Analyzing IT requirement and developing software for a small pharmaceutical wholesaler working in india

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India Pharmaceutical Industry

Richard Gerster said "The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent."India is a country in which it is proven that growth of pharmaceutical science, manufacturing and wholesaling is more. Across the country there are about 20,000 manufacturing units. The drug control authority in India gives licenses to drug manufacturers. India has quality producers who complete with world giants in the same industry. It is made possible as India has advantages in terms of good and skilled man power, excellent and cost-effective chemical synthesis, and good financial and legal framework which will ensure faster growth in the industry, very good strength in information technology usage, globalization, and good opportunities for foreign investors in this sector.

As can be seen in the above table large share of revenue is generated by pharmaceutical industry in India. The table also shows the companies that stand top 10 positions. The future growth of India pharmaceutical sector is shown in the following diagram.

Legislative Framework Pertaining To Manufacture and Sale of Drugs in India

In the early 1990s, the drug industry in India was negligible and used to import drugs from other countries. Later the Indian government understood the situation and decided to introduce laws related to drug manufacturing and distribution. Gradually it ensured that industry is growing faster and introduced many other laws that govern the industry. At present in India the following acts and rules are present to control the manufacture, import, export and clinical research of medicines and cosmetics in India.

* The drugs and cosmetics act, 1940

* The pharmacy act, 1948

* The drugs and magic remedies act, 1954

* The narcotic drugs and psychotropic substances act, 1985

* The medical and toilet preparations act, 1956

* The drugs order, 1995

Academic Literature in on Requirements Analysis for Small Business Systems Pertaining to Pharmacy

Information Technology is best used in pharmacy to increase effectiveness in the business systems. It could be used at various levels including whole sale market of the pharmacy industry. It promotes new ways of working and making business. It ensures quality of services thereby increasing overall productivity of business systems. There are some areas that have great impact on this industry by using Information Technology. They are:

* Electronic transfer of prescriptions

* Hospital e-prescribing

* Information governance

The electronic prescriptions between prescribers and pharmacists improve the efficiency and quality of service. It allows various fragments of pharmacy related systems get connected seamlessly.

The hospital e-prescribing programme is used to support chain of activities like prescription, administration and supply of medicines.

Information sharing is also possible among health related systems in the world.

Known Issues that Affect Pharmaceutical Business

* There is an improving pressure on Pharmaceutical and bio-technology companies to use information technology in order to achieve their business goals.

* Areas in Health Care industry such as drug development, molecular research, formulary acceptance, eDetailing, contract sales, whole saling has been affected by the rapid growth of IT industry

* The competition in the industry is comparing to be the best or second in the fray.

* Every area of pharmacy industry is affected by the influence of science and technology and organizations are compelled to take the help of IT at least to remain in the industry

* There are some issues related to laws of Indian government. The industry must stick to the acts/rules imposed by government. Such rules may be changing from time to time.

* Answer to many of these issues is in the ability of companies pertaining to pharmaceutical utilizing the full power of Information Technology to leverage its profitability.

* The information related challenges can be overcome by using Information Technology in bio technology and pharmacy.

Client Background

Padma Agencies is the pharmaceutical business wholesaler. Its business is located in Koti, Hyderabad, India. The shop area is 12*20 sqft space. Total staff is 10 members, in these 2 members fill the stock, 2 members writing bills, 1 member collecting cash, 5 members to save and packing all to customers. They don't have any problem in serving customers. Mostly the time is wasting at billing and calculating and at cash point because the calculating and billing is manually, so at cash point he must check the items and price and total again by manually due to containing the correct prices are available for customer or not. Here price can vary by mistakes.

More Details of Example Company

* No data base is used to maintain the stock.

* There are different types of products and number of companies.

* The company salesmen (i.e., P&G, Nestle, Cadbury, etc) come to the shop and check the quantity with help of staff member and place an order for stock to them by guessing the quantity.

