An ERP for the pharmaceutical industry: Dynamics 365 Business Central

Run pharmaceutical manufacturing, distribution and R&D on one connected ERP system. Dynamics 365 Business Central helps you manage batches, quality, compliance and supply chain with clear, reliable data. 

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Why pharmaceutical businesses need Dynamics 365 Business Central

Pharmaceutical operations are complex when information sits in separate systems. Batch manufacturing, quality control, serialisation, cold‑chain logistics and R&D projects all create large volumes of data. When finance, production and quality teams work from different spreadsheets or point solutions, it becomes harder to control costs, meet GxP standards and respond quickly to issues.  

Dynamics 365 Business Central is a complete ERP system that connects finance, supply chain, projects and operations in one place. For pharmaceutical organisations, it brings together manufacturing, inventory, quality‑related data and distribution activity on a single platform. This helps you replace disconnected tools with a system that supports batch traceability, stronger compliance and better decision making. If you want to see how an ERP designed for complex industries can support pharmaceutical work, keep reading. 

Meet Business Central: an ERP for the pharmaceutical industry 

Pharmaceutical businesses need accurate data, reliable processes and clear visibility across sites. Dynamics 365 Business Central supports these needs with capabilities that work for manufacturers, distributors and R&D organisations alike.  

Unified business operations 

Business Central connects finance, production, warehousing, quality‑related processes, procurement and sales in one environment. Teams can see the same information on batches, costs and stock levels, which reduces duplicate data entry and cuts the risk of errors during hand‑offs between departments.  

Better decision making 

With dashboards and built‑in reporting, leaders can monitor key metrics such as batch yields, scrap rates, stock turns, expiry exposure and order performance in real time. This makes it easier to spot trends, act on quality issues earlier and understand which products, customers or lines are most profitable.  

Scalability 

Whether you run a single facility or a multi‑site operation across several countries, Business Central can scale with your organisation. Cloud, on‑premises or hybrid deployment options give you flexibility as your product portfolio, market footprint or regulatory obligations evolve.  

Cost efficiency 

The system helps reduce manual work by automating processes such as purchase approvals, stock movements, pricing updates and financial reporting. By cutting time spent reconciling spreadsheets or chasing information, your teams can focus on improving throughput, reducing waste and supporting customer service.  

Compliance and quality support 

Pharmaceutical companies must comply with regulations such as GMP, GDP, GxP guidance and rules covering electronic records, serialisation and traceability. Business Central provides structured data, audit trails and role‑based access that can support validated processes, batch history tracking and documentation for inspections and audits.  

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Discover how Microsoft Dynamics 365 Business Central works

Why your business needs an ERP

82%

of businesses are utilising an ERP

1 in 5

businesses are dissatisfied with their current ERP

96%

of businesses say using an ERP has contributed to achieving business outcomes

Data taken from a survey we commissioned in December 2024

ERP designed for pharmaceutical manufacturing, distribution and R&D  

Pharmaceutical organisations juggle regulated manufacturing, time‑sensitive distribution and research activity that must stay on budget and on schedule. Dynamics 365 Business Central gives finance, operations and quality teams a connected view of these activities, so they can plan production, manage materials and control costs in a coordinated way.  

Manufacturing and batch management 

Set up and manage formulas, bills of materials and routes so production teams have clear instructions for each batch. You can track material consumption, yields and rework at batch or lot level, helping you understand true production costs and improve planning for future campaigns.

Quality, compliance and documentation 

Record quality checks, non‑conformances and corrective actions alongside the relevant batches, items and suppliers. Business Central can help you maintain the documentation needed to support GMP‑aligned processes and provide traceability from raw materials to finished products and shipments.  

Supply chain, inventory and cold‑chain control 

Monitor stock levels, reservation rules, approved suppliers and lead times in one place. For distributors and manufacturers handling temperature‑sensitive products, you can track lot numbers, expiry dates and storage locations, supporting good distribution practice and reducing write‑offs due to expiry or incorrect handling.  

Financial management and project oversight  

Finance teams can manage general ledger, payables, receivables and fixed assets while also tracking R&D projects, technical transfers or site upgrades as structured projects with budgets and actuals. This makes it easier to see how operational activity affects margins and to justify investments in new products or capabilities.  

Why pharmaceutical businesses choose Dynamics 365 Business Central 

End‑to‑end batch and lot traceability 

Track every batch from raw material receipt to production, packaging and shipment, with clear links to customers and suppliers. If a quality issue arises, you can identify affected lots quickly and support investigations or recalls with reliable information rather than manual searches through paper records.  

