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Sample basic invoice for Life Sciences

hello everyone welcome to today's live broadcast startup to commercialization what life sciences companies need to know i'm lisa henderson the editorial director of pharmaceutical executive and i'll be your moderator for today's event we are pleased to bring you this webcast presented by pharmaceutical executive and sponsored by sikich i would now like to share a statement from our sponsor sikich is a leading professional services firm specializing in technology accounting and advisory services as a leading erp for life sciences consultancy sikich has helped over 50 life sciences companies grow from pre-revenue to commercialization quickly and painlessly allowing stakeholders to do what they do best develop new medicines for patients who need them we have a few important announcements before we begin this webcast is designed to be interactive and we do encourage you to ask questions during the event you can submit questions by typing them in the q a box which can be found on the right hand side of your screen you can enlarge the slide window by clicking on the small square icon in the upper right hand corner of the slide window or by hovering your mouse over the lower right hand corner and dragging the window to the desired size your slides will advance automatically during the event if you have any technical problems viewing or hearing this presentation please click on the question mark help widget in the dock at the bottom of your presentation window so now i'd like to introduce today's speakers we are pleased to be joined today by william temulinus and christopher manchester billy has spent the last decade helping life sciences companies grow their business through erp implementations his expertise lies in guiding clients through business process changes and helping companies optimize the right solutions to configure and manage the roles controls and workflows life sciences companies need chris has been working with life sciences companies for nearly 10 years with a background in finance he helps life sciences organizations leverage technology to scale quickly and be prepared for any potential path the organization may take so thank you everyone for joining us today and billy would you like to get us started all right thank you lisa so for today's presentation we've titled it what every life sciences company needs to know um and what we've done is we've broken out our typical you know life science company's technology journey into four phases so we're going to cover the startup phase then we're going to transition into ipo and clinical trials and those phases could really go in either order and then we're going to finish off by talking about commercialization so to jump right into our presentation again starting with the startup phase we're going to talk about the challenges that an organization faces uh during those you know initial startup months and years right so really it all starts with that startup mentality right these are fast-paced organizations you're really hyper focused on innovation and being agile and you know when you look at the typical makeup and the people within the organization there's individuals that are wearing many hats right so you've got cross-functional teams with very you know one common goal of advancing the company so if you look at a finance department we could see one or two individuals that are responsible for doing the books and then when you get into budgeting and reporting that you know that typical fp a rule that could be the same finance team still doing that you could then find yourselves with an it team that's outsourced your procurement uh team can be outsourced as well and then you're also just going to see a multitude of different business processes as your you know this company is beginning to evolve um you know the one saving grace you sort of have in the startup phase is there's a you know there's a lot of manual processing but you're able to accomplish it because of those light volumes um and now let's go ahead and chris is going to take you through some of the common systems perfect thank you billy so what we'd like to look at is in the startup phase we'd like to list out and identify what are the common business systems that uh that these organizations are typically dealing with and just to kind of go across here uh the first one we we think about is from an erp perspective now ironically this is not traditionally the first system that's chosen it's sometimes an afterthought and what we're traditionally seeing is that quickbooks is an industry standard for very early life science organizations we're seeing that trend move a little bit where uh folks are recognizing that they're far too quickly outgrowing their their quickbooks environment or smaller scale erp and we're seeing that life sciences organizations are adopting uh a a higher level erp or a roma more robust system earlier on in their life cycle like netsuite so a new theme in the industry is to move to more upmarket product sooner now from an fp a perspective small organizations or even startups do have the same type of needs that large organizations have just on a much different scale so at this point they're traditionally focused on things like budgeting forecasting and how that ties into financial reporting uh elements such as departmental burn rates you know and at this point it's typically a very manual effort and uh owned within the finance organization so there's not a carved out fp role at this point typically from an analysis perspective this we're typically seeing a lot of ad hoc queries that are downloaded and manipulated within excel and this is common from a reporting perspective it's typically very static reporting not refreshable or real time very excel based and again very manual and effort to to build that type of reporting from a procurement perspective this is where we're seeing some of the largest deviations between life sciences organizations so the procurement strategy is is typically starting to be developed at this point because these organizations do need to buy uh both services and goods alike one of the uh trends we're seeing in the northeast and billy and i are located just outside of boston is is leveraging a firm called bioprocure and specifically their product of prendio this is a a purchasing uh product application that's that's