Pfizer Research Agreements

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					                                              Microsoft Dynamics
                                              Customer Solution Case Study




                                              CRM Package Boosts Tendering Capabilities
                                              for Pharmaceuticals Distributor



Overview                                      “Our tenders are becoming more competitive because
Country or Region: Australia, New
Zealand
                                              the account managers have far more sophisticated
Industry: Pharmaceuticals                     pricing information on which to base their bids,” says
Customer Profile
                                              Denning.
Pfizer Australia is one of the country’s      Brent Denning, Commercial Manager - Targeted, Pfizer Australia
leading suppliers of medicines and medical
products, employing approximately 1,100       Pfizer Australia is a major supplier of medicines and medical
staff.
                                              products to Australia’s hospitals and healthcare groups. When the
Business Situation                            company’s biggest customers put major contracts up to tender,
Pfizer’s largest customers – such as
hospitals and medical centres – are           Pfizer’s nine key account managers need to compile large amounts
serviced by a small number of key account     of data in order to respond competitively – pricing and discount
managers. However, the tendering process
for these customers is highly complex         information has to be researched and then agreed across various
because account managers need to              departments. To do this most effectively, account managers want
research customer data, consolidate
pricing information and gain multiple         quick and detailed access to Pfizer Australia’s commercial history
internal stakeholder sign off for each bid.   with each customer. In 2008, Pfizer Australia teamed with
Solution                                      Microsoft Gold Partner Avanade to implement a customer
                                                           ®



By introducing a new customer information     relationship application based on Microsoft Dynamics CRM 4.0.    ®

system based on Microsoft Dynamics® CRM
4.0, Pfizer has speeded up the tendering      By gaining rapid access to customer data and the ability to pass
process, resulting in a higher tender         pricing information automatically between departments, the
success rate and lower cost of sale.
                                              tendering lead time has been reduced, the tender success rate has
Benefits                                      increased and Pfizer Australia has been able to substantially
 Reduced cost of selling
 More successful tendering
                                              reduce its cost of selling.
 More time with customers
“Hospital selling is a                Situation                                        ability to make commercial decisions quickly
                                      Headquartered in New York, Pfizer Inc is the     and wherever they are.”
highly competitive                    world’s largest research-based biomedical
environment. The time                 and pharmaceutical company, with annual          “We worked out that if account managers’
                                      revenue of almost US$50 billion. Pfizer          tenders were only 5–10 per cent more
frame for most                        Australia employs approximately 1,100 staff      successful, then the business would recover
negotiations is in days.”             and is now the country’s leading provider of     its costs in a short period of time,” says Boris
                                      prescription medicines and animal health         Rojas, Client Partner Lead, Pfizer Australia.
Brent Denning, Commercial Manager –   products.
Targeted, Pfizer Australia                                                             Solution
                                      A significant proportion of Pfizer Australia’s   During the first few months of 2007 the
                                      revenue is generated from bulk purchases by      Business and Information Technology team at
                                      hospitals, clinics and chains of health          Pfizer Australia examined a range of
                                      services providers. These large clients are      technology options to assist account
                                      serviced by a team of nine key account           managers in preparing tenders. The objective
                                      managers who regularly compile tender            was to reduce the complexity of the data
                                      documents when bidding for contracts.            gathering exercise by providing them with a
                                                                                       single view of each customer’s transaction
                                      This tender writing process can be highly        history.
                                      labour intensive. Account managers have to
                                      research customer purchase records, pricing      To assess the full-life costs of any system –
                                      trends, warehousing costs and distribution,      including licensing and integration – Pfizer
                                      as well as discounts that may have been          brought in Microsoft® Gold Partner Avanade
                                      arranged with the marketing department.          Australia, which specialises in customer
                                      Since there can be a thousand separate line      relationship management (CRM) solutions.
                                      items in a tender, account managers can
                                      easily become over burdened with detail.         “Using a small Avanade team, we focused on
                                                                                       how to quickly deliver tangible business
                                      As a result, the tender process can become       outcomes to Pfizer Australia,” says David
                                      protracted. The tender data needs internal       Ralston, Business Development Director,
                                      approval by the medical, manufacturing and       Avanade Australia.
                                      finance departments. If the tender is
                                      particularly complex, there can be a delay in    “We looked at three possible approaches,”
                                      responding to customers, which not only          adds Rojas. “We could have gone for a full
                                      impacts the success rate of tenders but also     enterprise CRM application for all the
                                      increases the cost of sales.                     departments, including our Public Affairs and
                                                                                       Policy team. Then, we looked at using a CRM
                                      “Hospital selling is a highly competitive        application and adapting it just for the
                                      environment,” says Brent Denning,                account managers.”
                                      Commercial Manager - Targeted, Pfizer
                                      Australia. “The time frame for most              The assessment team concluded that a
                                      negotiations is a matter of days. If our         modified Microsoft Dynamics® CRM 4.0
                                      company cannot respond to competitive            package could house customer data in a way
                                      challenges or customer demands fast, then        that would be quickly accessible and readily
                                      we miss out. With the threat of losing           usable for tender preparation.
                                      precious revenue, we need to be agile – and
                                      if possible give our account managers the
“Individually, our staff              Benefits                                         are likely to equal the cost of several account
                                      Launched in June 2008, the CRM system            managers.
now know a lot more                   simplified and accelerated the tendering
about our customers.”                 process. As a result, tenders could be           Success with customers
                                      compiled faster; the tender success rate         Besides saving money, faster tendering has
Brent Denning, Commercial Manager –   rose; the cost of tendering fell and account     increased the proportion of large tenders that
Targeted, Pfizer Australia            managers were able to spend more time with       are successful.
                                      customers.
                                                                                       “Our tenders are becoming more competitive
                                      Better tendering                                 because the account managers have far
                                      The new customer management system has           more sophisticated pricing information on
                                      improved tendering by helping to automate        which to base their bids,” says Denning. “In
                                      the tender sign-off process, ensuring that the   addition, we have reduced the danger of
                                      correct negotiated prices are included in the    losing a tender because we couldn’t produce
                                      tender document.                                 the response document fast enough.”

