Manufacturing Pharmaceutical Company – Commercial Distribution

February 11, 2011

Challenge: As part of a post merger integration effort, an inherited network of Global Purchasing Organization (GPO) post-merger members and Performance Participation Agreements (PPAs) needed to be assigned to pricing groups on a quarterly basis based on market share and sales performance of each member.

Critical Issues: Manual contract commitment and performance management process inherited was inefficient, prone to costly errors, errors out of compliance and required significant overhead disbursements in gross compensation expenses compliance, expenses.

Vision: Alliance Consulting was hired to develop a “Contract Performance Tool” to automate the arduous quarterly process of calculating pricing for each member based on their sales and performance results of each GPO. The tool extracts upon the tired pricing schedule from each of the applicable agreements and the dependent data on the market share and sales performance, cross correlates the data as necessary, calculates performance achievement values, applies performance specific business rules to the data, and adjusts the contract/price group/member associations within the pricing systems based on the results.

Capabilities: A team fused with Contract Commitment & Performance Management and solution and business process Management, design experience and expertise discovered, designed, developed, and deployed the first generation of the “The Contract Performance Tool” and a business process map that optimized the legacy function.

Results: Significant reductions in cycle time and human effort along with enhanced accuracy that minimizes over- discounting has justified the investment in working with Alliance Consulting many times over. Per the Company’s request, Alliance Consulting is enhancing the tool to manage Long-Term Care and Department of Defense initiatives.

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