very much geared towards life sciences industry and the types of things that you're traditionally buying and selling with the vendors that you're typically working with other options are largely focused on both scientists and lab suppliers at this point and then the last uh system or or series of systems that were that we're typically coming across are our approvals across the organization this again is typically a very manual process and most organizations do have a relatively complex approval matrix even at the start-up point so we'll transition out and take a look at what we're what types of things we're doing to to kind of solve and and provide the most value for these different approaches so when we look at the challenges proposing the areas that we just identified the most room for improvement are in three kind of buckets uh first is getting our clients on an erp faster we're finding that as we're going through the life cycle the journey the faster we can get them on a system that they can grow into that has some of the controls and scalability such as netsuite uh the better and the faster we can we can achieve some of the value that these life sciences organizations are striving for the second is communicating leading practices so part of what we built out in uh in our solution that we'll talk about just a few slides here are leading practices around common areas of record to report procure to pay and what are most leading life sciences organizations doing in a very repeatable fashion and the last is guiding decisions on functionality timelines and what we mean by this is not showing off too much in the beginning you want to make sure that the the timelines are achievable and providing value without without uh creating all sorts of issues to your organization when you're in that innovations stage in in going off those three needs that chris has mentioned that's where the sickest success for life sciences which is the the implementation strategy and the product that we've branded um that's what it really tackles here right and so sort of how we do that you know when we focus in on in your implementation timeline or what we call our implementation methodology we're really hyper focused on that speed to value or you know what others call time to value so that implementation is based off leading practices for your industry um you know such as managing approvals for say both the purchase of services versus lab supplies and you really see that implementation methodology come into play when we first walk in the door so we kick off the project um by showing you and walking you through a pre-configured solution for your industry we're not asking you you know hey you just bought an erp system um such as netsuite how do you want to configure it we're saying here's here's the erp here it's pre-configured for your industry let's align your business uh to this solution it gets us a lot further uh a lot quicker into the implementation and so then with that if we talk about you know what can be your expectations for the implementation um you can expect both the sickids team and netsuite to automate business processes to handle a high you know constantly growing volume of ap transactions you should all you know when come at month end you're going to be able to accurately report on your r d r d versus g a cost you could be able to produce an sec income statement and then lastly you're going to be able to get granular in your reporting and track program and or project spend at a very detailed level and report those numbers out in comparison to a budget to the different stakeholders in your business so let's take a look at what we've built inside the netsuite platform to accommodate these needs this graphic is displaying the functionality provided in a successful success for life sciences like building a house tier one is the foundation and tier two carries additional functionality meant to support your organization during its life cycle so if we take a look at the elements that are within tier one the first thing we're going to talk about is company structure and here's where we're identifying what legal entities you're managing we bring up the concept of subsidiaries intercompany transactions eliminations and all that goes within managing an environment that contains multiple legal entities one of the really important areas that we focus on is the segmentation strategy and automation here's where we're aligning our solution to how your life sciences organization um perceives its business we identify things like projects programs departments to really drive the reporting that you're striving for both from a financial and operational perspective approval processes span uh many different areas so we can start to consider where do we want to put those approval processes and what stage of the project do we want to do that things like financial approvals ap approvals new vendor approvals and that runs all the way through various areas of the system at this point role management becomes uh important from a base layer perspective so we want to identify what roles are you leveraging right now how are those roles going to grow and make sure that we're making the system scale enough that it supports your needs at a small perspective but has the ability to grow as your organization grows like billy was referencing earlier the sec financials we do come with a package out of the box so that we're not recreating the same reports that we're seeing across all of the various life sciences organizations that we work with system audit is a big one for getting an introductory level uh look at what type of controls and procedures we need to put in place as we move into more of an ipo type setting billy will talk a little bit more about vendor study management but at a summary level this is our ability to manage some of the higher level studies or clinical trials that traditionally then have been very manual to to account for and to keep track of uh in an offline basis the perennial connector gives us the ability to integrate with uh the bioprocure prendio system from purchasing an ep perspective to really avoid manual duplicate entries or uploads and then vendor onboarding talks a bit about what we've put in place from a vendor approval process an ongoing management of those vendors both from address banking information primary information perspective awesome and then building upon that tier