* Expiry and damage stock will be replaced by company, if the staff can find it and hand over to company.

* Some products (i.e., summer products, rainy products, winter products) maintain heavy stock by their seasons and demanding products.


* All the payments done by cash and cheques on company name.

* If shop had a credit to particular company the M.D doesn't receive original receipt.

* The shop keeper get the original bill after he clear the payment, up to they had a duplicate.

Customer Placing Order

* Customer visit with order form

* Customer can order by phone.


* Pickup the order forms from customers and serve the items to customer, after calculating manually and payment

* Taking the order from phone and packed in a handled care boxes and delivery by using transport facility.

Payment Methods

These shops accept by cash, cheques and D.D only.


* The goods are sale only who have a drug license No(i.e., only for Retail Pharmaceuticals)

* Every product had a price on them i.e., called maximum retail price (M.R.P.).

Present Mode of Operation

They are selling all the products by whole sale price, now the present system is totally manually i.e. billing on a paper and calculating with calculators, stock maintenance is just by guessing. Price checking is maintain in a book and items are 6000-8000 different types of items they maintaining.

Daily Maintenance

In the company they are maintaining ten employees, 1 M.D, 1 assist manager. In these shops the customers are visit in 4-500 hundreds per day. The salesman's sales the goods only for whom having a drug license, so, here the customer should have a drug license number to buy any product in the shop.

Selling Daily

A customer comes with an order form containing of items, sizes and quantity.


When the system is started, it should authenticate user before providing its functionalities

* The output bill should appear as containing the shop name, address, phone number and drug license no.

* It contains which system i.e. (system 1, system 2,etc), billing staff id, name, bill no(transaction number), time, date, receipt type (original, duplicate, refund, void item, void transaction, etc), quantity, product name price per single and total price quantity, and the end grand total for all products , if vat is applicable then vat summary.

The present system is manual and has the following drawbacks.

· Is a semi-automated at where the information is stored in the form of excel sheets in disk drives.

· The information storage and maintenance is more critical in this system.

· Tracking the salesman activities, customer activities and progress of the work is a complex operation.

· Existing system cannot provide the facility of accepting cheques.

· Very less security because of file systems.

· Very less customer satisfaction as quality of service is less.

· Time consuming process because of manual report generation.

· Management of stocks may not be accurate.

· Prediction of drugs demand, based on seasons is complex.

· Placing of orders through phone and home delivery is not possible.

· This system cannot provide the information sharing by 24x7 days.

Functional Requirements of Proposed System for Padma Agencies

· Maintenance of customer details

· Stock maintenance

· Billing

· Order details

· Keeping track of drug licenses

· Predicting the future demands of the retailers based on the seasons.

· Ordering of goods through phone and home delivery is possible.

· Online ordering of goods

· Customized report generation

The functional requirements are classified into the following modules

1. Stock Maintenance

2. Ordering

3. Billing

Stock Maintenance Module

This module is responsible for complete stock maintenance. It takes care of complete inventory of medicines and related products. It can generate reports as per the stock status. As things are sold the changes in the physical store is reflected in this inventory.

Ordering Module

In this module all the work related to ordering of goods is done. Placing orders by predicting the behavior of the retailers and the customers. It takes care of orders sent by its retail customers. It is also responsible to generate reports related to orders received from its customers and order made to pharmacy manufacturers.

Billing Module

Salesman is the person who involves in bill preparation, report generation for the current stocks maintained and tracking the drug license's of the retailers. It is responsible for billing activities for the licensed customers. It does mean that the retail businesses that contain a valid drug license are allowed to buy pharmacy products from this store.

System Requirements

Thorough understanding of the system in terms of technologies required warrants that the following are the software and hardware requirements to build this system.


Operating System : Windows XP/2000/2003

Technology : Core Java, JDBC, Swings (JDK 1.5/1.6)

Database Server : Oracle 9i/10G


Processor : Pentium based systems with a minimum of P4

RAM : 256MB (minimum)