An efficient payment process with strong financial services management benefits pharmaceutical manufacturers and trading partners. Prompt invoicing and revenue recognition builds confidence with wholesale and retail accounts and supports timely and accurate transactions for accounting requirements.
Financial services management performed by WDSrx streamlines logistics and accounting by fulfilling orders for products, generating transactional information and distributing invoices from within the same logistics network. Operations and finance teams work together to share data, adding flexibility and responsiveness for small and large clients.
Adding convenience and increasing productivity for clients is a primary objective of financial services programs managed by WDSrx. From invoice creation to complete monthly financial reporting, the dedicated WDSrx financial services team prepares and distributes reports and customizes data to meet client requirements.
Contracting with WDSrx for financial services management provides multiple benefits. Financial services and logistics services are performed within the same company and often within the same building. This proximity enables greater communication between teams supporting the same client. For example, financial transactions occur with every change in product inventory. Inbound deliveries increase inventory. Outbound shipments reduce inventory. Collaborative management of operations with financial reporting provides data transparency and increased accuracy to match inventory directly with financial reporting.
Reliance on WDSrx for financial services generates efficiencies for manufacturers. Clients work with a dedicated team of experts within WDSrx for financial reporting, reducing the need to hire accounting personnel to handle day-to-day responsibilities. Savings in payroll and benefits can be allocated to core business functions.
The range of financial services managed by WDSrx includes several turnkey programs that streamline the value chain allowing clients to focus on core competencies. Financial services options include order-to-cash management, chargeback processing and financial reporting.
Pharmaceutical manufacturers focusing attention on product research and marketing understand that financial management is a significant distraction from core capabilities. The invoicing process drains limited resources for this essential but non-core function. When management assigns employees to split job responsibilities to include invoicing, performance in both areas may decline. Full-time billing staff may reduce funds that might be spent on primary business functions.
The WDSrx Financial Services team manages the complicated process of customer invoicing, accounts receivable, debit/credit memo reconciliation and payment confirmation including collections. Clients are included in the assignment of an experienced WDSrx team member dedicated to their account. The relationship between client and financial account expert is an important element for successful ongoing communication. The financial account expert learns client requirements for customization of reports and special procedures to become an integral component of client operations.
Supply contracts with wholesale accounts are complex agreements. Pharmaceutical manufacturers maintain contracts with multiple customers. Each agreement may contain different terms for product pricing, discounts and other factors. WDSrx manages supply contracts to assure correct application of contract terms when chargeback requests are deducted from payments.
The efficient processing of chargeback requests requires supervision of different types of transactions between multiple parties. A chargeback request is generated when a wholesaler sells a product to one of their accounts at a contracted price below the original purchase price they paid to the manufacturer. The original purchase price is referred to as the WAC (Wholesale Acquisition Cost).
In the past, some manufacturers simply accepted every chargeback deduction taken by their wholesale accounts as a cost of doing business. Certain manufacturers assigned a bookkeeper on their staff to oversee chargeback processing. Currently, contract terms and documentation associated with chargebacks is more complex. Most wholesalers automatically debit manufacturer accounts preventing effective dispute resolutions. Reliance on inefficient methods to manage chargebacks increases costs for manufacturers with avoidable revenue losses.
WDSrx partners with industry leading chargeback processing provider MDH Insight to provide an automated suite of services for manufacturers to take control of chargeback management, minimize losses and increase business controls.
Placed between manufacturers and wholesalers, the managed service connects with all parties to automate chargeback tasks and provide real-time visibility, detailed analytics and report generation. The results include complete chargeback processing, data integration with ERP and accounting systems, data confirmation for expedited resolution, membership management with verification.
Handling chargeback processing from the same service provider responsible for warehousing and fulfillment adds efficiencies because relevant direct sales data and order information is immediately available to calculate rebates and verify accuracy of inventory levels.
In addition to expertise in chargeback management, WDSrx provides EDI Services for 844, 849, 852 and 867 document sets. Manufacturers can search, export and analyze data from a web-based system about EDI transactions to optimize business operations. This cost-saving service provides real-time interactivity for manufacturers, improving usability compared with spreadsheet-based reporting.
Manufacturers rely on the WDSrx Financial Services team to regularly register business transactions and present results according to client reporting specifications. There are multiple industry and government requirements for tracking financial activity. Accurate and precise record-keeping is vital to monitor current business operations.
In addition to EDI reporting and chargeback processing, WDSrx experts work together with clients to develop customized financial reports. Depending on the access provided by clients to banking records, reports provide detailed information about sales, sales credits, administration fees, discounts, returns, chargebacks and other deductions. Related reports are available for accounts receivables summary, accounts receivable details, payment receipt summary and roll forward status.
Information is continuously acquired. Monthly reports are normally distributed around the first week of each month covering the previous calendar month. Reporting schedules are determined on a more frequent basis to respond to customer demand. Each client is paired with a WDSrx financial services team member to provide standard audit support.
Data used to create reports is gathered from multiple sources including the WDSrx warehouse management system and client banking institutions. Reports can be generated in multiple file formats and emailed or sent directly to client ERP and accounting systems. The ability at WDSrx to customize reporting formats and distribution methods saves time and increases productivity for clients.
Pharmaceutical manufacturing is a highly regulated business. Accurate financial reporting is crucial to provide current information for government and other regulatory authorities. Professional reports generated by WDSrx add value to existing internal or outsourced accounting practices.
Pharmaceutical manufacturers work with Third Party Logistics providers for inventory management services. The complex regulatory compliance, transportation management and warehousing processes performed by 3PL companies promotes best practices when manufacturers outsource these important responsibilities. Reliance on 3PL partners for financial services management generates additional efficiencies for manufacturers.
Consolidating financial services management and inventory management with WDSrx provides manufacturers with added confidence. For example, open communication between WDSrx and clients helps assure continuity between product shipments and bookkeeping functions. Dedicated Account Coordinators managing warehouse activity work together with the WDSrx financial services team to assure inventory and shipping volumes match customized financial reports. Order-to-cash functions, chargeback processing and other reports are customized in file formats that integrate with client ERP and accounting systems. Utilization of inventory management and financial reporting services provided by the experienced WDSrx team increases efficiency, provides greater control, and streamlines communication for pharmaceutical manufacturers.