifecycle management (PLM) and supply chain management software. Each program had its own unique database promoting “best of breed” software for their respective functions.

Companies that bought into that mindset then are now facing the problem of too many competing programs. A major issue is that specialization denies these firms the opportunity to harness the power of insights gathered by shared data.

A 2016 survey by Panorama Consulting found that nearly 65% of the organizations who implemented an ERP cited replacing outdated ERPs as the major driver for the change. The findings cited in the study matched with what we uncovered at the CPhI conference.

Figure: 1ERP Replacement Statistics

ERP replacement Statistics

With changing trends, best practices have morphed into more optimized processes that promote efficiency and shed workplace complacencies. At a time when profitability is stressed and finding a newer market is challenging, the right technology for your business can be the edge you are looking for.

Combating Resistance to Change

The adage, “If it ain’t broke, don’t fix it” is as archaic as legacy ERP systems. Delaying key technology decisions is costing companies every day they wait. Modern ERP systems such as Microsoft Dynamics 365 lowers operational costs especially when compared to older software.

The Bureau of Labor Statistics (BLS) estimates the wage for skilled labor is $17 to $25 an hour per worker. Using a median wage of $21/hr., production managers responding to sudden demand spikes need additional man hours to meet the demands. Not including overtime required by the federal Fair Labor Standards Act (FLSA), the labor costs of dealing with these demand spikes can quickly exceed projections.

Modern ERPs such as Microsoft System Dynamics 365 Supply Chain Management let companies forecast trends. This software helps plan resources, track jobs plus manage materials and scheduling. The result is a more efficient operation.

Panorama Consulting estimates that modern ERPs ability to integrate data and create accurate forecasts can lower labor costs by 20%. Reducing labor cost is just one of the many positive ways a modern ERP benefits your business.

Managing Change Effectively

Change is inevitable even with technology. Change Management has been underestimated when adopting ERP. The result is implementation failure.

Change management includes designing the right framework for transitioning from unlearning the old and accepting the new way of working. Applying change management requires careful planning, making the role of ERP consultants more critical than before.

Part of this was mentioned in the 2019 Panorama Consulting report. It states that 68% of poll respondents had intense to moderate focus on Change Management during an ERP implementation. The overwhelming response shows the importance of organizational change management. It must include key leadership buy-in, effective communication, a robust training strategy and hiring consultants.

Figure: 2Importance of Change Management in ERP Implementation

Importance of change management in erp implementation

At least 50% of ERP implementations are intended to make employees more productive. The importance of change management in erp implementation cannot be undervalued as it impacts nearly half of your organization’s strength. It is something that needs meticulous planning and must not be pushed as the last item on a long list.

Break the Emotional Attachments

Emotional attachments were never documented as reasons to stay with legacy ERPs. However, some of our CPhI guests defended them even though they also agreed that the cost of maintaining them outweighed their benefits.

Some of these people are averse to change. When an older system can’t scale up, they customize it without knowing what will happen. That method may have worked years ago. Today? Modern companies want optimized processes that promote efficiency. Having a complacent workforce is no longer acceptable.

Older ERP systems have hidden costs. Once they require that actions be documented and stored somewhere. If that information isn’t recorded, inefficiencies cannot be detected during a year-end performance review.

Old Systems Cost Money Today

Companies spent huge sums to develop or license a homegrown ERP a decade or two ago. They are paying more for its maintenance today than a modern system costs.

Newer, younger developers don’t know how to update older systems to meet modern needs. The technology in them is too old. This causes companies using them to be less efficient, reducing their ability to compete with modern firms. Older companies using stand-alone systems are unable to leverage analytics and consumer insights. They also lack collaboration between modules such as finance and inventory. Modern ERPs have these connections.

What can a modern ERP System mean to your business?

Modern ERPs are much smarter and efficient than their predecessors. They connect and unify processes and information across business functions such as Finance, Human Resource, Manufacturing, Supply Chain, Logistics, Procurement and Sales. Their connected d esign makes the system more agile, providing benefits that stand-alone systems cannot.

