Industry: Healthcare Distribution

Download PDF: McKesson Case Study


Quote

“What Pramata makes possible is a whole universe of reporting that we can use to understand our customer behavior better.”

 -Danielle Hannifin, Vice President, Accounting and Controllership, McKesson Corp. 


Executive Summary

For healthcare distribution industry giant McKesson, maintaining the quality of its interactions with providers, manufacturers, and other customers is a priority. But the traditional CLM system that McKesson relied on to manage customer contracts and their data – IBM’s Emptoris – wasn’t up to the task. Legal teams found it too rigid and limiting; it lacked reporting capabilities needed to track revenue performance against customer contract commitments.

With Pramata, McKesson’s legal, finance, and sales ops teams can access, at any given time, from multiple systems and departments, all the commercial relationship data needed from one single source of truth (system of record). For instance, McKesson can easily check whether a customer’s annual purchase commitment will be met by the end of the year, and take action. Some of the benefits include:

     ✓   Recaptured millions of dollars in revenue

     ✓   Ensured fulfillment of pricing and rebate commitments to customers

     ✓   Delivered valuable insights into non-standard contract language

     ✓   Enhanced analysis of contract key terms across customer segments and businesses

     ✓   Created a definitive system of record for commercial relationship data

Challenges

  • Disappointing user experience with traditional CLM aka Emptoris – low levels of adoption

  • Couldn’t measure against actuals – making it impossible to match contracts to actual customer activity within ERP tools

  • Lack of keyword search and reporting features to enable rapid analysis of complex agreements

Solution Benefits

  • Rapid migration from the legacy system to Pramata

  • Enthusiastic user response and wide adoption of the solution

  • Centralized, curated data from more than 10,000 unstructured data sources

  • Wide range of reporting capabilities, delivering valuable insights into customer behavior

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