one we'll look at some of our tier two functionality so you know chris mentioned in tier one you may be connecting to an outside procurement system but you may find a need to bring procurement into your erp um say you're you know purchasing a high level of service you have a high level of service contracts or you're thinking about going commercial and you're going to have inventory in your erp system that's where you know using pos inside the erp becomes you know very valuable um and then go sort of going off that po being in the system that's where we get into purchase change orders and really you know change orders in a lot of systems typically the best practices just go ahead and issue a new pio but with some of the ip we've built around clinical studies it's important to keep that one po intact then just add dollars to the po for additional milestones in a very controlled sox compliant fashion then some additional functionality in tier two you know you're looking at things like document management you know do contracts need to be linked to your pos in terms of expense management are you going to implement expense reports in a mobile application for capturing expenses in your erp you're going to connect to say a concur and expensify and then also you know as your organization is growing excel might be too much to manage fix assets and you'll need to bring that into your erp to gain automation around booking month and depreciation and then lastly you might find yourself beginning to build out your item or your product structure in that suite you know as you're looking to uh code costs to specific drugs and what it takes to ultimately make and uh and sell that drug so with that that concludes the sort of the first stage and we're going to now transition into the the ipo stage of our story so kicking that off with some of the the challenges you're likely to see as you're nearing an ipo i think that's you know in an ideal world you're able to say okay great stage one just took place and you're on an established erp system like netsuite but it's not uncommon to be starting the process now and that's you know perfectly okay um but the first challenge i think you're going to immediately run into is the timing of the ipo right truthfully you don't necessarily know when this is going to happen you know the business could be thinking about going public um but they could also be at the same time thinking about you know raising another round of financing from you know through private equity um so it's it's never really a guarantee or a known date of when the public offering takes place but as you feel it coming it is really important for that pre-ipo prep so you know finance teams are going to begin to drive a culture shift within the organization towards internal controls so that startup mentality that fast pace now individuals are put you're slowing it down a bit putting controls in place you know specifically around your purchasing processes you know and heavy on the approvals there so that you can begin to operate as if you are a public company company okay um and then you know the one caveat we always like to remind everyone there is you know as you're going through the ipo and as you go public there of course is a grace period so that your organization does have the ability to ramp up your systems support to essentially support this new requirement of being public but it's always great to get a head start and be thinking about it before actually going public and then you know with that in terms of you know so the types of things you should also be thinking about as you go and beginning to think about your ipo i'm going to hand it off to chris talk about your organization structure perfect thank you billy so typically in the ipo fundraising phase we're seeing a few common traits especially around your organizational structure so at this point you have a growing organization but it's still running quite lean you're expected to do more with the same amount of people and that's where we that's where we really end up trying to focus uh folks are still wearing multiple hats they're doing a lot of different things finance might still be in control of fpa they may be overseeing the accounting side of the purchasing process so you're still very much uh you know a very lean organization that folks are doing multiple different pieces of the of the puzzle at this point we're really starting to see where annual expenditures are starting to grow upwards your transaction volumes are significantly increasing and what we have to do at this point is make sure we take a look in and ask the question does your management structure support your approval matrixes so the approvals in the compliance that we were implementing when we're in the startup phase is it still relevant or does it need to be updated now with a system like netsuite we do have the flexibility to expand that with relative ease but it is important to constantly review to make sure that the approvals and uh segregations and controls that we put in in the startup phase are still supported with this growing organization we start to look at segregation of duties and we want to start to review what are our deployment strategies so we have a controlled system here and how do we make sure that we're making relevant safe changes to your to your to your application your erp application without forfeiting control and compliance we're also starting to take a look at um at roles a bit further so the product does support many different types of users at this point permissions do become paramount right so again we think we're prepping for the ipo we're starting to uh possibly make our rules more granular more specific to uh what folks are are kind of doing in their particular point in time and in making sure that we have good segregation duties as we start to prepare for those pre-ipo activities getting into some of the ipo audit pressures and we've really broken those down into three key categories um so when you're implementing an erp your data migration strategy and how you're going to handle that go live is critical and it's going to impact your first quarterly audit after your go live right so i can't tell you how many clients ask us to go live the first day of a quarter a month a year but at the end of the day that really doesn't matter your best option when implementing erp is to make a clean cut from your system and you know we