                                      “Because account managers can access             In addition, general customer service has
                                      price and trends information, they can quickly   improved because account managers can
                                      judge optimal discounts,” says Rojas.            make judgments and decisions much faster.

                                      The CRM package included a workflow              “Individually, our staff now know a lot more
                                      functionality that automatically transmits       about our customers,” says Denning. “A
                                      tender information to relevant staff and         manual customer review required staff to
                                      departments.                                     analyse consumption rates, agreements and
                                                                                       contract fulfilment, and took a long time to
                                      “The tender process is also smoother,” adds      compile. Because a CRM system places all
                                      Rojas. “The system sends the tender to each      the customer information in one place, the
                                      stakeholder and then returns it to the           account manager can do a review extremely
                                      account manager who submits it, confident        quickly, which helps them establish definitive
                                      that the customer is getting the correct         customer buying patterns.”
                                      price.”
                                                                                       According to Liberale, better customer service
                                      “It could take up to a month to complete a       should translate directly into increased
                                      large tender,” says Denning. “Now we usually     revenue.
                                      do it in days. The account managers save a
                                      massive amount of time, because they aren’t      “When we look at what the system can do,
                                      doing the customer research and                  the project team is confident that Pfizer
                                      administration. In addition, we can track        Australia will be able to generate significantly
                                      customer compliance, so now we update            increased orders,” says Liberale.
                                      customers on whether they are getting the
                                      real benefits of the terms they negotiated.”     Improving credibility
                                                                                       As account managers have come to grips with
                                      The expedited tendering process will make a      the CRM system, they have begun to push for
                                      dramatic impact on Pfizer Australia’s cost of    further development, believing that
                                      selling. According to Andrew Liberale, Project   refinements will make it easier for them to
                                      Manager at implementation partner Adaptra,       develop the customer relationship.
                                      the savings in tendering time and cost alone
For More Information                                            “The usefulness of the system can be gauged         Microsoft Dynamics
For more information about Microsoft                            by the enthusiasm generated among account           Microsoft Dynamics® is a line of integrated,
products and services, call 1800 197 960.                       managers. Now they want it to capture more          adaptable business management solutions
                                                                aspects of the customer relationship, such as       that enables you and your people to make
To access information using the World Wide                      account receivables and rebates.                    business decisions with greater confidence.
Web, go to:                                                                                                         Microsoft Dynamics® works like familiar
www.microsoft.com/australia/dynamics/                           “Although we didn’t anticipate this, we have        Microsoft software such as Microsoft Office,
                                                                ended up just continuing with development,          which means less of a learning curve for your
For more information about Avanade                              because of demand from the business users.          people, so they can get up and running
Australia products and services, call                           We introduced CRM because of what it could          quickly and focus on what’s most important.
02 9005 5900 or visit the Web site at:                          be made to do for the account managers. It          By automating and streamlining financial,
www.avanade.com.au                                              has demonstrated its value to the business,         customer relationship, and supply chain
                                                                so now the business wants more.”                    processes, Microsoft Dynamics® brings
For more information about Pfizer Australia,                                                                        together people, processes, and
visit the Web site at: www.pfizer.com.au                                                                            technologies, increasing the productivity and
                                                                                                                    effectiveness of your business, and helping
For more information about Adaptra products                                                                         you drive business success.
and services, call 02 9209 3299 or visit the
Web site at: www.adaptra.com.au                                                                                     For more information about Microsoft
                                                                                                                    Dynamics, go to:
For marketing enquiries relating to the                                                                             www.microsoft.com/dynamics
publication of this case study, please contact
Michaeli Gotley, Group Marketing Manager
+61 (2) 98702952.




                                                                 Software and Services
                                                                    Products                                      Partners
                                                                     − Microsoft Dynamics CRM                       − Avanade Australia
                                                                                                                    − Adaptra




This case study is for informational purposes only. MICROSOFT
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS
SUMMARY.

Document published June 2009

				
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