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How a Pharma CDMO can manage the Serialization Challenge

How a Pharma CDMO can manage the Serialization Challenge 700 500 Xcelpros Team

At a Glance

  • Today, serialization has moved from being a luxury option to a necessity.
  • Pharmaceutical companies are hiring contract development and manufacturing organizations (CDMOs) to develop solutions that maintain drug quality while avoiding supply chain problems.
  • Pharmaceutical serialization lets manufacturers keep accurate track of their inventory wherever it may be.

As more pharmaceutical and chemical companies move to digitize their operations, they’re looking for ways to track raw materials and finished products through the manufacturing cycle. One way to track these products is through serialization.

“Serialization is the assigning of a predetermined coding type to each product item, assigning it a distinct identity” for tracking and tracing its location in the supply chain,” RFXcel.com states. A simple definition calls serialization, “the process of assigning a unique identity to each saleable product item,” according to Neurotags.com.

Pharmaceutical companies that have gone digital are starting to use serialization to track and trace their products throughout the supply chain. The industry is constantly looking to improve its tracking systems to combat counterfeiting, theft, packaging and storage errors. Companies are also worried about their products being altered after leaving their plants.

Pharmaceutical companies often hire contract development and manufacturing organizations (CDMOs). Using digital labeling methods such as barcodes and QR codes (a type of barcode) helps serialize the supply chain, making tracking raw materials and finished goods easier.

30-40% of all medicines circulated in the developing countries are counterfeit.
5-7% of all medicines circulated in the developed countries are fake. Source: WHO Report

Counterfeit drugs pose a serious threat to the public’s health. They also damage the reputations of legitimate companies and the pharmaceutical industry globally.

CDMOs worldwide face challenges when implementing a robust pharma serialization solution. Streamlining manufacturing and distribution processes while understanding their client’s unique requirements is challenging.

Serialization Challenges Faced by CDMO

Some of the challenges a CDMO faces while implementing pharmaceutical serialization for track and trace functionality include:

Seamless Serialization for Multiple Clients

CDMOs typically prefer to operate globally, providing comprehensive drug manufacturing and supply services to many pharmaceutical companies. Catering to a diverse client base has its unique set of challenges, especially when it comes to the serialization of individual drugs.

CDMOs need to equip themselves with the right technology to be able to modify their production or manufacturing lines and seamlessly label multiple drugs for different clients.

Regional Compliance

Every country around the world can have different regulations for exporting drugs. Labeling—or serialization—is part of that compliance. CDMOs are expected to take responsibility in terms of drug quality of drugs and compliance with various government rules. Being in compliance is challenging for CDMOs, especially considering the volume of information required to achieve it.

Figure: 1Key Serialization Challenges Faced by CDMOs

Key Serialization Challenges Faced by CDMOs

Picking the Right Labelling Solution

When it comes to drug serialization, a “one size fits all” approach to labeling solutions doesn’t always work. Assuming a CDMO has a preferred labeling software, there’s still the important decision of choosing:

  • Printer types such as thermal inkjet, thermal transfer, lasers
  • Printing materials such as paper, film or holograms
  • Special formulas to make counterfeiting harder

In terms of label design, everything must meet government codes and regulations. This applies to label layout, orientation, barcode configuration and other design elements. Every label must be printed in time to avoid delaying shipments. CDMOs are pressured to make the right choices for coding and labeling products.

Understanding Market Requirements

While larger pharmaceutical manufacturing companies use an in-house team of analysts and marketing specialists, smaller firms often rely on CDMOs for market intelligence.

When it comes to labelling client drugs, CDMOs need to understand the different markets and their requirements. Using market analysis, CDMOs must decide how many drugs need to be labelled for a particular market, including whether they’re choosing to label randomly or with a centralized approach.

Get Started to learn more about Pharma, request a consultation. CDMOs Can Handle All of Your Business’s Serialization Needs

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Overcoming Serialization Challenges

No two CDMO clients are the same and neither are the challenges each CDMO faces. In terms of how each company deals with its serialization issues, they should consider:

  • Equipping their workforce with the technical knowledge and details of serialization hardware and software
  • Making use of advanced technological applications like Big Data, cloud computing, the Internet of Things (IoT and advanced analytics)
  • Understanding how enterprise resource planning (ERP) software, like the Microsoft Dynamics 365 line of modular product, can help them maintain and monitor client data

With the right software and people skilled in its use, a CDMO can manage multiple production lines while meeting drug production requirements for different clients.

Investing in the right partner with experts that understand global pharmaceutical regulations will help CDMOs label and locate their products no matter where they are in the world.

Since CDMOs are not only vendors but also producers, they need to be in constant contact with their clients and suppliers. This includes dealers, wholesalers, packagers and transporters. Using the right ERP will help them maintain transparency at every level while avoiding recalls or stock-outs.

CDMOs benefit by developing flexible templates for their serialization solutions. These templates serve as a blueprint for any pharmaceutical client. Making them flexible lets a CDMO adjust a process to meet the client’s requirements, saving time, effort and money.

Final Thoughts

Drug serialization and labelling pose several challenges for CDMOs around the world. However, managing these challenges is an excellent opportunity for an organization to show its technological skills. When a CDMO has the right team and solution, it can overcome any challenge.

Taking advantage of products like Microsoft’s Dynamics 365 suite of solutions gives pharmaceutical companies access to powerful tools. Included is a way to track serialization, such as customer onboarding and lot traceability to toll manufacturing, from start to finish.

Using a powerful and effective ERP to enhance serialization will help a CDMO combat counterfeiting and theft while ensuring government compliance. At the same time, good software can also help a CDMO establish a more efficient supply chain.

Meeting serialization requirements for pharmaceuticals pose many technical and skill-based challenges. CDMOs worldwide are constantly looking for more efficient ways to handle these challenges. Investing in the right partner can make a big difference.

With the help of cutting-edge applications, a skilled team and a systematic approach toward serialization, CDMOs can establish themselves as leading end-to-end manufacturing and distribution partners.

References: What Is a CDMO (and Why Do You Need One)

How Azure helps SMBs grow

How Azure helps SMBs grow their businesses

How Azure helps SMBs grow their businesses 700 500 Xcelpros Team

Azure is

Small and medium businesses and enterprises (SMBs/ SMEs) looking to move into a secure and versatile cloud computing environment need to take a closer look at Microsoft’s Azure platform. About to enter its 12th year, Azure has provided a wealth of open-source programs, renowned security, cloud computing services, and scalability to help small and medium businesses grow.

Microsoft’s Azure is:

  • Hybrid cloud computing, letting companies create virtual machines on Linux or Windows platforms.
  • Application development including E-commerce and mobile products.
  • AI (artificial intelligence) aimed at helping mine knowledge from your existing data.
  • Cloud migration and modernization, moving information from an on-premise server farm to a distributed cloud.
  • Data and analytics, including blockchain.
  • The Internet of Things, allowing manufacturers to attach sensors to machine components and be alerted before critical failures strike.
  • Security, including disaster recovery.
  • Industry solutions covering financial services, government, healthcare, manufacturing, retail, energy, media, entertainment and space.

Azure features are helpful in all of these situations and more. Companies can create custom applications for their unique needs using open-source programs and run them through Azure. Additionally, Azure can seamlessly share data with other Microsoft products like Dynamics 365, Microsoft’s flagship enterprise resource planning (ERP) suite.

