1. E-Business solution
in Drug Industry
Case study for Pharmaceuticals
Manufacturer in Egypt

2. Agenda
• About Pharmaceutical Industry in Egypt.
• Pharmaceuticals Manufacturing Standard Processes.
• Case Study: Selecting E-Business Solution .
• E-Business Solution Scope.

3. Pharma industry in Egypt
•Egypt Local Pharma Industry is the largest domestic drug
manufacturing in the MENA Region, Supplying 30% of the
total regional Market with total value about US$2 Billions.
•42% of the Egyptian Market is controlled by MNCs, 28%
by Private sector companies & 30% by Public sector.
Private Pharmaceutical industry represents
70% of the Egyptian Market in 2007
6%
5%
16%
8%
14%
9%
9%
10%
13%
10%
GSK Egypt
Novartis
Sanofi Avantis
EPICO
Pharco
Pfizer
BMS
Amoun
http://www.amcham.org.eg/resources_publications/publications/business_studies/PDF%20Files/pharmasample.pdf

4. Pharma industry in Egypt
•IMS Health announced in 2011 that 17 high-growth
pharmaceutical markets are now ranked as “Pharmerging,”
•the Pharmerging Markets are the most growing in spending.
•Egypt is one of those Pharmerging Markets.
1st
http://www.imshealth.com/ims/Global/Content/Insights/IMS%20Institute%20for%20Healthcare%20Informatics/Document
s/The_Global_Use_of_Medicines_Report.pdf

5. Pharma industry in Egypt
•Boosting of spending on medicines means Growing in that
profitable industry and leads to demand for applying more
E-Business solution for creating comparative advantages.
http://www.imshealth.com/ims/Global/Content/Insights/IMS%20Institute%20for%20Healthcare%20Informatics/Document
s/The_Global_Use_of_Medicines_Report.pdf

6. Standard Business Processes
•Main Manufacturing Types:
Process
Manufacturing
• Pharmaceuticals
• Food
Make To
Stock
Discrete
Manufacturing
• Automobiles
• Computers
Line
Manufacturing
• Oil & Gas
• Cement
Make To
Order
• The Evolution of E-Business Solutions for Manufacturing:
•
•
•
•
•
1960’s : Inventory Control Systems.
1970’s: MRP-I Planning + Purchase + Inventory Management.
1980’s: MRP-II MRP-I + Shop floor Automation + Distribution.
1990’s: Enterprise Resources Planning.
2000’s: ERP Collaborative Commerce Extending.

7. Standard Business Processes
Pharmaceuticals Manufacturing Standard business cycle:
Sales Billing,
Finance &
Costing
Marketing
Forecasts
& Toll Production
Sales, Production
& Purchase
Planning
Quality &
Production
Processes
Purchase
&
Inventory

8. Standard Business Processes
•Pharmaceuticals Manufacturing Simplest Processes Flow:
Purchase
plan
Planning
Sales
Planning
Purchase
Order
Production
Plan
Production
Order
Quality
Assurance
Production
Quality
Control
Finance
Warehouse
Base
Structure
Product
Inventory
Sales
Order
Material
Inventory
Sample
Order

9. Case Study:
•Brief about the process of
selecting an ERP Solution
for a Pharmaceuticals
Manufacturing facility
Located in Egypt.
•That produce an
integrated wide range
of cost effective, value
adding Anticancer and
intensive care products

10. • What’s the Common
Problem …..????
• Lake of Integrated
information system

11. Lake of Integrated System leads to
• Discrete information Systems produces Islands of
information, resulting:
• Difficulties To derive timely consistent Business Image.
• Daily operational monitoring for Proactive changes.
• Periodical Financial Statements.
• Difficulties in managing rather than control
• Inventory levels can be controlled but inventory mix can’t
be managed.
• Inefficient Planning “Material apart of capacity or labor”
• limited capability in maneuvering or reacting to
deviations.
• Inefficient in balancing the Conflict of interests:
• Maximum Customer Service
• Maximum Productivity.
• Minimum Operations Costs.

12. Filling the GAP
Toward Growth…!!!

13. Selecting E-Business Solution
• Criteria for selection:
 The fulfillment of the Core
business Processes & Standard
Cycles.
 A web-based Multi-Tier ERP
solution
 The Previous successful Applying
•But What’s an ERP Solution??
ERP Stands for Enterprise
Resources Planning.
ERP is an Electronic Business
Solution that integrate internal and
external information across an
entire organization, Its' purpose is
to facilitate the flow of information
between all business functions.

