Everyone in the manufacturing industry whether an outstanding player, a new one or an intermediate; must be hit on the term “Bills of materials” or BOM on a frequent basis. A BOM in ERP for pharmaceutical industry is considered as a crucial component in the manufacturing process that binds all the concerned departments together and suggests how a product should be put together.

BOM is an intrinsic part of the manufacturing process for the process manufacturers. The significance of BOM lies in its formula and its linking with the finished goods and the intermediate stored in the inventory.

BOM should be prepared carefully as the incomplete BOM may lead to material shortages, inaccurate product costing, inferior material planning, increased production costs, lost sales and increased risk of product liability.

That’s the reason manufacturers need to understand what exactly BOM is, how it functions and why it is so important in the manufacturing industry:

Bills of Materials:

Bills of materials in pharmaceutical ERP software is a list of all the essential components that required to make a product including raw materials, ingredients, sub-assemblies, intermediate assemblies, sub-components, parts, unit of measure and the quantity needed to manufacture a finishing product.

A BOM can be used by means of communication between the manufacturing partners or confined to a single manufacturing plant. It lets everyone to know, what to purchase, how to purchase and where to purchase.

A BOM can be single level and multiple levels both. A manufacturing BOM also includes a comprehensive set of instructions on how a product can be assembled from the conception phased to the finished products ready for shipping including the packing materials.

BOM assists manufacturing business in multiple ways including planning for the purchase of raw materials, enhance inventory control, estimation of material costs, planning of material a requirement, maintain accurate records etc.

 Importance of BOM in the manufacturing industry:

BOM plays a crucial role in the development of any product. As a fact, you can’t simply manufacture a product without accurate BOM. It helps manufacturers to manage, identify materials and provide accurate information in order to minimize the wasteful spending. Let’s take a look at why BOM is crucial in the manufacturing industry.

Avoid running out of materials:

Lack of accuracy in BOM leads to the production team out of inventory which ultimately hampers the production. On the other hand, a clear list of material’s quantity and inventory of a BOM allows you to manage the materials in an effective way. With an ERP solution, you can set up the reminders whenever the stock is low.

Ensure better planning:

BOM gives manufacturers a variety of lists that are required to complete a project or task. As a result, planners get a detailed list of all the data they require to complete a plan for instance how long does the project will take place and how many people need to be involved etc.

Time and cost savings:

BOM is responsible for the cost savings because of the effective inventory management feature. Also, manufacturers can save a lot of time by having a knowledge of how much component is required and by linking one formula to multiple BOM.

Encourages consistency:

There is multiple small a business, where only one person manages the specific, are of production. For such type of businesses, BOM acts as a framework which can be followed by the staff to ensure consistency.

Managing and accessing data from each corner is still the main concern amongst us. Efficient data management is like the new oil that has made business establishments rush towards it. Enterprises predominantly SMBs don’t stop for a second in utilizing resources in obtaining and maintaining data. With the help of accurate tools, effective methods and powerful techniques, it can surely increment the business ROI. 

Earlier, all the BI-related activities were performed manually by creating and managing thousands of spreadsheets that too with an output of the static report. 

Aside from managing the data, the benefits were stuck to store it securely and be accessed with ease. That’s why many SMBs are looking for the business intelligence tool that assists these companies in a much broader way.

Business intelligence comprises various software and applications that have the capability of storing massive data securely by analysing and presenting it to the users in the format that they desire.

Today, ERP software for pharmaceutical industry comes with integrated business intelligence modules that enable organizations to provide dynamic reporting, satisfy the users with their exact needs so that they can access the data from everywhere. 

Let’s look at the benefits of integrating BI with ERP systems:

Real time data allows for faster decision making:

One of the most vital benefits of integration BI with ERP is its ability to provide a real-time screen to the managers that helps them to make intelligent business decisions and keep them more informed about their data. For instance, if a production manager wants to closely watch the floor’s scrap rate. 

With a quick glance at the dashboard, the manager will be able to see the actual scrap rate in real-time. That means the managers can see the data whenever the workers can add or update the data or when they are entering the data. 

