Lila Enterprise

Pharmaceutical
Distribution
Software
HIGHLIGHTS
Lila has been developed and tailored over a period
spanning more than ten years with the specific focus of
increasing profitability.
Availability of stock and accuracy of inventory levels play
an important role in meeting customer expectations.
The Purchasing and Inventory Management modules
employ various functions to ensure that you always
have the right quantities of the right items in stock.
Activities such as inventory allocation and cycle
counting ensure that the theoretical stock agrees to
the physical quantities in the warehouse. Various other
aspects of the system such as internet ordering and
management information reporting work in synergy to
maximise turnover.
In an industry where margins are particularly
under pressure, the management of expenses
is critical to success. Strong measures are
in place to set and monitor gross profit
levels. The system facilitates internal
control, to reduce the likelihood of both
fraud and errors. Segregation of duties,
supervisor review and user profile based
security are used extensively throughout the
system. Another important expense to manage
is vendor claims. The management of claims
is catered for fully in the Purchasing and Accounts
Payable modules.
Lila has been designed to cater for pharmaceutical
distribution. Specific to this industry is the relationship
between manufacturers of medicines and their
distributors, with one distributor often supplying items
from various manufacturers. The system caters fully for
this when managing items, placing purchase orders and
making payments to vendors. In addition, regulatory
requirements such as scheduling information,
registration numbers and controlled substances are
catered for in the system. Another important aspect of
the industry is logistical fees. Lila handles all aspects
of setting and levying logistical fees.
SYSTEM MODULES
I NVENTORY MANAGEMENT
The Inventory Management Module lies at the heart
of Lila and facilitates the management of thousands of
Stock Keeping Units (SKUs).
In order to assist the user in managing several thousand
items the system makes use of various classification
schemes. Inventory can be grouped into Departments
and Categories. Items are also grouped according
to Active Ingredient and Therapeutic Classification.
Finally, ABC classification is used to facilitate product
demand forecasting.
The system makes use of several demand forecasting
methods, ranging from the basic moving average to
the more complex exponential smoothing. Forecasting
parameters can be set at either department, category
or individual item level. Safety stock levels can be set
in terms of units or weeks. Minimum, incremental and
maximum order quantities can also be set.
Lila makes use of cycle counting, where a small
quantity of items are counted every day, to improve
inventory accuracy levels.
The Item Master file caters specifically for the
pharmaceutical industry - the following can be recorded:
Schedule number
Registration number
Controlled substance, name and weight
Whether or not it is a cold-chain item
The Inventory Management Module contains in excess
of sixty reports and enquiries to manage stock levels,
including reports that list slow moving items and
expired stock.
PURCHASI NG
The Purchasing Module caters for every step in the
Purchase Order business process, from placing the
order to receiving the goods in the warehouse.
In order to facilitate the ordering of many thousands
of items from hundreds of manufacturers the system
assigns buyers to specific manufacturers. Order dates
can be set for every manufacturer in order to remind
the buyer to place the order.
Lila also makes use of a trigger mechanism to assist
the buyer in placing orders. When the available quantity
falls below the calculated value a trigger is created to
remind the buyer to place an order for the item.
By making use of demand forecasting and ABC
classification the system can recommend an order for
a manufacturer, based on past usage. Buyers are also
warned when not ordering at the best deal.
The receiving process matches the vendor invoice
with the purchase order to ensure that only items
actually ordered are received, and at the correct
quantities and prices. During the physical checking
phase further inspection is performed to ensure
that the items are at the correct quantity, not short
dated and not physically damaged. Short dated
stock has to be specifically authorised by the buyer
before it can be taken up into stock. Claims are
automatically generated by the system and
functionality is included to facilitate vendor notification
of claims and to record the method of claim resolution.
ACCOUNTS PAYABLE
Fully integrated with the rest of the system, and specifically
the Purchasing Module, the Accounts Payable Module
ensures that payment is only made for goods ordered
and actually received. The finance department has
to match every Vendor Invoice with Goods Received
Notes and/or claims before payment can be made.
The claims management function allows users to
record vendor credit notes and ensures that credit is
received for every claim submitted.
Remittances are created on vendor level and several
invoices and claims can be included on one remittance.
Remittances are fully integrated with the Cash Book
Module to ease processing of vendor payments.
The processing of logistical fee claims are also
automated by the system, catering for levying of
logistical fees by either an Invoice or a Credit Note.
SALES
The Sales Module allows the user to set special prices
for items. Specials can be active for a specified date
range and/or for a specified inventory batch. Special
prices can be made applicable to a specific client,
client group or buying group. Special types include
a specified discount percentage, bonus quantity,
quantity based discount and quantity based price.
