Order Approval

Order approval in pharmaceutical logistics refers to the regulated process of authorizing purchases, ensuring adherence to strict industry standards, mitigating risks, optimizing resources, and safeguarding patient well-being across the supply chain.

Factors considered during order approval

• Is this purchase within our budget?
• Is this an approved supplier?
• Is this our preferred supplier for these items?
• Are these goods or services necessary?
• Are there any errors or mistakes on this purchase order that need to be corrected?
• Is there a lower-cost or higher-quality alternative?

Details included the purchase order

• Address and contact information for both the buyer and supplier
• Quantity and description of goods (or services) ordered
• Payment information
• Payment terms
• Delivery terms
• Applicable conditions for both the order and any negotiated contractual

Importance of order approval

• Avoid overspending which enables better budgeting and cost control.
• Ensure spend visibility to prevent fraud and verify that purchases are both necessary and authorized.
• Maintain accurate transaction records.
• Reducing the risk of duplicate purchases or purchases that exceed budget limitations.
• Building trust with suppliers promotes stronger supplier relationships.
• Provides Valuable Data And Insights

Major steps of the order approval process

1. Order Initiation:

The process begins when a customer places an order for pharmaceutical products. This order can come from various sources such as wholesalers, distributors, healthcare providers, or direct consumers.

2. Order Entry:

The order is entered into the company's order management system. This system may be integrated with other enterprise resource planning (ERP) systems to facilitate seamless data flow.

3. Order Verification:

Verification of the order details is crucial to ensure accuracy. This includes confirming the product codes, quantities, pricing, shipping details, and any special requirements.

4. Regulatory Compliance Check:

In the pharmaceutical industry, compliance with various regulatory standards is paramount. The order approval process involves checking if the order complies with regulations regarding product handling, storage, transportation, and documentation.

5. Quality Control:

Pharmaceutical companies often have stringent quality control measures. The order approval process may include checks to ensure that the products ordered meet quality standards. This can involve verifying batch numbers, expiration dates, and adherence to Good Manufacturing Practices (GMP).

6. Credit Check and Financial Approval:

Companies may conduct a credit check on the customer to assess their financial stability. Financial approval ensures that the customer has the means to pay for the ordered products.

7. Authorization and Approval:

Depending on the company's structure, the order may require authorization and approval from various departments, such as sales, finance, and logistics. This step is crucial for preventing errors and ensuring that the order aligns with organizational goals.

8. Documentation:

Comprehensive documentation is a key aspect of the order approval process in the pharmaceutical industry. This includes generating invoices, packing lists, and any necessary regulatory documentation.

9. Communication:

Throughout the order approval process, effective communication with the customer is essential. This includes confirming order details, providing shipping information, and addressing any issues or discrepancies.

10. Shipping and Tracking:

Once the order is approved, the logistics team takes over to ensure timely and secure delivery. Tracking systems may be used to monitor the shipment's progress.

11.Post-Delivery Follow-up:

After the products are delivered, there may be a follow-up to ensure customer satisfaction and address any post-delivery issues.

Order Approval Process

Back