Some of the benefits are:

  • Making informed decisions
  • Driving collaboration and innovation
  • Increasing transparency
  • Promoting efficiency
  • Reducing dependence on human workers
  • Increasing productivity
  • Complying with quality and other government standards

Microsoft Dynamics 365 for Finance and Operation is one such ERP. It comes with cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), Prescriptive Analytics and powerful visualization. Everything is unified under a single ecosystem. The ERP drives business results by integrating data across an organization. It provides meaningful insights easily accessible from a cellphone or handheld device. Backed by Microsoft, it is not only secure but flexible and scalable.

Most companies own at least one Microsoft product since Windows operating systems are on 87 percent of the world’s computers. Business applications such as PowerPoint, Excel and Word are a regular tool for most organizations.

Microsoft Dynamics 365 has a similar look and feel to popular products such as Windows and Office 365. It’s ease of use and familiar look which makes switching over a much easier task.

Conclusion

ERPs have undergone a metamorphosis. They are no longer backend record keepers. Instead, they provide a versatile powerhouse that aids in making impactful decisions accurately and quickly. Modern versions cost less than what many firms pay to keep older systems running.

Break the myth that ERPs are an all or nothing solution. Using Microsoft Dynamics 365, you can pick and choose the right modules for your business, adding more features and scaling up or down when situations change.

When updating to a modern ERP, consider using an established vendor whose product vision caters to your present-day requirements and your future needs. Firms that are part of Microsoft’s Independent Software Vendor (ISV) network have the extensive industry knowledge to guide you through your ERP journey.

Ask yourself a question: “Is my ERP system a roadblock to profitability?” If the answer is remotely “yes,” contact Xcelpros. We’ll bring the coffee.

Planning to transform you business with Modern ERP, book a consultation with our experts.

Book Now

Formula Management Scales Up Process Manufacturing
  • Xcelpros Team
  • No Comments

Formula Management Scales Up Process Manufacturing
Formula Management Scales Up Process Manufacturing 700 500 Xcelpros Team

Introduction

Formulas are at the core of process manufacturing and managing them is a critical function in the product development cycle. However, we see manufacturers show little effort in how they store and access their formulas, often keeping them siloed. However, today’s connected world makes sharing information across business units critical.

Seldom are formulas managed with any regularity. We find them in manual logs or at best, Microsoft Excel files. Companies spend years perfecting a single formula, ensuring it is scalable and able to maintain consistent quality across all batches and then restrict access to it.

At Xcelpros, we help our clients modernize their formula management. Keeping these formulas updated and secure from prying competitors results in higher productivity. That translates into a stronger bottom line.

Enterprise Resource Planning (ERP) software such as Microsoft System Dynamics has the ability to manage formulas. An ERP brings consistency, product scalability and improved efficiency to formulas while achieving better compliance scores.

Formula management (FM) includes the ability to optimize formulas. It also creates and manages workflows, creates formula variants, manages labeling content, plans inventory for scaling up production and validates the formulas to meet regulatory requirements.

An essential part of electronic batch processing, FM helps modernize the product development process. The resulting efficiency increase results in shorter times to market.

Automating formulas ensures consistent products. It removes manual calculations of ingredients, their properties and costs, thereby removing a source of error.

This process also causes better regulatory compliance. It reduces the chances of recalls, rejections and fines. Each of these actions costs your firm money while negatively impacting brand value.

The Downstream Impact of Formula Management

As discussed above, formula management is at the core of process manufacturing. Using the chemical industry as an example, formulas are at the center of each company’s assets. The research and development (R&D) section likely has an “n number” of formulas and variations. When each formula is processed, it delivers a unique product. Having related formulas scattered across multiple locations increases the compliance hazard, reducing efficiency.

