Efficiency of flow of goods in pharmaceutical industry is essentiallydetermined by efficient warehousing processes. This causes necessity of use oftechnologies for support of flow of pharmaceutical products, whose specific nature forcesapplication of IT systems which perform, except for standard tasks, some auxiliaryfunctions. This paper presents an overview of the IT systems used in chemistries and listsbenefits which can be derived from application of electronic system of medicine ordering.warehousing process, products flow, EDI

Anna Wisniewska-Salek

English

Research Papers in Economics

Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
773
ANALYSIS OF PRODUCT FLOW DURING THE PROCESS OF 
WAREHOUSING  
 
 
Anna Wisniewska-Salek
1 
 
 
ABSTRACT:  Efficiency  of  flow  of  goods  in  pharmaceutical  industry  is  essentially  determined  by 
efficient warehousing processes. This causes necessity of use of technologies for support of flow of 
pharmaceutical products, whose specific nature forces application of IT systems which perform, except 
for standard tasks, some auxiliary functions. This paper presents an overview of the IT systems used in 
chemistries and lists benefits which can be derived from application of electronic system of medicine 
ordering. 
 
Key words: warehousing process, products flow, EDI 
 
JEL Codes: L6 
 
 
Introduction 
Automated warehouses are becoming a routine of everyday life in large companies which use 
advance technologies in order to facilitate flow of materials and customer service. Warehouse areas 
closed  for  persons  encompass  warehousing  processes  controlled  by  special  management  systems 
tailored  to  customer  needs,  or  else  complex  systems  of  shelves  controlled  by  computers  through 
automated stacker cranes. Warehouses comprise important elements of organizations, which essentially 
impact on efficiency of other parts of a company. Its efficient functioning should be a main goal during 
making decisions on investments in IT processes, which, in effect, lead to precise management of the 
whole company. Warehouse areas require properly designed IT systems which enable cost reduction 
and  facilitate  work  while  they  have  to  be  adapted  to  a  tendencies  within  a  particular  branch. 
Pharmaceutics is a specific branch, which requires software for support of chemistry management with 
concurrent  electronic  data  interchange  with  consideration  of  drug  database  and  means  of  health 
protection  (D.  Tylczyński,  2007).  Examples  of  such  software  include  functional  modules  with  the 
characteristics presented below. 
 
Functional Modules 
OWZA  is  software  that  supports  work  in  almost  all  Polish  chemistries,  compatible  with 
computer  networks  in  order  to  facilitate  electronic  data  interchange  between  chemistries  and  drug 
wholesalers.  Standard  software  for  chemistry  management  support  consists  of  a  few  functional 
modules, while their classification and nomenclature differ depending on a manufacturer. The example 
of the diagram for such software is presented in Fig. 1.  
 
 
 
 
                                                 
1 Czestochowa University of Technology, aleksnowa@wp.pl; 
 Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
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Fig. no. 1 - Chart for functional modules for drug management support software 
Source: own study 
 
