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How Do ERP Systems Work for Biotechnology?

Data management is a core requirement for biotech experts, handling complex and detailed information that commands extensive planning and coordination. Solutions such as SAP pharma are poised to provide enterprise-specific controls, information management, and automated traceability as a technologically advanced way to improve organization-wide efficiencies.


Let's talk about why ERP differs from standalone applications and how customized modules work harmoniously to collate valuable data, all in one place.

What Does an ERP Solution Do?

ERP systems decrease the resources required to run biotech enterprises efficiently while sustaining profitability and ongoing progress. They comprise a customized range of add-on functions, which allow numerous enterprise modules to access data from one central control point.


Here is an overview of the inner workings of ERP:

  • The ERP system collects data from various business elements
  • Data is collated centrally in an organized, visible format
  • Personnel who need reports, forecasts, data, or performance reviews access that information


Of all the benefits of an ERP for contract research organizations (CROs) and the biotech businesses they work for, the most important is that it dismantles silos and provides information to the right people at the right time.

ERP solutions can automate data entry through back-end processing, exchanging data instantly with relevant modules. For example, if you have ordered a component from the inventory and depleted reserve stocks, the inventory management module within the ERP system will flag this with supply chain managers to prompt replenishment.

How Does ERP Simplify Biotech Company Processes?

Simplification, automation, and information sharing are at the heart of ERP. The idea is that workflows across biotech are smooth, organized, and transparent, avoiding a huge range of potential issues and delays. ERP applications in biotechnology enterprises provide a range of advantageous outcomes such as:

  • Detailed databases: Comprehensive research files, project performance data, and strategies can be stored via an ERP cloud server, with full maintenance and accessibility via every part of the biotech business.
  • Managed resources: ERP tracks both micro and macro resources, making management allocations less complex and assigning assets as required in order of timescale and importance.
  • Financial management: An integrated financial management solution can track spending, margin, and revenue by project, cost driver, department, activity, or contract for full control and tactical oversight.

Integrated ERP can communicate and sync data throughout multiple databases, workflows, and projects, reducing time spent by engineers, managers, and analysts determining how each activity is progressing. 

What Are the Different ERP System Types?

Pharmaceutical, medical manufacturing, and biotechnology sectors have a unique set of demands and requirements, and three varying ERP solution structures may meet different needs.

On-premise ERP solutions are deployed on-site and controlled post-installation by personnel or an ERP adviser. Security safeguards are robust; however, there are demands placed on organization servers and application management. The advantage of on-premise ERP setups is that they are fully customizable, have strong potential for integration, and do not require any third-party handling of confidential data.

Cloud-based ERP systems are more flexible and can be deployed at the enterprise level with privacy controls over classified information.

Finally, a hybrid ERP solution, or two-tier ERP, allows a combination of cloud-based and on-premise ERP, offering the best in confidentiality and data control while allowing experienced ERP consultants to ensure your software systems are operating optimally.

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