Pharmaceutical and Biotech

Of all drug candidates selected for development in the pharmaceutical industry, few make it to clinical trials. Fewer still go on to become successful and profitable products. With the odds stacked against them, pharmaceutical companies are now defining their business objectives to maximize their probability of success. They must innovate faster, reduce risk, and increase profitability. Companies in the life sciences industry are under intense pressure to increase productivity and make research and development (R&D) more efficient. Companies face discovery and development cycles that often total 7 to 10 years, as well as development costs approaching US$800 million for each new drug. What’s more, costs are outpacing revenue from new products. In the last 10 years, pharmaceutical spending on R&D has gone up 44 percent, but the number of blockbuster product launches has decreased by only 25 percent.

To ensure public health, federal regulations require all manufacturers to maintain secure and auditable trails of information pertaining to every phase of the development and manufacturing process. A framework that complies with the FDA’s 21 CFR Part 11 and cGMP regulations governing electronic records and e-signatures is built right into the Oracle E-Business Suite.

Chemical

Today’s chemical industry is characterized by fluctuating prices, process variability, and strict industry regulations. As a result of mergers and acquisitions, chemical companies have been among the first to encounter the challenges of managing a global organization, operating widely-dispersed production plants with multiple languages, currencies, and regulations. Furthermore, chemical organizations are trying to balance growing economies of scale with the demands of personal customer relationships. There is an increased need to focus on delivering exactly what the customer requires while minimizing development, production, and transportation costs. Ultimately, chemical organizations are becoming more lean and agile.

Many new chemical products are quickly imitated, rapidly losing their unique market value and profitability. Time after time, competition drives down margins. As a result, innovation is critical to your prospects for success. In addition, many chemical operations face high variability in raw material inventory, forcing quick formula adaptations to maintain production quality within specifications. Finally, as end users and customers return performance details, customers demand that chemical operations constantly improve their products.

Food

Food processors have become highly-focused enterprises that are holding the line on price while reducing costs, driving customer value, and protecting their brands. They face many challenges in their efforts to streamline their supply chains, maintain consistent quality, and enhance their profitability. Additional challenges include the tracking and tracing of products and the need to comply with the Bio-terrorism Act of 2002. As food processors have pushed as far as they can with higher speed manufacturing equipment, they find that information systems is the next area that must be addressed to continue to improve their profitability and productivity. Systems that provide product line profitability, lot tracking, and improved planning and quality information are being used to deal with these issues.

Metal, Mining, Minerals and Paper

Metals companies face increased global competition, increased costs of raw materials and energy, and ever-rising customer expectations for price, quality, and service. This is causing metals companies to re-evaluate every aspect of how they run their businesses. With recent market growth and profits, many producers and service centers are looking at how they can use the next couple of years to strengthen their companies for the future. As in all industries, metals companies need streamlined business and production processes, improved visibility, and increased responsiveness that can be only provided by an integrated enterprise-wide information system. And they need it without the cost and risk of being their own software developer.

Mineral industries are those primarily engaged in mining or extracting minerals that occur naturally, whether in solid, liquid, or gaseous form; preparing them on-site as necessary, and exploring any developing mineral properties.

The global mining and minerals industry has experienced a sharp increase in prices over the past few years, driven by the weaker US dollar and growing demand as worldwide economies, particularly China, continue to grow strongly. Demand for mineral resources has grown to record levels. Companies in trouble in the late 90s are seeing a reversal as they stretch to reach aggressive production targets to maximize the current market value of their resources. The question is whether the commodity cycle will be stronger for the long term or if it has reached its peak.

Paper and Rolled Goods manufacturers are in a highly capital intensive, competitive business. More and more mills are in the made-to-order business and fewer products are made to stock. The key now is to meet customer-specific quality tolerances and specs while maximizing profits. Manufacturers need extensive roll tracking that maintains the parent/child relationships after any slitting, rewinding, or sheeting operations. ERP systems typically have not been good fits for Paper and Rolled Goods companies, but these companies must now start to look at some of the newer products that have proven to fit many aspects of the business. It is still a difficult task, as needs vary from mill to mill based on differences in customers, production equipment, and markets.