An integrated FM system gives top executives control of:

  • Transparency in terms of cost – An integrated business application such as an ERP includes ways to control formulas. The software also shows costs associated with the manufacturing process. ERPs give you a holistic picture. They provide the downstream impact of a formula from raw materials procurement to setting end product pricing.
  • Visibility of formula properties – ERPs let you analyze the change in physical properties of key ingredients in real-time. For example, you can vary the quantity or substitute one raw material for another. Making these changes in the ERP lets you see the impact on areas such as the nutritional value of products.
  • Authentication and formula protection – This security feature helps an organization define access rights to each formula. It allows you to limit modification rights to a select few while giving master control to the administrator. The administrator can reverse any changes to the formula.

Your business deserves the power of a unified system for formula management.

ERPs are the Way Ahead

ERPs provide an effective solution with the ability to unify production processes with research and development formulation in a common, secure platform. ERP systems can transform the way formulas are managed by players in industries such as chemical, pharmaceutical, food & beverages, etc.

Keeping formulas confidential is critical for every manufacturer in every industry. Managing formulas efficiently can be a competitive advantage, especially when a company is growing.

Instead of making FM a daunting task, using an ERP ensures your manufacturing processes are standardized across your production units regardless of their location.

ERPs are Transformational

Modern businesses generate gigabytes of data every single day. That number continues to increase as handheld devices and connected systems add to it. ERP software is designed to handle massive volumes of data. It generates insights letting top executives gain deeper understanding of core business functions. Using an ERP, top leaders can see the data behind critical decisions.

Looking at batch processing, which includes FM, leaders have a centralized information source covering all products that being processed, manufactured or stored. Having access to this data in one spot lets leaders generate important business insights.

Batch size, quality, quantity and components are essential items captured by ERPs. The system allows organizations to set security controls ensuring only authorized personnel can access the firm’s trade secrets and formulas. The ERP also maintains a version history of all changes made to the formula, letting authorized people go back to a previous version in case of unauthorized access.

Connecting Silos

In many businesses, data is captured and stored in stand-alone “silos.” A problem with this approach is its inability to share data. This is especially true when data from multiple business functions is captured in different systems.

Siloed data is not easily accessible from systems outside that area. It doesn’t give key executives enough variables to make informed decisions. The silo approach causes inefficiencies and lower returns on investments from technology assets.

Today is the age of connected business ecosystems, not stand-alone silos. Collaboration is the key to efficiency, transparency and easier operations. Sharing data means quicker and informed decision making, all of which eventually leads to success. Only an ERP can break the silo walls, connecting your data to provide a complete 360-degree view of your production process.

A connected system helps you calculate formulas and break down the costs of each product, percolating down to provide improved competitive and operational advantages.

ERP Software Systems and Formula Management

Some areas where ERPs are instrumental in formula management include:

  • Versioning formulas
  • Scaling formulas to create larger batches
  • Determining and establishing coproducts or byproducts
  • Categorizing active ingredient formulas by
    • Weight
    • Percentage
    • Operations related to ingredient consumption
    • Approvers
    • Batch sizes

Figure: 1ERP Software For Process Manufacturing

ERP Software For Process Manufacturing

Versioning Formulas for Compliance

Process manufacturers are continually updating and improving their formulas. Updates are driven by changing industry trends, customer demand and most importantly, ever-changing regulations.

Keeping up with rule changes is a constant task, especially for companies with multinational manufacturing and distribution operations. They must be compliant with the laws in each country where they operate.

Compliance impacts formulas directly, making keeping different versions a “must have” feature. For example, formaldehyde is a chemical agent dangerous to humans at levels of 100 parts per million. It is banned for use in cosmetics across the European Union but is found in hair-straightening products and nail polish in the US. Atrazine is used as an herbicide in the US, but was banned in the EU since 2003 over concerns of it polluting water bodies.

Differing regulations requiring different formulas—even with minor alterations—can be intimidating. Formulas must be managed properly to meet the regulations in each country or region.