Azure and IoT: A Perfect Match for Manufacturing

IoT in manufacturing refers to a set of intelligent machines and equipment communicating in a network. Hundreds of connected sensors can monitor wear on equipment, relate temperature and pressure settings, and monitor flow rates.

Each of these sensors feed information into a computer network. The data then needs to pass from its source where it can be analyzed and turned into actionable intelligence.

This is a huge benefit if your company has a manufacturing plant in another country. Every team is aware of what the other is doing, and if there are any issues in the manufacturing process.

Connecting other Microsoft programs, like Dynamics 365 Supply Chain Management on top of Azure ensures your small to medium enterprise (SME) has accurate control of its inventory. With the global supply chain issues ongoing, knowing what’s where and how to get your products to your customers has become critical.

Azure is Open Source

Azure’s being open source means your developers can create programs that help your business and other companies. As a bonus incentive, as of Sept. 28, 2021, your company can earn Azure credits for open-source projects for one year.

Among the programs already taking advantage of Microsoft’s incentive are:

Figure: 1 Advantages of Microsoft’s incentives

Advantages of Microsoft's incentives

  • FreeBSD, a Unix operating system for servers, desktops and embedded platforms. The credits help developers work on custom kernels.
  • Alma Linux is an enterprise distribution system.
  • Snakemate, a workflow management system for creating scalable data analyses. The workflows can be scaled to server, cluster grid and cloud environments.
  • Promitor discovers Azure Metrics for easy use anywhere.

Often, taking advantage of open source technologies like these helps SMBs getting just started with Azure identify a number of new opportunities for growth. Quoting a 2020 McKinsey and Co. report, Microsoft states, “organizations that adopt open source technologies score 30 percent higher on innovation and 20 percent higher on developer satisfaction.”

One of the oldest open source programs around is Linux. Linux virtual machine(VM) images make up 60 percent of Azure Marketplace VM images. Pairing Linux with Microsoft’s Azure lets developers and businesses:

  • Spend less time on administrative tasks
  • Streamline the creation of fully governed environment using Azure blueprints
  • Protect your intellectual property (IP) and digital assets with the Azure IP Advantage program.

Among the seven products listed on the Azure Linux home’s website is one that lets you provision Windows and Linux virtual machines in seconds, one letting you migrate your current on-premise virtual machines to Azure, and another letting you gain deeper insights into your data.

Azure is IoT

Azure is designed for the Internet of Things (IoT). Azure IoT Central is a secure, industry-focused, enterprise-grade, and scalable app platform. As your business grows, your investment can scale with it.

Since IoT is able to create stacks of big data in real-time, Azure has been designed to provide quick connectivity between IoT devices and the cloud. This lets you track what’s happening and modify commands when unexpected situations occur, like an unexpected breakdown on the production line.

Azure’s IoT-based design provides a bridge between business applications, such as the Dynamics 365 ERP suite and your IoT data. Complex custom intermediate software is not required to interpret what your IoT sensors are telling so it can communicate with your ERP. Azure handles it for you.

The IoT Plug and Play app helps simplify device interactions, enabling easy device-to-cloud integration. This cuts development time, cost and complexity. It lets you build devices that integrate easily with Azure IoT cloud solutions without writing embedded code.

Azure is About Making Data Useful

One of the programs built for the Azure cloud services program is Azure Databricks. Azure Databricks offers three environments for generating data intensive applications:

  1. 1.Databricks SQL for analysts wanting to run SQL (structured query language) queries, letting them explore your data from different perspectives.
  2. 2.Databricks Data Science & Engineering provides collaboration between data engineers, data scientists, and machine learning engineers. Ideal for big data pipelines, Azure Databricks, can turn information from multiple sources into insights your SMB can turn into profits.
  3. 3.Databricks Machine Learning is an end-to-end machine learning environment for experiment tracking, model training, feature development and management plus feature and model serving.

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Azure is Innovation

Being open source, Azure has access to a host of shared programs.

CsharpCorner lists nine ways to run an application in Azure. They include virtual machines, Azure Kubernetes service, Azure Container Instances service, Azure Batch, Azure App Services Web Apps or Mobile Apps, Azure Function Apps and Logic Apps.

With more than 180,000 open source projects and more than 1,400 unique licenses, the odds of finding pre-built, easily customizable open source software are in your favor.

For example, the Azure Marketplace is promoting featured apps that support innovation and software needs in several industries:

  • Digital Factory: Digitize manufacturing processes such as performance tracking, production scheduling and log-keeping quickly and cost-effectively
  • Exact Globe: Designed for financial services, it integrates financial and operational processes creating best-in-class financial administration
  • Personalization Platform: Made for online retailers, it lets your customers have a personalized, relevant and intuitive experience

The Bottom Line

Azure provides security and flexibility with unparalleled potential growth in terms of computing. This in turn will help your company grow, especially if it wants to digitize production. Designed with the IoT in mind, Azure has features that let it seamlessly move information from machine sensors to ERPs. Any SMB considering moving beyond on-premises computing to the cloud should take a long, hard look at Microsoft Azure, and the growing number of open-source solutions. What’s your next move?

Freight Visibility in the Chemical Supply Chain

The Importance of Freight Visibility in the Chemical Supply Chain

The Importance of Freight Visibility in the Chemical Supply Chain 700 500 Xcelpros Team

Introduction

Having a complete view of inbound shipments is critical for chemical manufacturers. Maintaining accurate product counts, ensuring on-time delivery, monitoring rising transportation costs and complying with the Department of Transportation’s (DOT) regulations are some of the reasons.

As a highly regulated industry, chemical manufacturers are under constant compliance pressure at several levels, not just federal. A clear view of end-to-end supply chain visibility helps mitigate supply chain challenges.

For example, a single federal hazardous materials violation can cost your company anywhere from nearly $80,000 to $500,000.

Failing quality controls and product recalls come with steep costs. Adding competition, transportation, supply chain challenges, and growing customer expectations means chemical manufacturers can’t afford to make any mistakes.

One of the more manageable costs is freight. It can be expensive and daunting to manage when your organization makes hundreds of shipments daily.

Accurate labeling becomes critical in terms of understanding what is in each shipment. Labeling is also vital when planning the classification and storage of the materials, plus determining workforce requirements. Without a straightforward labeling method that all workers can use, ensuring end-to-end supply chain visibility becomes a nightmare.

Consequences of Poor Freight Management

Poor freight management can lead to several different problems, such as:

  • Damaged, lost, or late deliveries
  • Processing delays causing customer complaints
  • Delays in downstream work orders
  • Greater freight costs caused by carrier policies
  • Wasted raw materials and space due to unaccounted inventory
  • Decreased productivity due to poor scheduling

This list doesn’t account for accidents, either. What if hazardous materials get mixed up with another order? How will you know? Mistakes like this can be disastrous and even fatal.

One report states that unreported delays lead to an increase in inventory carrying costs, as high as 30-40% of total inventory costs.

Every stage of the chemical supply chain, from raw materials to end-user delivery, requires a significant amount of planning, tracking and implementation. Companies today need a centralized and secured solution that offers flexibility with the ability to integrate, automate, and be optimized regardless of location.

Enterprise labeling solutions boost efficiency, accuracy, and reliability, plus significant cost savings in these highly regulated environments.

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Managing Hazardous Freight – Responsibility of the Manufacturer and Carrier

Penalties  for Violation of Federal Hazardous Materials

It’s the manufacturer’s responsibility for identifying hazardous materials, not the freight carrier’s. Whenever chemicals are being shipped, it’s up to the manufacturer to ensure its documentation, labeling and packaging all meet government standards.

