Biopharma Data Feeds - Detailed Primer - 867, 844, 852

In the biopharma industry, effective distribution and supply chain management are pivotal to the success of pharmaceutical products. Central to these operations are Electronic Data Interchange (EDI) documents, essential for the flow of information in this intricate network. EDI documents such as EDI 852, EDI 844, and EDI 867, each play critical roles in the distribution process, providing essential data needed for a seamless supply chain.
 

Get Your Gridlex Newsletter Weekly

These articles are part of the Gridlex Weekly Newsletter focused on Biopharma technology, analytics, and operational topics. Please email gridlexnewsletter@gridlex21.com to join this newsletter and receive updates (not more than once per week).

These EDI documents are not just about transferring data; they are about translating information into actionable insights. For example, EDI 852 provides deep insights into product activities and market dynamics, while EDI 867 delves into product transfers and resale, offering a microscopic view of the distribution chain. The EDI 844 document stands out for its specific role in managing chargebacks, a crucial aspect in pharmaceutical transactions involving pricing agreements and rebates.
 

However, the utilization of these EDI documents comes with its own set of challenges. Issues like non-standardized data formats can lead to inconsistencies and inefficiencies, while limited data visibility due to incomplete or masked information can hinder decision-making. This primer aims to dissect these EDI documents in detail, revealing their unique functionalities, the challenges they present, and the critical role they play in the biopharma sector. By understanding how to effectively manage these data feeds, biopharma companies can optimize their distribution strategies, maintain robust supply chains, and ultimately ensure the timely delivery of vital pharmaceutical products to the market.

 

1. EDI 852 - Product Activity Data: Critical for Inventory and Market Analysis

The EDI 852 document is instrumental in biopharma distribution, offering detailed insights into product activities crucial for inventory management and market analysis. This document captures comprehensive data that includes:
 

 

Scenario:

In a scenario involving PharmaCorp, a biopharma company, EDI 852 plays a key role in the distribution strategy for a new cardiovascular drug. Utilizing this document, PharmaCorp accurately monitors sales patterns, adjusts inventory at various distribution points, and aligns production with market demand. This data is invaluable for making informed decisions in production planning, marketing strategies, and managing the supply chain efficiently.

 

Challenges with EDI 852:

A major challenge encountered with EDI 852 is the issue of data standardization. Different retailers and distribution centers may use varied data formats and descriptions, posing a challenge for PharmaCorp in consolidating this information into a unified analysis. This lack of standardization can result in inconsistent data interpretation, impacting decision-making processes and responsiveness to market shifts.

 

2. EDI 844 - Product Transfer Account Adjustment

EDI 844 is a key document in the biopharma industry, primarily used for managing financial adjustments such as chargebacks, product returns, and credits. This document ensures accurate financial reconciliation within the supply chain. This document captures comprehensive data that includes:
 

Scenario:

Biopharma companies rely on EDI 844 for efficient financial management. For instance, a company like BioHeal Pharmaceuticals may use EDI 844 to process and record financial adjustments stemming from product returns due to expiration or damage. The detailed information provided in EDI 844 helps BioHeal to maintain precise financial records and manage its inventory accurately, ensuring that all financial transactions are accounted for and aligned with contractual agreements.

 

Challenges with EDI 844:

The complexity of managing diverse financial transactions makes EDI 844 a challenging document to handle. Each transaction type, be it a chargeback, return, or credit, comes with its own set of conditions and financial implications. Ensuring accuracy in these transactions is critical to avoid financial discrepancies and maintain integrity in financial reporting and inventory management.

 

3. EDI 867 - Product Transfer and Resale Report in Biopharma

EDI 867 is a pivotal document in the biopharma industry, specifically utilized for providing detailed reports on product movements and resale activities between wholesalers and their downstream customers. This document includes comprehensive data on various aspects of product distribution, offering invaluable insights into supply chain dynamics and market behaviors. The details included in EDI 867 encompass:
 

 

Scenario:

A practical application of EDI 867 can be seen in VitalPharm, a biopharma company. They utilize EDI 867 to gain comprehensive insights into the distribution of their medications. The document helps them track how medications move from wholesalers to pharmacies and hospitals, including the quantities sold and the locations of these transactions. This level of detail enables VitalPharm to assess their market penetration, streamline their supply chain, and make informed decisions about production and distribution.

 

Challenges with EDI 867:

Despite its utility, EDI 867 presents challenges, particularly in terms of data completeness and visibility. Wholesalers may restrict access to certain data to protect competitive information, leading to gaps in the data received by manufacturers. This limitation can hinder a comprehensive understanding of the market, affecting strategic decision-making processes. Biopharma companies must navigate these challenges to effectively leverage the insights provided by EDI 867 for supply chain optimization and market analysis.

 

4. 3PL Data in Biopharma Distribution

Third-Party Logistics (3PL) data plays a critical role in the biopharma distribution chain, particularly for products that require specialized handling, like temperature-controlled medications or treatments needing specific storage conditions. 3PL providers such as Cardinal Health, McKesson, AmerisourceBergen, and ICS are central to ensuring the safe and efficient delivery of these sensitive products. These providers offer comprehensive data in an EDI format, which is vital for effectively managing the distribution process. This data includes:
 

 

Scenario:

For instance, with GenTherapeutics, which partners with 3PL providers for distributing its gene therapy treatments. The data received from 3PL providers include specifics on handling, storage, and transportation conditions. This information is critical for GenTherapeutics to ensure that their treatments are distributed under optimal conditions, maintaining product integrity until they reach the end-users.

 

Challenges in Managing 3PL Data:

The complexity of 3PL data and its integration with other data systems presents a significant challenge. Effective management of this data requires specialized tools and expertise. The data encompasses various logistics variables, and companies must ensure compliance with strict regulatory standards throughout the distribution process. Without a robust system to process and interpret this data, biopharma companies like GenTherapeutics could face challenges in maintaining visibility and control over their distribution networks, impacting the overall efficiency of product delivery.

 

How Gridlex CRM Addresses EDI Challenges