ERP ASSIGNMENT

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NAME: NIKITA JADHAV
DATE:20/11/20
BATCH: BCA SEM-3
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Assignment Case Study:

In the recent pandemic times, many small and medium
pharmaceutical companies due to high demand in the drugs and
Active Pharmaceutical Ingredient segment has started exploring the
Implementation of ERP for faster communications, exchange of
information and higher efficiency to increase sales.
As the demand is temporary, suggest & explain in details what ERP
solution do they need to implement a) Cloud based ERP or b) a
long-term captive ERP
Include the relevant modules as mentioned below which are mostly
common in the Pharma industry
Manufacturing
Warehouse / Pharma Distribution
Sales / E-Claims
Bar Code Generation and Scanning
Centralized Inventory Management
Billing
Drug Expiry Alerts
Case Study Solution:
As the demand is temporary, such small and medium pharmaceutical
companies, need to implement Cloud based ERP in order to make
faster communications and higher efficiency to increase sales.
Following explanation of Cloud based ERP including its relevant
modules helps to understand the reason of its implementation:
Definition of Cloud ERP
Cloud ERP is Software as a Service that allows users to access
Enterprise Resource Planning (ERP) software over the Internet. Cloud
ERP generally has much lower upfront costs, because computing
resources are leased by the month rather than purchased outright and
maintained on premises. Cloud ERP also gives companies access to their
business-critical applications at any time from any location
Cloud-based computing (also called Software as a Service, or SaaS)
allows users access to software applications that run on shared
computing resources (for example, processing power, memory, and disk
storage) via the Internet. These computing resources are maintained in
remote data centers dedicated to hosting various applications on multiple
platforms.
Advantage:
The Cloud is particularly valuable to small and medium-size businesses
(SMB’s) because it provides access to full-function applications at a
reasonable price without a substantial upfront expenditure for hardware
and software. Using the right cloud provider, a company can rapidly
scale their business productivity software as their business grows or a
new company is added.
Relevant modules of Cloud ERP:
♦ Manufacturing
The severity of complexities surrounding the manufacturing
industry made it one of the earliest adopters of ERP software. With
passage of time and improvisation in technologies, the system has
slowly gained the stature of most necessary application capable of
helping manufacturers sustain all types of competition.
♦ Warehouse

The Warehouse Management Module supports the daily operation

of warehouses, taking care of orders and work monitoring. The
module provides accurate, real-time information on inventory and
shares it with the other subsystems of the ERP system.

The solution provides a single point for receiving orders for

performing warehouse operations, whether these are orders for
shipment (from the CRM subsystem) requests for discharge of
materials (from the Production subsystem) or orders to transfer to
another warehouse (from the supply module). Similarly served are
orders to receive purchased goods, logging in production and
accepting products from other stores. The module provides a
unified methodology for monitoring the implementation of
warehouse orders, including alarms for delays and more.

With the software, you can turn warehouses into a structure

of storage location. Storage locations can be roughly defined
sections of the storage space or alternatively they can have a
precise hierarchy with the position of each product. Thus, the
module can provide navigated deployment and picking up of
products from a warehouse. This means the system can direct
warehouse workers to specific storage locations when they have to
store new products or prepare goods for shipping. There are
several methods to do this:
  Preparation by order – the navigation calculates the most
economical route to the warehouse for the preparation of all
products, order by order
 Group preparation by storage locations – the navigation
indicates the shortest route for group preparation of several
orders simultaneously

This Module also supports inventory planning, preparation and

implementation. Inventory operations can be full or partial – by
products or by storage spaces. In addition, the system can print out
an inventory sheet which can be filled out by hand and then
uploaded to a computer to check for discrepancies.

♦ Sales

The Sales Management (SAL) module is used to perform operation

and document-based tracking of all sales transactions. This is one of
the basic modules of ERP and it is of great importance for
companies. It integrates with all processes in the system. With the
Sales Management module, companies can manage their sales
processes, link and follow up documents such as offers, agreements,
orders, dispatches, and invoices, manage inventory, update the
relevant finance records, and manage price policies or campaigns
with customized combinations.

Sales reports that are offered in wide scope can be easily

customized, and forms such as invoices, picking lists, and
consignment can be defined and used in accordance with the laws
and regulations of country and customer.

The structure of the Sales Management module is described in the

chart.

SALES OFFERS
The Sales Management module can create customer lists with the
data obtained from the Customer Relationship Management module.
As a result of the integration between the two modules, the offer
processes can be initiated and managed. With the flexible pricing
and campaign applications within the module, gradual and/or
dynamic pricing can be defined according to changing criteria in the
system and the pricing process can be managed by taking the profit-
loss rates and bulk increases can be applied into price lists. The
integration with the Product Configurator application which is used
by order-based manufacturing companies and based on the Base
Data Management module, cost calculations can be made for the
products and sub-items which are still in the design phase and have
no records in the system.

ORDERS AND CONTRACTS

When the offers are approved, prospects become a customer and

the prepared offers can be converted into orders or contracts.
Depending on the initial requirements, a quantity, value or
scheduled agreement can be created with references from the
offers. In this case, orders are created through contracts rather than
offers. Afterward, the financial accounting of sales management
module, cost centers accounting, inventory management,
production management, material needs planning module
integration, due dates, production plans, available and reserved
inventory including all inventory types, instant and forward dated
inventory information or important customer details such as a
reached risk assessment and the order is finalized. In this way,
companies can provide more clear information to customers about
deliveries. Critical information such as delivery dates, prices,
addresses, payment plans, and delivery conditions are kept based
on documents or items. A large number of features (color, size,
etc.) and feature-based products with many options, with fewer
base data management options that provide the management of the
 keys, on the one hand, is managed more quickly while managing
all the features of the products provided are to be kept in the
document and if desired, pricing can be done according to these
specifications. Similarly, in order to accelerate the sales processes,
product sets can be used to add and manage a large number of
products at once.

DISPATCHING

After the ordering process is completed, inventory management is

done automatically or manually in accordance with the delivery
date and inventory movements. These operations can be managed
by serial number or batch number tracking when necessary. In
addition, packaging applications presented in the module with the
volume, weight, and size of the product information can be
packaged and can be removed from the stock and package tracking
can be performed.

♦ Inventory Management

Inventory is an important part of manufacturing process. Both

unused raw materials and unsold finished goods are sources of
wastage that cause loss to your business. So, as a manufacturer, it
is crucial for you to control and use inventory optimally.

The inventory management module keeps track of raw materials

and finished goods in-store, helping you initiate the purchase
process based on forecasts or unique order requirements. It also
instills superior control on materials, allowing you to immediately
identify their locations while easing their movement to and from
production.
Thus, here are some important explanation about Cloud ERP from which
it will be cleared that it is suitable for such kind of pharmaceutical
companies.

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