typically recommend the third week of a month because that's when an accounting team is typically you know the least busy but ultimately from an audit perspective by making a clean cut um you know you're you're done using your old system say quickbooks you're migrated onto netsuite and now everything is in netsuite on a go forward basis so it's much easier to prove out to your auditors that you've converted your data correctly into the new system and then sort of shifting away from data and now just you know getting into working in the system and you know undergoing an audit while you're on netsuite um our next one is sort of your system controls right so segregation of duties is absolutely critical when you're public so keeping in mind that your team is probably you know it's still somewhat lean and people might be aware still be wearing multiple hats that's where having a system that's flexible allows you to define rules both through your typical permissions but also that has a workflow that put additional controls and approvals in place really help you prove out those system controls and write very strong stories to give to a sox auditor when they're they're asking you know how the system works and then lastly from a change management perspective again you know your company is still going to be growing there's going to be new functionality you want to implement and there's going to be new business challenges that need to be solved in your erp system and so it's it's really critical here to get its involvement in terms of documenting what changes are going to be understanding you know what's native functionality versus custom and really putting good policies and procedures in place for when you know something new is implemented you know how has the team tested it um has it changed any of those you know stock stories we talked about and then ultimately has there been a sign off um by say your controller or cfo before it's getting put into a production environment so we're going to continue this theme of speed to value across the the presentation here so when we think of speed the value as it relates to the ipo phase we we are finding it uh beneficial to separate the implementation of a system with developing and configuring all of the elements of control and compliance a couple sides ago billy mentioned that you know these organizations do have a grace period and that fits really well with the deployment of this functionality what we're finding is that too often organizations are bogged down with combining both of these elements and it typically will lead to project delays and frustration so what we've done here is we've laid out sort of our ideal scenario of of the path of bringing new systems uh and then layering into control so our ideal path follows the establishing a strong erp so we talked about that in the front end with the kind of the startup phase is bringing in a an erp that can support all of these uh all this functionality earlier in the process the next is user adoption so getting folks into the system comfortable with using it uh this is paramount for for what's about to come next the next thing that would that we typically like to layer in is the controls after they've been fully defined so what we always talk about is we want to make sure that the controls are being defined outside of the system and not trying to use the system to define controls right ultimately the outcome of all this is system adoption so once we've established our erp really laid out what the controls should be layer in those controls on top of the ip that that kind of is the is the dream scenario in terms of overall system adoption for all the stakeholders and getting a bit more into so that controls versus you know flexibility uh conversation so it might seem funny to say this but controls are a lot easier to implement when an accounting or finance team are larger you know if you're a 10 15 person department you can very easily break out who's doing what you know say two people are entering vendor bills and two other people are responsible for paying them um so you know and in that type of environment roles are you know much more clearly separated um but again you know in these early phases um that's not going to be the case and so some of the areas we typically focus on are are you know and starting with is scalability so i mean as an organization you need an erp system that's going to support uh your lean team and give you the ability to have full segregation of duty right um and then you know building upon that there then comes you know your transaction complexity right so not not every transaction you enter into a system is straightforward right sometimes you're going to have to make updates or changes to a transaction there's numerous roles and people that get involved you're going to see cross-departmental and program project approvals taking place um where you also need to ultimately define who's the owner and you might find a hard time of actually you know understanding and knowing who actually owns the transaction and then with all that you know ultimately you're going to ask yourself are the controls logical right um when you're getting into sort of your month-end close and you know one of the most common things you're going to hear from anyone looking to sell or implement erp systems is are you going to expedite that month-end process for us you know ultimate you know you know the key stakeholders that you know they want the numbers as quickly as possible um but controls can hamper that process and so it's really critical to have controls that still support your automation and then lastly the last bullet point we have here is who you know who within your organization is going to be that system administrator right who's ultimately responsible for monitoring the system setting up new users making sure the controls are being followed um both from you know from a segregation and duty standpoint and from a change management perspective and it's again it's really critical that that person is in house within your organization and not outsourced and then you know when we get into our talk of controls and flexibility over here on the right we have a screenshot of one of the approval flows from netsuite and so when it comes to setting up a vendor record um you know how we've made it both controlled and then both flexible is when someone enters a vendor into the system it