Pharmaceutical Manufacturer Revolutionizes Rebate Management with EncompaaS
A case study from one of the world’s largest pharmaceutical organizations.
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Overview
EncompaaS partnered with a leading US based pharmaceutical organization to automate the extraction, analysis and visualization of rebate contract data using AI technologies.
The transformation has solved a key business problem for the manufacturer, establishing an accurate, repeatable process that eliminates the manual identification and extraction of contract data, puts time back into their calendars and enables them to drive greater commercial advantage.
Challenge
A global pharmaceutical organization sought to understand and analyze the effect of vendor rebates on a drug’s net revenue across tens of thousands of master contracts and amendment documents. The sheer volume of data (more than 50,000 live contracts), inconsistency in its format, and time required for human processing led them to seek a technology-based solution to streamline the process and make it more efficient and accurate.
Key Pain Points
Scale and scope of contracts
The volume of contracts, the rate at which they were being amended, and the fact that no two contracts were the same meant that it was impossible to access accurate, timely information.
Manual processing time
Highly qualified professionals were spending 400 hours per person, per quarter completing contract landscape updates, which was incredibly tedious and time consuming.
Data quality issues
Existing rebate contracts were in multiple different file share repositories, and had been converted to PDF poorly, which meant the ability to discover this information and bring it together into a common source was a huge business challenge.
Delayed decision making
Contract managers were being bombarded with requests for information from various parts of the business. Given their current systems weren’t designed to aggregate this information, questions could not be answered in real time.
Solution
EncompaaS was selected to transform the way rebate contracts were managed using its advanced AI-powered Intelligent Document Processing solution.
A Proof of Concept was completed whereby a model was built and trained with exemplar contracts to automatically extract rebate information from different formats, such as text and tables, and correctly reproduce the data in highly visual reporting dashboards for comprehensive analysis.
Key Benefits & Outcomes
Using EncompaaS, the pharmaceutical organization has successfully automated a critical business process touching core revenue streams, enabling the business to assess with accuracy the performance of vendors and the net effect of rebates on a drug’s revenue.
The insights gained are now supporting them in making informed business decisions on drug pricing and sales targets, and to assess the true profitability of a drug.
Furthermore, job satisfaction has improved as highly accurate information is accessible in real time, without the tedious grunt work involved.
Using the EncompaaS solution, I’m now able to access all live contracts via a dashboard and can easily track the expiration date on all the contracts I’m managing.
This means I can forecast more accurately and plan my workload around key renewal periods.
Contract Manager
Pharmaceutical Manufacturer
