Some of Our Work
Identification and implementation a value-maximising pan-European strategy for Parallel Trade.
Sponsor: Senior VP Europe, Top 5 Pharma
Background: $200m loss of profit per annum due to European PT.
What we did…
We constructed a PT fact base (internal & external) and identified KVDs across European Pharma business, present and future. We then characterised and evaluated client’s product portfolio in terms of market dominance and PT penetration to identify value-creating strategies within legal constraints and designed a System for Inventory Management (‘SIM’), to ensure domestic patient demand fully met and PT minimised.
Rolled out the SIM Europe-wide – including production of a Compliance Manual, staff training, communications, and systems support for the new forecasting & product allocation methodology. Developed a new approach for measuring and rewarding true local company performance.
Improved patient service levels, significantly reduced PT and increased profit, Corporate commitment via appointment of permanent team to manage the SIM and to maintain the integrated Europe-wide fact-base and planning assumptions. Local Company Presidents accepted the fairer assessment of local performance.
The VBM approach to tackling this complex and sensitive issue has resulted in a company-wide understanding and acceptance of the negative impact of PT on our performance but also on our patients’ wellbeing. It has also delivered for us the practical means, via the SIM, of minimising PT, legally and effectively. Gone are the days when local company teams waste energy arguing about who should be credited with sales.Senior VP Europe