How do you implement ERP for a medical supplies distributor? A 30-person scenario case: phase one covers lot and expiry, hospital consignment, license documents and inventory in 16–22 weeks for NT$600K–1.1M, cutting consignment reconciliation from 4 days to 1

Short answer: For a medical supplies distributor, phase one of ERP should cover four modules: lot, serial and expiry tracking, hospital consignment stock, license documents and inventory. Expect about 16–22 weeks and NT$600K–1.1M. The goal is knowing which hospital holds every box and when it expires, cutting month-end consignment reconciliation from 4 days to under 1.

(Scenario case based on common project requirements; not a specific client.)

Background and pain points: consignment stock never reconciles at month end

This kind of distributor's biggest problem isn't selling; it's that the goods aren't in its own warehouse. The scenario is a 30-person distributor of medical consumables and devices representing 4 foreign brands with about 2,500 SKUs. Its customers are 40 hospitals and clinics, 12 of which use consignment: stock sits at the hospital and is invoiced only when used. Current tools are aging inventory software plus a lot of Excel:

• 4 days to reconcile consignment: each month sales reps count cabinets at 12 hospitals, then compare against hospital usage records, with discrepancies often at 2–3%.
• Expiry tracked from memory: near-expiry items aren't pulled back in time, writing off about NT$800K–1.2M a year.
• Half a day to trace a lot: when a manufacturer recalls a lot, staff dig through delivery notes and Excel to find which hospitals received it.
• Licenses scattered in folders: hospital purchasing asks for licenses and catalogs, and reps hunt for files every time.

Requirements: four modules in phase one, quoting and tenders in phase two

Phase one covers only modules without which errors happen every day.

Why custom: consignment and traceability are packaged ERP's weakest areas

This company chose a hybrid: keep its existing accounting software and build the operational side custom.

• Packaged ERP: mature inventory and accounting, but consignment usually has to be forced into a "virtual warehouse," with hospital usage reports and monthly billing built separately.
• Open-source ERP (such as Odoo): many modules and low licensing cost, but consignment and Taiwanese hospital billing still need heavy customization, which tends to block later upgrades.
• Custom: consignment, expiry and traceability designed around real processes, with accounting staying in the current software via export files or API.

To be honest: if you have no consignment, fewer than 500 SKUs and no lot tracing needs, a packaged ERP plan costing tens of thousands of NT dollars a year is enough, and custom isn't necessary.

Architecture and integrations: one back office, three entry points

A Laravel back office sits at the core, with separate entry points for the warehouse, sales and hospitals.

• Laravel back office: lots, serials, expiry, consignment stock and documents.
• Warehouse scanning: barcode scanners or phones read manufacturer barcodes so receiving and shipping capture lot and expiry automatically.
• Hospital reporting page: nursing stations or hospital stores report usage on a web page, and the system generates monthly billing details.
• External integrations: monthly invoices through Taiwan's Ministry of Finance e-invoice platform, accounting exports and expiry alerts pushed to sales reps' LINE.

Retention requirements for licenses and distribution records follow the medical device rules published by Taiwan's Food and Drug Administration; the system's job is to make documents and records retrievable at any time.

Implementation timeline: about 16–22 weeks, with master data taking longest

• Weeks 1–3 | Process interviews: map receiving, shipping, consignment replenishment, hospital reporting and billing; deliver process maps and a requirements list.
• Weeks 4–7 | Master data: standardize 2,500 SKU codes, map manufacturer barcodes and organize license expiry dates; deliver master data and import sheets.
• Weeks 8–15 | Development: a demo every two weeks, completing the inventory, consignment, document and traceability modules.
• Weeks 16–19 | Pilot: run 3 consignment hospitals in parallel and compare old and new reconciliations.
• Weeks 20–22 | Full launch: switch the remaining 9 hospitals and retire the Excel consignment sheets.

Cost breakdown: master data work and barcode hardware are often missed

Post-launch targets: consignment reconciliation within 1 day by day 90

• Day 30: every receipt and shipment has lot and expiry data, with master data errors below 1%.
• Day 60: all 12 consignment hospitals use the reporting page, with a target month-end discrepancy below 0.5%.
• Day 90: target consignment reconciliation within 1 day; near-expiry alerts 90 days ahead, commonly cutting write-offs by 30–50%; any lot traced within 5 minutes.

Pitfalls and fixes

• Inconsistent manufacturer barcodes: some include the lot and some don't; test each brand before launch and add internal labels where needed.
• Hospitals resist another system: keep the reporting page to 3 steps, and have reps report weekly on their behalf if necessary.
• Old stock without lot numbers: do a full count before launch, tag old items "lot pending" and ship them first.
• Trying to include tenders at once: scope creep causes most delays; leave tenders and quotes for phase two.
• Regulatory specialist leaves and alerts stop: send document expiry alerts to a manager too, not just one person.

FAQ

Does a medical supplies ERP need lot tracking?

Yes, ideally. Without lots you can't quickly trace distribution when a manufacturer recalls or a hospital asks.

Can consignment be handled with a packaged ERP's virtual warehouse?

Yes, but painfully. A virtual warehouse only tracks quantity; hospital usage and monthly billing still need manual matching.

How much does ERP for a medical device distributor cost?

Phase one runs about NT$600K–1.1M over 16–22 weeks, covering inventory, consignment, documents and traceability.

Does the warehouse have to stop shipping at go-live?

No. Run 3 consignment hospitals on old and new systems for 3–4 weeks, confirm they match, then switch fully.

Next step: count your consignment hospitals and SKUs

Custom system development at ScriptWalker (a Taiwan-based Laravel/Flutter custom development studio) starts at NT$80,000, and ERP typically costs NT$150K–1.5M depending on scope, over 16–24+ weeks. Send us your SKU count, number of consignment hospitals and current reconciliation method, and we'll assess phase-one scope and budget for free:

• Email: [email protected]
• Phone: 0916-224-047
• LINE: @ufv9089p