Pharmaceutical Distribution Software: Part of a Full Tech Stack for Transportation Efficiency Optimization
When it comes to the pharma supply chain, there is a core set of components that support an effective tech stack. One of these is pharmaceutical distribution software. These systems are part of the broader ecosystem that makes pharmaceutical businesses logistically and operationally efficient while continuously ensuring compliance.
But what should a company look for when selecting its pharmaceutical distribution software?
As leaders in freight audit technology for the pharmaceutical supply chain, the team at Trax wants you to understand the vital interoperability of all of the systems you use, including those supported by the data our systems generate.
Read on to learn about the best software's key features and how this connects to freight auditing.
Trax offers some pharmaceutical distribution systems you need to turn your pharma transportation and logistics into a key advantage. From brand name and generic drug wholesalers to pharmacies, health systems, hospitals, and clinics, all pharma companies can benefit from the Trax transportation spend management software.
What Pharma Distribution Software Can Do
Pharma distribution software is essentially an enterprise resource planning (ERP) solution. According to G2, the software keeps track of ordering, selling, warehousing, and big data while ensuring compliance with regulations.
However, not all software is created equally. The list below summarizes the top features and capabilities to look for in the best pharmaceutical distribution software.
Traceability and Trackability
When handling prescription drugs, it’s important to utilize software that allows companies to trace and track products at all supply chain stages. For example, optimal pharma distribution software uses barcode scanning and serial numbers to manage patient medication records.
By employing traceability features, pharmaceutical distribution software allows businesses to manage medication, drug, and controlled substance safety recalls.
Compliance ManagementAccording to PwC, the pharmaceutical industry is under increased regulatory scrutiny related to a number of areas. Still, quality control activities surrounding manufacturing operations greatly interest the supply chain. By employing the right pharma distribution software, companies ensure they comply with state and federal regulatory establishments like the FDA, DHHS, EMEA, and VA.
Inventory ManagementThe right pharmaceutical distribution software can track medication inventory levels in real time. In addition, the software can even automate purchase orders as stock fluctuates and adjust a company’s needs by documenting expiration dates.
Software that accommodates first-in, first-out (FIFO); last-in, first-out (LIFO); and first expiring, first out (FEFO) methods of inventory selection provide an advantage to pharma companies that want to make sure medications move in and out of the facilities on time.
Cost ManagementBy automating tasks that were once completely manual, the right pharma distribution software optimizes different areas of operation. In the long term, this results in significant cost savings. The FDA’s Process Analytical Technology initiative directs drug manufacturers to achieve further cost savings through technological innovation.
Data Handling and InsightsThere is an abundance of data related to the pharma supply chain. Specifically, when it comes to logistics data, companies need to learn how to manage big data in a way that encourages leaders to derive meaningful insights for the supply chain.
Trax offers a data compliance manager solution that ingests, cleanses, normalizes, and joins data from disparate systems for centralized data to inform decision-making for pharma leaders.
Maximized IntegrationsWhen a pharmaceutical software vendor is knowledgeable about third-party integrations, the client reaps the benefit of integrating various applications, data feeds, and interfaces. For example, regarding shipping and delivery options for pharma companies, having software that seamlessly integrates with FedEx, UPS, USPS, and other industry-specific establishments is crucial.
Trax data management for pharmaceutical freight auditing offers elite data handling for transportation spend management insights. Various integrations enable better data management, including EDI, API, sFTP, HTTP, AS2, and more.
Streamlined CommunicationAccording to Pharma News Intelligence, the pharmaceutical supply chain faces significant challenges related to coordination. One of the main strategies for tackling this issue is with better communication and collaboration. This includes communication between shippers, carriers, and 3PLs for pharma.
Trax’s Carrier Management Services include tools like the carrier scorecard, contract/rate management, and claims management. By communicating quickly and effectively with the appropriate parties, pharma enterprises ensure that their contracts comply and can better control transportation costs.
Enhanced ProfitabilityPharmaceutical distribution software offers extra features, like forecasting and process automation tools, that allow companies to increase their ROI. In the supply chain, cost to serve is a calculation of the net profit margin. The calculation is based on all business activities and overhead costs incurred separately from the cost of goods sold (COGS).
The main goal of supply chain leaders is to manage cost to serve while providing the highest quality products. This means that utilizing TSM software to track data at all supply chain stages is imperative for pharmaceutical companies. They need to understand which processes work effectively and which require refinement to manage costs and drive profitability.
Pharma Distribution and Spend Management Software
By considering all of the features mentioned above and determining what is most in line with a pharmaceutical company’s goals, it’s easier to find the right pharma distribution software.
Knowing your numbers makes all of the difference. The highest-performing companies in the pharma supply chain leverage the power of technology to harvest and maintain reliable data, which empowers forecasting and strategic decisions.
If your company is looking to round out or upgrade its tech system, contact Trax today. You can speak with a transportation expert about spend management for pharmaceutical companies and begin the journey toward TSM maturity.
Trax is the global leader in Transportation Spend Management solutions. We partner with the most global and complex brands to drive meaningful optimizations and savings through industry-leading technology solutions and world-class advisory services. With the largest global footprint spanning North America, Latin America, Asia, and Europe, we enable our clients to have greater control over their transportation performance and spend. Our focus is on your success.