14. E-Business Solution Scope
• In Pharmaceutical Manufacturing Industry E-Business
Solution Must Fulfill Process Manufacturing.
• The Required system must Automate & Control the
following Standard Business cycles including:
– Procure-To-Pay, Order-To-Cash
– Make-To-Stock, Make-To-Order “Toll-In & Toll-out
Manufacturing Subcontracting.
• Validation & Compliance issues:
•
•
Ex.FDA “21 CFR part 12 Compliant” Concerned with systems
capability for generating Electronic batch Records &
Electronic signature instead of hardcopies in drug
manufacturing Process
Annex 11 of the EU GMP regulations (EMEA 2011).
Ref: http://en.wikipedia.org/wiki/Validation_(drug_manufacture)
http://www.21cfrpart11.com/files/library/compliance/cfr_whitepaper.pdf

15. E-Business Solution Scope
•The Solution must Encompass the
following functions:
• Quality Management, Production Shop-floor orders
automation,(Materials, Production Capacity & Labor)
Planning & Constrained Scheduling.
• Logistics including Procurement, Warehouse
• Accounting including GL, Cash, A/P,A/R & Costing
• Human Resources.
• Marketing: involving Sales & Distribution.
E-Business Solution functions
Marketing
Planning
Quality
Logistics
Production
Finance
Procure
Inventory
HR
Accounting
Costing

16. E-Business Solution Scope
• Standard Solution in Pharmaceutical Manufacturing
CRM
C
U
S
T
O
M
E
R
Marketing
Demand
Creation
Product Development
ERP
R&D
Registration
Plan.
Proc.
Fin.
Prod.
HR
QM
BI - for Monitoring Operations
Sales
C
U
S
T
O
M
E
R

17. ERP in Local Pharma Industry
SAP ERP
Oracle ERP
Microsoft Dynamics
The Top 5 Pharma
Manufacturers in Egypt
Use SAP ERP:
More Than 13 of the
Pharma Manufacturers
in Egypt Use Oracle
ERP:
Two Pharma
Manufacturers in Egypt
Use Microsoft ERP:
•Glaxo Kline Smith
•Amoun Pharma
•Bristol Myers Squibb
•Sanofi Avantis
•Hikma
•EVA Pharma
•Mina Pharma
•Global Nappi
•SEDICO
•October Pharma
•Sunnny Medical
•SIGMA.
•Pharco Group.
•Luna Group.
•RAMEDA
•Marcyri
•Clariant
•Orchidia Pharma
•Holdi Pharma
•RIVA Pharma
http://www.amcham.org.eg/resources_publications/publications/business_studies/PDF%20Files/pharmasample.pdf

18. Tradeoffs Between Best ERPs
SAP ERP
Oracle ERP
Microsoft Dynamics
•32% of the Global ERP
•23% of the Global
ERP Market
•14% of the Global ERP
Market
•20.4%Top 3 short
listed
•9.8%Top 3 short
listed
•14.9%Top 3 short listed
•54.1% selection
Rate from the Top 3
short listed
•54.2% selection
Rate from the Top 3
short listed
•(Not rated) selection
Rate from the Top 3
short listed
Payback Period
About 3 years
Payback Period
About 2.6 years
Payback Period
About 2 years
Market
Ref:. http://panorama-consulting.com/Documents/2011-ERP-Report.pdf

19. Tradeoffs Between Best ERPs
Ref: http://www.technologyevaluation.com/

20. • Implementation
Duration within 6
Months
• Best Practices
Solution Less
Customization.
• Less Local
Resources
• Total Acquisition
Cost of $350K
• 1st Ranked in
Pharmaceutical
Manufacturing
Oracle E-Business Suites
SAP Business All in One
Tradeoffs Between Best ERPs
• Implementation
Duration within
12 Months
• More Possibility
for
customization.
• Availability of
Local Resources
• Total Acquisition
Cost of $250K
• 2nd Ranked in
Pharmaceutical
Manufacturing

21. SAP ERP
SAP in Pharma Manufacturing
• SAP ERP
Market
Leader Ship
In Pharma
Industry
worldwide
• Industry
Expert &
Best
practices

22. SAP ERP
SAP ERP in Life science Chain
• SAP ERP is
the Life
sciences
Industry
Standard
• Strong track
record in
supporting
fast Growth
Companies

23. Result with a similar SAP Client

24. Result with a similar SAP Client