Drug sales are possible through basic modules such as Dispatch or Sales. Module is compatible 
with drug database with information about availability of each item in the warehouse and it enables 
quick and convenient searching for a particular drug. The cooperation of the module with external 
devices is also important; they include drug barcode scanners or fiscal printer.  
Another module is Order which, through availability of drug lists, enables placing drug orders 
as  well  as  registration  of  purchase  invoices  in  a  conventional  fax based  manner  or  telephone 
conversations or using electronic way through modem or broadband connections. 
Warehouse  is  a  module  which  enables  operations  concerning  drug  storage,  connected  with 
stocktaking, loss protocols, all corrections or inter warehouse transfers.  
Analytic Module is essential from the standpoint of the chemistry’s owner and enables analysis 
concerning turnover, profitability of a particular drug or groups of goods. It also permits debiting each 
sales points with specification of time of a day. All the obtained results are presented in the form of 
tables  and  charts  and  for  all  the  systems  working  in  Windows  environment,  the  3D  scaled  charts 
presentation is also possible.  
Settlements with suppliers and recipients is dealt with Payment module, which realizes a range 
of functions concerning proper settlements in a chemistry, relating to the cash register receipt and 
disbursement documents, transfer orders or cash settlements.  
Administration Panel is a module that improves work within OWZA; its operation relates to 
adaptation of the software to requirement which result from users’ needs. The module is responsible for 
data access safety and data storage and it controls authorisation assigned to individual users. It is also 
responsible for setting parameters of user interface.  
This module makes up a whole with two other modules, i.e. compatibility with Data Check and 
Safety module, which makes it responsible for database service as well as for compatibility with the 
Module  for  External  Devices  (responsible  for  proper  functioning  of  I/O  devices)  enabling 
determination of parameters for these devices (barcode scanners, printers). 
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Drug Sales 
(Dispatch) Module 
Order Module 
Payment Module 
Analytic Module 
Database (drugs, 
contractors, sales 
and purchase 
documents) 
Communication 
Module 
Data Check and 
Safety Module 
Administration 
Module 
Module of 
Communication 
with External 
Devices Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
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Communication  module  generates  refund  specifications  concerning  sales  of  drugs  on 
presentation of prescriptions from NFZ (National Health Fund) or sales of auxiliary means – for a part 
of programs using Internet network it is possible to send NFZ specifications automatically. Elements of 
the module also bring opportunities of communication with accounting software which includes Tax 
Register of Revenues and Expenses or Finance and Accounting Book. 
OWZA  is  software  which  belongs  to  transactional  and  analytical  software,  using  either 
relational  or  combined  object  and  relational  database.  For  functioning  and  flow  of  information  in 
supply chains of pharmaceutical industry, supporting software is also used.  
 
Supporting Software 
The following software types for support of chemistry work can be distinguished: 
KS AOD – developed by Kamsoft Sp. z o.o. – computer system which is developed as tailored 
to newly appearing needs while any changes that relate to changes in regulations are implemented. The 
system is composed of a few tens of interrelated modules: 
￿  Administrator 
￿  Payments 
￿  Analysis 
￿  Specifications 
￿  Warehouse 
￿  Orders 
￿  Purchases 
￿  Sales 
Electronic  data  interchange  between  wholesalers  and  automated  periodical  changes  in 
government imposed prices, limits, principles for payment or VAT rates are possible through part of 
the system integrated with the system of databases for drugs and means of health protection, KS 
BLOZ, comprising the following modules: base module, prices, interactions, Infolek. For Windows 
platform a KS AOW system has been designed – KSAOD successor – using SQL, Interbase and Oracle 
databases.  
EuroSoft Apteka software – developed by EoroSoft Sp. z o.o. – which uses database which 
guarantees  quick  processing  and  data  safety  through  application  of  Sybase  Inc.  technologies.  The 
source of EuroSoft data is EuroSoft Bazyl software which contains information on articles accepted for 
pharmaceutical turnover. The software operates on a standard MS Windows interface and is compatible 
with KPiR (Tax Register of Revenues and Expenses or Finance), RAKS and SYMFONIA software.  
Quick response is ensured through 32 bit application while the software works within client – 
server architecture and composes of the following interrelated modules: 
￿  Administrator 
￿  Payments 
￿  Warehouse 
￿  Sales 
￿  Manufacturing 
￿  Dispatch 
￿  Purchase 
SuperApteka 2000 software – developed by „Tradiss” Piotrowski – Iwaniuk Sp. J. – a package 
for the workstations encompassing the interrelated modules: 
￿  Dispatch 
￿  Office 
￿  Warehouse Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
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￿  Lab 
￿  Administrator 
The system is compatible with standardized BZAYL drug database and it is composed of ca. 
thirty separate programs grouped in several topic based blocks. The system can be extended with next 
software  which  extend  software  functionalities.  The  requirements  of  the  system:  Novell  network 
environment, Lantastic, MS Windows, DOS operating system and a PC computer. The software is used 
in chemistries, herb shops and other entities which sell pharmaceutics or parapharmaceutics.  
CI apteka software – developed by CI Computer Instal Sp. z o.o. (former Farmsoft Sp. z o.o.) – 
operates  under  all  systems  by  MS  Windows,  designed  as  keyboard only  data  input  system.  The 
software encompasses the following modules: 
￿  Register 
￿  Supplies 
￿  Sales 
￿  Dispatch 
￿  Contractors 
￿  Refunds 
￿  Formula 
￿  Settings 
Database source is Microsoft SQL Server 2000 – in free version of MSDE, delivered with the 
system – the system is compatible with Bazyl drug database. 
InfoFarm Apteka software – developed by INFO FARM Sp. z o.o. – the system is compatible 
with BAZYL drug database, older version operates within DOS environment, the newer one, APTEKA 
+,  under  Microsoft  Windows  environment,  which  works  in  customer  –  server  architecture  with 
application  of  database  of  SQL  type,  data  can  be  transferred  and  processed  in  MS Excel  office 
packages or published in the Internet. The software comprises of the modules: 
￿  Dispatch 
￿  Formulas 
￿  Warehouse 
￿  Fiscal System Entry 
￿  Accountancy 
￿  Accounting 
￿  Safety 
￿  Electronic Information Interchange 
￿  Auxiliary Options 
The  software  is  compatible  with  InfoFarm  KP  or  InfoFarm  FK  accounting  software  and 
supports management of both small and bigger chemistries. 
All the described software packages meet the requirements imposed by the Ministry of Health 
and the National Health Fund while the developers own a network of authorized service points which 
ensure updating of the systems as well as support in order to ensure proper IT system operation in a 
chemistry.  
 
