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 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.

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 platform 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.

Begin the conversation today!

Tell us who you are and how to contact you, so we can begin to help you

Please confirm you're human.
A good mix of inspiration and technique – this is really helping going forward
Regional manager
SME

General Sir Michael Rose KCB, CBE, DSO, QGM

General Rose is one of Britain's most distingushed soldiers and a former head of UK Special Forces

Gabin Vic

Accomplished and recognised executive with extensive experience in technical innovation and strategic R&D management

Peter Holmer-Bretlau

International leader of cross-functional teams with more than 25 years of experience

Rebecca Stephens MBE

First woman to climb the seven summits, inspirational speaker.

Suhas Dantes

Suhas is a Finance and Supply Chain professional with 4 decades of diverse experience.