It’s an exciting time for the pharmaceutical industry. As the digital world continues to make its presence known, pharma leaders across the globe are changing gears to place a greater focus on things like cost and the prospect of outsourcing. In doing so, these major players are able to maintain their stronghold on the market and continue as thought-leaders in the pharma space.
There is no shortage of challenges for pharmaceutical companies and that means approaching these challenges from a new perspective. In many cases, the introduction of technology into outdated processes keeps the ball rolling in the right direction. And that is a direction that places efficiency and profit at the forefront.
So, some of the largest and most innovative pharma companies in the world are revolutionizing the industry through contract management. Utilizing an enterprise approach to contract management, these organizations are able to mitigate risk and drastically impact the company’s bottom line.
Today, we discuss some of the most prominent reasons to upgrade your pharma contract management system and finally join the ranks of the innovators leading the industry.
Contract Management System Wins for Pharmaceuticals
Contract management systems are a big ticket item. In fact, life sciences companies throughout the world spend upwards of $1 billion each year to maintain their contract management operations. Combing through thousands upon thousands of contracts and processing billions of dollars in transactions, the contract management system must be built to minimize revenue leakage and maximize profitability.
Unfortunately, things like strict compliance regulations and complex contracts make contract management a challenge for pharma companies of any size. But given the massive dollar amounts dealt with annually, even the slightest of errors can have a massive effect on profitability. So, what’s the solution?
For many pharma companies, battling rising chargeback process costs means employing a robust, scalable contract management system. Nevertheless, far too many of these organizations fail to upgrade their system and the results are disastrous.
To remain competitive in the industry today, pharma companies need to strategically upgrade their contract management system. Here’s some of the most critical reasons why:
- A large percentage of revenue leakage stems from technical failures and insufficient operational data
- The Affordable Care Act as well as the Drug Pricing Program (340B) has changed requirements for legacy contract management systems
- Contract management today means integrating a wide array of operations within the company (sales, marketing, compliance, etc.) and therefore requires cross-department use
- Without scalable automated processing, the system will be unable to grow with the company’s growth
- Robust analytics reporting and data insights pave the way for cost-effective decision-making
- An upgraded contract management system will facilitate more effective and accurate pricing negotiations
- Tracking purchase performance and price history allows for easy and beneficial auditing
Pharmaceutical companies often get stuck in the cycle of making minor improvements to a system that no longer sufficiently handles their operations. This leads to poor processes, increased risk, and lost profits. In order to create a competitive advantage these organizations must take advantage of a contract management system that implement improved processes, mitigate risk, and increase profitability.
At EmpowerRM, our software will simplify your contract process, mitigate the risk of poorly managed documents, and facilitate new levels of profitability. Are you ready to rethink your contract management system? It’s time to take control of your contracts. It’s time for EmpowerRM. Click here to request a demo!