The pharmaceutical market – one of the largest globally is witnessing rapid growth – with large investments in research and development, with an onset of new challenges. An increase in chronic diseases and a rapidly aging population is creating an upswing in the demand for medicines, and at the same time patients have become more accountable for their health and focused on wellness and prevention – demanding better and more personalized care at better prices.

Thus, Some of the most common problems faced in the pharmaceutical industry are high operational and infrastructural costs, stringent compliance regulations and standards and complex supply management and distribution to name a few. Thus, companies are moving towards solutions that enable them to heavily optimize costs, manage quality and compliance, deliver higher levels of personalization, as well as increase productivity.

Benefits offered by SAP for
the Pharmaceutical Industry

  • SAP best practices ensure products are produced to meet industry quality standards and regional/global compliance, regulatory and safety standards.
  • Enables maintenance and tracking of medical quality records for BMR and BPR across the production and distribution value chain.
  • Supports R& D and new Product Development and brings structure to the management and maintenance of complex, multi-level formulas.
  • Specialized MRP ensures situations of material unavailability/shortages during production are avoided, wastages are managed and reduced, and finished products are produced as per market demand.
  • Real-time reporting and analytics enables proactive decision making and quicker assessment of costing and profit margins.

SAP for the Pharmaceutical Industry


  • Integrates diverse functions, composite applications, and disparate ERP systems on to one integrated platform, providing access to a single source of truth data.
  • Brings End-to-end visibility into operations enabling harmonized planning, production management, and batch management, allowing flexibility and agility to offer personalized treatments and cater to smaller segments.


  • SAP best practices for pharmaceuticals brings enhanced functionality to R& D, planning, production, materials management, storage, packaging, logistics, and quality management.
  • Streamlines R& D and new product development and brings structure to the management and maintenance of complex, multi-level formulas.
  • Realtime data-driven insights enable efficiencies in the supply chain, shop floor to top floor connectivity and faster decision making.
  • Applies IoT and AI to predictive maintenance and predictive quality management to optimize manufacturing and the supply chain.


  • Enables complete management of the existing and evolving regulatory environment, to comply with safety and quality regulations imposed by FDA, DEA, EPA, GxP, Reach, etc.
  • Provides an integrated quality management system with a full-featured lab information management system (LIMS), and enables automation of sample cycles and real-time recording of sample data and test routines.
  • Follows Corrective and Preventive Action (CAPA) process to identify, document, investigate and resolve deviations and non-conformities. This helps to control and limit critical problems impacting quality.


  • The extended cloud-based digital network lets you easily connect and collaborate with suppliers, contractors, distributors, retailers, care providers, contract research organizations as well as third-party logistics service providers to achieve quality compliance, optimize product design, and shorten time to market.
  • Streamlined collaboration and planning would further aid in cost reduction across functions – procurement, contract manufacturing, logistics, etc.