Scaling Formulas for Consistency

Another formula function ERPs automate is scaling. When a customer changes its order size, the quantity of raw materials varies. Formulas do not.

To the uniformed, the impression of an ERP at a manufacturing location is like taking a widget, adding some gadgets plus a few man hours and presto, you have a finished product. This is at best oversimplification and at worst a mathematically challenging extrapolation.

Why is scalability a challenge? Consider a scenario where you are preparing soup for a family of four. Something happens. Now you need to make soup for your neighborhood, maybe your city or even your county. Most people realize your raw materials will increase as you add people, but what about making your soup look and taste the same or ensuring your serving quantity is right?

To accomplish all of this requires software that can scale production while maintaining consistency in product composition. An ERP solution such as Microsoft Dynamics 365 for Finance and Operation can help categorize all your formulas based on parameters such as: weight, percentage, ingredients, production size, approvers, etc. Top executives have complete control of their manufacturing operations regardless of how many customers one product serves.

Creating New Efficiencies

In addition to providing consistent products regardless of batch size or manufacturing location, ERPs can help manage your formulas to create new levels of efficiency by:

  • Ensuring changes made to a formula have real-time implications to raw material procurement, production, inventory management and planning.
  • Scaling formulas regardless of production size.
  • Adjusting user fields to suit current requirements and configurations.
  • Keeping tabs on production costs such as raw materials, labor and other variables based on changes to your formula.

Conclusion

Most chemical manufacturers have a legal pre-defined volume to weight ratio for using certain ingredients. The process becomes more complex when using multiple measurement units of such as dry and wet volumes. Adding to the complexity are when different measuring systems are used, such as imperial in the US compared to metric elsewhere. The complexity increases when adding storage temperature or acidity of the ingredients into the mix. How will a particular chemical or ingredient react when it comes in proximity or contact with another agent? Will it lose effectiveness at a specific temperature?

An ERP’s formula management function allows companies to automate the production process. The integration process also means firms can publish relevant labels. These labels are pasted on the products providing required information.

Using FM in an ERP lets companies concentrate on the business of selling products. They can avoid the costs and headaches caused by an inefficient formula management process. Powered by a self-sustained connected ecosystem hosting a universe of business applications, Microsoft Dynamics 365 offers a secure and holistic formula management suite. Dynamics 365 ensures your formulas are secure, scalable, compliant and most importantly, strategically placed to elevate your organization to the next level of efficiency.

Scale up your manufacturing process with formula management, book a consultation with our expert to learn more.

Book Now

4 KPIs That Impact The Growth of a Chemical Company
  • Xcelpros Team
  • No Comments

4 KPIs That Impact The Growth of a Chemical Company
4 KPIs That Impact The Growth of a Chemical Company 700 500 Xcelpros Team

4 KPIs That Impact The Growth of a Chemical Company

Does your business operate in the chemical industry? If compliance is a big part of what you do, you don’t want to miss out on this quick insight into important KPIs that could be impacting your business today. For more information see the full article here.

Planning on restructuring your chemical operations for streamlined processes? Get a assessment with XcelPros!

Get Started Now

D365 supply chain demand forecasting helps Chemical Industry
  • Xcelpros Team
  • No Comments

How Dynamics 365 Supply Chain Demand Forecasting Helps Chemical Companies Plan for Inventory
How Dynamics 365 Supply Chain Demand Forecasting Helps Chemical Companies Plan for Inventory 700 500 Xcelpros Team

At a Glance

  • Accurately forecasting customer demands allows a company to quickly adapt to changing needs. Leveraging predictive analysis of historical data in demand forecasting models permits better understanding of what customers want.
  • Chemical industry decision-makers and inventory managers are now concentrating on short- and long-range demand fluctuations caused by price volatility and changes in supply chain dynamics.
  • Top executives can make insightful decisions driven by informed analysis of demand patterns using robust Supply Chain Management (SCM) tools.

