June 2007 Pharmaceutical Commerce
The Right Way To Close Out Pharma’s Sales Reps
By Bill Buzzeo, Vice President and General Manager, Cegedim Dendrite Compliance Solutions
Using outsourced services to close out sales reps’ employment ensures a smooth transition and proper accounting of sample inventories
Rather than asking managers to spend valuable time collecting company assets from departing sales reps, the pharmaceutical industry is turning to third-party vendors to recover prescription drug samples, computers, cars, and other company material.
Because outsourcing can halve the cost of completing closeouts, it simply does not make sense anymore to ask sales managers to divert significant amounts of time—up to a full day or more—from their principal responsibilities of coaching and counseling reps in the field, improving market penetration, and helping to increase sales.
In recent years, the number of sales rep “closeouts” has increased, and they have become more visible on corporate radar screens. That means closeouts must be well planned and professionally performed, regardless of whether they are the result of normal turnover, reorganizations, or downsizings.
Local access is key
In the early days of rep closeouts, third-party vendors hired part-time contractors near where the sales reps were located, but unfortunately, their quality of work was poor, and clients voiced their displeasure.
About seven years ago, the organization now known as Cegedim Dendrite came up with an innovative solution that satisfied our clients’ needs to conduct closeouts in all 50 states and Puerto Rico. We have developed a network of 2,000 athletic trainers to work as “field inventory specialists.”
These men and women are not the people who work in health clubs to help you get fit. They are certified by the 25,000-member National Athletic Trainers’ Association to prevent sports-related injuries, as well as provide rehabilitation to injured athletes, at the high school, college and professional levels, and their work schedules typically make them especially flexible and valuable in doing closeout work.
This network of athletic trainers is a professional and well-educated group of people. All have undergraduate degrees, and nearly half have graduate degrees. They present themselves very well and know how to work effectively with people, often under stressful situations, such as tending to an injured player during the big game.
Although the Prescription Drug Marketing Act (PDMA) does not have specific regulations governing the closing out a sales representative, our field inventory specialists are trained on a specific client’s closeout procedures. In the case of prescription drug samples, accurate accounting allows for increased accuracy when the samples are returned for destruction or transferred to another sales rep. This, in turn, helps the final inventory reconciliation, which is required under the PDMA. (These same field inventory specialists audit pharmaceutical sales reps on a regular basis to inventory their drug samples, gauge compliance, and inspect storage sites.)
One attribute common among athletic trainers is their innate ability to demonstrate a high degree of sensitivity in working with people, an attribute that’s especially valuable in handling closeouts. Depending on the circumstances, closeouts can be especially stressful, and even emotional, events. Our specialists are prepared for that, they have trained for that, and they have had experience dealing with it. Compare that to a sales manager, who would have a much more difficult time handling potentially uncomfortable situations because of their long-term relationships with sales reps.
Plan the work, work the plan
To ensure closeouts go well, clients always seek input from their HR departments when designing the programs. And when a new program is rolled out, many clients accompany our field inventory specialists. During that time the client will see how the process works and make any adjustments if necessary.
Because we understand the HR and legal issues surrounding closeouts, we plan accordingly, and we have never had an issue with our services. For instance, we are sometimes asked to deliver benefits packages to the sales representative. We do not explain the details of the benefits package because that is best handled by the client’s own resources, however if a sales rep has any questions, we supply the appropriate benefits hotline information.
Our internal calculations have shown that by outsourcing closeouts, a typical
company can save at least 40 percent when compared to having district managers handle the process. This statistic makes a compelling case for introducing a similar approach to other industries that employ remotely located staff.
Regardless of the industry, efficiency and professionalism during the closeout process always will be the two most critical success factors.
ABOUT THE AUTHOR
Bill Buzzeo is general manager at Cegedim Dendrite Regulatory Compliance (1025 Boulders Parkway, Suite 301, Richmond, VA 23225; (888) 590-9954 ext 102; bill.buzzeo@dendrite.com). Before entering the regulatory compliance industry in 1999 with BuzzeoPDMA, Bill Buzzeo spent seven years with Knoll Pharmaceuticals, where he worked in sales, sales management, and sales operations. Prior to entering the pharmaceutical industry, Buzzeo worked in the field of sports medicine as an athletic trainer at Syracuse University and the Philadelphia Eagles. Buzzeo earned a bachelor's degree from Virginia Tech, and a master's from Syracuse University.