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How ERP Helps Life Sciences Firms Avoid Recall & Improve Product Quality?

Having an ERP solution will enable higher process quality and can minimize the chance of a product recall. ERP systems can help firms avoid recalls and improve product quality by providing a centralized system for managing and tracking production processes.

The supply chain was shaken by the COVID-19 epidemic, and the conflict between Ukraine and Russia, ongoing cyberattacks, and trade tensions have only reinforced this pattern. As a result, manufacturing has been under pressure, with particular difficulties for businesses that obtain their products and components from different parts of the world. And all of these challenges can be solved with a proper ERP implementation.

Particularly heavily struck are the life sciences, which have a variety of subcontractors and intricate supply networks. Companies have found it challenging to uphold quality standards, achieve quicker time to market, satisfy increasingly high customer demands, and adhere to legal requirements.

The Hidden Cost of Product Recall

Manufacturing mistakes can result in a mismatched formula that lowers the quality of the finished product, forcing companies to remove products from the market if the issue endangers the safety of their customers. These can result in difficult-to-quantify reputational damage to the organization and to the users’ trust.

Recalls by companies can have an effect on innovation in the market for certain products. In many circumstances, a recall can put a company’s incremental advances back by up to six months.

In order to more effectively mobilize knowledge, life sciences product development teams often concentrate on a single product category or line. When a product is recalled, the team’s focus must turn to resolving and identifying the underlying cause of the issue. Additionally, it affects revenue. The corporation may miss the chance to secure first mover advantage elsewhere if this time isn’t used to develop other products.

According to the post The Hidden Cost of a Product Recall from Harvard Business School’s Working Knowledge blog, if a life sciences company can launch a new product even one month earlier after a competitor’s recall, that may result in an extra $10 million in sales. The greater the memory, the quicker competitors can innovate and take market share.

ERP Validates Production Process and Quality

Higher process quality is made possible by using an ERP solution, which can also reduce the likelihood of a product recall. ERP implementation enables all business processes to be automated, integrated and consolidated into a single source of truth.

As a result, there is end-to-end visibility for real-time updates and swift pivoting when an anomaly appears. Because all company stakeholders have access to the same data when it comes to production reporting, breaking down silos, and ensuring that no data is missing, ERP also ensures data consistency.

ERP also provides insight into the operations of suppliers and suppliers’ suppliers, where major risks for pharmaceutical businesses may be present. For an end-to-end perspective of the supply chain and to spot risks, businesses must map their suppliers by tier.

Trace and Measure The Total Cost of Quality

When it comes to using resources to maintain the quality of the outputs they provide to their clients, ERP solutions enable organizations to track and measure the whole cost of quality. This is because ERP platforms reduce process waste and identify unnecessary spending on transportation, inventory, waiting, processing, production, or other key performance metrics, which simplifies data for continual improvements.

ERP essentially assists companies in identifying key performance indicators, monitoring all business activities, and using data to make both immediate and long-term choices. A cloud ERP provider’s security will also enable data and business operations to be kept safely, reducing the chance of a cyberattack. Audits and reporting are streamlined by data accessibility and confidence, potentially saving resources.

Simplified Compliance Validation

  • Pharmaceutical, biotech, and medical device manufacturing companies frequently must comply with the stringent rules of the FDA, the EU, and numerous other organisations. Medical device and pharmaceutical product manufacturing and distribution computer systems must be validated to make sure they comply with these laws and general Good Manufacturing Practice (GMP) standards.
  • This compels manufacturers to increase their spending on training and other preventative and evaluation initiatives, as well as to add more quality checks to their regular workflows. One of the most difficult and expensive processes that manufacturers confront is compliance; it frustrates employees and necessitates verification of every specific need outlined in the pertinent rules.
  • ERP platforms must adhere to numerous rules, including 21 CFR Part 11 of the FDA, in order to meet regulatory requirements. This frequently necessitates hiring competent outside auditors. All the processes required to adhere to federal standards and regulations can be integrated and managed by cloud-based ERP that supports particular life sciences firms.
  • In the end, these investments make the jobs simpler to complete, helping to make up for hiring difficulties and increasingly difficult responsibilities. Many businesses can cut the time and expense of the validation process by starting with a collection of templates for FDA compliance and guaranteeing that they will pass audits.


ERP validation may speed up the production process, safeguard materials handling, and reduce company exposure and risk while continuously delivering on high-quality requirements. A successful transition and implementation can be ensured with the assistance of committed and knowledgeable SAP consulting services.

31 Jan, 2023

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