Understanding Demand Forecasting

Demand forecasting uses predictive analysis to gauge customer demand patterns based on historical data. Historically, chemical companies use demand forecasting to gauge independent and dependent sales orders. Rapidly increasing global markets and integrated business models show a growing need for better responsiveness and flexibility in demand forecasting. Making these changes helps chemical companies:

  • Prepare shipping materials in advance for one-time and complete deliveries.
  • Manage inventory while being flexible to accommodate unforeseen demands.
  • Sense and predict product demand based on market hierarchy, geography, climate, time zones and other reasons.
  • Stand out in the market by consistently delivering at competitive prices.

Understanding historical demand and accurate inventory management plays a key role in forecasting sales. It ensures adequate inventory. Improperly managed inventory impacts everything from shipments to sales. Companies are very reactive about their inventory planning when resources are not allocated properly. Continually reprioritizing orders throws off historical demand tracking. Adding an unexpected order can lead to big problems.

A recent poll by Deloitte with chemical executives indicates that more than 20% of total US chemical sales will be driven by business-to-business (B2B) e-commerce in 2021.

Accurately forecasting inventory helps firms understand what they have. It also helps visualize the sales pipeline. With accurate demand forecasting, a plant can take measured risks and make informed decisions causing higher profits.

Demand Forecasting Challenges

Chemical companies often struggle to leverage huge volumes of data. Not understanding and using the data effectively can cause incomplete interpretations and communication errors.

The supply chain may have multiple stakeholders using different systems for enterprise resource planning (ERP), data management (DM) and supply chain management (SCM). Demand forecasting using these different systems often causes duplicate information and loss of crucial data.

Failing to use an integrated, sophisticated demand forecasting system limits a company’s ease of use and its ability to customize the software for its unique needs.

Figure: 1Demand Forecasting Challenges in Chemical Industry

Demand Forecasting Challenges in Chemical Industry

Demand Forecasting in Microsoft Dynamics 365

Microsoft Dynamics 365 Supply Chain Management (SCM) helps businesses adjust forecasts and view key performance indicators (KPI’s) more efficiently. Companies using this product can see demand trends and then adjust forecasts. The new forecasts seamlessly are used in inventory planning. By removing outliers, Dynamics 365 enables accurate measurements.

Dynamics’ Supply Chain Management tool follows a comprehensive flow for demand forecasting:

  1. 1.System gathers historic transactional data.
  2. 2.Machine learning uses the data to generate forecast and insights.
  3. 3.Collected data provides forecast visibility while allowing forecasts adjustments.
  4. 4.Approved forecasts are then authorized.

Figure: 2Demand Forecasting in Microsoft Dynamics: How it Works

Demand Forecasting in Microsoft Dynamics: How it Works

Microsoft Dynamics 365 SCM helps manage these complex demand patterns and improve inventory planning. Its features include:

  • Integrating Planning Optimization using demand forecasts to make informed decisions for master plans.
  • Creating, generating or importing the demand forecast based on operational models and company requirements.
  • Customizing demand forecasts that streamline the process by reducing intercompany orders and considering customer forecasts.
  • Increasing accuracy and margin with lean demand forecasting.
  • Graphing and creating interactive demand forecasts for real-time feedback anywhere on the trend line.
  • Seamlessly applying the demand forecasting tool with existing ERP. This harnesses data and generates accurate forecasts for improved inventory control and bottom lines.

Chemical companies can better predict demand by fortifying their IT infrastructure with the right tools. Using software that’s easier to use, more accessible and has greater accuracy enables them to improve their inventory planning. Integrated solutions like Microsoft Dynamics 365 provide a robust and complete demand forecasting tool, enabling businesses to set up and maintain optimal inventory control.

