Expense Control for the Pharmaceutical Industry

Industry Challenges

Operational Challenges

Chemical and generic drugs dominate, with few innovative drugs — competition plays out in channels, marketing, and field promotion
High Share of Sales Expense
“Consistency evaluation” policy is pushing product innovation
A fast-changing environment and heavy policy impact mean product demand shifts often — companies need to respond with agility

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Compliance Challenges

National Insurance Cost Controls Put Pressure on Drug Pricing
Expense-driven performance and gray-area incentives touch both individuals and the system, making clear, transparent spend hard to achieve
Without upfront oversight, expense control tends to happen only after the fact
The “two-invoice” system and pass-through audits mean strict oversight, heavy compliance pressure, and high disclosure requirements

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Efficiency Challenges

High travel spend, tedious reimbursement, slow payment, low satisfaction all around
Heavy compliance requirements, hard-to-manage documents, employees easily pick the wrong account, and finance faces a heavy review load
One task, many disconnected processes
Management approves the same thing multiple times, without a clear view of the full picture or real control over product profit

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Operational Challenges

Chemical and generic drugs dominate, with few innovative drugs — competition plays out in channels, marketing, and field promotion

“Pain Point”

Intense Competition Keeps Costs High

Heavy spend, with inconsistent controls

“Solution”

Control budget at the request stage — govern spend through the business request itself, and see cost consumption as it happens

“Solution”

Control budget at the request stage — govern spend through the business request itself, and see cost consumption as it happens

High Share of Sales Expense

Complex Sales Channels, High Spend, Steadily Eroding Profit

Management needs visibility into spend across every business line, product, and channel, and needs expense and incentive policies tailored to each product and channel to improve profitability

Strong budget control that manages both major overspend and routine expense together

(1) Supports multi-dimensional budget management

(2) Real-time visibility into budget execution

(3) Multi-dimensional budget-vs-actual reporting

Strong budget control that manages both major overspend and routine expense together

(1) Supports multi-dimensional budget management

(2) Real-time visibility into budget execution

(3) Multi-dimensional budget-vs-actual reporting

Strong budget control that manages both major overspend and routine expense together

“Consistency evaluation” policy is pushing product innovation

Evaluating Profit on New Products Requires Complete Data

Costs cannot be cleanly attributed to a product, category, or SKU, so the true profit of each product line stays unclear

Multi-dimensional budgets, multi-level budget structures, list-of-values controls, budget rules, and budget-vs-actual analysis reports

A fast-changing environment and heavy policy impact mean product demand shifts often, and companies need to respond with agility

Hard to Get Full Data Visibility While Staying Compliant

Companies can’t see, in time or in full, how spend relates to products, categories, channels, and customers — making cost-benefit analysis unreliable

Multi-dimensional budgets, multi-level budget structures, list-of-values controls, budget rules, and budget-vs-actual analysis reports

Compliance Challenges

National Insurance Cost Controls Put Pressure on Drug Pricing

“Pain Point”

No Expense Plan Makes Cost Control Difficult

Finance and management have no visibility into spend ahead of time, so proactive business planning isn’t possible

“Solution”

Combine expense control with budgeting, compare budget to actuals in real time, reflect business trends accurately, and keep spend under tight control

“Solution”

Combine expense control with budgeting, compare budget to actuals in real time, reflect business trends accurately, and keep spend under tight control

Expense-driven performance and gray-area incentives touch both individuals and the system, making clear, transparent spend hard to achieve

Without upfront oversight, expense control tends to happen only after the fact

Costs Are Already Incurred Before Anyone Can Review Them

Create a request for the expense or activity up front, and control budget at that request stage — govern spend through the business request itself, and see cost consumption as it happens

The “Two-Invoice” System and Pass-Through Audits Add Compliance Pressure

Compliance requirements are high stakes for the business, keeping everyone on alert, with heavy finance verification workload

Invoices must be strictly verified, and the business unit must also supply supporting evidence — invitations, sign-in sheets, photos — making the paperwork heavy and verification slow

Rich, flexible reimbursement-form settings let business teams attach the right supporting evidence, with the system automatically checking compliance

Strict Oversight, High Disclosure Requirements

Statutory reporting requires management to ensure disclosed data holds up to scrutiny. Use the balance, volatility, and reasonableness of each expense category as a benchmark to guide budget-setting, then cascade it down to specific activities

Dual-view budget control: govern every expense from both the statutory and the management-reporting perspective

Efficiency Challenges

Tedious Submissions, Heavy Review Workload, Low Employee Satisfaction

“Pain Point”

Sales Staff Travel Often, With Heavy Reimbursement Volume and Out-of-Pocket Spend

Complex expense categories make it hard for staff to choose the right one, and a wrong choice makes the reimbursement process even longer

“Solution”

Integrates with business travel platforms: employees book directly, no advance payment needed, unified invoicing

Smart form assistance:

Automatically detects the expense type and suggests the right account, reducing errors

“Solution”

Integrates with business travel platforms: employees book directly, no advance payment needed, unified invoicing

Heavy compliance requirements, hard-to-manage documents, employees easily pick the wrong account, and finance faces a heavy review load

The 20% of exceptions consume 80% of the effort — heavy work that creates no value for the company

Custom form settings:

Reduces ambiguity in expense accounts and lowers the error rate

Custom form settings:

Reduces ambiguity in expense accounts and lowers the error rate

Expense standards are complex and numerous — hard for employees and finance alike to fully track

Employees make data-entry errors, and different finance staff apply the rules inconsistently, undermining the finance team’s credibility

Pre-configured expense-standard rules:

The system ships with a rich set of control types; set the rules you need and enforcement happens automatically

Pre-configured expense-standard rules:

The system ships with a rich set of control types; set the rules you need and enforcement happens automatically

As e-invoices became common, verifying authenticity and checking for duplicates created a huge extra workload

Reimbursement review is labor-intensive: a printed copy is required, verification means logging into the tax bureau’s website, and each e-invoice number must be logged to prevent duplicate claims

Automatic e-invoice verification eliminates non-compliant invoices:

One-click import, with automatic authenticity and duplicate checks

Automatic e-invoice verification eliminates non-compliant invoices:

One-click import, with automatic authenticity and duplicate checks

One task, many disconnected processes

(1) Tedious submissions for employees

(2) Finance chasing the same event across different systems and processes

(3) Management approving the same thing multiple times, without a clear view of the full picture or real control over product profit

Linking documents end to end keeps the management process connected, with timely, detailed reporting

Slow Bookkeeping

No flexible way to record costs, so the numbers lag behind reality

(1) Integrates seamlessly with accounting software for automatic, batch bookkeeping

(2) Companies can choose to post a voucher or accrue an expense at any point in the process

(1) Integrates seamlessly with accounting software for automatic, batch bookkeeping

(2) Companies can choose to post a voucher or accrue an expense at any point in the process

Slow Payment Processing

Multiple payment methods — bank-enterprise direct connect alone can’t cover cash or note payments

Supports combined payment methods, pushes batch payment tasks to the treasury system, and records the payment reference on the expense form

Key Features

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——CFO of a Hong Kong listed pharmaceutical company

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