Among the most common items on a hazardous materials manufacturer’s shipping checklist are ensuring all of the following items are current:

Hazardous Materials Manufacturer’s Shipping checklist

  • Contents meet the federal definition of “Hazardous Material”
  • Employees are properly trained
  • Correct packaging is used
  • Blocking and bracing requirements are outlined
  • Shipping manifest is complete and accurate
  • Emergency response information is included
  • Emergency response contact information
  • Certifications are complete
  • Security plans and processes are in place
  • Incident reporting procedures are being used
  • Product Compatibility is accounted for when shipping multiple chemicals together

Among the correct documentation requirements are:

  • Shipping name
  • Classification/ Division
  • Identification Number
  • Hazard warning labels and markings

Freight carriers have their responsibilities, too. These include validating the following:

  • Accuracy of the manufacturer’s packing lists.
  • Products are accurately described and adequately packaged.
  • Vehicle is suitable for shipping chemical products and is in good repair.

Carriers, as well, have additional responsibilities when transporting hazardous materials. These include:

  • Documents and manifests are accurate and complete
  • Proper labels and placards are in all required positions on the vehicle and the shipment
  • Loading and unloading meets safety guidelines
  • Employee training is complete
  • Security plans and processes are up to date
  • Incident reporting procedures are up to date
  • Adequate blocking and bracing meets government guidelines
  • Product compatibility is considered when shipping multiple chemicals together

The Real Cost of Freight

The actual cost of freight can only be realized after a product reaches its final destination. The final cost of deliveries can be influenced by a number of different fees for layovers, oversized cargo, after-hour deliveries, mispacked orders, incomplete manifests and damage incurred during shipping and unloading.

Large businesses making hundreds of shipments a day are often able to absorb shipping cost fluctuations that might severely hurt small and medium businesses. Unfortunately, manufacturers shipping products don’t always know what will trigger additional fees. These issues with inbound shipments can affect all departments in a supply chain: Sales, Planning, Purchasing, Production, Accounting, and possibly more.

Understanding your transportation process inside and out is the most effective solution to address supply chain challenges in the chemical industry. Staying on top of every process, every step of the way lets you track and monitor the movement and condition of products from start to finish. Lack of visibility into shipping is the most challenging thing to correct and can significantly impact both manufacturers and shipping companies.

55%

of Third Party Logistics suppliers (3PLs) said they either lost business or didn’t know if they lost business due to lack of visibility of their offerings.

Source: American Shipper

Outdated Systems

Even today, a surprisingly large number of companies continue to run their operations on antiquated inventory tracking systems designed to manage local-only supply chains. Successful supply chains operate globally, connecting production and procurement to sales and customer service. This way, everyone knows what’s in transit and when it’s due to arrive.

Maintaining freight visibility, especially for a company spread thin, is not an easy task. Obsolete, “legacy” systems make it an even more challenging objective.

A modern, cloud-based solution provides a complete end-to-end view of a supply chain network.

Switching operations to an integrated, multifunctional transportation management system (TMS) platform brings agility to your transportation network. This kind of switch offers better support for seamless communication, allowing companies to respond proactively to unexpected issues and customer demands.

Disparate Systems

Effective coordination and collaboration should be needed across multiple sites and warehouses to manage a supply chain effectively. Running a business on many different applications is one of the biggest roadblocks to total freight visibility. If your organization’s systems can’t connect with your vendors, there’s a good chance you’re missing something.

Having an inventory control system that communicates with your suppliers’ improves inventory management, communication and freight visibility. Connecting a Transportation Management System (TMS) with warehouse operations allows shippers to find detailed insights from inbound and outbound logistics within a single unified platform.

Lack of collaboration

Tracking shipments in real-time is the core of transportation management. When loads are distributed across different carriers, getting reliable data from the entire carrier network can be a real challenge. Trying to track shipping information manually leads to inaccurate quotes and customer complaints.

Combining  business intelligence and advanced analytics offers real-time shipping and location data visibility. The data delivers accurate tracking information directly from the supplier’s carrier to the shipper. Your customer will always know when their products are due to arrive.

Finding the Right Solution

Most logistics solutions are unable to display “right now” data on incoming shipments and outgoing orders. If you’re in the process of figuring out what solution will be best for your business,there are a few questions you’ll want to be sure you ask:

  • Does their system have AI-enabled software that automatically records vehicle movement, be it truck, ship or plane?
  • Can their system generate automated email alerts in real-time?
  • Does their solution connect the vehicle and the driver, letting you know when unexpected hurdles or opportunities occur?
  • Is their system integrated with other essential business systems your company uses?
  • Are they using software as a service technology providing your company access to your data any time, any where?
  • Are upgrades done automatically through cloud computing, eliminating the need for on-premise upgrades?
  • Is their software a complete package or just a part of the delivery ecosystem?
  • Can their system communicate data easily with other TMS systems, electronic logging devices or enterprise resource planning systems?

Final Thoughts

With the anticipation of continued, long-term shipping challenges, more chemical manufacturers see the need to take a close look at their supply chain management software. Knowing exactly where incoming shipments of raw materials and pre-assemblies are and when they’ll arrive, along with the ability to track products from your facility to your customer’s door, every step of the way, is becoming more and more critical to customer retention.

Best-in-class organizations are embracing newer technology to help spot and correct problem points before they become a roadblock. The goal is to reduce expenses by lowering total shipping costs.

Reach out to us to learn more about Microsoft Business Applications that can help enhance freight visibility.

Best Practices in Quality Management and Control

Quality Management and Control – Best Practices

Quality Management and Control – Best Practices 700 500 Xcelpros Team

Introduction to Quality Management and Control

Reducing the amount of defective products saves manufacturers money. Cutting raw materials waste, using labor and equipment more efficiently, and reducing returns from unhappy customers are all ways to save money when product defects are reduced. Boosting quality control in manufacturing can also lead to an enhanced customer experience, supercharging your brand while lowering the need for extra raw materials to replace anything wasted.

Three ways any industry can improve quality control include:

  1. 1. Reducing human mistakes by automating repetitive actions. Automation also improves accuracy and increases visibility. Combined with internet of things (IoT) sensors, automation creates data that can be analyzed for hidden incremental improvements.
  2. 2. Inspecting, testing, and comparing products to defined standards. Products that meet those standards are shipped. Those that don’t are recycled. Adding computerized sensors in the inspection and quality control phase also provides an opportunity for insights into ways to create and build quality control standard operating procedures (SOPs).
  3. 3. Tracking inventory from the material supplier through warehouses and production to the end customer’s door. Accurate labeling lets manufacturers trace everything from essential ingredients to sub-assemblies and completed products. Using barcodes combined with automated and hand-held scanners provides a third data entry point into your firm’s network, ensuring most of what goes in comes out as salable products.

Using these three quality control methods in production can help your company create an efficient production cycle that reduces machine downtime, defects, and waste rework. The result is better merchandise and less waste, benefiting customers and manufacturers alike.

Quality Control Starts with Quality Planning

For many, focusing on quality control, or QC, means creating an efficient, consistent manufacturing process that gives the same results every time the process is repeated. The only way to ensure this consistency is with a well-formulated quality plan.