Key Takeaways

  • Demand forecasting in the chemical industry needs to move forward from conventional, spreadsheet-based models and tools to newer, more agile digital systems.
  • Microsoft Dynamics 365 offers chemical companies the ability to forecast inventory levels more accurately through visual, customizable and interactive features.
  • Increased focus on accurate demand forecasting helps chemical companies avoid stock-outs or over-stocking. It improves profits, strengthens supply chains and elevates overall customer satisfaction.

To learn more about implementation of demand forecasting in your chemical company, book a consultation with Xcelpros.

Book Now

Strategies to implement digital processes in the pharmaceutical banner
  • Xcelpros Team
  • No Comments

Strategies to Implement Digital Processes in the Pharmaceutical industry
Strategies to Implement Digital Processes in the Pharmaceutical industry 700 500 Xcelpros Team

ERP software provides a cradle to the grave system of tracing an entire supply chain.

Digitizing the pharmaceutical industry supply chain pays benefits to the companies, executives and employees. How? By allowing companies to be more efficient, resilient and responsive to rapidly changing customer requests and regulatory demands. This digitization allows for:

  • Near real-time tracking of raw materials.
  • Accurate raw materials inventory tracking.
  • Updated details quality control.
  • Batch tracking from production to final delivery.

Companies benefit from greater efficiency and better resource allocation. Better resource allocations means employees can be performing more meaningful work.

Key Advantages

Accountability is one of the key advantages of using enterprise resource planning (ERP) software. When a company inputs data for supply chain topics such as inventories of raw materials, quality control test results, warehouse storage temperatures and government recall notices, it has the company’s core data at its fingertips. Chief financial officers (CFOs) and chief technical officers (CTOs) can track any product from its raw materials source through development, testing, production and distribution.

When a company implements a fully digital solution, it has the ability to track any single item anywhere under company control. This permits more efficient use of raw materials—they go where they are needed now—and accurate planning for the future.

Raw Materials Purchase Order Workflows

Digitization dramatically speeds the ordering and delivery of purchase orders. With the click of a mouse, a company in the U.S. can send a PO to a supplier in India. The supplier can review the request and compare the materials and quantities requested to what is on hand. If the supplier lacks any of the requested items, it can either order it from a different firm or notify the requesting pharmaceutical plant. Either way, the production facility quickly knows what is coming and when.

Enterprise resource software such as Microsoft Dynamics 365 for Finance gathers information from multiple sources. It combines individual data points—a customer’s request for a new shipment, a salesperson’s request to have the order fulfilled, a stock check to determine if sufficient raw materials are on hand, an order to one or more suppliers for the active pharmaceutical ingredients (APIs)—in one place.

The end result is that instead of making numerous phone calls trying to locate everything, a chief financial officer can ask the question, “Can we fill this customer’s order now? If not, when?”.

Figure: 1Raw material purchase order process

Raw material purchase order process

Digitizing Quality Control Testing

Tracking products is important. So is tracking product quality. When the quality control testing process is digitized, CFOs:

  • Have access to standardized recording and reporting processes
  • Can act proactively instead of reactively
  • Have open lines of communication with different departments
  • See when a process is working and can discontinues those that are not

Digitizing these processes lets companies recognize and resolve quality control issues early in the process. They save money by not producing large quantities of inferior products.

It allows firms to recognize problems on the factory floor, saving the time and expense of shipping defective or poor quality materials—such as medicine stored at the wrong temperature—only to then pay for shipping it back.

Through digitization, quality control inspectors increase the speed of their inspections when they upload information into a centralized database.

Digitization also makes it easier for companies to comply with regulatory requirements. Required records and standards are a few keystrokes or mouse clicks away.

Data collected anywhere from cell phones, tablets and hand-held scanners allows workers to input inventory information. This can include creation dates, batch numbers, temperatures and anything required by company standards or to meet regulatory requirements.

Having digital records makes it easy for company quality assurance teams to create certificates of analysis (COAs). “A COA typically contains the actual results obtained from testing performed as part of quality control of an individual batch,” a report by InSource Solutions states.