goes out for approval and the person who approves the the vendor is someone different than who created it but then when we get down to that last approved state at the bond you'll see an hour going back up to approval so anytime someone makes an edit to a vendor record that record is then going out for approval again to a different person um and at the same time we're blocking any way you know any payments in the system from going out to this vendor um so you find yourself with you know always you know for a change to take place to a vendor record always needs to be two people one to execute it one to approve it and for the ability to not pay unapproved vendors and again this is just one sampling of a workflow that you'll see in the system perfect so we couldn't get out of here without a side about reporting but what you're seeing here is is what we're considering an fcc income statement so part of what we built into the solution is a pre-packaged uh piece of financial reporting that we're seeing very common across the life science industries and again these are very flexible they can be changed updated uh but we we build this as a starting point right so so we can come in with a pre-packaged some of the areas that we you know that we focus on are being able to report on things like r d versus g a uh filing your 10k ultimately what we want to do is again as billy referred to earlier is expedite that fiscal close activities it's really important that you know the erp system comes with out of the box financials that can be refreshable real time have drill down uh capabilities um some of the areas that we also focus on when it comes to reporting are the distribution of reports do we want to put these on schedule do we want to push these out to department heads program heads project heads financial management on a regular basis to avoid and cut down on some of the manual activities also on publishing your financials we want these to look professional be able to include them in things like board packages or to external stakeholders but we also want them to be flexible enough that they're that they support uh internal review and analysis of the folks that are operating inside the erp system so just an example here of some of the different elements of financial reporting that you should consider as as your journey continues through the life cycle all right so that concludes our second uh the second stage of ipo and we're going to transition now to the third stage uh you know what we're titling clinical trials um and we're gonna again start with you know what are the challenges you're facing when when it comes time for clinical trials um so again clinical trials they may come pre-post ipo it's very common for these to mostly come uh pre-ipo um but what we find is you know managing managing these clinical trials and many managing the cost the activity is very commonly a highly manual process performed by accountants at month end or quarter end and you're typically looking at two to three days of you know one person's time fully dedicated to managing this process so in addition to capturing and accurately reporting on all that cost there then come comes that sort of that audit aspect to this so you know what we find is a lot of clients are managing this initially in excel and then having to go through an audit with a large excel workbook um has its challenges and then you know in addition to you know having to capture all this information in excel there's a lot of communication going on there's a lot of people involved both within and outside the organization there could be multiple clinical trials per department and you're getting all those different department heads involved to pull information and then you're also going to find yourself communicating with vendors you know just you know they may have they may or may not have sent you the bill yet but have they completed certain milestones you know on the clinical trial and journey um so you know i think as you can see it's a very collaborative uh process and but you know with all that collaboration comes a need for a lot of approvals um and then what we're also seeing is you know legal documentation um and trending's a little bit towards integrations with third parties is becoming a big requirement because it's not as simple as just issuing a po to the vendor executing the clinical trial yeah thank you billy just to continue on that path uh like billy was mentioning the file storage and document management requirements grow more complex at this page so if you're if you think about uh the transition of a contract being managed solely on a purchase order in your erp now we may introduce the need for more contract management type type functionality many clinical trials are high are high in value and introduce a level of legal support uh changes and modifications to contracts at this point are common and some of the tools that we're seeing and leveraging integration with at this point include uh applications such as agile off conga and there's a lot of different type of contract management tools out there that we've at this point integrated with netsuite the most manual process is the financial tracking of these clinical trials and the communication with the vendors regarding that the levels of completion this is typically handled through a high volume of excel spreadsheets and email communication so we like to do at this point is is understand what type of communications are we working with now how are we performing those communications ensure that we have systems and processes set up to better support and automate some of those so that again like billy is mentioning it's not such a manual effort that's done outside of your erp or outside of a legal system that that can lend itself for audit issues errors and just general over maintenance of these of these particular areas so again talking in the clinical trial phase and like billy mentioned this phase can be pre or post ipo where we're kind of isolating this as its own phase but it it does tend to have flexibility in where it comes in um but we're seeing is that what with clinical trials we're seeing a shift in in some of the roles and responsibilities of these organizations where we saw that roles were traditionally more siloed clinical trials do require a higher level of collaboration across these functional teams so for example scientists in operation now may need