Return on investment: What is the cost of not doing MES?

“If you need to do an ROI study, then perhaps MES is not for you …!” goes a provocative comment from a consultant when positioning to management the benefits of Manufacturing Execution Systems (MES).

In this age of digitization, many pharma and biotech companies still struggle to gain senior level buy-in for investments in manufacturing IT. Whilst corporate IT initiatives such as Enterprise Resource Planning (ERP) are well understood and seen as ‘no-brainers’, not believing in a Return On Investment (ROI) for manufacturing solutions is a major reason why companies still struggle to eliminate paper GxP records and modernize systems.

ERP becomes natural at a certain business scale
To justify an investment typically an assessment is made on the estimated impact on the top and bottom lines of the profit and loss, i.e. what savings, revenue, quality and efficiency gains a new capability will bring. An ROI study, once successful, works out a timeframe that the identified benefits would take to pay back (return) the upfront costs.

If we think on ERP systems, companies are rarely conducting formal studies to decide if they need to implement a solution that manages their business finances. Upon reaching a certain scale and complexity a corporate ERP simply becomes expected infrastructure. With ERP it is understood that One View Of The Truth is needed and process owners, financial controllers, investors, accounting auditors and regulators all demand robust systemized controls and records that electronic systems provide for key data and transactions.

Save time & effort and avoid risk with MES
Is this not yet true for manufacturing production and quality? Are there no such internal and external drivers and benefits that easily justify level 3 systems such as MES? Yes, there are! MES digitizes the end-to-end processes in and around manufacturing – from receiving goods to warehousing, through production and packing. There exist great opportunities for building process improvements and efficiency savings across the entire operation and the shop floor into MES.

And there is a new trend emerging: pharma and biotech companies are setting up initiatives for MES without running any detailed studies at all as understanding has been growing that such systems directly reduce the risks of data integrity and audit failure.

Download MES ROI white paper
To learn more about major saving areas with MES and typical steps to evaluate ROI you are invited to download our white paper:

Download MES ROI white paper now!

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