This essay seeks to review the order to cash process in NSW Community Pharmacy. It will do so it by identifying the activities, events data and master data involved in the process. It will also seek to identify risks and controls you found in Order to Cash process and after that offer recommendation on controls for other risks identified.
Comparing core processes
In the pharmacy setup, the order to cash component is an essential aspect of the business the following are the steps and activities involved
Client management: In an era of e-commerce, where personal contact is rare, the client presence in pharmacy is very crucial for close evaluation.
Courtesy: The customer care is quite good in terms of finding out if the customer is new or an existing one. If he/she is a new one the pharmacist uses the opportunity to nail him or her to the business. To the existing one, this presents another opportunity to nurture the relationship.
Confirmation of the client’s details: These include name, date of birth, disease, and medication required. It shows concern and verifies the authenticity of the client and helps the pharmacist in knowing the medicine and dosage to prescribe. In this case, the pharmacist does a good job. The presence of product ordered for is very crucial. In case of its absence, then alternatives should be tabled to the customer and consent sought, a task that was well executed by the pharmacist in this case. In case the drug is out of stock
Credit management: Good credit management in order to cash minimizes issues that could come at the end of the process. Creditworthiness should be conducted on a new customer. Meanwhile, returning ones who were not credit worthy previously should be treated just like new customers. A credit management that is automated and with proper guidelines makes accounts receivable easier and ensures that only creditworthy customers are served thus increasing cash flow.
Order Fulfillment delivery: Automated inventory management: The use of automated inventory management software is more competent compared to the manual process which has a lot of inaccuracies and costly labor. The integrated information of recognized and licensed medical practitioners and the validity of the medical card is very crucial in protecting the client cum the pharmacist in case of any problem. It also reduces the chances of a bad reputation that in turn can lead to low sales and profit.
Order delivery: The success of order delivery depends on the line of product, in our case the delivery of the specific medication shouldn’t be compromised. To this end labeling orders are very crucial. Dosage and timing are included in the labeling.
Timing is very paramount in the pharmacy business. The promptness or delay of an order of the same can mean the difference between death and life for a client. Adherence to timelines trims cash to legal battles arising from delays thus increasing the cash flow and profits
Customer invoicing: An invoicing system needs to capture correct information. This include order specifics, costs, credit terms, order date, delivery date, dosage, etc. When invoices are filled accurately and send promptly as per the required time frame, then the business can easily forecast cash inflows and hence plan for expenses accordingly. In our case invoicing takes place over the counter thus making the client close check the details and thus fast-tracking the payment.
Payment Collections: The client agrees on the mode of payment with the client. The client should be informed if the medication is government subsidized or not. Payments by customers should be promptly entered in the ordering system to avoid frictions with customers as a result of asking them to pay for what they have already paid for. The un-updated accounts payments can also lead to overstated cash estimates.
After sales service: The relationship of the pharmacist with the client is significant. The pharmacist should ensure that the client gets value for money but above all that his or safety is taken care of. The pharmacist should find out if the customer is under any other medication that relates well with the current allergies that be harmful to the current drugs and advice accordingly on the diet and the overall lifestyle while undertaking the same.
Comparing master data
The central repository integrated system of the pharmacy contains the master data. This facilitates the quick addition of new customers. It also helps in quick access of customers information which in turn save times time in attending the client and also eliminates costly inefficiencies caused by data silos. It also helps in creating a network of specific business-related stakeholders through identification, linking and syndication of information across products, customers, stores/locations, employees, suppliers, digital assets and more. In this case, it identifies the licensed medical practitioner quite easily.
Based on the master data the business can focus on products, services that increase sales. It also enhances efficiency through the delivery of a highly engaging personal customer care and de-prioritize unprofitable activities that drain time and resources. As a result, customer satisfaction, loyalty, and retention is enhanced. This comes to play especially when a client comes for a refill.
Master data in the integrated pharmacy system include;
customer’ s name
medical card details
location of the client or home address
Risk and control
A risk is a likelihood that an event will occur and negatively impact a business’s ability to achieve its objectives. Controls are the mitigations measures put in place to curb such risks.
The following is risk and control assessment of order to cash process in NSW community pharmacy.
The presence of the Standard and integrated system is very crucial compared to a variety of departmental systems in use. Without it some of the risks involved would be; loss of time due to several handovers of information circulated in various departments. It also increases the cost of maintenance. The pharmacy has covered this well by having an integrated system.
Credit control; The pharmacy should conduct a credit review of the customer before accepting the order, especially where the client is new. In this case, the pharmacist uses the client’s medical card for approval.
Another risk involved is the number of errors in Order Taking: This can range from the wrong medication entered, wrong quantity entered, wrong prescription and wrong dosage. However, the pharmacist reduces the chances of error by asking follow-up questions and using the medical for personal details of the client.
Master data is very crucial to the whole process of order to cash process. Recalling the patient’s details when he or she comes for a refill would have been hard had the pharmacist not included her details in the master data.it would have been easy for him to deliver a wrong order.
Automated data entries: manual entry involves human involvement which can be costly if used in all areas and therefore it should be limited. Many of the entries in the pharmacy are automated to the benefit of a customer efficiency of the business.
Missing Controls: one of the major decisions as far as inventory is concerned is restocking. In the second video the pharmacist has run out the customers refill order, and he isn’t aware. The client’s time is wasted waitin for the refill. She leaves a disappointed customer. A replenishing plan should be put in place to avoid such incidents in the future as such will lead to loss of customers, sales and profits in the future. The pharmacist should be trained in checking the inventory before taking an order from a customer.