Life Sciences
Case Study

Delivery of more than
$100m Net Revenue

Net Revenue optimization at a global life sciences multinational

A Skarbek effect case study

The desire to maintain profitability in the face of global pricing pressure was the trigger for this multinational to transform its historical suboptimal management of gross to net investment. Members of the Skarbek team engaged effectively to design and implement a holistic programme across a number of international markets, increasing relevant net sales by more than 5%.

Skarbek Associates case study
The needs

To build, design and implement a methodology that aims to improve return on investment from all components of Gross to Net spend with customers in International markets (in excess of $1bn on sales of $6bn), including but not limited to discounts, rebates, commissions, returns, data sharing, free goods, promotional offers, etc.

How we helped

A high-level diagnostic of current gross to net management highlighted significant issues in recording of information, negotiation of contractual terms, compliance of customer practices, gaps in account management capabilities and an overall lack of a customer strategy that could be monitored.

With input from key stakeholders to ensure we addressed key client specific issues, Net Revenue Management Playbook was put into use, this included:

– Building a new uniform taxonomy for recording of gross to net expenditure
– Smart analytics to provide insights based on past performance and market benchmarks
– Tools to address specific G2N aspects, segmentation, cost to serve, evaluation of discretionary investments, contract structuring best practice, managing returns and expiry, sales mix review, etc.
– Designing the future optimal ‘winning customer strategy’, including specific tangible improvements to current terms, deals and bringing efficiency in other G2N elements
– Structure, capabilities and Key Account Management organizational review
– Action planning and target setting, with potential for support

The Playbook was then rolled out through a series of workshops and engagements in South / Latin America, Asia Pacific, Middle East and North Africa (markets with total sales of approx. $2bn).

The results

The project resulted in identifying actions for delivery of more than $100m Net Revenue benefit, approx. 5% of sales, in addition to building local capability and greater contract compliance.

has none!
For the first time we all know exactly what the priorities are
Leadership Team Member
Global Consumer Firm

Mohammad Zafrullah

Accomplished senior leader with over 30 years of General Management, Finance, BD and Restructuring experience

Mansoor Meenai

Mansoor is an accomplished Finance, Supply Chain and Net Revenue Management leader