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Choosing Business Central for the Pharmaceutical Industry: A Comprehensive Guide of Benefits and Implementation

06 June 2024
Sam Peterson
Sam Peterson
Choosing Business Central for the Pharmaceutical Industry: A Comprehensive Guide of  Benefits  and   Implementation

In today’s rapidly changing pharmaceutical landscape, rising patient expectations, demographic shifts and emerging health reforms all have an impact on industry dynamics. The effectiveness of new projects in this area is determined by these three key criteria. Pharmaceutical companies are attempting to adapt to changing demands in the face of variable health policies and restrictions, which limit development opportunities.

Given the volume of repeated work and the potential for errors, manual efforts alone will not be adequate for pharmaceutical companies to satisfy the needs of this dynamic environment. Embracing digitalisation is critical to addressing these challenges, allowing long-term success and unleashing limitless growth opportunities.

What are the Challenges Impacting the Pharmaceutical Industry?

The pharmaceutical industry, which is essential to public health, is subjected to a host of strict regulations that govern all elements of the business, including operations, research and development, distribution, financing, production, quality management, sales, and marketing. Compliance with these laws is crucial to the success and credibility of any pharmaceutical company.

Tracing the Source of Supply Issues

Insufficient transparency is a typical supply chain challenge in the pharmaceutical industry, specially when determining the cause of problems. This includes situations in which pharmaceuticals arrive in poor condition for use, counterfeit drugs infiltrate shipments, or prices unexpectedly jump.

Managing lot traceability is crucial since these commodities have a huge impact on public welfare. The challenge is to generate and assign lot numbers throughout receiving and manufacturing without the aid of automation. It makes it difficult to quickly identify and trace questionable products from suppliers to customers in the event of the product recall.

Regulatory Complexity

It is difficult to consolidate and analyse data due to various systems and data silos. Pharmaceutical enterprises that use paper-based and labour-intensive paperwork for production are finding it increasingly difficult to comply with stringent standards, notably for Master Batch and Batch Manufacturing records.

The ever-changing regulatory environment complicates matters, pushing businesses to traverse a complex network of requirements to achieve compliance. Without a centralised, real-time solution, businesses struggle to document and link formulas, manufacturing jobs, procedures, processes, transactions, and journals in accordance with rules.

Lack of WIP Tracking

Without a good tracking method, pharmaceutical businesses may struggle to accurately analyse manufacturing and identify bottlenecks, causing production deadlines to be delayed and potentially jeopardising product quality. It damages the industry by lowering production rates, increasing costs and potentially delaying the timely delivery of important drugs.

Product Formulation Challenge

When developing pills, capsules, powders and liquid blends with varying active component potency levels, product manufacturers may confront significant problems. They are searching for solutions that will allow them to swiftly and effectively change formulas to save money while retaining efficacy.

Insufficient Material Requirement Planning (MRP)

Limited MRP leads to delays and inefficiencies. It is difficult to discover raw material shortages in a timely manner, causing production schedule disruptions. Failure to generate purchase orders on time exacerbates these issues, preventing pharmaceutical manufacturing operations from working effectively and potentially jeopardising product supply and quality.

Issues with Supply Chain Visibility

Supply chain concerns in the pharmaceutical business have a substantial impact on the timely supply of important drugs, potentially endangering human lives. Fragmented supply chains with little visibility and distinct activities make forecasting and responding to changing demand and transportation delays more difficult.

Burden on Researchers

Inefficient resource allocation and a lack of real-time coordination restrict the ability to meet strict regulatory deadlines. The lack of automation for routine tasks hindered the drug development process. Furthermore, the lack of centralised data and real-time updates impedes project tracking and decision-making, increasing costs and delaying time-to-market.

Quality Control Difficulties

Pharmaceutical manufacturers focus on the deployment of preventive measures to speed up and improve product testing and equipment optimisation. They also require prompt examination and resolution of quality issues, allowing for speedy changes to settings and procedures. Without quality testing, there is a risk of delivering items that may not meet safety or efficacy requirements. It affects the capacity to maintain high product quality standards while also ensuring consumer trust and happiness.

What is the need for an ERP in the Pharmaceutical Industry?

The pharmaceutical sector thrives on efficiency and innovation to ensure improved health conditions. However, managing complex supply chains, adhering to Stringent rules, and keeping up with advancing research pose substantial hurdles to improving operations.

In the fast-changing pharmaceutical market, distinguished by technology breakthroughs like as smart production and big data usage, incorporating these technologies is critical for sustaining competitiveness. This is where an Enterprise Resource Planning (ERP) solution comes into play, with all of its cutting-edge capabilities designed to unlock the pharmaceutical industry’s latent potential. Therefore, using technology is not only an option, but a requirement for success.

