Armanino Blog

Simple Manufacturing ERP for Life Sciences

by Steve Chapman
April 04, 2017

Most life science companies in the pharmaceutical or medical device space will need to use some ERP functionality associated with inventory and manufacturing to accommodate their specific industry needs. The needs for inventory and manufacturing generally broaden through the product life cycle. Read on to learn about my recommendation for the right ERP for life sciences companies as they continue to grow.

These are the typical scenarios we see:

  • R&D – Need core financial functionality and basic inventory functionality to identify items used in R&D, control purchasing and use of items, and report financial results to the general ledger. May use bill of material functionality at least from an engineering perspective.
  • Prototype Development – Need basic inventory to organize items, assign suppliers, and properly value associated costs. May use bills of material and assembly transactions to generate finished goods and sub-assemblies from component inventory.
  • Pre-commercialization – Need inventory and manufacturing functionality to track operations related to procurement and manufacturing. May use to track owned inventory located at and controlled by 3rd parties. Control the transfer of inventory used for product testing and sales sample purposes.
  • Product roll-out – Need integrated purchasing, inventory, manufacturing, and sales functionality. May require MRP and sales forecasting functionality to plan for long-lead items and processes.
  • Full commercialization – Need a fully integrated ERP system that can scale to meet volume and geographical expansion.

Ideally, a single ERP solution can take a company all the way through their products' life cycles. Starting with a solution that requires a smaller investment and solid ease-of-use, but that can incrementally scale to support the company's growing needs, is a perfect option for growing life sciences companies.

Microsoft Dynamics GP is a scalable ERP system that many life sciences companies use to meet their unique industry needs. You can start with basic core financial functionality and financial reporting, and add functionality as you need it, with guidance from your trusted advisers on possible re-implementation or changes to your system configurations.

Here's an example of a multi-level bill of material to help visualize a part of how this ERP for life sciences would work for your organization:

Simple Manufacturing Bill

Take a look at the video below to see a complete manufacturing process in Dynamics GP, including MRP, Sales Forecast, and Purchase Orders.


 Learn more about Dynamics GP as an ERP for Life Sciences companies and gain the right insights from the experts at Armanino.

Stay In Touch

Sign up to stay up-to-date with the latest accounting regulations, best practices, industry news and technology insights to run your business.

Steve Chapman Headshot
Solution Architect
Related News & Insights
IPO Prep & SOX Compliance: Instacart & Armanino Share Hard-Earned Knowledge
Know your compliance requirements today to avoid obstacles tomorrow.

December 16, 2021 | 11:00 AM - 12:00 PM PT
General Contractor Trends to Consider in 2022 Webinar
Hear from experts how you can better manage your subcontracts — and more.

December 16, 2021 | 10:00 AM - 11:00 AM PT
Why COP26 Matters for Your Business Webinar
Get informed of COP26 developments and how you can act now.

December 15, 2021 | 10:30 AM - 11:00 AM PT