While ERP implementation in different industry segments is common,
an ERP deployed for a firm in the Contract Research Organization
(CRO) space is rarely heard of. CRO firm, Syngene, achieved this
feat when it deployed Microsoft ERP (Microsoft Dynamics Ax), which
is a first of its kind for a CRO in India with high degree of
business process complexities, diversified requirements arising out
of different business segments and business models.
At Syngene, scientists performing research, require varied
chemical resources for conducting successful experiments. Unlike in
a typical manufacturing set-up, in R&D there is no pre-defined
outcome, and the research requires a large number of chemicals with
the dispensing quantities varying from very small to small scale
(milli gram to gram).
In Syngene’s case, this process was more complex as there
were more than a thousand scientists working on over 300 client
projects. These R&D projects required around 175-200 chemicals/
lab consumables to be ordered on a daily basis. On an average, each
scientist spent more than five man hours per week for chemical
inventory search, raising purchase requisition and tracking
material receipt.
To resolve these issues, Syngene deployed an ERP solution. Post
deployment, the solution has helped Syngene in resolving complex
supply chain issues. The firm estimates conservative savings of
2,000 man hours per week (2 hours per scientist), which is now
being utilized for core R&D work, and has resulted in
productivity improvement for the entire scientific community.
The ERP solution has been integrated with bar code and weighing
machine for chemical receipts and issue. A unique bar code is
generated for any chemical received and is pasted on chemical pack
by the store staff. Chemists fill the material requisition against
project/batch number and submit to stores. Store staff, then, scans
the bar code, weighs the chemical bottle and issues the chemical to
scientists. All the desired information on chemicals gets
transferred automatically to the system along with the creation of
consumption journal entry.
Once the experiment is over, chemists return the bottle to the
store. The store staff again scans and weighs the bottle. System at
the backend does all the calculations of unit conversions and posts
the actual chemical consumption in the system against the
consumption journal created during the time of issue of chemical,
resulting in 100 percent accuracy in matching physical inventory
with the system inventory. This has helped Syngene save cost, as it
can avoid repeat purchases of expensive chemicals available in the
inventory. The firm estimates conservative savings in excess of Rs
50 lakh.
The solution has enhanced the functional effectiveness of the
analytical department. It has managed more than 165,000 analytical
requests with an average of 750 plus requests managed per day
containing 1,100 plus tests to be analyzed on a daily basis. Today,
the system is being used by 500 scientists across Syngene. The firm
estimates that each chemist is saving 30 minutes on a daily basis.
Additionally, online availability of data has reduced response time
to client queries by 50 percent. Earlier half of the time was spent
locating hard copies. Going paperless has made overall system more
efficient by enabling online review mechanism between group leaders
and scientists.
Note: Syngene is an EDGE winner. The complete list of EDGE
winners is published in the October 2011 Print issue of
InformationWeek India