visibility into things like budgets right providing input into the budgets and feedback is to where we are from a budget actual perspective in their different functional areas finance relies on the input of percent completes and project changes so your buyers your operations and your scientists may now be involved in some of the uh percent complete type accounting uh for for managing these clinical trials where they traditionally may not have been and as one can imagine these contracts are highly visible to management because they're high dollar so leadership does take uh take a roller roll evolution in this particular phase because they may need a different level of reporting and visibility that they didn't traditionally need when the organization was either smaller or didn't manage as many clinical trials as they are today all right so it's uh in its most simplistic form sikkish has introduced the concept of a project or a vendor study into our dimensional chart of accounts and purchasing processes and so ultimately what we're looking to do here is you know you may be used to issuing a po for a clinical trial but we're introducing a dimension or a segment to better manage the cost spend and then also the budget or forecast forecast spend for this for this contract so then on top of that dimensional chart of accounts you know look and feel we're also giving organizations the ability uh to establish a monthly project plan or quarterly project plan to track incurred costs versus actual invoicing and then ultimately uh to automate your month and your quarter end general ledger entries for your prepaid or accrual position on this contract uh and again that's that prepaid or cool position we we typically see that calculation out in excel workbooks and when you have a hundred of these contracts going on that's when the audit pressures really build up in that area so by all having it all in netsuite your erp system that allows you to produce a backup report for those two balance sheet accounts um to you know very easily produce it and then give it to your auditors so they know exactly what's going on in those two accounts and don't have to reference excel workbooks and on our next slide so just have a you know a quick screenshot or example of what that looks like so this is you know for one clinical trial or vendor study as we call it in our in our in the system um this is one month centric and so you essentially see how we have a project it's called phase two uh it's for april 2019 and we what we've planned to incur is 10k in cost and at month then we would come in and update that plan to be what was truly incurred and that's typically through conversations with you know again whoever the owner within the business is or even the vendor to understand what's incurred and then the system is going to go and it's going to calculate for you what has been planned or incurred contract to date what's been invoiced to us contract to date and then are we in that prepaid or accrual position and ultimately the system will book that entry uh for you automatically um so that you have you know again you have this full level of detail linked back to your general ledger and your financial reporting perfect so that actually got us all the way through our critical clinical trials phase and now we're going to talk to some of the elements about going commercial so the following sections are intended to provoke some thoughts and insights into the life sciences organizations that are planning for commercialization some of the strategy decisions that organize organizations face uh include what are your legal regulatory and internal reporting requirements as you think about your commercial strategy does the organizational roadmap look um what does it look like um what are your goals what are your what is the vision for the future is the intention to remain r d focused uh continue to develop solutions or more uh move more into things like product manufacturing at this point too we we do ask some of the harder questions like is the exit strategy to grow or looking at a possible acquisition does the nature of your product introduce fda in compliance uh different type regulations and then we have to also look at things like product and supply chain visibility in terms of ownership when do you plan on taking ownership of your inventory how much visibility do you need into the supply chain movements of your products and also even if you're not maintaining the inventory in your erp for for example or an accounting level you still require visibility of where those inventory levels are and what locations are they sitting some other type decisions are you know where are you trending trending in terms of your decision to use contract manufacturing outsourcing manufacturing or even contract sales organizations you know we do at this point understand that organizations might not have the bandwidth to go ahead and start manufacturing their own products selling their own products elements such as order management so some of those decisions are key at this point it is important to know that you know established erp systems like netsuite do support many different uh inventory management manufacturing and order management capabilities but it isn't very important to have a a game plan going in you know we don't want to look at the system and say what can the system do for us we want to look at our business and say what do we want our business to do and then the system will accommodate those needs you know next area billy's going to focus on some details specific to the the manufacturing perspective yeah so regardless if your manufacturing is in-house or you're using a third party your organization definitely will still require some systemic manufacturing capabilities built into your erp so you know one side of the fence you're doing everything 100 in-house on the other side you're 100 third party but most commonly we see you know all of our life sciences landing somewhere in between that right um so just i mean to give an example um so if you maybe you're in a contract manufacturing scenario uh where someone else is producing the drug on behalf of your company um you're gonna find that you may still have that need to report whip on your balance sheet right so you're not it's not as simple as just issuing a po to the contract manufacturer for the drug when you issue that po you're still going to need to be managing