If, suppose the scrap rate reaches an unacceptable limit, then the manager can suspend the process and identify the root cause before too much time and material is wasted. 

This data can further help the managers to make future decisions as well.

Moving beyond traditional reporting:

Report is the area where BI puts a transformative effect on a business. Modern business intelligence has gone far from reporting functions. Earlier, traditional reporting was a static process where all the data was available in the static form. For instance, the business leaders could get a snapshot of where the certain data set stood at the end of the week.

Nowadays, BI comes with real-time data that allows users to access the data without opening the system. This BI module allows every user to access the customized dashboard loaded with visualization with an ability for ad hoc reporting.  

Another major advantage of integrating BI with pharmaceutical ERP software is its consistency. In traditional reporting, if a sales executive needs to send a report to different managers; it's likely that each report is different in terms of format and source of data both which could lead to errors and wastage of time. BI eliminates these data inconsistencies in an effective manner. 

About Probiz: 

Probiz is an enterprise resource planning software that is specially designed to simplify all the business operations and deliver value faster than ever. Probiz; an ultimate pharma ERP solution that covers all the aspects of business management and manufacturing which let you expand in your market through enhanced collaboration, higher sales and better compliances with stringent mandates.

Nowadays, pharmaceutical companies are facing a lot of challenges including changes in healthcare, strict regulatory compliances and requirements, rising global competition, ups and downs of market trends and more. 

 Furthermore, the increasing demand for making high-quality health care products at competitive prices is forcing pharmaceutical manufacturers to opt for a solution that helps the distributors to recover their costs by streamlining business operations and maximizing their efficiency.  

Pharma ERP software is the one-stop solution for all the above concerns of the pharmaceutical industry.  

A pharmaceutical ERP software is more likely a central nervous a system that interconnects and integrates and in all the commercial enterprise processes such as inventory management, sales, purchasing, marketing, human resources etc. into a single centralised system. It also gathers real-time information from all the divisions and makes the data accessible in other divisions too thus provides smooth functioning and transparency of business. 

Here, we are providing some of the worthy benefits of pharmaceutical ERP software:

1. Meeting regulatory compliances:  

Pharma ERP software is uniquely intended for the pharmaceutical sector as it gives the management a successful business model that meets all industry formats and government rules. Other than this, an ERP system also improves your business development by ensuring compliance such as FDA 21 CFR, quality assurance as per GMP standards & norms. 

2. Inventory management:

One of the most troublesome segments of pharma industry is dealing with the stock. It requires a lot of assets to proficiently manage the inventory. However, with the help of pharma ERP software, inventory management can be effectively monitored and checked. It is also responsible for controlling the waste of the materials. ERP module pre recognizes the material required for production, creates a target for procurements, set goals and generates inventory reports in a timely manner. 

3. Distribution management: 

All manufactured products are distributed through various channels within a nation. Manual tracking of each product can be an overwhelming task as the human error is unavoidable. Therefore, with the assistance of a batch and lot tracking feature, it is possible to monitor batches from starting stages to in-progress quality check (ipqc) last stage. This feature empowers manufacturers to monitor a batch or lot work in progress and their delivery status remotely. 

4. Sales management: 

Sales management is another feature of ERP for pharma industry as it helps to streamline your sales processes by creating accurate sales quotation, client records and history thus improves your business ROI. 

5. Document management:

 Document management plays a crucial role because of the compliance needs of the pharma industry. Therefore, a pharma ERP software assists in recording all the historical data which is vital for audit checks and for future data analysis. 

 T pharmaceutical sector is large and hence facing a lot of challenges because of the volatile and competitive marketplace. Utilizing an ERP system is the one stop solution for all pharmaceutical companies. Not only does it aid in managing production and inventory but also assists in managing different segments of a pharma company. One such flexible ERP software that is readily available in the market is Probiz ERP. 

 Robust, adaptable, smart that what describes Probiz ERP in a nutshell. Probiz ERP is GST ready, next generation ERP software that integrates numerous facets within a single centralised system.  The one and only motive of Probiz is to simplify the operations for modern-day enterprises.