GMP documentation and audit readiness 

Use consistent processes and data structures to keep production, quality and financial information aligned. When regulators or auditors request evidence, you can provide accurate records of transactions, approvals and master data changes, reducing the effort involved in audit preparation.  

Cold‑chain and warehouse management 

Link warehouse activity, transport planning and inventory data so you maintain control over storage conditions and expiry dates. Business Central helps teams plan stock rotation, avoid shipping near‑expiry product where inappropriate, and keep sufficient safety stock without tying up unnecessary capital.  

R&D and clinical project tracking 

Capture spending, tasks and timelines for R&D projects, formulation work or early‑stage clinical support in one system. This helps technical and finance teams monitor budgets, understand cost drivers and decide which projects to progress based on clear financial and operational information.  

Data‑driven planning and forecasting 

Use reporting tools and analytics to understand demand patterns, margin by product or customer, and the impact of scrap or rework on profitability. These insights help leaders improve production plans, refine minimum order quantities and align inventory strategies with market demand and regulatory constraints.  

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The Dynamics of Success

Get a better understanding of the benefits of using a CRM system - allowing businesses like yours to overcome fragmented systems and disconnected workflows. Don't just read about them either, our report provides you with actionable insights and practical recommendations so that you can begin to make data-led decisions.

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Download our report

The Dynamics of Success

Get a better understanding of the benefits of using a CRM system - allowing businesses like yours to overcome fragmented systems and disconnected workflows. Don't just read about them either, our report provides you with actionable insights and practical recommendations so that you can begin to make data-led decisions.

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Strengthen your pharmaceutical operations with an ERP built for compliance and control

Pharmaceutical organisations need systems that support consistent processes, clear documentation and fast responses to change. Business Central brings finance, production, quality‑related activity and distribution into one ERP, helping you maintain traceability, control costs and make better decisions across the product lifecycle.  

To learn more about Dynamics 365 Business Central for pharmaceutical businesses, or to book an assessment and see how an ERP for pharmaceuticals could look in your organisation, get in touch using the short form below.  

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Frequently asked questions

What is Microsoft Dynamics 365 Business Central for pharmaceutical businesses?

It is an ERP system that brings together finance, manufacturing, quality‑related data, inventory and distribution in one connected platform, helping pharmaceutical organisations manage complex, regulated operations more effectively.

How does Business Central support GMP and GxP compliance?

Business Central provides structured data, audit trails, approvals and role‑based security. When configured correctly, these features can support GMP and wider GxP processes by giving you consistent records for batches, changes and quality actions that are easier to review during inspections and audits.

Can Business Central handle batch and lot traceability for pharmaceuticals?

Yes. You can track materials and finished goods by batch or lot number across purchasing, production, warehousing and sales, giving you full visibility from raw material receipt to customer delivery. This supports traceability requirements and makes recall or investigation processes more controlled.

Does Business Central support serialisation and regulatory traceability rules?

Business Central can be integrated with specialist serialisation and track‑and‑trace solutions so serial numbers and packaging hierarchies are reflected in your core ERP data. This helps you meet regulations that require end‑to‑end visibility of product movement without adding another isolated system.

Is Business Central suitable for both manufacturers and distributors in pharmaceuticals?

Yes. The platform supports process manufacturing scenarios as well as distribution and wholesale models, including warehouse management, purchasing, pricing and customer service. Many organisations use it to manage both in one system.

How does Business Central help pharmaceutical finance teams?

Finance teams gain a single source of truth for financial data and can analyse costs by product, batch, site or project. Integrated budgeting, reporting and cash‑flow tools help them understand how manufacturing efficiency, quality events and inventory decisions affect overall performance.

Can Business Central support R&D and clinical projects?

Yes. You can set up R&D or clinical support work as projects with budgets, tasks and resource assignments, then track actual costs and progress over time. This helps technical and finance leaders decide where to invest and when to move candidates into the next stage.

Is Dynamics 365 Business Central cloud‑based and secure enough for pharmaceutical data?

Business Central is typically delivered as a cloud solution on the Microsoft platform, with security, compliance and data protection features designed for sensitive information. Role‑based access and regular updates help you protect operational and financial data while meeting internal and external requirements.

Does Business Central integrate with lab systems and other specialist tools?

Business Central can integrate with third‑party systems through standard connectors and APIs, including LIMS, MES or serialisation platforms. This lets you create a connected application landscape, so lab and production data can feed into your core ERP without manual rekeying.

How long does it take for pharmaceutical businesses to see value from Business Central?

Many organisations start to see benefits once core processes such as purchasing, production reporting, inventory and financial close are centralised. Over time, the biggest gains often come from better planning, fewer data issues and reduced effort preparing for audits and inspections.