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Track and trace (also referred to as serialization) is one of the most important topics for pharmaceutical manufacturers at the moment. How can businesses not only suffer but profit from these new regulations? SAP solution extensions by Vistex provide additional value for pharmaceutical manufacturers regarding serialization.

The track and trace regulation was introduced to combat drug frauds. The serialization is not only a matter of registering the serial numbers of medicaments, it also results in a complete transformation of the supply chain of pharmaceutical manufacturers. The reason for this is that it implies the way businesses manage their stock and register their goods. Furthermore, it also influences the reporting of authorities that sell the products. Some countries like China (with some limitations), Turkey, India (with some limitations on exported products) and Argentina (with some limitations) already require a serialization of medicaments. In some other countries the serialization will be mandatory soon like for example in Korea starting 2015, in Brazil starting 2016, in Saudi Arabia starting 2016 or in the EU starting 2017. As pharmaceutical manufacturers (also referred to as laboratories) are distributing globally, these worldwide legislations impact them highly.

Pharmaceutical manufacturers can use the requirement of serialization for improving their business processes. How that? As serialization will bring better quality of data, businesses can improve the controlling of their finances. Let´s take chargebacks as an example. The chargeback process can be very labor intensive especially in reconciliation and revenue losses. By incorporating the serialization into the chargeback process, businesses can get a better control of the process. This is where SAP solution extensions by Vistex can provide additional value. The SAP Paybacks and Chargebacks (PBCB) by Vistex solution incorporates the serial number in the chargeback process resulting in laboratories being able to extend the control of their paybacks and chargebacks processes.  Additionally they can ask their distributors to include the serial number in their claim which simplifies the whole process. This gives the manufacturers full control of their inventory benefitting them in getting accurate claim reconciliations.

Main benefits for pharmaceutical manufacturers using SAP solution extensions by Vistex are:

  • Reduction of chargeback discrepancies: As the price of a medicament is saved by the serial number as well, the distributor’s claim can be automated based on the serial number of the product. Additionally, manufacturers can control if distributors claim for serial numbers they have not received.
  • Avoidance of duplications: In case a product is returned to the manufacturer it is not possible to claim the product again as with the help of the serial number, the manufacturer can record the interactions and sees that the product has already been returned resulting in avoidance of duplication of claims.
  • Omitting reverse chargebacks: Reverse chargebacks occur when a product is sold or a chargeback failed. As a result the product is returned to the manufacturer which generates a refund of the chargeback from the distributor to the manufacturer.
  • Reporting to government: Reporting of every single serial number to the government due to claim serial numbers supplied and received via claim.

Pharmaceutical manufacturers can benefit and take advantage of the legislation requirement that at first glance looks like it only impacts the distribution of products. By using the SAP Paybacks and Chargebacks by Vistex solution, pharmaceutical manufacturers have a better control of their chargebacks and can be more accurate.

SAP Paybacks and Chargebacks by Vistex also has the functionality to incorporate the serial number in the commercial aspects giving the possibility to determine rebates and other sales incentives.

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