The Sales Module is also where customer returns
are processed. Customers have to request credit with
Telesales. The item is then collected and independently
inspected, authorised and processed.
The Sales Module contains forty-five enquiries and
reports to analyse sales and profitability from every
perspective.
CUSTOMER ORDER ENTRY
The Customer Order Entry Module has been
optimised for very high speed capturing of client
orders by Telesales personnel. Users can assist
clients by searching for items with a similar active
ingredient or therapeutic classification. In addition,
users can log lost sales and place items on back-
order. The system blocks all sales under cost price.
LI LA CLI ENT PORTAL
The Lila Client Portal allows customer access to the
Lila system via the internet. A very user-friendly
ordering application allows customers to place orders
directly and in real time on the system. To further
enhance the customer experience they can see the
exact time an order was shipped. Self-service access
to account information reduces the administrative
burden on finance personnel.
DI SPATCHI NG
Order execution and shipment is handled in the
Dispatching Module. When an invoice is released
it is automatically linked to a Tripsheet or Waybill,
depending on the parameters set for the client. By
making use of bar-code scanners the order is tracked
through the picking, checking and packing phases of
the Order Execution business process.
ACCOUNTS RECEI VABLE
The Accounts Receivable Module plays a very important
role in cash-flow management of the business.
Fully integrated with the sales modules, the credit
management features allows the organisation to better
manage credit risk. The system will automatically
block a sale if a client has exceeded their credit
limit. The Accounts Ageing and Credit Limit Exceeded
reports assist finance personnel in the debt collection
process. Clients can be placed on Credit Hold until all
outstanding issues have been resolved. Functionality
is included to record all follow up communications on
the system. Monthly statements can be generated
electronically in PDF format and e-mailed to clients.
The client master provides an effective means of
maintaining client information. Clients can be classified
into different groups, including client group, buying
group and rebate group. The system automates the
calculation of rebates based on the parameters set.
CASH BOOK
The focus of the Cash Book Module is to allow for the
segregation of duties and independent review of the
cash handling activities. Users have to log in before
they are able to process cash transactions. Functions
are included to reconcile cashier balances as well as to
perform the chief cashier reconciliation.
The bank reconciliation function is fully integrated
with the rest of the system. The user can link vendor
payment remittances or bank deposits directly into
the bank reconciliation. Debtor ageing amounts are
displayed to facilitate the capturing of direct deposits.
The Cash Book Module further makes provision for
cheque book control, registering of post dated cheques
and the recording of RD cheques.
A high level of security is maintained with the
implementation of cash book clerks clerks can only
access the bank account details and transactions of the
bank accounts they are linked to.
GENERAL LEDGER
The General Ledger Module is fully integrated with the
rest of the system and transactions are updated in real
time. One of the main features of the General Ledger is
the powerful drill-down enquiries that allow the user to
drill down from high level summaries such as the Trial
Balance, down to source document level.
The fully flexible chart of accounts allows main
accounts to be set up with a four digit account number
as well as sub-accounts linked to main account, also
with a four digit account number. Financial statements
can be configured to be generated automatically. The
General Ledger also includes income and expenditure
budgeting. The general journal function allows the user
to copy or reverse a previous journal, increasing the
efficiency of finance department personnel.
MANAGEMENT I NFORMATI ON
The Management Information Module provides high
quality, highly summarised and relevant information
to top management to aid in their decision making.
Sales can be analysed by client group and shipping
region. Client returns, vendor claims and gross profit
are analysed in detail.
The Sales per Manufacturer enquiry is a powerful tool to
allow management to assess profitability and analyse
daily sales. It summarises sales per manufacturer and
lists the quantity of units sold, the value of units sold
and cost price and gross profit. The gross profit per
manufacturer is compared to the target gross profit per
manufacturer and any deviations are highlighted.
SYSTEM ACCESS CONTROL
The System Access Control Module allows for the
maintenance of users on the system. Users can be
created per business unit. Access is role based to
increase the efficiency of user management. Roles are
created with pre-set access to functions in the system.
When a new employee joins the organisation he/she
can just be linked to the specific role. This function
also includes a User Access Matrix report to enable
management to quickly glance which users have
access to which functions in the system. The system
keeps track of the user that last modified data on a
per-record basis.
LI LA SUPPLI ER PORTAL
Supply chain transparency is important to the
manufacturers of medicines. The Lila Supplier Portal
allows suppliers online access to their information on
the system. This system allows them to do full batch
tracking as well as assess the competitiveness of their
products in the market.
Integrated Management Solutions (Pty) Ltd
12 Gold St, Prosperita
Windhoek
Namibia
Tel: 264 (0) 61 248 264
Fax: 264 (0) 61 243 508
information@ims.com.na
www.ims.com.na
Integrated Management Solutions (Pty) Ltd 2013
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