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Now it all adds up for a pharmaceutical distribution leader

Now it all adds up for a pharmaceutical distribution leader

Centralizing master data for complex chargebacks and rebates pays off for a healthcare supply chain company

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"Vistex provided us with a single, centralized master data system that enables accurate chargeback reconciliation and rebate processing, eliminating the data inconsistencies and manual errors that impacted our worldwide operations."
Solution Manager  

Overview

A global leader in healthcare supply chain management solutions required an enterprise solution to automate complex chargeback reconciliation and rebate processing operations. Operating across the United States and internationally, this pharmaceutical distribution company provides supply chain management services to 20 percent of the region's physicians, processing millions of transactions requiring precise chargeback matching and rebate calculations.

They faced significant challenges with chargeback claims and rebate processing being handled separately at the business-unit level, each using different contract management systems and inconsistent master data. This fragmented approach resulted in delayed chargeback settlements, inaccurate rebate calculations due to data discrepancies and disputes over contract-to-claim matching. Processing 1.8 million sales order lines daily for chargeback validation became increasingly complex without unified customer, product and vendor master data, requiring a solution that could integrate with their existing SAP ERP infrastructure while centralizing all master data and chargeback operations.  

Solution

The company selected SAP margin optimization solutions by Vistex to provide a comprehensive platform that would centralize master data management for chargeback reconciliation and rebate processing across all business units. The solution seamlessly integrates with their existing SAP ERP environment while supporting the entire chargeback-to-settlement lifecycle through unified master data.

This solution provided automated chargeback matching against contract terms using standardized product and customer master data, real-time rebate calculations with built-in validation rules, and integrated claims processing workflows. The platform enabled contract-to-claim reconciliation capabilities while maintaining vital product, customer and vendor master data within the SAP ERP instance. The implementation enabled easy transfer of master data from local systems to a centralized system, allowing automated chargeback validations and rebate eligibility determinations from a single, unified platform.

Vistex's flexibility and scalability ensured it could accommodate the company's complex global chargeback volumes while providing the standardization needed to eliminate processing inconsistencies and reduce manual intervention across business units.

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Results

Implementing SAP margin optimization solutions by Vistex delivered transformative improvements across the company's chargeback and rebate operations. The centralized master data system eliminated data inconsistencies and dramatically improved processing accuracy across all business units worldwide.

Key benefits realized include:

  • Centralized master data management: Unifies customer, vendor and product information, enabling accurate chargeback and rebate processing.
  • Streamlined data quality: Eliminates chargeback discrepancies through centralized master data standards.  
  • Real-time rebate processing: Delivers instant rebate calculations using consistent master data for 1.8 million daily transactions.
  • Improved processing accuracy: Reduces manual errors through standardized master data validation rules
  • Streamlined master data transfer: Enables easy data transfer from local systems to the central master data platform.
  • Master data governance: Standardizes data maintenance processes across all business units worldwide.

Vistex helped them successfully transform from a fragmented and inconsistent master data management system to a unified, accurate system that supports chargeback reconciliation and rebate processing across their worldwide pharmaceutical distribution operations.

About

A Pharmaceutical Distribution Leader

This Fortune 500 company is a global leader in healthcare, specializing in pharmaceutical distribution and medical supply chain solutions. Its products and services support healthcare providers, pharmacies, and patients in improving access to essential medicines and healthcare services.

Solutions implemented:

SAP margin optimization solutions by Vistex

  - SAP Paybacks & Chargebacks by Vistex
  - SAP Incentive Administration by Vistex 
  - SAP Data Maintenance by Vistex, pricing option
  - SAP Data Maintenance by Vistex, resources option