As a manufacturer or company who uses contract manufacturers, you likely focus on two critical elements: quality and cost. The best way to deliver the highest quality at the lowest cost is to start with quality planning. The American Society for Quality defines quality plans as “a document or set of documents that describe the standards, quality practices, resources and processes pertinent to a specific product, service or project.”

A quality plan for manufacturing ensures:

  • Conformance to your customer’s requirements, which may include meeting government standards.
  • Verification of your own standards while confirming your internal procedures work as expected.
  • Tracking the motions of every product, from the moment raw materials or sub-assemblies enter your premises, to their delivery at your customer’s door.
  • Consistent results via ensuring the quality methods in production work as designed and as expected.
  • Deficiencies in worker training are identified, allowing them to be corrected.
  • Insights into ways to further enhance your quality control standard operating procedures (SOPs).

The major components of a quality plan which must be stated and defined:

  • Responsibility for distribution, in terms of which manager or department confirms each step in the process so the end result aligns with the company’s goals.
  • Process steps and individual procedures for each step in the overall production process.
  • Testing requirements and the amount of government oversight vary by industry. For example, medicines or chemicals have significantly more regulations to comply with than furniture, for example.
  • Methods for tracking changes and modifications, regardless of the cause.
  • Quality process measurement in terms of value provided by the quality plan.

The final and most essential components of a quality plan are standards: What practices and procedures must be followed in your quality plan so that manufacturing meets requirements, customer’s needs, and government compliance requirements?

The Value of Standard Operating Procedures (SOPs)

A key part of quality control in manufacturing is having standard operating procedures (SOPs) that are easily replicated. Each step in each procedure making up the entire production process is checked, re-checked, and confirmed by those designated to follow that specific SOP. The final test is completed by having a new hire follow said procedure and reviewing their results. When the results from a new hire are able to meet set production quality control standards, the SOP can be considered a success. When the results do not meet set production quality control standards, the fault lies with the SOP document, not the worker.

According to the U.S. National Library of Medicine at the National Institute of Health, Standard Operating Procedures (SOPs) create a structured approach to work and guarantee consistent execution of tasks by all individuals involved. Well-crafted SOPs play a critical role in maintaining Good Clinical Practice (GCP), preventing errors, reducing waste, and avoiding unnecessary rework. On the other hand, poorly articulated SOPs can lead to misinformation and confusion.

These documents must be user-friendly and written in a way that is easy to follow and leaves little room for errors. Preventing errors via SOPs improves quality, reduces waste, and when written with input from people involved in the actual manufacturing process, boosts efficiency.

The Role of Quality Assurance

In manufacturing, quality assurance (QA) encompasses the practices that manufacturers employ within a quality management system to uphold expected levels of consistent quality for the items they create.

When paired with quality control, quality assurance works to ensure customers receive products that meet specific standards, in terms of defects and tolerances. QA is a proactive method that works via employee training, defining processes in written SOPs, and selecting the right tools for each job. QC looks at the results from QA and determines if a product passes or fails.

Effective quality control and quality assurance plans, combined with quality auditors ensuring standards are met, results in cost savings, boosted efficiency, and boosted customer satisfaction.

Figure 1: The Role of Quality Assurance

The Role of Quality Assurance is to boost customer satisfaction and efficiency and provide cost savings.

The Role of Quality Assurance

  • Cost savings in terms reduced waste
  • Using equipment more effectively boosts efficiency

Quality management standards vary by the industry, though one of the most common is ISO 9000. A set of international quality standards, ISO 9000 covers many different industries and approaches.

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Quality Management Systems

A Quality Management System (QMS) is a structured framework that captures the essence of how things get done right. It’s all about documenting processes, procedures, and responsibilities, with the ultimate goal of achieving quality policies and objectives. By coordinating and directing an organization’s activities, the QMS plays a vital role in meeting customer needs, fulfilling regulatory requirements, and always striving to be better, faster, and more efficient.

An effective QMS helps manufacturing companies:

  • Define production processes
  • Reduce waste
  • Prevent mistakes
  • Lower costs
  • Engage staff
  • Set an organization-wide direction
  • Communicate a readiness to customers that it wants to produce consistent results

In today’s digital world, QMS doesn’t stand alone in a silo: it’s part of a company’s overarching software linking QA and QC to inventory, sales and other departments. One example of a versatile QMS is called Integrated Chemical Management (iCM), which integrates fully with Microsoft’s flagship enterprise resource planning (ERP) solutions Microsoft Dynamics 365 Finance, Supply Chain Management, and Business Central. When integrated with Dynamics 365, iCM  provides a scalable, easy to use overarching quality management tool that helps with on time delivery (OTD) for products, under budget.

When merged with internet of things (IoT) sensors on production machines, Integrated Chemical Management (iCM) and Dynamics 365 manage and massage data. Among the results are ways to make incremental quality improvements that boost long-term overall quality scores, resulting in more sales and customer satisfaction.

Summary – Quality Management

For any company, producing higher-quality products takes forethought, patience, and serious effort. This means having a documented quality management plans that include step-by-step directions for every procedure and every part of the production process.

When it comes to manufacturing, an effective quality management plan looks at quality assurance and quality control, examining and testing various stages of the production process to ensure everything meets your demanding standards, boost efficiency, and reduce wasteful practices.

Helping measure these results is a modern quality management system like Integrated Quality Management (iQM) from XcelPros, which integrates fully with Microsoft Dynamics 365 Finance and Supply Chain Management. When used as part of an overall ERP software plan, iQM helps companies find ways to improve quality while reducing costs. This leads to an overall effect is a boost in profitability, helping power additional growth and granting ROI.

Taking the time to plan how to function in these uncertain times is essential. Using software tools such as Microsoft Dynamics 365 Finance, Supply Chain Management, or Business Central will help companies continue to operate successfully in rapidly changing conditions.

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How To Enhance Your Chemical Supply Chain

How To Enhance Your Chemical Supply Chain

How To Enhance Your Chemical Supply Chain 700 500 Xcelpros Team

At a Glance

  • Today’s chemical industry is all about enhanced visibility and accountability.
  • Dealing with varying laws and regulations for different regions, fluctuating and lack of visibility across the board requires advanced solutions.
  • Integrating advanced technologies can reduce waste, unearth new products, find new markets and enhance a company’s status.

Change in Operations

Chemical companies, especially pharmaceutical companies, are seeing an increase in the need for global reach.

Since its first discovery, the effect Covid-19 has had on supply chains has been severe, regardless of product. As with many problems, this disease has also created numerous opportunities, especially for the chemical industry. Major companies continue to expand operations, delivering their products worldwide, including former “third world” countries with a growing thirst for everything from antiviral medications and cleaning products to beauty supplies.

“The chemical industry touches nearly every good-producing sector, making an estimated $5.7 trillion contribution to world Gross Domestic Product (GDP) through direct, indirect and induced impacts, equivalent to seven percent of the world’s GDP, and supporting 120 million jobs worldwide.” Source: The Global Chemical Industry

This data from the ICCA shows a considerable market share, making it safe to say that the chemical industry is looking at a secure future. Globalization, however, requires dealing with unique challenges and roadblocks, especially regarding the movement of chemicals from supplier to producer and consumer. Today’s supply chain management won’t work in silos. That idea is no longer sustainable or feasible. Today’s global marketplace requires expanded thinking, and that means going digital.

Today, planning a chemical supply chain means using effective, profitable methods where customers, suppliers, parts vendors, shippers, sales and production facilities are connected, regardless of their physical locations. Modern software like Microsoft Dynamics 365’s suite of modular programs can help chemical companies use modern digital methods and enhance the operational efficiency of their supply chain.

