Package-Based GTN Software Implementation

Package Based GTN solution. Selecting and implementing a Gross-to-Net channel forecasting solution.

In Brief

The manufacturer carried out their Gross-to-Net forecasting across a sizable product portfolio using only Excel. Seeking flexibility, scalability and a more comprehensive forecasting approach, the manufacturer embarked on a significant package-based implementation.

How We Helped

  • Provided all business analysis, methodology design, data architecture and integration​

  • Provided GTN subject matter expertise and a deep understanding of our client's processes

  • Served as the test lead and facilitated test execution across all phases

  • Served as an extension of manufacturer team, acting as an advocate, process expert, data expert, and supplemental model builder

  • Developed interfaces for actuals from Model N Flex

Situation

Our client's GTN forecasting processes were managed completely in Excel. Every quarter, users would

  • Gather demand forecasts by brand

  • Gather WAC price schedule by brand

  • Collect actual transactions (millions of lines) across Chargebacks, Medicaid and Rebates

  • Load data to Excel per brand, per contract

  • Review actuals, locate & adjust previous assumptions, update projections by brand, by contract

  • Consider book of business scenarios and contracting events requiring assumptions and adjustments

  • Consolidate results; Manually prepare summary comparisons and reports

  • Provide data to downstream processes (e.g., Finance, Brand Teams)

This process involved 150 separate workbooks, thousands of worksheets and more than 10,000 manual interventions performed across all workbooks, leaving them exposed to multiple risks for the future:

  • Limited visibility to the effects of pricing actions (price protection penalties, Medicaid liability implications, PHS price changes, ASP-based reimbursement impacts, etc.)

  • Long turnaround times for what-if analyses

  • Excel scalability constraints and brittleness

  • High risk of manual error

  • Lack of visibility to previous data overrides and assumptions

Solution Implementation

Implementing a more comprehensive GTN forecasting solution required analysis and redesign across data, methodology, process and people. These activities focused on a well defined set of objectives:

  • Improve accuracy by enabling top-down and bottom-up forecasting methodologies down to book-of-business level (i.e., off-invoice, base rebate, performance rebate, price protection, admin fee)

  • Provide scalable data architecture

  • Increase efficiency, reduce turnaround times

  • Enable seamless generation of summary comparisons and reports 

The project was a partnership between:

  • Manufacturer

  • Pharosity Consulting

  • Package-Based Software Vendor

The effort achieved the following outcomes:

  • Data architecture supporting desired forecasting granularity, reporting and analytics, including sub-price group extraction of load of actuals from Model N Flex

  • Establishment of several different methodologies for forecasting utilization

  • Clear visibility to data for pricing actions, adjusted contract terms, new strategies (rebates, price protection, fees, URA, PHS, etc.)

  • Automated return rate derivation based on weighted average shelf-life of lot level data by product and calculation of return rates using time-adjusted sales

The Pharosity Consulting team provided all business analysis, methodology design, data architecture and integration:

  • Designed and implemented interfaces for actuals from Model N Flex

  • Defined and documented all GTN policies, processes and methodologies

  • Served as an extension of manufacturer team, acting as an advocate, process expert, data expert, and methodology designer

  • Facilitated relationship between manufacturer and package-based software vendor

  • Designed, developed and implemented return rate derivation solution

  • Served as test lead, developed test strategy and plans, facilitated execution of system test and UAT phases while providing issue resolution support

If you'd like to learn more about how Pharosity Consulting can help you decide which package is right for your GTN processes; or if you are looking to implement a specific package-based solution, please get in touch. We're always willing to share and look for ways to collaborate.

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