In an industry as regulated and complex as pharmaceuticals, efficient process management is critical. From compliance and inventory control to production planning and quality assurance, an ERP system can be the backbone of operational success. One of our esteemed clients, a mid-sized pharmaceutical manufacturer, faced challenges that hindered their efficiency, and Contetra, as a trusted ERP selection consultant, stepped in to deploy ERPNext—an agile and customizable ERP solution.
This case study outlines the issues the company faced, the tailored solutions we provided, and the quantifiable benefits that transformed their operations.
Challenges Faced by the Pharma Company
The company, with an annual turnover of ₹400 crore and production facilities across multiple locations, struggled with the following inefficiencies:
- Inventory Management Issues: Frequent stockouts of critical raw materials and overstocking of slow-moving inventory led to an estimated loss of ₹4 crore annually.
- Regulatory Compliance Gaps: Ensuring compliance with FDA (U.S.), EMA (Europe), and CDSCO (India) standards was tedious due to decentralized record-keeping.
- Inefficient Production Planning: Manual coordination between R&D, procurement, and production caused an average delay of 7-10 days per batch.
- Lack of Real-time Reporting: Decision-making was impaired as reports were generated manually, leading to delayed insights and incorrect forecasts.
- Siloed Departments: Communication gaps between procurement, production, and sales teams resulted in a 15% mismatch between demand and supply.
Why ERPNext?
Given the company’s specific needs, we recommended ERPNext, a cost-effective, cloud-based solution tailored for pharmaceutical businesses. ERPNext’s robust features—Batch Tracking, Compliance Management, Integrated Quality Control, Inventory Optimization, and Automated Reporting—aligned perfectly with the company’s requirements.
Unlike traditional ERPs, ERPNext provided:
- Scalability: A modular approach to add functionalities as needed.
- Customization: Tailored workflows to match industry-specific processes.
- Real-time Data Access: Centralized dashboards and analytics.
Implementation Strategy by Contetra
Our approach to implementing ERPNext was structured and methodical, ensuring minimal disruption to ongoing operations. As an experienced ERP functional consultant, we executed the project in three phases:
Phase 1: Diagnosis and Customization (Month 1-2)
We conducted extensive audits to understand workflow bottlenecks. Key modifications included:
- Automated Inventory Alerts: Integrated AI-driven stock forecasting to reduce stockouts by 35%.
- Regulatory Documentation Module: Embedded compliance checks to generate automatic reports for FDA audits.
- Batch and Expiry Tracking: Integrated barcode scanning to ensure accurate product tracking.
Phase 2: Implementation and Migration (Month 3-5)
- Migrated five years of historical data from legacy systems.
- Conducted training sessions for 150+ employees, ensuring smooth onboarding.
- Deployed real-time dashboards, reducing report generation time from 24 hours to under five minutes.
Phase 3: Optimization and Go-live (Month 6-7)
- Fine-tuned workflows based on pilot feedback.
- Implemented Automated Approval Workflows, reducing paperwork by 40%.
- Ensured system stability with 24/7 support for the first 60 days.
Key Fixes and Enhancements
- Inventory Optimization
- Before: Stockouts and excess inventory led to ₹4 crore in losses.
- After: AI-driven demand forecasting reduced excess inventory by 22% and improved stock availability by 30%.
- Regulatory Compliance Automation
- Before: Compliance documentation took 10+ days per audit.
- After: Auto-generated reports cut down compliance preparation time by 70%.
- Seamless Production Planning
- Before: Manual coordination led to 7-10 days of batch delays.
- After: Automated scheduling reduced batch release delays to just 1-2 days.
- Integrated Communication System
- Before: Siloed departments led to misaligned demand-supply planning.
- After: ERPNext’s centralized communication improved forecast accuracy by 18%.
- Real-time Analytics & Reporting
- Before: Reports were generated manually, taking up to 24 hours.
- After: ERPNext’s dashboard delivered insights within five minutes.
Measurable Impact
Within nine months of ERPNext deployment, the company experienced:
- 25% increase in production efficiency
- 30% faster order fulfillment rates
- Reduction in compliance-related penalties by 80%
- ₹10 crore annual savings from optimized resource utilization
Lessons Learned & Future Scope
Key Takeaways:
- Early stakeholder engagement was crucial for smooth adoption.
- Customized modules made the ERP more relevant and effective.
- Employee training and change management played a vital role in acceptance.
Future Enhancements:
- AI-driven predictive maintenance to further optimize production lines.
- IoT-enabled tracking for real-time monitoring of drug formulations.
- Expanding ERP integration with supply chain partners for better visibility.
Conclusion
By implementing ERPNext, Contetra successfully transformed a mid-sized pharmaceutical company’s operations, boosting efficiency, compliance, and profitability. As an experienced ERP selection consultant, we ensured a seamless transition by leveraging industry expertise and best-in-class implementation methodologies. Our tailored approach, rigorous testing, and phased execution guaranteed significant business gains.
If your pharmaceutical business is struggling with operational bottlenecks, Contetra’s ERP functional consultant team can provide the right ERP solution to help you scale and thrive in a competitive landscape.
Want to explore how ERPNext can work for you? Contact Contetra today!