In this article, we will look at some of the key supply chain challenges in the chemical industry today and how technology is playing a key role in enabling forward-thinking companies prosper.

Top Challenges in Chemical Supply Chain

Every company has its own set of challenges, such as the size of the company, the locations of its manufacturing units and the structure of its supply chain. Regardless of an individual firm’s situation, all chemical manufacturing companies face common supply chain issues.

Typical chemical industry supply chain challenges include:

  • Distributing chemicals and related raw material in different countries. Companies struggle to keep up with the laws and regulations of varying regions. What’s safe and acceptable in one country may violate worker safety laws in another. This is especially true when it comes to hazardous chemicals.
  • Existing chemical supply chain management can fall prey to manual errors and miscommunications, causing potential safety hazards and monetary loss.
  • The bottom line often depends on a company’s ability to source raw materials. When prices for essential materials fluctuate, the entire supply chain can be affected.
  • Tracking material pricing and delivery details create a lot of data. This includes information regarding the chemicals, their compositions, material pricing, safety precautions, distribution lists, and more. Managing this information is a top concern for chemical supply chain managers.

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Figure: 1 Supply Chain Challenges in Chemical Industry

Supply Chain Challenges in Chemical Industry

3 Ways Technology is Reshaping the Chemical Supply Chain

01.Technology Enables Creating a Connected System

Today’s world is much more connected than it used to be. Systems are linked with smart devices, modern sensors and powerful software running it all. With these sophisticated enterprise resource planning systems in place, it becomes much easier to organize your chemical company’s supply chain. Modern systems can generate an alert when a violation occurs. These automatic alerts reduce manual errors or oversights.

A connected ecosystem provides top-to-bottom visibility in the supply chain, giving top-level decision-makers a clear picture and greater transparency across the board. This enables better accountability and the ability to find solutions to common problems and bottlenecks.

Figure: 2 New Technologies in Supply Chain

New Technologies in Supply Chain

02.AI Helps Create a Failsafe Supply Chain

Chemical supply chain management is highly susceptible to changes in prices of raw materials. To stay ahead of the curve, companies need to stay up to date on global, as well as regional changes to predict how these changes will impact their supply chains.

Artificial intelligence(AI) enabled solutions can analyze data in real-time, letting decision makers know what is likely to happen, how it will affect them and most importantly, what they can do to avoid or reduce any impact. This software can help these companies make necessary modifications to their supply chain strategy on the fly.

03.Using Cloud Computing to Manage Supply Chain Data

Data collation, cataloging and analysis, are intricate tasks. When performed by people, they can be prone to manual errors. However, with progressive technological tools like Microsoft Dynamics 365 Supply Chain Management, companies can store unlimited data and analyze it much more efficiently. This categorized and analyzed data can be leveraged to generate insights that help fortify the company’s supply chain for smooth transitions and better efficiency.

Supply chains are the backbone of many industries. The chemical industry needs to adapt to changing times, and make use of the right technologies to harness maximum benefits.

Key Takeaways

Like any industry, the chemical industry is witnessing the need for change in its supply chain model. With the help of cutting-edge technological tools and applications, chemical supply chain management can be overhauled and optimized for enhanced efficiency. Is your supply chain ready for a change?

References: Chemical Supply Chain: Challenges and Opportunities in the Era of AI

Five Steps to Transforming Manufacturing Operations

Five Steps to Transforming Manufacturing Operations

Five Steps to Transforming Manufacturing Operations 700 500 Xcelpros Team

Introduction

Lasting effects of the ongoing Covid-19 pandemic continue to disrupt numerous manufacturing operations as the year draws to a close. Companies not only surviving, but thriving were those already undergoing a digital transformation to their manufacturing operations.

“Digital transformation is the transformation of business, industrial products, operations, value chains and services that are enabled through the augmentation of people, knowledge and workplaces through the expanded use of digital technologies. It’s about the people in the workplaces, the processes, the technologies and services,” Janice Abel wrote in an ARC Advisory Group blog post.

Today, digital transformation is all about rethinking the way your company functions. Is it a series of departments that act like independent nations, each competing for scarce resources and seldom sharing information? Or is your company a unified operation where department names are merely labels and the data created by one is open and accessible to all?

At the end of the day, digital transformation in manufacturing is all about enhancing customer service. Taking good care of your customers leads to more sales, better growth opportunities and higher profits. Achieving that goal requires breaking down barriers and ensuring free-flowing information between all employeesF.

Sharing this data in a timely fashion requires a manufacturing execution system (MES) and a manufacturing operations management (MOM) process. MES is computer software, while MOM may be software or an overarching process. An MES helps track raw material consumption during production. A material resource planning (MRP) package helps you prepare your production inventory.

According to an ARC survey, most manufacturers deploy MES solutions to connect the information in different silos and plants. While there is some visibility, data silos remain even though artificial intelligence (AI), machine intelligence (MI) and other digital methods are being used to varying degrees.

Driving Digital Transformation

Ongoing supply chain disruptions are having a huge impact on manufacturing companies. When questioned about the resilience of their manufacturing and supply chains, the overwhelming response was “not very,” according to a recent blog by Forbes.

Forbes posted some response numbers from the Fictiv 2021 State of Manufacturing Report about existing supply chains:

  • 94% of respondents had some concerns
  • 55% worry that increasing digital operations increases security risks
  • 47% state that supply chain management overhead costs are too high
  • 42% believe that working with global markets creates intellectual property risks
  • 31% think that lack of visibility into operations creates risks and uncertainty

The Fictiv report quoted by Forbes concluded: “The way we manage supply chains and manufacture goods has been forever altered.

Cost overruns were a key concern for 81 percent of recipients while 55 percent were worried about information technology security with their current supply chain.

“Whatever the issue, it’s clear the old way of operating is no longer optimal,” Forbes states. Using digital methods to manage manufacturing has essentially replaced the older methods, at least according to this survey.

  • 95% of respondents believe digitally transforming their manufacturing operations is essential to their company’s future
  • 91% of respondents reported an increase in digital transformation spending
  • 77% defined their digital spending boost as “dramatic” or “significant.”

A Different Perspective

Digital technology enhances productivity, reduces costs and boosts innovation. Manufacturing companies that pay careful attention to their data are able to use it more efficiently to help find and develop new revenue streams.

Figure: 1 How the Internet of Things (IoT) is integrated with Operating Technology (OT)

How the Internet of Things (IoT) is integrated with Operating Technology

At its core, the currency of automation, optimization and profound transformation can help turn new business models into an “as a service” economy, I-scoop suggests.

Many companies transform their manufacturing operations by using the internet of things (IoT) coupled with operational technology (OT) and automation on the production floor. IoT sensors in many devices let computer programs track data as each potential product makes its way through the production process.

Mechanical engineers are able to maintain equipment to more refined levels of precision. Software engineers are using the data provided to reduce waste and find new ways of boosting efficiency. Enterprise resource planning (ERP) software uses the data to ensure machines are scheduled efficiently. The ERP software helps ensure a near continuous flow of material, even when humans aren’t present.

Learn more about the impact of digital transformation on manufacturing operations.

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Roadmap to Your Digital Transformation

The first step for companies yet to embark on their digital transformation is creating a roadmap. Without understanding what direction you want your business to go and how to get there, any results are likely to be far less than desired.