When connected to an ERP system such as Microsoft Dynamics 365 Supply Chain Management, companies can:

  • Create quality orders based on trigger points
  • Document test results and then determine if they meet established criteria
  • Maintain nonconforming products to track down the original cause
  • Schedule error correction processes
  • Print a COA showing the test results

Figure: 2Quality control analysis from System Dynamics Supply Chain

Quality control analysis from System Dynamics Supply Chain

Batch and Lot Tracking

ERP programs such as Microsoft System Dynamics 365 Supply Chain Management allows companies to create and track specific production quantities.

For example, if an individual batch is created, the ERP program creates a label with a barcode or QR code on it. The label allows scanners to immediately access information such as the creation location, date and other relevant data. After the production batch is created, individual lot numbers are assigned. Serial numbers are then assigned to individual items.

Workers scan each batch and add its warehouse and location details, such as section, row and bin number. When batches are broken into lots, each scan updates the tracking information providing a clear path from the current location to its creation.

Using these codes, warehouse workers can locate any given batch, lot or individual item from the time of creation through storage and transportation until final delivery.

Lot Traceability

The ability to trace production lots is important not just to ensure that every item goes to the correct destination but to ensure when problems occur, they can be addressed quickly.

For example, a batch of Covid-19 vaccines is given an expiration date. New data arrives indicating that the original expiration is incorrect, prompting a safety recall.

Having digital barcodes on each lot and individual product allows pharmaceutical companies to track the batch and every lot from it. Requests to pull specific lot numbers are sent directly to affected customers only. Those receiving unaffected batches are not notified. Impacted customers can then be given instructions on what to do if they encounter a bad batch.

Digital Signatures

The days of requiring a person to manually sign a form acknowledging receipt of a delivery are long gone. The U.S. Electronic Signatures in Global and National Commerce Act (ESIGN) of 2000 ensures that electronic signatures are legal wherever federal laws apply. When federal law is not applicable, most U.S. states follow the Uniform Electronic Transactions Act (UEFA).

Now considered valid in terms of regulatory compliance are electronic signatures, such as using a stylus and tablet when making or receiving a delivery, and digital signatures. Digital signatures do not require a handwritten acknowledgement but are still considered legal, according to Adobe.

One of the benefits of using electronic signatures in the pharmaceutical industry more than paper versions is providing the proof of delivery. This authorization is readily available to authorized executives anywhere in the world within seconds. When questioned about a delivery, the electronic signatures provide proof of receipt.

Summary

Going digital saves companies time, money and unneeded expenses. Information can be organized more efficiently and is available on demand. ERP programs allow for accurate product tracking of raw materials and finished products, along with the added benefit of things like digital signatures and barcode scanning.

For more information on implementing digital processes in your pharmaceutical company, book a consultation with our team of experts.

Book Now

Embracing digital technologies to transform life sciences r and d banner
  • Xcelpros Team
  • No Comments

Embracing Digital Technologies to Transform Life Sciences R&D
Embracing Digital Technologies to Transform Life Sciences R&D 700 500 Xcelpros Team

At a Glance

  • Biotech companies are now more dependent on the latest technologies for innovation and pace. Mid-size and larger life sciences companies are looking to invest in tools that offer precision and efficiency in R&D.
  • 2020 brought a spotlight to pharmaceutical and biotechnology R&D as the world sought ways to curb the Covid-19 pandemic. Pharma companies adapted and implemented high-end technologies for faster results.
  • Cost-efficiency is also a major concern for pharma companies’ R&D. Newer tools enhance efficiency while reducing costs.

The year 2020 was unprecedented in many ways. It engulfed the world in an unheard of disease, locking everyone inside and putting a serious strain on the global healthcare system.

The entire world is now hoping for an effective vaccine to slow the spread of the Covid-19 virus. A vaccine or an effective treatment is at the top of every nation’s agenda. This focus puts tremendous pressure on pharmaceutical and biotech companies to fortify and speed their R&D. The ability to produce these products has direct impacts on our lives and businesses.

