Life Sciences ERP Explained: how modern cloud software is driving innovation in the Life Sciences industry
The life sciences industry is under pressure to do more with less. Increasingly stringent regulations, combined with flat or declining budgets, are putting a squeeze on life science companies. In order to remain competitive, these companies are turning to Life Sciences ERP systems to help them optimize their operations and drive innovation.
Centralized ERP Systems Simplify Data Management and Streamline Communication
ERP systems centralize data and processes, providing life science companies with a single source of truth. This visibility enables companies to make better-informed decisions, improve communication and collaboration across departments, and drive efficiencies throughout the organization.
In addition, communications with 3rd party service providers such as contract research organizations (CROs) and contract manufacturer organization’s (CMO’s) are critical to the success of life science companies. By integrating communication automation into their ERP systems, life science companies can streamline these relationships and improve communication throughout the organization.
The Role of Cloud Technology in the Life Sciences Industry
The cloud is playing a major role in the adoption of ERP by life science companies. Cloud-based ERP systems are more flexible and scalable than traditional on-premise systems, making them better suited to the needs of life science companies. In addition, cloud-based ERP systems are usually more affordable and easier to implement than on-premise systems, making them a more attractive option for companies in the early stages of research and development.
Critical Components of a Good Life Sciences ERP System
The goal of any ERP is to provide the tools and features to meet the needs of the various departments in a business. The Life Sciences industry is quite unique when compared to other product focussed businesses as they have to consider program management, as well as manufacturing and regulatory compliance and approval processes for their products.
A good ERP system for life science companies should include the following components:
The lifeblood of any Life Sciences business, whether in the early stages of research or during commercialization is Program Management. Pharmaceutical, biotech, and medical device development is a complex, global, and expensive undertaking that requires the management of large amounts of data and the coordination of multiple teams, often across different geographical locations.
A good Life Sciences ERP system will provide a centralized repository for all program-related information, enabling program managers to track the progress of their programs and make informed decisions about resource allocation. The system should also offer tools for collaboration and communication between team members, as well as the ability to generate reports on program progress.
Manufacturing Resource Planning
Life Sciences companies need to have a flexible manufacturing process that can be adapted to meet the changing needs of the industry. A good Life Sciences ERP system will provide manufacturers with the ability to track materials, manage production schedules, and control costs. The system should also offer tools for quality control and regulatory compliance.
Many Life Sciences companies also need to manage outsourced manufacturing partners, also known as CMOs. A good ERP system will offer tools for managing these relationships, including the ability to track purchase orders, invoices, payments, and communications at the task level.
Contact Relationship Management
From vendors, approval bodies, distributors, and contract research organizations, a good Contact Relationship Management solution helps Life Sciences businesses to keep track of communications, manage tasks and centralize all the information related to a company’s partners.
In the Life Sciences industry, stakeholder relationships are a key to success. A good Life Sciences ERP system will provide companies with the ability to track contact interactions, manage contact information, and generate reports on contact activity.
Accounting, Finance and Treasury Management
Life Sciences companies need a robust financial management system to track revenue, expenses, and cash flow. A good Life Sciences ERP system will provide companies with the ability to generate financial reports, manage costs, and track payments. The system should also offer tools for managing risk and complying with financial regulations such as localized tax management, multi-book budgeting and intercompany accounting automations.
Inventory & Supply Chain Management
The ability to track inventory levels, manage supplier relationships, and generate reports on supply chain activity across multiple locations is critical for companies in the life sciences space.
A good Life Sciences ERP system will offer a comprehensive suite of features and functionality to support the unique needs of the industry. Look for a system that is flexible and can be configured to manage complex inventory management processes.
The Future of Life Sciences ERP
As the life sciences industry continues to evolve, so too will the ERP systems that support it. Your company needs a system that is cloud-based and offers the ability to scale as your business grows. The system should also be able to support the industry-specific processes and compliance requirements of the life sciences industry.
A good Life Sciences ERP system, like NetSuite, will provide you with the ability to manage the complexity of managing your company, while also driving innovation and growth within the organization.
Zanovoy Are Dedicated to Revolutionizing Life Sciences ERP with NetSuite
We have worked with over 100 companies across pharmaceuticals, cosmeceuticals, nutraceuticals, biotech, medical device manufacturing, and healthcare. Our mission is to help these businesses simplify their technology ecosystem with a single platform of technology, eliminating the complexity of managing multiple legacy systems.
Some of the key benefits that our clients have seen are:
- Reduced time to market
- Improved compliance
- Greater agility to respond to change
- Increased operational efficiency
- Improved customer satisfaction scores