Pharmaceutical companies benefit from the following advantages when using an ERP solution:

  • Reduce production expenses and increase profit margins.
  • Ensure timely delivery of necessary drugs.
  • Improve conformity to regulations.
  • Improve compliance and manage regulatory risks effectively.
  • Accelerate research and development processes.
  • Foster a collaborative work culture based on data.

What are the best ERP Solutions in the Pharmaceutical Industry?

Given its strict standards, the pharmaceutical business is among the most heavily regulated in the world. The FDA (Food and Drug Administration) retains the authority to conduct audits of pharmaceutical procedures to ensure compliance with current good manufacturing practices. To successfully traverse these hurdles, you will need an ERP solution designed specifically for pharmaceutical operations.

The following are some of the leading ERP solutions for the pharmaceutical industry:

  • Dynamics 365 Business Central
  • Dynamics 365 Finance and Operations
  • Sage X3
  • Syspro
  • Aptean Process Pro
  • Oracle
  • SAP S/4 Hana

How Does Business Central Transform the Pharmaceutical Industry?

Dynamics 365 Business Central is a robust, cloud-based ERP system that centralises all business activities for seamless collaboration and improves decision-making with real-time data. Business Central broadens its capabilities beyond standard ERP duties to provide specialist benefits to the pharmaceutical business.

Business Central provides a variety of benefits, including increased efficiency, reliable data management and more efficient procedures. These benefits are specially important in the pharmaceutical industry, where accuracy and speed are critical.

Simplified Regulatory Compliance

The most difficult challenge that pharmaceutical businesses face is the need to follow a variety of rules, which frequently differ by area. Business Central simplifies compliance efforts by providing a set of tools and functionality designed to streamline adherence to excellent, automated production processes, ensuring quality results at all stages, such as batch tracking, quality control and audit trails.

Product Quality Improvement

Business Central for the pharmaceutical industry enhances product quality by integrating quality management processes and real-time monitoring of manufacturing parameters to achieve high standards. It involves quality testing, nonconformance management, inspection and corrective and preventive measures to improve overall product quality and reduce product recalls.

Timely and Accurate Cost Reporting

Provide critical insights into manufacturing costs, allowing for better cost management and pricing strategies. Pharmaceutical firms may use real-time data and precise reporting to make smart choices, optimise resource allocation and preserve profitability in a dynamic and highly regulated market. .

Optimal Stock Level Calculations

Automated inventory management across several sites and regions to ensure optimal resource balance and allocation based on availability, potency levels, supply and demand. It provides accurate information on inventory usage considering aspects such as shelf life and storage conditions to enhance cash flow while reducing inventory holding costs and minimising waste, therefore improving the supply chain. .

Optimal Warehouse Configuration

Allow for precise storage location and configuration in the warehouse according to pharmaceutical product type and requirements, including temperature-sensitive drugs. Pharmaceutical firms can reduce product expiry and waste by implementing inventory rotation rules such as FIFO and FEFO, ensuring that medications are dispensed efficiently while preserving quality and compliance.

Efficient Production Planning and Execution

Optimise manufacturing schedules and resource allocation to ensure drug delivery on time while meeting regulatory criteria. They can improve inventory management, track batch numbers and ensure compliance with high-quality control standards, resulting in increased operational efficiency and product quality efficiency.

Secure Data Handling

The pharmaceutical industry’s data is extremely sensitive, specially in terms of resources, recipe formulations and other research and development data. Business Central has security features such as user-role-based access, which ensures that data is only accessible to permitted users. Furthermore, as a cloud-based platform, appropriate individuals may easily access pertinent information at any time, from any location and on any device.

Comprehensive Tracking Capabilities

Product recalls are unfavourable, yet they are necessary in the pharmaceutical industry. Business Central assists in developing a detailed product recall plan. Business Central’s tracking features allow full monitoring of things from the inception stage until fulfilment, simplifying product identification across the supply chain and accelerating recall processes as needed.

Global Vendor Management Solutions

A pharmaceutical firm with vendors all around the world must have effective vendor management in place. Business Central has a vendor management module that helps organisations with duties such as timely payments, order placement, tracking vendor supply, and other vendor-related functions.

Centralise Data Repository

Business Central, which serves as a centralised data repository, guarantees that critical information is stored and accessible in real-time. It improves data administration, increasing efficiency and precision across multiple departments. It encourages better collaboration by removing barriers between divisions and improving communication in order to achieve common goals and overall organisational synergy.

