By every passing year, the pharma industry is undergoing rapid change with considerable challenges and opportunities.
The part of asset management software within the pharma industry has changed in these years, in a very significant manner.
There is always pressure on cost management and maximizing labor productivity in the pharma industry. Not just this, managing pharma inventory costs, their working capital, time preservation, and increase in purchase accuracy have always been important.
In the pharma industry, an asset management system adds discipline and strength to the manufacture, packaging, transportation and all their related processes.
How Does Pharma Industry Works?
Being the part of the healthcare sector, the pharma industry deals in medicines including its development, production, and marketing.
The aim of the pharma industry is known to all, that it provides drugs to prevent infections, maintain health, and cure diseases.
- Global pharmaceutical markets generated revenue of $980.1 billion in 2013, which increased to $1 trillion in 2014.
- Freshly, in 2018 the pharma industry globally stood at $1.2 trillion which is expected to grow $1.5 trillion by 2023.
Also Read: Why Asset Tracking Software is Crucial for Every Business?
Pharma industry seeks to monitor various regulation objectives as a concern as:
- Safety Check
- Quality Check
- Quantity Check
- Market Flow
- Research and Development, etc.
Like any other industry, its functionality also includes raw materials, manufacturers, finishes good manufacturers, R&D companies, marketing companies, and consumers.
Therefore, it gets more obvious to maintain and manage the processes in sync and this can be achieved by asset management software.
Problems and Solutions in the Pharma Industry
The pharma industry has many problems and challenges to tackle and deal with. Although these challenges have never stopped the industrial growth on a bigger picture but always been a hurdle in the way.
A few of the major challenges are discussed below along with their solutions, that how can asset management software solve all the problems.
Problem 1 - Diversified Systems and Identification Methods
There are multiple working departments in the pharma industry that are tasked with the responsibility to track and manage assets and equipment, using a variety of systems and identification methods.
Every department uses specific software to simplify and manage their work. For example, the finance department uses their specific software for accounting and depreciation; the maintenance department uses some software for scheduling preventive maintenance; the department that handles inventory uses software to keep a record of inventories and items.
Asset management software can keep records of every department and manage it well. Through asset tracking management software you can monitor the following areas:
- Asset tracking
- Purchase order (PO) and Requisition
- Ticket handling
- Equipment maintenance
- Asset management
- Inventory management
- Leased equipment tracking
- Device management
- Plant maintenance
Also Read: Key Features to look while choosing Asset Management Software
Problem 2 - Excess baggage of Underutilized Equipment
Excess baggage occurs when equipment or asset is not in use, but it occupies valuable space on the manufacturing floor, warehouse, or any other expensive on-site storage area.
The space this underutilized equipment's acquired has a measured cost linked with them along with huge opportunity cost. The equipment which is unproductive is usually not stored in good condition which ultimately results in unnecessary damage to the equipment. Because rented storage spaces also carry an annual cost which might be an unnecessary expense.
These unproductive or underutilized equipment have full yield capacity but due to irregular maintenance, it does not function properly.
Asset management software consists of data and record of all the assets and equipment which are owned or rented by your company. This keeps you updated with all the information on both properly used and unproductive equipment.
So, you can identify underutilized assets and schedule their maintenance plan for long-lasting equipment and assets. By using maintenance management software, the pharma industry can record assets information like asset names, purchase date, utility, annual depreciation, and the location where the assets are kept.
Problem 3 - Equipment Maintenance
Maintenance and service-related expenses compose the second-largest budget element in the pharma industry. Unexpected breakdown of equipment is often seen in the pharma industry which lacks in the production as well as the loss of money. Due to a lack of strategic planning, it does not get the appropriate attention, after being such a serious issue.
Equipment maintenance includes replacing or overhauling equipment at regular intervals of time, regardless of its functioning and physical condition at that time.
The assistance of asset management software provides all the information about equipment or asset. It also keeps records of each piece of equipment, for instance, it informs you about the last maintenance done and when is the next maintenance needed. You can schedule maintenance activities without interrupting your daily operations.
Following are a few advantages of equipment maintenance:
- Equipment run efficiently
- Identification of a potential problem
- Increased lifespan & resale value
Problem 4 - Patent Expiration
The expiry of a patent is a big deal for the pharma industry, as the manufacturing deals with drugs and medicines. For example, if a patent gets expired and get out of your notice for its renewal, it becomes havoc.
Unnoticed patent expiry not only causes losses in production and packaging but also in finances and capital.
Through asset management software you can track the patent expiry and get notified through alerts and e-mails before the date of expiry. So, you can timely renew it.
Also Read: Why Use Mobile Application for Cloud-Based Asset Management Software?
Problem 5- Power Consumption
Every industry consumes some power and a bill is generated on a monthly basis for each floor for its utility consumption like electricity, gas, and water. This little expenditure goes very expensive when it is unnoticed.
Suppose if any water tap remained open and it flowed water for several hours at off day, it might not only give you an extra expense but also extra time for cleaning it if it flowed to the floor.
To tackle this problem, the best solution is utility tracking which is a feature of asset management. Through the Utility Module, the user can manage the consumption of its facilities and services, with main features including:
- Different types of meters for different consumptions.
- Recording of electricity, gas, water meters or any custom meters.
- Add single or multiple meters for assets or locations.
- Create daily, weekly or monthly schedules to record meter readings for assets or sites.
- Specify recording times and when the users should receive alerts to input the meter readings.
- Configure meters according to ascending or descending readings.
- Alerts and warnings to the stakeholders when the consumption crosses a threshold and receives notifications for the same.
Problem 6- Leased Equipment Tracking
Leased equipment is the equipment that is taken on lease from some other organization. So, rather than purchasing equipment, companies take equipment on rent. There can be many possible reasons for not buying such as budget issues.
Or a project which required specific equipment so they can complete the project on time and after completing returning equipment.
For instance, if the equipment is present within the unit for the past several years and its rental agreement gets expired, it might be unintentional, but the consequences will not be!
It will be a huge problem for management to solve this issue. As you will have to pay rent for the extra period of time with a penalty. Not just that but your brand image also gets deteriorated.
Leased asset and Equipment tracking become a necessary option when a company has hired equipment on lease. Asset tracking software helps you a lot with the tracking equipment and assets.
It can give you notification and warning with their scheduled maintenance. So, you can keep track of records which will further help you in easy decision making.
Also Read: Tagging your assets and equipment with barcodes or QR codes
No doubt that asset management software is required in pharma or in each and every office and industry. There are multiple reasons behind it such as it not only helpful in saving money but also plays an important part in saving utility for electricity, water and so on.
Moreover, investing in efficient asset management software is an excellent way to accomplish environmental acts and social duty. An external audit can classify excessive waste and inefficiencies.