At a bare minimum, formulating a plan ahead of time helps:

  • Set priorities
  • Manage change
  • Identify and allocate resources

A well thought-out roadmap can help plan your entire journey, or identify problems and new opportunities as you work towards your goal.

Major steps in creating a digital manufacturing roadmap include:

1.Clearly define and help your company’s current position and its digital strategy. Stating concrete, achievable goals and then communicating them with partners, employees and clients helps everyone understand what they need to do so that everyone benefits.

2.Defining your financial baseline. Making demands of whatever system you choose to go with, only to balk at the resulting price, is no benefit to anyone. Having a plan to only move to the next digital manufacturing transformation phase when you reach specific financial goals makes financial sense and motivates to reach those incremental goals.

3.Ensuring internal Agile processes are ready to go. Breaking your production process into smaller chunks lets you create products and services faster by having processes run concurrently instead of sequentially.

4.Assessing your technology and talent. Understanding what equipment you need, and what skills are required to operate it, lets you start training existing staff or adding new employees ahead of time. Having people who know what they are doing as you implement each phase ensures your digital transformation proceeds smoothly.

5.Choosing the right digital transformation partner. Having a partner experienced in your industry means they’re likely familiar with any problems you may face. Having seen them before, they already know what solutions work and what is a waste of your money. The right partner can also help you set short- and medium-term goals, ensuring your transformation is progressing according to plan.

Final Thoughts

Embarking on a new digital transformation pays numerous benefits in the long run. One of the biggest benefits is the ability to rapidly respond to customer requests for new or unique products, resulting in more efficient MAAS (manufacturing as a service).

The most important thing to remember when looking to complete your transformation is the need for a detailed roadmap and ensuring you have a digital transformation partner who understands your industry and can help you overcome any hurdles along the way.

Connect your business to drive productivity and profits

Brochure Connect your business to drive productivity and profits

Brochure Connect your business to drive productivity and profits 400 400 Xcelpros Team
Cros move from conventional project management to strategic partnership banner

How Life Sciences CROs Are Changing To Strategic Partners: The Covid-19 Effect

How Life Sciences CROs Are Changing To Strategic Partners: The Covid-19 Effect 700 500 Xcelpros Team

At a Glance

  • The biotechnology and life sciences industry is at a cusp of significant changes due to COVID-19. A lot of fluidity is built up due to the pandemic and a significant dependency on government rules, FDA regulations, intricate drug production and overall research and development.
  • These firms are looking for Contract Research Organizations (CROs) who can take the role of strategic partners that can manage their life sciences research & development. The preference of CROs has already shifted from traditional to technologically adaption that can handle the rapid pace needed due to the existing COVID-19 emergency.
  • The call for innovation and increased collaboration among CROs has led to a new, more comprehensive project management era. It is improving customer engagement and experience.

The Role of a Contract Research Organization

Project management is the backbone of any contract research organization. Regardless of its specialty–biopharmaceutical development, commercialization, preclinical research, clinical research, clinical trial management or pharmacovigilance-all require project management. Pharmaceutical and life sciences companies outsource research and development work to CROs for better time management, test data maintenance and focus on concrete results.

While the role of CROs was not very well defined in the early 2000s, they have evolved from being mere project management vendors to strategic partners for life science organizations. Contract work is now common in various steps of the research life cycle. Adding contractors is now a necessity for the R&D wings of any biotechnology or pharmaceutical company.

Active engagement with CROs helps accelerate the drug development process. In the Covid-19 era, these CROs must be prepared to streamline their project work without a process breakdown.

CROs have evolved from a target-based model to become more a strategic partner to life sciences and biotechnology companies.

Pharmaceutical companies conduct sponsored trials, driving their products safely and quickly to the market. Initially, these projects were outsourced to CROs with a limited scope of time and budget management. Now the CROs are expected to manage risks and maintain transparency throughout the clinical trials. The rapidly expanding biochemical industry demands that CROs keep up with market conditions.

According to contract research organizations global market report, The global market for clinical trial services to biopharmaceutical, biotechnology and medical device companies is forecast to grow at 12% year on year up to 2021.

This stat is already obsolete. The need for contract research and development services is increasing as life science companies seek to find effective treatments and possible cures for the SARS Covid virus.

Figure: 1 Steps for Right Partner Selection

Steps for Right Partner Selection

Growth and general technological disruptions in project management are leading to a progressive change in the roles of CROs while managing sponsored clinical trials.

Situations affecting CRO evolution

  • End-to-End Strategic Partnerships: CROs are no longer just outsourced vendors for life sciences companies to carry out Pharma research or conduct clinical trials. CROs are now expected to become pharma companies’ strategic partners, helping make their clients successful. End-to-end coordination with pharmaceutical companies gives these organizations the time and stability they need to focus on core research. Coordinating from the start helps the CROs capture the right kind of clinical data required to make each drug commercially viable.
  • Bringing Innovation to the Table: CRO project management is not just about completing given tasks while meeting their client’s deadlines. Working closely with their customers means changing how they work. That, in turn, requires newer project management approaches that take research from start to finish. Pharmaceutical companies expect innovative, out-of-the-box solutions to manage risks, cut costs and push the boundaries of paramedical science while complying with the government’s rules and regulations. An important change is that CRO project management has moved from being reactive and solving problems to becoming proactive, anticipating problems and providing solutions.

Figure: 2 Key Parameters CROs are Assessed on

Key Parameters CROs are Assessed on

  • Being Technologically Ahead: Companies can start with three main technology initiatives: transitioning to cloud computing; creating strong workflows to move processes and procedures forward; using online collaboration tools.
  • Each of these above points leads to faster results, fewer errors, better team management and improved communication between the client and the CRO during the project life cycle.

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Customer Experience and Engagement

A crucial part of project management is actively engaging clients when a project requires collaboration. Customer experience and engagement can no longer be ignored. Making a strategic partnership work requires communication between everyone involved.

An effective customer experience approach requires knowing what to do, how to do it and using every available tool to create acceptable results.

Connect your processes, customer data and tools with Dynamics 365 and the Microsoft Cloud

Customer Experience (CX) and Customer Engagement (CE) can be made better for a CRO

01.Process and Procedures

Some ways to improve the customer experience and boost customer engagement are:

  • Improving team management
  • Quick onboarding of clinical trial experts
  • Using effective cost management techniques
  • Proactively managing clinical trial risks
  • Mitigating probable risks strategies
  • Using detailed analytics to monitor, report and understand research data
  • Using resource planning tools to optimize resources for multiple projects
  • Simplifying milestone-based billing
  • Improving deviation-tracking methods to remove unknowns early in the project lifecycle.

Life science CROs should consider using a next-generation customer experience platform to accelerate development and drive demand. Microsoft Dynamics 365 is one such system that offers the essential tools and capabilities in one comprehensive ecosystem.

The seamless integration between Dynamics 365, robust cloud computing, artificial intelligence and tools such as Office 365 can help. Dynamics 365 is a class-leading life science customer engagement platform that functions across mobile devices, which is a large market need.

02.Digital Advancement

To enhance their customer experience and engagement, companies should:

  • Move from legacy systems to the cloud
  • Use advanced analytics for risk prediction and mitigation
  • Systematically manage their R&D database with digital applications
  • Use software tools to Improve collaboration with clients
  • Reduce human intervention and automate project management workflows
  • Create customer and supplier self-service portals to engage both
  • Use in-line reporting through key project milestones to build trust and visibility with customers

03.The Inevitable Evolution

The changing role of CROs is leading to greater expectations from life sciences clients. Pharmaceutical companies are looking for CROs that are not afraid to push boundaries and are adept at using the latest tools and techniques.