Even before the coronavirus pandemic, pharma companies were struggling to keep up with the demands for newer drugs, expiring patents, developing innovative formulations, etc. Compared to many other industries, the biotech and pharma sector was slow in terms of updating technology in business operations and labs. Times are changing and bringing R&D along.

The Tufts Center for the Study of Drug Development states the average cost to produce a new medicine is $868 million. -PwC

Updating R&D

Pharma and biotech companies want to make more efficient R&D choices. One goal is to ensure that more molecules from the initial phases become the part of the final product. New tools and tech are helping achieve these goals by:

1.Leveraging Data Analytics for Effective Insight Generation in the Lab: Scientists deal with numerous molecules, formulations and data-points while developing a drug. Manually keeping tab of all these data-points is cumbersome and time-consuming. It can lead to missing crucial data and other human errors, unintentional or not. Using “Big Data” and the latest data analytics tools, pharma companies are enabling their scientists to automatically collect, collate and manage large volumes of data.

2.Digitizing Labs with IoT: Labs become faster and more efficient by connecting every machine, enabling real-time information flow. This method generates quicker insights and results in faster decisions. Using internet of things (IoT) connected devices, the lab lets machines communicate with each other. The system becomes agile and proactive as compared to traditional responsive operations of the past. Digitizing labs helps predict and then eliminate bottlenecks. It removes ineffective molecules and formulations, strengthening the entire R&D workflow.

3.Digital Pathology with Virtual Staining: Virtual staining lets scientists highlight and study non-labeled sections of a single tissue for enhanced microscopic clarity. With the help of artificial intelligence-based tools, scientists can effectively digitize the entire process. These tools help automatically analyze radio images, pathological images and related medical data. Not only does this speed the entire process, it saves time and increases overall accuracy.

4.Creating a Shared Ecosystem between R&D Functions: R&D in pharma includes labs plus pre-clinical and clinical trials. Each function generates data points and massive amounts of information. With the help of digitally-enabled platforms, pharma companies can create a shared ecosystem that collects, classifies and provides centralized access to this data.

Example: Pfizer’s Precision Medicine Analytics Ecosystem provides shared access to information about genomics, formulations, clinical trials and other recorded data. Pfizer’s system allows scientists and researchers to simultaneously study possible outcomes and narrow down the best possible treatments.

Figure: 1Biotechnology R&D: Conventional vs. Digitally-enabled Processes

Biotech R&D: Conventional vs. Digitally-enabled Processes

The Covid-19 pandemic taught the world that leveraging technology for biotech and pharma R&D is not a choice but a necessity. Using the latest digital advancements, pharma companies are making a seemingly impossible feat possible by getting several vaccines approved for emergency use. Developing a vaccine for a novel pathogen in a year is truly a victory for science and technology. It also shows that the biotech and pharma sectors can create many new products by embracing the latest tools and technologies.

Key Takeaways:

  • Pharma/ biotech labs can be simplified and streamlined using newer tools powered by the latest technologies.
  • Pharma companies need to look into technologies to enhance efficiency and manage the financial aspects of R&D.
  • Adapting and implementing the latest technologies requires major changes and investments. In the long term, these investments will pay for themselves.
  • Digital trends are making R&D faster and more efficient, helping scientists narrow treatments and speeding clinical trials.

For more information on implementing digital technologies in your life sciences R&D, book a consultation with our expert.

Book Now

Thinking
Unlimited!

There is no box! We believe in the limitless possibilities of human potential powered by technology.

Subscribe Now

Chicago

1 Mid America Plaza, 3rd Floor Suite #226, Oakbrook Terrace, IL 60181

Phone: 630-869-0901

Bangalore

V4 Complex 2nd Floor, Krishna Kamala Enclave, Uttarahalli Hobli, Bangalore, Karnataka 560061

Search Services, Industries, Insights, and Products