It is one of the rapidly growing modern pharmaceutical manufacturing and marketing companies in the region. The company’s innovative, value-added products improve the quality of life and help people enjoy longer, healthier, and more productive lives. For 20 years up to 1993, it was a subsidiary of Sterling Winthrop Inc. of USA. Today, it is well on its way to fulfilling its dreams of producing and marketing a wide range of reliable therapies which enjoy the trust of the medical professionals. The company is said to have a turnover of $ 10 million approximately.
The company was using an in-house ERP solution in some of its departments where it fulfilled their needs to some extent. Since, all the functions were not integrated with the ERP, thus it had a limited usage. The challenges were:
- Lack of integration in Financials, Supply Chain, Manufacturing and Master planning functions. Subsequently, separate systems were maintained in General Ledger and Supply Chain Management.
- Inability of the legacy system to support Quality test.
- Manual development of costing sheets by finance department leading to inaccuracy and human errors.
- Manual creation of Certificate of Analysis by their QC department.
- Ambiguity in data management due to the absence of a unified data gathering platform.
- Manual creation of production variance report by the Finance and Production departments due to the inability of legacy system to show variance between estimate and actual costs.
- Inability of the in-house ERP to support cost estimation.
- In order to support different segments of Pharmatec such as Toll manufacturing, there were duplicate items created in the legacy system.
- Manual creation of product-wise profit and loss by the management due to inability of the legacy system to support product-wise transactions.
In a nutshell, the company lacked a system that could support and integrate each function and domain of the company. In addition, the company relied heavily on manual management of things. These primary issues at the company were fueling the development of various secondary issues that have been costing the company a huge opportunity cost until now. To overcome these, the pharmaceutical company showed a desire to switch towards a solution that is built on international best practices.
The greatest challenge was in designing and configuring an ERP, which can keep up to the local market’s needs and practices. Implementing ERP solutions with localization are never that easy. It takes great efforts and vast knowledge to provide and work around solutions. From creating utilities in local currency to customizing the taxation and regulatory requirements, there was a myriad of functions that required expert industry knowledge and focused work.
EdgeAX, a unit of Visionet Systems Inc. proposed the implementation of Microsoft Dynamics AX 2012 at the pharmaceutical company, and the team was able to implement the solution in a record time of just 5 months.
The proposed solution fitted the company’s operations most appropriately as the key features of Dynamics AX with regard to automation in processes, user friendliness and firm security matrix responded well to the company’s needs. The following modules of Microsoft Dynamics AX 2012 were implemented:
- Financial Management
- Production Planning and control
- Procurement and sourcing
- Inventory and Warehouse management
- Sales and Marketing
”We made the best decision by deploying this ERP as it enabled us to have the most integrated process and the most accurate data with minimal errors”
The implementation of Microsoft Dynamics AX 2012 has helped the company focus on one of its key organizational goals of business expansion. Other benefits include:
- Implementation of Supply Chain Management and General Ledger Dynamics has resolved the issue of integration for the company. Since it is an integrated solution, it avoids redundancy in work and allows the key personnel focus on more analytical data rather than making laborious efforts on data entry.
- Dynamics role based security has enabled users to avoid duplication of master data creation. Only authorized users are able to create setups such as item master, customer, vendor and operation setups.
“The implementation of Dynamics AX 2012 has been pivotal in providing Pharmatec with an integrated and real-time view of its business across all supply chain partners. It is easy-to-use and has streamlined the processes and it will continue to deliver a high ROI in the long run”
- Production Control module firmness provides users to obtain reports like item cost sheet that helps in making comparisons between estimate costs based on standard prices and actual cost. Dynamics AX also enabled users to design their own cost sheets as desired.
- Inventory and Warehouse Management module enabled the company to incorporate test of raw material, packing and finished material for the first time in their history of using ERP solutions. Microsoft Dynamics AX enabled them to test variables, groups and their results and record them. It also provided Certificate of Analysis report to Quality Management users.
- Product information Management enabled users to create relevant data center for item master, which contains BOM/ recipe, route, resource and resource group required to produce or buy them. Product dimension options facilitated to open one master for different pack sizes. Additionally, in the legacy system, product dimension option was not available which resulted in opening different item for every pack size. Microsoft Dynamics AX bridged with gap with its unique features.
- General Ledger, Accounts Receivable, Payable Module assisted the Finance department in automating their daily operations. Microsoft Dynamics AX facilitated in making the payments for invoices containing proper supporting documents such as PO and GRN and proper approval. Payable module has reduced their reconciliation work for payments. Microsoft Dynamics AX also facilitated in making pre-payments to vendor and customer with proper supporting pre-payment invoices, which are knocked off later before making actual payment to them.
- Prior to the implementation of Microsoft Dynamics AX, the Product wise Profit and loss was created by the users manually. Microsoft Dynamics AX automated this process through its financial dimension features by taking the products as a dimension in transactions.