Companies aiming for greater customer satisfaction can use cutting-edge technologies to engage with CRO’s at an integral level. As a result, CROs are becoming be more innovative and agile in their project management approach.

An interdependent relationship helps with clinical trials while improving the client company’s overall research and development. A well-managed and organized workflow-based environment helps contractors and clients.

Two tools that can help build this interdependency are Microsoft Dynamics 365 Finance combined with D365’s Supply Chain Management. The two modules can help create a comprehensive system to aid a CRO in becoming better strategic partners with Pharma and Biotech companies.

Figure: 3How to Create Successful Sourcing Partnerships?

How to Create Successful Sourcing Partnerships

Increase your speed of business with unified processes and predictive analytics

The speed of doing business is increasing. As companies seek to stay competitive, they must rely on technology to provide agility and the capabilities needed to excel. However, many organizations are still running on ERP systems that are complex, inflexible and impede their ability to innovate and grow.

Microsoft Dynamics 365 helps you to

  • Elevate your company’s financial performance and streamline its supply chain management
  • Innovate with connected operations in an extensible platform
  • Drive HR operational excellence through organizational agility and centralized data
  • Unify the processes listed above with predictive analytics and intelligence
  • Track and trace inventory management
  • End-to-end customer project management

Key Takeaways

CROs are transforming from time-bound project management consultants into performance and results-oriented firms.

  • As technology evolves, so do project management tools. CROs are equipping themselves with these tools for better time management, budget management and risk mitigation.
  • Technology allowing smoother customer and supplier onboarding for clinical trials is needed today.
  • Pharmaceutical companies are looking for CROs to manage R&D projects end-to-end while providing innovative solutions.
  • While time management and cost management will always be top priorities for CROs in any project, they must also offer greater returns to their clients.

References: Overview of CROs

using AI ml-in the pharmaceutical industry key considerations banner

Using AI & ML in the Pharmaceutical Industry – Key Considerations

Using AI & ML in the Pharmaceutical Industry – Key Considerations 700 500 Xcelpros Team

Introduction

Artificial intelligence is one of those science-fiction-sounding phrases, but what does it mean to people in the pharmaceutical industry? What is the difference between AI and its cousin, ML, which means machine learning? How can the two types of computer software make pharmaceutical companies more efficient and profitable?

The answers are in what they do and how AI and ML work together.

AI can be defined as using computer algorithms—math—to perform tasks requiring human intelligence. IBM defines AI as “leveraging computers and machines to mimic problem-solving and decision-making capabilities of the human mind.”

“It is the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, but AI does not have to confine itself to methods that are biologically observable,” John McCarthy was quoted as saying in a 2004 paper.

So if AI acts like somewhat like a human mind to solve problems, how is machine learning different?

“Machine learning is the study of computer algorithms that can improve automatically through experience and by the use of data. It is seen as a part of artificial intelligence,” Wikipedia states.

In essence, the two types of programs work together to analyze information.

For example, say the first 100 production runs of product XYZ1000 have a 70 percent success rate in terms of meeting basic quality standards. Analysis shows the difference between success and failure is one step. Every run where the temperature was kept within a 0.2-degree range succeeded. Every run where the temperature exceeded 0.5 degrees failed. Logic says that keeping the temperature within that narrow range boosts success which, in turn, improves productivity.

Machine learning tells operators, “keep the temperature within 0.2 degrees for this one step.” Artificial intelligence builds on machine learning. It says, “by keeping everything else the same and keeping the temperature in this single step within 0.2 degrees,” the company will see:

  • More efficient use of raw materials
  • Less waste
  • Greater profits
  • A host of other benefits

So how does a pharmaceutical manufacturing company benefit by using AI and ML? Let’s look at the numbers.

By the Numbers

  • $100 billion: The amount of money AI and ML can generate in the US health care industry alone.
  • $161 million – $2 billion: The estimated cost of getting a new drug through clinical trials and obtaining FDA approval.
  • 72 percent: The percentage of healthcare companies believing that AI will be crucial to how they do business in the future.
  • 62 percent: The percentage of healthcare companies considering investing in AI soon.
  • 61 percent: The percentage of companies believing that AI will help them identify opportunities they will otherwise miss.
  • 13.8 percent: A study from the Massachusetts Institute of Technology estimates the number of drugs successfully passing clinical trials.
  • 11 percent: The percentage of businesses who have not considered investing in AI.

Sources: Digital Authority Partners and PharmaNews Intel.

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How AI Helps the Pharmaceutical Industry

Add in a third element—large data sets created by Internet of Things (IoT) sensors wired into a company’s network—and the result is a technology-savvy, company that can see ways to improve efficiency. AI runs computations that estimate probabilities based on known numbers.

Going back to our earlier example, 30 percent of the production runs failed quality standards. That’s the new baseline. Having computers that can finely tune machines reduces tolerances.

Another way pharmaceutical companies are using AI is to speed up drug discovery. It sifts through large datasets from clinical studies and other sources to detect hidden patterns, performing tasks in seconds that once took months. Learning every time they perform a task, AIs run through millions of tasks.

“Drug discovery is being transformed through the use of AI, which is reducing the time it takes to mine the vast amounts of scientific data to enable a better understanding of disease mechanisms and identify new potential drug candidates,” says Karen Taylor, director of the Centre for Health Solutions at accounting and consultancy group Deloitte. “Traditional drug discovery has been very fragmentary, very hit and miss,” she adds in The Guardian article.

The rapid creation of effective Covid-19 vaccines is a direct result of AI and ML in the pharmaceutical industry, Taylor states.

Figure: 1 Funding in Artificial Intelligence in the Pharmaceutical Industry

Funding in Artificial Intelligence in the Pharmaceutical Industry

How valuable is AI to big pharma? Britain’s two largest drug makers—AstraZeneca and GSK—recently funded the Cambridge Center for AI in Medicine at the prestigious university. GSK already opened a £10 million (roughly $13.5 million) in central London. This lab is near Google’s DeepMind AI lab.

DeepMind founder Demis Hassabis recently unveiled Isomorphic Labs, which intends to use an AI-first approach to discovering new drugs. DeepMind’s AlphaFold2 AI system solved the 50-year-old challenge of protein folding. AlphaFold is capable of predicting the 3D structure of protein directly from its amino acid sequence to atomic-level accuracy, Hassabis said in a recent Isomorphic blog post.

“One of the most important applications of AI that I can think of is in the field of biological and medical research, and it is an area I have been passionate about addressing for many years,” he said.

Hassabis considers biology an extremely complex and dynamic information processing system, making it a perfect match for AI.

“But just as mathematics turned out to be the right description language for physics, biology may turn out to be the perfect type of regime for the application of AI,” he said.

The Guardian article also looks at the money: Using older methods, nine of every 10 drugs in development will fail. The average drug development time is 10-12 years. With AI, the success rate is expected to at least double and possibly boost success from 1:10 to as high as 1:2.

How Can SMBs Benefit from AI?

While having $13 million in labs devoted to research is a great idea, many companies don’t have that large of an R&D budget. At least one well-known company has enterprise resource planning modules that integrate AI: Microsoft.