or potentially managing your assembly or your bomb and what components go into making that drug um some other things you're going to have to take into account is you know ultimately is you know how is the product made you know is there or how much labor gets involved in the process uh you know what's your time scale is your manufacturing process is it specific to a project are you making a drug or is it even patient specific and then across ultimately how many locations you know physical locations uh are you manufacturing is it all centralized to one or is it you know globally or across the country right and then it's you sort of you know take all that into account it's also important to define uh the makeup of your products so you know does this product contain and build materials to what levels do the components break down um are the build materials are they made up of quantities are they recipe based those are some of the things you're going to need to consider transitioning off manufacturing will hand it back to crystal to talk about the inventory management side yeah perfect so so again like billy just drilled into some of the elements the decisions that you know we're making around the manufacturing of these products but from a pure inventory perspective um you know we're seeing that you know inventory management introduced a significant strategy shift for your organization you know the tracking of your inventory items versus non-inventory items or expense items becomes important where we might have purchased goods and materials that we weren't tracking either on a quantity perspective or the or the balance sheet we may transition start to track those quantities and the balance sheet impacts of them um you know there's challenges that are created due to the use of outside purchasing systems if the systems that we were traditionally used for purchasing aren't tying into our inventory and more just at an ap type level we need to make make sure that we're accommodating for that and and uh think about at this point making a shift um you know the leading procurement systems will require a tighter integration into your erp environment so again you know shifts are moving just possibly from an ap integration to more purchasing receipting supply planning and product catalogs we are seeing that you know inventory movements do come in a lot of different forms if you are thinking about managing inventory inside your erp the erp must be configured to support you know moving in inventory from one physical or virtual location to another ident identifying bins or sublocations within a warehouse or lab dealing with loss damages not usable inventory scrap relieving that inventory so you know for moving inventory around either to location or location or different areas of your of your lab or warehouse if that inventory is used up how are we going to relieve that who's going to input that into the system and then you know of course very important is providing the proper accounting for the inventory ownership and when in the process does that occur an important element at this stage at this phase is whether there is traceability requirements you know we want to start asking questions like is your product uh required to be lot numbered or serial numbered for tracking purposes and do you need to have visibility into the law or serial item in every step of the supply chain you know i think you know as a wrap up we also always ask questions you know we want to provide insight as to where the product was shipped and where the item is sourced for traceability perspective and where in the process does that come into play at that point we're going to move into the last piece of commercialization and billy's going to talk a little bit about the order management side awesome thanks chris so um from an order management perspective or what will you what we like to call or the cash in netsuite again you have that question is this in-house or is this third party we do see organizations with contract sales organizations helping out but before you even get to that order it's important to have a strategy around your customer relationship management solution or you know the ackermann typically you hear out there is your crm so you know are you going to do this in your erp are you going to go out and implement a you know a leading crm solution such as the sales force um and so as you capture those leads opportunities and convert them into orders you're then going to be tackling you know how do we invoice is it up front is it on a specific schedule and then invoicing and shipping you're most commonly going to be separated right so you could invoice one way and at one time and then you could ship another time and once you've done all that other things to consider are you know cash management or you know ar how you ultimately going to collect cash um you know they can be sending you know wiring money to your bank account or do you need to implement um say more automated fab solution for capturing payment and then there's also revenue recognition layered on right so when the order is booked you have a contract um you're right you potentially are ready to uh recognize revenue but it's really it's critical to make sure you've defined you know what's what are the triggering events for revenue recognition um and will ultimately lead to automated system journal entries in netsuite so what we've shown you today is a typical life cycle of a life sciences organization and it was intended to get you thinking about where you are in your process what the next step should be and how sickage can help with those pending decisions so we thank you for your time today if you want to learn a little bit more about sikich and how we've helped out life sciences organizations in the past uh please feel free to either reach out to us or visit our website and we hope you have a nice thank you chris and thank you billy for your informative presentations unfortunately we are out of time i want to thank the audience for attending and for participating in today's event and i would also like to thank our sponsor sikich for making today's educational webcast possible you will receive an email alerting you when this webcast will be available for replay we invite you to forward that announcement to your colleagues who may have missed today's live event but thanks again everybody for joining and we will see you next time bye-bye you