Digitalization of Technology Becomes the Solution for the Pharmaceutical Industry

JAKARTA, May 23, 2023 – Digital transformation has become a necessity in today's industrial world, especially in the pharmaceutical sector. The Covid-19 pandemic has been one of the factors accelerating this process, enabling many business operations to be streamlined and more efficient due to adequate technology. According to Yudhi Arieffianto, the IT General Manager of PT Phapros Tbk, the pharmaceutical industry's characteristics are closely related to government regulations, such as Good Manufacturing Practices (GMP), ingredient usage, processing, infrastructure, and computerized systems.

"These business processes require technology adoption, not only in production but also throughout the supply chain. The choice of technology is influenced by the marketed products and their contribution to growth," he stated during a recent webinar on the Utilization of Digital Technology in the Pharmaceutical Industry, organized by Sahamology in Jakarta.

Yudhi mentioned that technology digitalization can assist operational teams in checking production status, identifying challenges, pinpointing bottlenecks or congestion points, all of which can be visualized. Previously, field teams didn't have access to view product availability, leading to oversight in monitoring.

"The same applies to procurement. When we receive too many orders, a reminder system is needed to avoid missing any, a monitoring system to check if the goods have arrived, been placed, and whether they have been distributed or are still in the factory," he explained.

According to Yudhi, the pharmaceutical industry is a capital-intensive industry that requires significant investments in machinery, as well as room qualifications and infrastructure requirements. "Technology requires investment. Once the process gaps have been identified, we can search for technology that aligns with our product portfolio and needs."

Yudhi tried to illustrate the utilization of technology from a cost-saving perspective. "For example, we choose technology that can save a certain number of hours in the production or management process. Then we calculate it into monetary value, let's say the savings amount to 100 million rupiah, while the technology costs 500 million. This means that the investment can be recovered in five months."

Yudhi added that the process of technology digitalization conducted by Phapros is quite complex, as it is related to regulations from the relevant authorities. "For example, previously there was a Laboratory Management System (LIMS) technology that became a kind of mandatory technology for the pharmaceutical industry, but purchasing it was very expensive. However, if we develop it ourselves, it can be more efficient, meeting user needs and regulatory requirements," he said.

"In terms of operations, Phapros has developed the Business Supply Chain (BISCHAIN) technology to monitor the supply chain and product availability. In terms of manufacturing, Phapros has developed E-CPB, which is Electronic Batch Record Management that reduces paper consumption and is installed on mobile devices. This allows real-time recording of batches, which is a mandatory requirement for the pharmaceutical industry, fulfilling regulatory obligations. In the warehouse, barcode technology has also been implemented by Phapros, enabling quick identification of when goods arrive and are stored. To continuously improve quality and minimize product returns, Phapros has also developed the Product Change Control (PCC) system in Quality Operations," he added.

When asked about the utilization of artificial intelligence (AI) technology, he stated that AI is a technology that can predict patterns. In other countries, the pharmaceutical industry has developed AI for predicting compound usage in drugs. This is highly feasible because in developed countries, the pharmaceutical ingredient database is already comprehensive.

"In Indonesia, some players in the pharmaceutical industry have started moving in that direction, including Phapros, although the journey is still somewhat long. One of the challenges in implementing AI is validity because the pharmaceutical industry heavily relies on validity."