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About the Company
This case study focuses on an Australian veterinary pharmaceutical company specializing in the manufacturing and distribution of animal health products. With a portfolio that includes nutraceuticals, vitamins, and specialty pharmaceuticals, the company caters to a diverse clientele across Australia. However, their growth trajectory faced significant hurdles due to outdated systems and inefficient operational processes.
Challenges Faced
- Inefficient Financial Processes
The company relied on Xero for accounting, which was unable to scale with its growing needs.
Time-consuming bank reconciliation processes, delaying critical financial processes and decision-making.
Month-end and year-end closures required external accountants, adding to costs and inefficiencies.
- Fragmented Systems
Inventory management was handled through a customized solution, while Excel was used for planning and sales forecasting, resulting in data silos and a lack of real-time insights.
- Production Complexities
The company struggled to manage flexible manufacturing for varying batch sizes and to track by-products and co-products.
Ensuring regulatory compliance with GMP, FDA, and ISO standards was time-consuming and error prone.
- Ineffective Inventory and Warehouse Management
Challenges included tracking expiry dates, implementing FEFO inventory management, and managing lot and serial numbers.
Quarantining suspect inventory and managing multiple warehouses added to operational complexities.
- Limited Traceability and Compliance
The absence of an integrated system made it difficult to maintain end-to-end traceability of materials and finished goods.
Regulatory compliance record-keeping and recall management were cumbersome.
The Solution: Microsoft Dynamics 365 Business Central Online with Dynamics Square's Process Manufacturing Vertical
The company chose Microsoft Dynamics 365 Business Central Online, implemented with Dynamics Square’s Process Manufacturing Vertical. This unique solution, developed by Dynamics Square, added exclusive features tailored to meet the needs of pharmaceutical manufacturers, enabling seamless integration and enhanced capabilities.
Exclusive Features of Dynamics Square’s Process Manufacturing Vertical
- Process Optimization: Optimized workflows and reduced time and energy spent on daily tasks by 50%.
- Advanced Traceability: Developed functionality for top-to-bottom and bottom-to-top lot and item tracing.
- Compliance Control: The advanced compliance control capabilities the movement of goods after proper authorization to ensure regulatory compliance.
- Enhanced Subcontracting: Custom processes streamlined subcontracting activities, improving efficiency.
- Simplified Workflows: Simplified daily tasks and reduced activity spent on redundant activities by 10%.
- Hierarchical Workflow Approvals: Custom workflows catered to hierarchy, value, and category-specific approvals. Features included capital approvals, delegation of work, and automated job work approvals based on amounts.
- Streamlined Data Management: Enhanced data management capabilities optimized order processing and removed inefficiencies.
Implementation Highlights
- The implementation process focused on workshops with representatives from finance, production, quality assurance, and warehousing to ensure alignment with business requirements.
- Key modules deployed included Production Management, Warehouse and Inventory Management, Quality Assurance, and Document Management.
Key Benefits Realized
- Streamlined Financial Management
Bank reconciliation time reduced from 3 to 4 days to just 30 minutes.
Month-end and year-end closing processes were simplified, eliminating the need for external accountants.
Real-time, self-sufficient management reporting provided instant access to critical financial insights, such as profit/loss statements and fixed asset depreciation.
- Enhanced Production Management
Flexible manufacturing capabilities allowed the company to manage varying batch sizes and oversee recipe/formula controls with strict oversight.
Tools for BOM and routing management improved production planning and efficiency.
Real-time tracking of by-products and co-products optimized resource utilization.
- Improved Quality Assurance
Integrated lab testing and approval workflows ensured that only quality products were released.
Certificates of Analysis (CoA) were seamlessly managed and stored within the system.
Automated compliance processes facilitated adherence to GMP, FDA, and ISO standards.
- Optimized Inventory and Warehouse Management
Features like batch and serial number tracking, FEFO inventory management, and expiry tracking minimized waste and improved inventory accuracy.
Quarantine processes for suspect inventory ensured product safety.
Multi-warehouse management enhanced operational efficiency and reduced bottlenecks.
- End-to-End Traceability and Compliance
Full traceability of materials and finished goods enabled quick and efficient recall management when necessary.
Automated regulatory compliance record-keeping reduced manual effort and risk of errors.
- Streamlined Production Scheduling
Material Requirements Planning (MRP) and capacity planning tools ensured timely procurement and production, minimizing delays and resource wastage.
- Efficient Document Management
Centralized storage for CoAs and regulatory documents simplified audits and compliance checks.
Batch manufacturing records were easily accessible, improving transparency and accountability.
- Improved Customer and Supplier Management
Custom BOMs and labeling catered to customer-specific formulations, enhancing customer satisfaction.
Supplier quality and performance tracking ensured consistent material standards.
Long-Term Benefits and Vision
With Microsoft Dynamics 365 Business Central the company is well-positioned to achieve long-term success. The ability to analyze equipment costs across facilities and optimize resource allocation ensures sustainable growth. By leveraging advanced analytics and real-time insights, the company is setting new benchmarks in the veterinary pharmaceutical industry.
Conclusion
The transformation achieved through Microsoft Dynamics 365 Business Central and Dynamics Square’s exclusive Process Manufacturing Vertical is a testament to the power of modern ERP solutions in addressing complex business challenges. This strategic partnership has not only streamlined operations but also laid a strong foundation for future innovations and growth.