Pharmaceutical Companies Transitioning to a New Business Model

for Direct Selling

Tags: List of pharmaceutical companies in GTA, List of top pharmaceutical companies in Canada

Due to fiercer competition and regulatory changes, pharmaceutical companies must now accommodate thousands of orders
coming directly from pharmacies as opposed to just a few from a handful of large wholesalers. Therefore, many companies are
switching to the

Direct to Pharmacy (DTP) business model, which means making appropriate changes to their order to cash (OTC) process so
that it can keep up.

Before jumping on the bandwagon, you should understand the benefits and challenges of DTP. When done correctly, the
switch yields incredible advantages compared to other distribution models on the horizon. However, for a seamless transition,
you need to focus on your entire process, including ordering, billing, and shipping.

A significant challenge that a list of pharmaceutical companies in Canada face when selling to thousands of customers as
opposed to just a few wholesalers is that their current OTC process no longer suffices. Excellent planning and creativity will go
a long way in overcoming any obstacle. With DTP, you can better position your company in a highly competitive industry.

Impact on OTC

OTC entails master data management, order taking, fulfillment, invoicing, and accounts receivable. To avoid having dissatisfied
customers, a lot of confusion, and staff trying desperately to keep up with orders, it is imperative to address vital processes,
including the following four.

1. Master Data Management – You need flawless master data management to keep up with orders. It must be 100
percent accurate and accessible. You also need efficient measures in place for dealing with customer inquiries,
customer information updates, and credit assessment. With the right changes, your customer service team and credit
review analysts can determine how creditworthy customers are upfront.
 2. Order Management – With DTP, your order management becomes critical, especially to ensure urgent orders get
handled and inventory remains full. Because orders will come in via phone, website, fax, and email, you need to do
away with old processes and adopt new ones.

3. Invoicing – With the DTP business model, the volume of billing will increase significantly. For that reason, you need
the right technologies and billing processes. For customers who prefer to pay online, you will need to provide a safe
and efficient option. With a paperless Electronic Invoice Presentation and Payment platform or EIPP, you can reduce
the cost per invoice by as much as 57 percent. If needed, you can also outsource invoicing to a respected source.

4. Accounts Receivable – Collecting money from thousands of pharmacies as opposed to a few large warehouses is
complex. For the highest return when managing a large volume of accounts receivable, you need cutting-edge
technology and improved processes. One option is to segment your customers by risk level. In that case, you could
select a technology platform that handles a significant portion of the initial filtering. Then, with a letter process like
auto-dunning, your collection staff can identify and turn over collections of high-risk customers to outside agents.

When switching to the DTP business model, the smarter the approach, the more of a competitive edge you gain. Smart
decisions will help you overcome challenges and achieve a higher level of success.

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