ERP and SCM Solutions to Offer Effective Means to Streamline European Pharmaceutical Distribution Channels

LONDON, United Kingdom — November 15, 2006 — The increasing need to prevent sales of counterfeit medicines and avoid stock outs of drugs has created a compelling need for effective IT solutions to rationalise pharmaceutical distribution channels across Europe. With comprehensive support from information technology (IT) across distribution channels, the European pharmaceutical industry will experience robust growth.

In particular, enterprise resource planning (ERP) and supply chain management (SCM) solutions are projected to penetrate untapped markets and build complete links between the distributors. ERP and SCM solutions will enable the operations of various participants in the pharmaceutical distribution channel to be streamlined, thereby ensuring the prompt and safe delivery of medicines.

Frost & Sullivan (http://www.healthcare.frost.com) finds that among Solutions Supporting Pharmaceutical Distribution Channel in Europe , ERP and SCM solutions will together earn revenues of $1,188 million in 2006 and is estimated to reach $1,835 million in 2013, as the market potential for these applications is high in the European pharmaceutical sector.

“With these IT solutions, manufacturers and other participants in the distribution channel can track the flow of drugs from pharmacy shelves and replenish accordingly to avoid stock outs,” says Frost & Sullivan Research Analyst Rahul Philip Mampallil. “Moreover, companies can monitor the movement of stocks and detect the illegal intrusion of batches into the distribution channel.”

While undoubtedly beneficial, the implementation of these supply chain solutions should meet particular business needs of companies. At the same time, they should allow easy integration across various functional areas.

“The challenge here is that solutions provided by various ERP vendors might have certain modules that do not involve business requirements of organisations for which they are intended,” says Mr. Mampallil. “The implementation of an add-on ERP module without understanding specific business compulsions would constitute an imprudent and reckless investment.”

Close partnerships between manufacturing companies and IT solution vendors would enable the latter to suitably assess the company’s business processes and identify the functional areas that require ERP or SCM solutions.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Solutions Supporting Pharmaceutical Distribution Channel in Europe (M023 – 48) then send an e-mail to Radhika Menon Theodore - Corporate Communications at rmtheodore@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

Solutions Supporting Pharmaceutical Distribution Channel in Europe is part of the Healthcare IT Subscription, which also includes research in the following markets: clinical decision support systems markets in Europe , European patient e-booking systems markets and healthcare applications of smart cards in Europe . All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com

(23/11/06)