Benefits of Using NetSuite’s Cloud ERP In The Life Sciences Industry
INSIGHT ARTICLE |
Life sciences firms are in a unique position. Some, whose drug or device is ultimately approved for sale, have to scale their operations and supply chain virtually overnight. Others are frequently on one end or the other of an acquisition or merger (before or after approval) and have to react quickly. Having an enterprise-resource-planning (ERP) system like NetSuite in place can help life sciences companies adapt to the changes with agility and efficiency.
Ready-to-go functionality for post-commercialization ramp up
The ERP needs of life sciences firms before and after approval are very different. Pre-approval, companies may only have simple, straightforward order management and procurement requirements while they engage in research and third-party contracting. Post-approval, the enterprises instantly need capabilities like supply chain visibility, raw materials tracking and product valuation throughout the manufacturing process. NetSuite has a built-in suite of distribution, manufacturing and financial tools that can be activated as soon as they’re needed.
Rapid deployment with few additional resources
Business moves quickly in the Life Sciences industry. One company located in the northeastern U.S. acquired an over-the-counter medication that was already on the market. In doing so, it went from offering several small volume prescription drugs to selling millions of doses of a direct-to-consumer medication. The firm had NetSuite in place before the acquisition. As a result, "They were able to scale up without adding any additional back-office personnel in finance, and they needed no additional software," says Stephen Kemler, Technology & Management Consulting Manager at RSM.
Resource planning for both sides of an acquisition
In life sciences, large pharma companies acquire smaller firms frequently. When that happens, reporting from either side of the purchase can become instantly more complex. NetSuite’s multi-entity framework solves that problem. If the buyer has NetSuite in place, it can easily “turn on” multiple-subsidiary functionality to bring the new subsidiary into its existing ERP system without a massive investment or drastic changes in its operation. Pharma companies that have been acquired can configure NetSuite to manage internal reporting and reporting up to the parent company even if it involves two different charts of accounts.
One less thing to worry about during a major transition
Waiting for approval is both exciting and nerve-wracking for a pre-approval drug manufacturer. These firms have to be ready to scale up the business with as little drama as possible, but can’t yet afford to invest in massive software infrastructure until more revenue rolls in. "NetSuite really excels in that area. It's natively built so when companies hit those inflection points they don't have to buy new software, servers or bandwidth. It’s very reassuring for firms already under so much stress,” Kemler explains.