Main Subject - Business

Managing Accounts Receivables is a detail ridden process and most business owners would rather focus their energies on marketing their products and services to drive bus

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

iness growth rather than get bogged down with this ‘necessary evil’. It therefore makes it both a strategic as well as a cost effective option to consider outsourcing th

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

is important function of your business.

Call strategy
Knowing which customers to call is perhaps the most important decision to be made before your offshore

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

agent picks the phone to your customers. Most finance and accounting packages will help you generate a customer aging report that helps to see the age of the receivable

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

s from your various customers. Most certainly, your friendly offshore agent can be put on the job for calling customers with the worst aging profile without a second tho

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ught. Sure, some customers will not be very happy with this diligent follow up. Never mind. Remember that although the word customer is highly esteemed, it is not quite

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

complete in itself. The more correct usage must be ‘paying customer’

Knowing the customer account
My previous statement on the customer will not go down wel

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

l with most salesmen and I do sympathize with their strong feelings. It is no doubt prudent to respect due sensitivities on every customer account when following up for

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

payments. Therefore I suggest that the offshore agent who is your dedicated person following up on collecting your money, interacts periodically with your sales team. Th

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

is helps cross functional team-work and for everyone to realize that the real joy is when money is received for products or services given rather than at the time of mak

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ng the sale. In other words the Accounts Receivable agent and the Sales team work together with the common interest of the company.

What are the measures to track?
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
b>
It is important to keep an eye on some of the key measures and track them in order to ensure that Accounts receivables turnover is being managed well. Some of th
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
e key measures widely used are:

Days in receivable: The time taken for a receivable to turn into cash is expressed by a "days-in-receivable" number. Days in receivable
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
is equal to your annual net sales by 365, the number of days in a year. The resulting number is then divided into the current accounts receivable figure from the Balance
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
Sheet. The answer will give you the number of days that an average credit sale will remain in accounts receivable before it converts into cash. Accounts receivables T
t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
urnover: The average duration of an account receivable, equal to total credit sales divided by accounts receivable Your Accounts receivable agent can keep a track of t
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
hese and other measures that you may find useful and send you periodic reports that will help you make important business decisions.

Feedback and recommendations for
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
policy changes
The feedback from your offshore accounts receivable agent is very valuable as it reveals which customers are faithful with the payments and whic
.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
h ones are not. This information can have significant influence on how you decide pricing and credit policies. Outsourcing your accounts receivable management to an of
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
fshore team is a proven model with both cost benefits as well as productivity gains through faster turnaround times as it helps you and your staff to focus on core areas

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Main Subject - How Accounts Receivable Turnover Can Be Influenced By An Offshore Team?

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