Master data management (MDM) is one of the most effective ways to help manufacturers, wholesalers and prescriber companies to work together and ensure the data shared within the network is accurate and transparent. This set of data consists of the most current records (pricing, products, etc), group purchasing organizations (GPOs) and integrated delivery networks (IDNs).
The need for MDM is prevalent across pharmaceutical manufacturing companies as it allows businesses to maintain better relationships with multiple provider organizations. It also keeps track of the eligibility of discounts offered to multiple entities as well record the details of the marked down pricing for bulk purchases. MDM makes navigating through complex requirements much easier for companies – purchases from pharmacies, hospitals, large chains, doctor’s clinics, identifying, tracking data, pricing for customers, managing payment information for prescribers.
If master data management is mismanaged, like through manual methods (spreadsheets), then it can not just lead to dissatisfied customers and losses financially like incorrect pricing and rebates; but it can even lead to legal issues owing to non-compliance. Oversights and compliance issues can be identified early on through warning systems (flagging of suspicious transactions) and proper technology which prevents losses and also increase sales. Organizations will be able to analyze and review their sales based on regions and can formulate appropriate strategies to drive their gains further.
The ways businesses can avoid Mismanagement of Master Data is by maintaining detailed, transparent records of their products (availability and discounts per provider), accurate revenues and using correct technology as well as best practices. The master data should also have solutions for common problems faced with products as well other important details such as the pricing, dimensions, weight and shape of the products.
MDM that has a strong customer base and detailed information such as pricing preference can influence decisions for businesses in creating effective programs and offering appropriate discounts speedily and accurately. The technology businesses opt for should be able to ensure that sales are reported without revenue leakage and to be able to accommodate validity of requests based on specific criteria (geography, etc). MDM technology also allows data to be exchanged with wholesalers and other organizations accurately, especially when looking at revenue opportunities and when driving contract compliance.
Pharma businesses can avoid mismanagement of master data by making sure their data is accurate and up to date which in turn reduces business risks by ensuring that all trading partners are charged fair and ethical pricing.