Accommodating Business Growth

Business Central benefits the pharmaceutical business by providing scalability and flexibility to accommodate evolving production volumes and product portfolios. It allows for seamless extension of operations, enabling business development without severe disturbances. This adaptability is critical for being competitive in the developing pharmaceutical business. .

Manufacturing Process Optimisation

Business Central uses predictive analytics and artificial intelligence to forecast trends, manage production schedules, and proactively handle future concerns. Furthermore, by adhering to Industry 4.0 concepts, Business Central encourages connection, automation, and data-driven decision-making in pharmaceutical manufacturing processes.

Effective Supply Chain Management

Business Central enables complete pharmaceutical supply chain management, including seamless procurement, inventory control, and real-time collaboration with suppliers and distributors. It promotes increased supply chain transparency, shorter lead times and more efficiency throughout the supply chain by tracking product movement and improving demand prediction.

How to Choose the Right ERP for Your Pharmaceutical Industry?


Opting for the right ERP solution for the pharmaceutical sector is essential to streamline operations, ensure compliance and optimise supply chains. Here are key factors to evaluate: .

Tailored Functionality for Industry

Given the distinct challenges and regulatory demands in pharmaceuticals, an optimal ERP solution should cover capabilities such as compliance management, recipe and formula management, quality assurance and lot/serial number tracking.

Scalable ERP

For pharmaceutical organisations, picking an ERP solution entails selecting one that can scale with business expansion, successfully handling increased data loads and expanded operational scopes. The chosen system should be adaptable to changing company dynamics and regulatory frameworks.


Integration Flexibility

An appropriate ERP solution for pharmaceutical organisations should seamlessly interface with multiple business management applications such as CRM, supply chain management, and laboratory management systems to ensure data consistency.

Data Security Essentials

Given the sensitive nature of pharmaceutical data, ERP systems must adhere to the strictest data security and privacy regulations. This involves the inclusion of key features such as role-based access controls, encryption, and regular security audits.

Total Cost of Ownership (TCO)

An ERP’s total cost of ownership includes the initial purchase price as well as fees for deployment, training, maintenance, problem resolution and continuous upgrades. Assessing the TCO of various ERP solutions is essential for making well-informed decisions.

ERP Partner Services

It’s essential for pharmaceutical companies to opt for a trusted ERP partner that offers comprehensive assistance, covering implementation, training and ongoing maintenance. Prioritise partners with a proven track record in the pharmaceutical sector.

Why Should You Choose Dynamics Square as Your ERP Partner?

Choose Dynamics Square as your ERP partner for unrivalled knowledge and support. Dynamics Square can provide customisable ERP solutions tailored to the specific needs of the pharmaceutical industry, such as batch tracking, quality control, temperature-sensitive drug inventory management, warehouse optimisation, and so on.

We ensure that our ERP solutions meet regulatory standards and other industry-specific compliance criteria that are critical for the pharmaceutical business. our solution’s advanced functions, such as FIFO and FEFO inventory rotation rules, are critical for reducing product expiration and waste while assuring drug supply on time and in accordance with regulatory criteria.

As Microsoft Solution Partner, we are officially recognised for providing customised business management solutions to small and medium-sized organisations. Our Tier 1 technical Service Provider certification elevates our global visibility and industry recognition, distinguishing us. With over 15 years of experience in Microsoft Dynamics 365 solutions, we are capable of effectively addressing market fluctuations.

What truly distinguishes us is our proactive approach – we are your strategic IT partner, offering comprehensive support at every step. We prioritise customer happiness with SLAs, priority-driven support and transparent agreements that include all services without extra charges. Our flexible approach ensures you get top-notch service without unnecessary expenses or long-term contracts.

Backed by a strong customer base and a team of over 100 Microsoft-certified professionals, we are committed to your success. With personalised training and local support in Australia, Dynamics Square is your trusted partner for seamless ERP solutions.


The pharmaceutical industry’s future is bright, fueled by ongoing technology breakthroughs and greater emphasis on data-driven decision-making. As the industry advances, ERP solutions will evolve in lockstep, ensuring their continued relevance.

Contact Dynamics Square immediately to prepare for the future of your pharmaceutical industry with cutting-edge Dynamics 365 Business Central. Contact a Dynamics 365 Business Central expert now. Power your business with Microsoft Dynamics 365 Business Central.

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Disclaimer– “All data and information provided on this blog is for informational purposes only. Dynamics Square / MPG Business Information Systems Pvt. Ltd. makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.”

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