Pharmaceutical companies in 4.0 & DMS era: Take it or leave it?

As the term “4.0” (or “fourth industrial revolution”) becomes more popular, devices can “talk” to each other, separate software programmes are integrated, data are automatically synthesized and information comes “rushing” to users (according to predefined conditions); our approach to business management on technological platforms must obviously change. Pharmaceutical companies are no exception; in fact, they have to seize the chance to change faster because of domestic and foreign competition, as well as increasing consumer demand.

Characteristics of Pharmaceutical manufacturing: (i) Production processes are carried out mainly by machines with rigorous hygiene standards. (ii) Strict requirements on source tracking and expiry date management. (iii) High level of accuracy needed. These are favorable conditions to “digitalize” management activities, helping users focus on the tasks at hand instead of wasting time on information gathering. Hence, at the workshop on Pharmaceutical and the digital revolution in comprehensive business management on June 22^nd 2017 in HCMC, Mr. Stefan Roesler, Director SAP Business One APJ & GC commented: “Vietnamese enterprises will benefit from the information technology (IT) development programme during 2016 – 2020 of the Government via promoting the application and advancement of IT. Besides, the application of cloud computing in Vietnam is also accelerating, opening up ample opportunities for domestic companies to transform into digital businesses”.

Mr. Stefan Roesler, Director SAP Business One APJ & GC delivered the opening remarks

This is a fitting chance for Pharmaceutical enterprises to easily take advantage of 4.0 era with much lower investment expenses than previously. Speaking at the above mentioned workshop, experts from DMSpro Joint Stock Company (DMSpro) and Apzon Joint Stock Company (Apzon) who possess years of experience in the pharmaceutical industry gave practical advice to pharmaceutical companies as follows:

1. Taking advantage of the integrated platform: In 4.0 era, an ERP platform (ERP core) such as SAP B1 enables enterprises to not only manage operational processes seamlessly (from planning and forecasting, order placement, to manufacturing and distribution) but also get ready for integration requirements concerning distribution management, multi-channel sales management (POS, e-commerce), etc. This is an inevitable trend that will replace the former use of detached management software.

Mr. Doan Van Ngoc –Apzon’s Solution Director presented on the role of Enterprise Resource Planning (ERP) system in pharmaceutical companies

2. Utilizing devices’ ability to “communicate” in enhancing the process of planning, management and supervision: With diverse functionality and reduced costs of sensors, the integration of manufacturing activities on IT platforms like SAP B1 helps companies to gain a comprehensive view and digitalize almost all technical tasks to overcome common challenges in the Pharmaceutical sector: managing products’ expiry dates, tracking goods in the supply chain, updating prices for different sales channels, forecasting demand, etc.
3. Upgrading the sales force: Imagine each outlet can “tell” pharmaceutical managers how many products are sold at the outlet today, whether any salesman has visited the store, which orders need to be placed, whether display programs has met the company’s requirements, etc. In such scenarios, the sales team will be in a better position as they have more time to listen to customers’ feedback, consult them on different product functions, addressing concerns, and so on. Sales management in 4.0 era will be much more professional thanks to DMSpro’s Distribution Management System (DMS) solutions powered by SAP B1.

Ms. Dinh Thi Minh Huan –DMSpro’s Sales Director talked about the trends of technologizing distribution and sales management in the pharmaceutical industry

4. Optimizing distribution activities: To achieve high growth rates (revenue increase and cost reduction) companies that apply Distribution Management System (DMS) solutions can exploit several factors: expanding the number of outlets, monitoring closely the sales progress of customers (sell-out), capturing stock levels at each outlet in time to maintain a balance in the supply chain, supervising order figures and actual deliveries of agents to fully capitalize on market potential, executing trade marketing programs (display, score accumulation, etc.) for customers, measuring practical efficiency and such. These solutions have been effectively implemented by top pharmaceutical firms like Bidiphar and Nhat Nhat.

As the ostrich becomes frightened it will bury its head in the sand. For courageous and visionary business owners who dare to ride the big waves, it is important to be ready when opportunities knock. The industrial revolution 4.0 emerges as an ideal foundation for Pharmaceutical enterprises to “digitalize” their business operations, enhance management efficiency, and head for success!

The panel discussion provided workshop participants deeper insights into practical applications of ERP & DMS powered by SAP B1

The workshop on “Pharmaceutical and the digital revolution in comprehensive business management” in HCMC attracted a lot of pharmaceutical companies