Navicon Streamlines Business Processes at R-Pharm

12.10.2017


			Navicon Streamlines Business Processes at R-Pharm			Navicon Streamlines Business Processes at R-Pharm

Navicon has completed the project of key business processes' automation at R-Pharm, a high-tech pharmaceutical company. To help R-Pharm manage business processes across its branches located in 70 cities, the system integrator implemented an ERP based on Microsoft Dynamics AX 2012 and an analytical solution based on Microsoft BI. The system is currently being used by more than 400 R-Pharm employees from 28 company departments.

Before the implementation, R-Pharm had been managing corporate resources and business processes by an accounting system of R-Pharm's own design. However, the former accounting system could no longer meet the company’s needs, nor could it provide compliance with GMP and GDP (GAMP 5) standards of pharmaceutical manufacturing. The business application architecture wasn't flexible enough to react promptly to changing legislation requirements and the new regulations of the industry’s control authorities. There was also no platform for effective collaboration among the company’s departments.

As a result, R-Pharm decided to implement an ERP solution based on Microsoft Dynamics AX 2012, and a business intelligence solution (BI) based on Microsoft BI technologies in order to cover all of the key business processes related to sales, purchase and logistics management. Navicon was chosen as the Contractor for the project.

Upon the project completion on the first quarter of 2017, the whole R-Pharm business got automated.

The unified system coordinates the work of the company’s key departments, and provides the top management with the information on each department's main business figures.

The ERP based on MS Dynamics AX 2012 automates the management of accounts receivable/payable, the settlements with suppliers and customers, the purchases, warehouse and transport logistics. The ERP is also integrated with 1C accounting system in order to collect managerial reporting from all departments in accordance with the Russian standards of accounting and tax reporting. Immediate managerial reports are provided by the BI system every 3 hours.

As a result of ERP implementation, R-Pharm got a tool to record and control the corporate resources that is customized to the features of pharmaceutical industry, such as participation in tenders or the necessity to control maximum price markups for pharmaceutical products. In regard to logistics, the warehouse zoning, temperature maintenance and vehicle fleet control got automated. Both the system and warehouse accounting processes went through an R-Pharm internal audit procedure for compliance with GAMP 5 standard.

Concurrently, a BI solution based on Microsoft Analysis Services platform was developed to increase the speed and convenience of business information analysis across R-Pharm departments. The ERP data is now additionally processed in OLAP cubes or using a new Microsoft technology of tabular models.

The uniqueness of the project is its geography, since the business processes were automated in all 70 cities of R-Pharm presence. The system is covering the work of 28 departments and has more than 400 users.

«The pharmaceutical industry has very strict requirements in regard to the sales of medical drugs concerning the expiry date, manufacturing conditions, and price regulation. Moreover, there is definite seasonality in the volumes of product sales, manufacturing, and purchasing. All these factors must be considered at every stage of the production/sales process. The implementation of an integrated solution allowed us to efficiently coordinate the interactions between our different departments and branches, and ensured that the local tasks are in line with the company's strategic goals».
Oleg Rynskov, IT Director at R-Pharm.
«This solution helps R-Pharm to organize logistics in a more efficient way, as it accumulates and consolidates the information on the orders and stock balances. The company got an opportunity to unload the main warehouses and to reallocate the ready-to-sell goods to several other warehouses, which is going to speed up the shipments and thus to reduce R-Pharm's logistic expenses».
Evgeniy Rodnyanskiy, Head of Microsoft Dynamics AX Department at Navicon.

Navicon also organized a on-site training course for R-Pharm sales team: the groups of 10 to 20 people studied the new system for 3 or more days. Moreover, all future users of the system have been educated online, and also learned how to create payment/transportation requests and to work with BI reports.

R-Pharm (www.r-pharm.com) is a Russian high-tech pharmaceutical company. The company mission is to provide Russian patients with affordable innovative treatment methods. The company’s staff consists of 3,500 highly qualified professionals. R-Pharm has more than 60 branches and regional offices, and operates in Russia, CIS countries, the USA, Germany, Japan, Turkey, and India. The main business lines are the production of finished dosage forms, active pharmaceutical ingredients and biotechnological substances, the research and development of innovative remedies and technologies, the rollout of new medicines, as well as the education and training of professionals for the pharmaceutical industry and public health services.

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