  Drug Databases 
The  software  for  support  of  chemistry  management  must  be  compatible  with  standardized 
databases for drugs and means of health protection. Polish market is dominated by two leading drug 
databases: 
1)  Farmaceutyczna Baza Danych BAZYL – developed by IMS Poland Sp. z o.o. – the 
biggest  pharmaceutical  database  in  Poland,  describing  products  using  ca.  116  information  fields, Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
777
including 109 text fields, 4 numerical fields, 3 memo type fields and 23 auxiliary fields. On 23 August 
2008, BAZYL contained 139,190 coded products. 
2)  Ogólnopolska  Baza  Leków  i  Środków  Ochrony  Zdrowia  KS BLOZ  –  developed  by 
Przedsiębiorstwo Informatyczne Kamsoft – the base most often used in pharmaceutics due to major 
contribution to the chemistry software market; it contains around 125,000 records. 
Both drug databases place the following information in ‘Official Register of Medical Products 
Accepted to Be Used on the Territory of the Republic of Poland’: 
  specification of drugs, herbs and parapharmaceutics, 
  pharmaceutics, 
  biomedical materials, 
  homeopathic and prescription based drugs, 
  foods 
  cosmetics, 
  diagnostic tests, 
  medical equipment and auxiliary means 
which are offered by pharmaceutical wholesalers and chemistries, while standardised product database 
enable electronic data interchange.  
Assessment of Electronic Systems of Drug Ordering (ESZL) 
This system enables automated communication between a drug wholesaler and a chemistry. In 
Poland,  there  are  several  systems  available.  Abonet  is  a  software  dedicated  for  electronic  data 
interchange,  other  software  including  Kamsoft,  Malicki,  Farmsoft  or  Apteka  2000.  ESZL  system 
requires telephone line or Internet connection for interactions between the wholesaler and the chemistry 
(Fig.2).
  
 
 
Fig. no. 2 - Communication between chemistry and wholesaler 
Source: own study 
 
ESZL  process  is  divided  into  7  stages  of  electronic  data  interchange  (G.  Chodak,  E. 
Ropuszyńska Surma, ‘Gospodarka Materiałowa i Logistyka, No. 3/2007): 
1.  Drug ordering 
2.  Price lists from the wholesaler 
3.  Automated division of the order into individual wholesalers, according to the lowest prices Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
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4.  ‘Manual’ correction for order size 
5.  Sending of the ordered drug specification in an electronic way. 
6.  Reply from the wholesaler with the message on availability of the ordered drugs. 
7.  Sending of VAT invoice by the wholesaler.
  
Assessment  of  ESZL  system  obtained  through  pharmacists  working  in  the  investigated 
chemistries  (results  published  by „Gospodarka  Materiałowa  i  Logistyka”  No.  10/2006  and  3  and 
4/2007)  was  made  in  order  to  obtain  the  reply  to  the  question  of  ‘What  are  the  benefits  and 
disadvantages of application of electronic drug ordering systems?’. The results of the investigations can 
be divided using ‘functionality criterion’ which focuses on convenience of lead times, level of safety 
and easiness of operation, errors that occur during orders as well as ‘cost-based criterion’ from which 
inventory levels and order storage time result. 
The obtained results, with consideration of the criteria might become a starting point for the 
distributors of the software used by chemistries, while functionality impacts on motivation to make use 
of ESZL. The cost are a factor which is of great impact on decision on software installation.  
 