Figure: 2 AI Powered Insights by Microsoft

AI Powered Insights by Microsoft

AI Powered Insights by Microsoft

One example is Microsoft Dynamics 365’s Customer Insights is one of several modules that has AI built in. When pharmaceutical companies combine Dynamics’ Business Intelligence module with its Integrated Chemical Management (iCM), the two work together to mine your pharmaceutical data.

iCM is specifically designed to handle tasks like System of Record (SOR) for chemical and regulatory data plus compliance with cGMP regulations.

Add in Dynamics’ Supply Chain Management module and pharmaceutical manufacturers and suppliers can know to the second how much of any given product they have. Using AI and other information mined from a thorough inventory review, companies can accurately predict how much of any given precursor chemical they need to meet forecast demands. With this information, companies can place orders when costs are low or keep just enough on hand.

The Bottom Line

Pharmaceutical companies already create mountains of data. Instead of losing valuable nuggets of information such as trends and insights, artificial intelligence can sort through it. AI can:

  • Perform comparatively mundane tasks extremely fast
  • Provide your company with ways to create new products at lower costs
  • Produce new drugs much faster than before
  • Reduce the number of new drug failures

Using Microsoft Dynamics 365 modules equipped with the power of AI will ultimately help boost your bottom line.

How a Cloud-Based ERP Helps Chemical Manufacturers

How a cloud-based ERP helps in Chemical Manufacturing?

How a cloud-based ERP helps in Chemical Manufacturing? 700 500 Xcelpros Team

Introduction to Modern Manufacturing

We’re seeing a radical change in production methods overtaking the chemical industry. Technology is gaining more attention in almost every sector, including manufacturing and distribution. The introduction of this new technology is forcing business leaders to upgrade their stack and replace outdated processes to meet the changing demands of the market. Today’s market requires a rapid transformation of the chemical manufacturing value chain to improve customer service, efficiency, productivity, quality, precision and pricing.

Complexity serves no purpose for business, yet it’s been part of the chemical industry for decades. Many companies still suffer from siloed department structures, disparate systems, inefficient data management and a lack of streamlined processes. Each of these complexities creates roadblocks that can affect a business’s bottom line. Most companies don’t realize how their complex independent system affects them until the lack of integration between the floor and functional areas becomes an issue. The lack of system integrations can lead to lost orders, or lower quality products because of suboptimal production runs or poor capacity planning.

Many of these companies suffer these effects for one reason: lack of an agile enterprise resource planning (ERP) solution. Chemical manufacturing companies must take action by redefining their business models and re-evaluating their IT roadmaps. The most successful chemical companies invest in transformation projects such as integrating a cloud-based ERP solution with operations to streamline processes, drive collaboration and efficiency and offer informed decision-making.

Figure 1Agile ERP Solutions in Various Phases of Chemical Manufacturing

Agile ERP Solutions in Various Phases of Chemical Manufacturing

Unforeseen Circumstances: COVID-19

The COVID-19 pandemic is still having an effect on every industry. Production and shipping departments are still facing challenges nearly two years after Covid-19 first appeared. Hundreds of companies have been forced to scale down their manufacturing operations by as much as 40%-60% in part because shipping containers are not where they’re needed. A lack of adequate containers, coupled with the loss of port workers and truck drivers means fewer raw materials are arriving at production plants. By February 2021, the global production of chemicals fell by 2.4%.

The inability to make products is still severely impacting the revenue of chemical companies. Rising transportation costs and a lack of raw materials mean priority has shifted to essential functions. This financial pressure is forcing companies to downsize their workforce while continuing operations. The result is added pressure on leadership to implement a rapid technology transformation.

An Agile Manufacturing ERP

Unlike other sectors, chemical industry businesses can’t simply stop production and send workers home, though some are pivoting operations to meet the demand of the market.

The chemical industry is facing a unique set of challenges including:

  • Fluctuating raw materials prices and their impact on margins
  • The need for constant product innovation
  • Increasing risks in supply chain and manufacturing
  • Tightening regulations
  • Market uncertainty, budget and controlling costs
  • Difficulty in resource management

To overcome these complexities, companies need to possess a detailed overview of the market. Having accurate information lets them identify shifting customer dynamics and plan their production runs appropriately. Cloud-based ERP systems for manufacturing can help identify market needs, shape the manufacturing processes, and inform a chemical company’s financial business processes.

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6 Ways Implementing an ERP Improves Chemical Manufacturing Operations

01.Improved Visibility

An agile ERP unifies data across departments, increasing the visibility of information. Organizations can share information, eliminating unnecessary infrastructure costs while providing higher data security. In a chemical company, process automation add-ons to a cloud ERP can ease resource overload by optimizing workforce utilization on the shop floor. All departments across the company—including inventory management, purchasing, accounting, human resource management, production and finance—function together with a minimum breakdown and maximum operational clarity. Versatile cloud-based ERP systems for manufacturing help companies access real-time data on a uniform platform, boosting throughput and reducing downtime.

02.Enhanced Flexibility

As market conditions fluctuate, the manufacturing supply chain needs to be highly adaptable. Using the right ERP solutions provides this needed flexibility. For example, a chemical company can share important updates plus revised manufacturing plans and schedules using an ERP’s supply chain planning system to plan stock availability.

An effective agile ERP system for chemical manufacturing should follow a tiered approach that includes:

  • A Secure database
  • A Simple user interface with easy access to key functions
  • Easy integration with external tools

Along with basic business requirements, the chemical industry needs to accommodate health and safety regulations to protect workers and the environment. Cloud-based ERPs give these companies the flexibility to customize solutions to suit their needs without moving data or altering the entire piece of software.

03.Better Collaboration and Transparency

Having the right computer software designed for your industry leads to better collaboration across a company. Complex business procedures are simplified, making them understandable to more people. These procedures can then be modified to meet changing government regulations. All modern systems have enough access controls to enable a disciplined method of functionality. A process and rule-based system improve transparency, helping organizations operate more efficiently.

04.Better Supply Chain Efficiency

Companies investing in newer, more robust and flexible ERP systems find that managing their supply chain becomes easier. They have access to more accurate, real-time data letting them plan shipments based on accurate demand forecasts. Data insights collected from an ERP system designed for chemical manufacturing can reduce inventory costs, enhance supply chain efficiency and optimize production processes. These improvements help build a robust, efficient supply chain, with the added benefit of reduced raw materials spending, increasing profit and capital growth.

05.Improved Production

Chemical companies often pay a hefty price when the system they use lacks functionality. The typical end-to-end chemical production process contains many steps with data moving between multiple hands and devices. Every time your data moves from one silo to another, it increases the chance of errors. A poorly designed manufacturing execution system can drain resources and add unplanned costs to the company. An agile, cloud-based ERP system for chemical manufacturing eliminates many of these unplanned costs.

06.Enhanced Customer Service

With the right ERP and customer relationship management (CRM) solutions in place, companies can more easily meet customer-centric objectives, including understanding the customers’ needs, improving service levels and enhancing their experiences. An agile ERP that helps companies meet the needs of their customers makes a huge difference in customer retention.

Final Thoughts

Every day, chemical manufacturing companies face challenges. What matters the most is how these challenges are handled. Whether you produce specialty chemicals, bulk chemicals, private-label, co-pack or you’re a contract manufacturer, having the right cloud-based ERP systems for manufacturing helps to build operational efficiency. Having software helps you bring products to market faster and reduce your operational costs while adding flexibility and responsiveness to any future market changes.