At the heart of the planning and procurement process is the state-of-the art manufacturing resource planning system (MRP II). MRP II integrates the clients' product requirements, raw materials needs, equipment capacity, procurement lead times and other operating parameters into a unitized planning and control process. The fully computerized Materials Management System has made Pharma Industries a true partner in business development.

Four major IT systems - Pulse Warehousing System, FAMAS (Financial and Management System), In-house MRP System, and ERIC (Enterprise Resource Information and Control System) - are integrated and applied to render added value to clients through the following services:

• Materials Planning: Clients receive a Monthly Exception Report of the materials they are lacking based on their 3 months firm forecasts and a 9 months tentative forecast. Clients are therefore able to deliver the necessary raw and packaging materials to us on time.

• Procurement Planning: Clients can benefit from a 12 or 24 month procurement plan that identifies what materials to order, their quantity, and, when details such as purchase lead time are ascertained, minimum order quantity and outstanding purchases.

• Full Logistical Services: Pharma Industries now provides this service to 70% of its major clients. Under this arrangement, the client benefits from both Materials and Procurement Planning Services on top of gaining the advantage of less costly materials due to a volume discount. This reduces their operating expenses by eliminating the overhead costs required for the planning, procurement and accounting of the various materials, including the related cost of inventory maintenance