Table no. 1.  
Threats and disadvantages related to using ESZL mentioned by the users 
Inconveniencies and threats  Contribution % 
Problems with connection at the wholesaler  62,9 % 
Difficulties in filling in an order  2,2 % 
Difficulties in sending an order  31,5 % 
Possibility to data theft in a chemistry’s computer  12,4 % 
Chemistry’s computer with viruses   29,2 % 
Obtaining the drugs in contradiction to a prescription  42,7 % 
Discrepancy of the prices between an invoice and an order  24,7 % 
Lack of discounts/promotion opportunities  55,1 % 
Others  4,5 % 
 
Most pharmacists assess ESZL positively while all inconveniencies resulting from use of the 
systems are of technical nature, on which users do not have much influence. The other ones can be 
partially compensated through e.g. change of management in chemistries, updating of drug database or 
installation of high class antivirus software as well as its current update. 
Attempting  to  reply  to  the  question  asked  during  investigations,  one  can  present  the  most 
important and the most often appearing replies. 
The mentioned benefits include: 
￿  favourable time of communication and placing an order 
￿  possibility of current update of the offer 
￿  beneficial impact on inventory levels and costs of drug purchase 
￿  shortening of drug ordering time 
The inconveniencies that result from use of the systems include the problems concerning (G. 
Chodak, E. Ropuszyńska Surma, Gospodarka Materiałowa i Logistyka, No. 5/2007): 
￿  communication with wholesaler server in the case of smaller wholesaler 
￿  sending orders and making use of possible discounts and promotions 
￿  viruses in chemistry computers.  
Registration of a drug within ‘‘Official Register of Medical Products Accepted to Be Used on 
the  Territory  of  the  Republic  of  Poland’  obstruct  quick  turnover  of  goods,  which  is  typical  of Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
 
 
779
pharmaceutical market. Computerization of Polish chemistries has caused appearance of standardised 
databases for drugs and means of health protection, which, on the other hand, enabled electronic data 
interexchange between wholesalers and chemistries. Developers of software for support of chemistry 
management are improving their system making use of their know how and experience. Functionality 
of software does not focus only on sales by also on adaptation of system usability to pharmacists’ 
requirements and chemistry owners. Development of computer networks and free access to the Internet 
should, in the nearest future, lead to standardization of electronic system of drug ordering, hence to 
improved  and  faster  communication  between  wholesalers  and  chemistries  which  occurs  in  each 
chemistry in Poland.  
 
References 
1.  Chodak G., Ropuszyńska Surma E., 2007, Analiza oprogramowania wspomagającego 
zarządzanie apteką i elektroniczną wymianę danych (Analysis of Software for Support of Chemistry 
Management and Electronic Data Interchange), Gospodarka Materiałowa i Logistyka, No. 3/2007. 
2.  Chodak  G.,  Ropuszyńska Surma  E.,  2007,  Pracownicy  aptek  o  korzyściach  i 
niedogodnościach stosowania elektronicznego systemu zmawiania leków (Chemistry Employees on 
Benefits  and  Inconveniencies  of  Application  of  Electronic  System  of  Drug  Ordering),  Gospodarka 
Materiałowa i Logistyka, No. 5/2007. 
3.  Tylczyński  D.,  2007,  Leki  w  zautomatyzowanym  magazynie  (Drugs  in  Automated 
Warehouses), EuroLogistics, No. 5/2007. 
 
 
 
 
 
   
 

Analiza oprogramowania wspomagającego zarządzanie apteką i elektroniczną wymianę danych

Pracownicy aptek o korzyściach i niedogodnościach stosowania elektronicznego systemu zmawiania leków (Chemistry

ANALYSIS OF PRODUCT FLOW DURING THE PROCESS OF WAREHOUSING

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ANALYSIS OF PRODUCT FLOW DURING THE PROCESS OF WAREHOUSING

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