Case Study

Clinical precision: How a pharmaceutical distributor transformed product data management to achieve $3.8M annual savings

The short version

Challenge:

A $160 billion pharmaceutical distributor struggled with 200,000 products across nine disconnected systems, creating compliance risks and operational inefficiencies impacting patient safety.

Solution:

DataCatalyst implemented a unified PIM/MDM platform using our Accelerate methodology with a small expert team, delivering an MVP solution in a focused 20-week timeframe.

Results:

Client achieved a 40% reduction in order errors, $3M annual savings, 25% faster SKU onboarding, and 98% FDA labeling accuracy rate supported in part by the PIM implementation.

The challenge: Critical product data scattered across disconnected systems threatened patient safety

A $160 billion pharmaceutical distributor faced a data crisis that threatened both patient safety and business operations. Operating at a massive scale, with 200 distribution centers serving 8,000 retail pharmacies and 3,500 hospital and long-term care clients, the organization struggled to manage 200,000 product items across nine completely disconnected systems.

Their fragmented data landscape included SAP S/4 HANA, two PLM systems, five regional CMS instances, Excel workbooks, and PDF catalogs. Critical pharmaceutical product master data flowed in from 80 manufacturer partners, creating a complex web of information silos where NDCs, dosage forms, packaging configurations, and regulatory documentation existed in isolation from one another.

This disconnected reality created dangerous scenarios where inaccurate product information could compromise patient safety, regulatory compliance violations risked substantial penalties, and operational inefficiencies cascaded throughout their vast distribution network.

The need: Single source of truth for pharmaceutical product data to ensure compliance and patient safet

The business desperately needed a unified pharmaceutical product repository that could serve as the single source of truth for its entire operation. Patient safety required accurate and consistent product information across all touchpoints, while regulatory compliance necessitated seamless validation workflows and complete traceability.

Beyond safety and compliance, operational efficiency across their vast network depended on having reliable product data that could support automated processes, eliminate manual reconciliation overhead, and enable confident decision-making at every level of the organization.

The scale of their challenge – managing data from 80 supplier partners across 200 distribution centers – required a solution that could not only unify existing data but also establish sustainable governance processes for ongoing data quality management.

The approach: Rapid implementation through our Accelerate methodology

DataCatalyst deployed its proven Accelerate methodology, recognizing that the pharmaceutical distributor needed both technical expertise and business-driven requirements gathering to succeed. A lean 5-member expert team worked alongside 40 client representatives from Regulatory Affairs, Quality Assurance, IT, Sales, and Operations.

The approach began with a comprehensive data inventory and profiling across all nine disconnected systems, mapping supplier feeds from 80 manufacturers to understand the full scope of data complexity. DataCatalyst conducted intensive stakeholder workshops to define critical requirements, ensuring that business needs drove the technical implementation rather than technology dictating business processes.

This collaborative approach enabled DataCatalyst to design a solution that addressed both immediate compliance needs and long-term operational scalability, while maintaining the focused scope essential for successful delivery.

The solution: Market-leading PIM/MDM platform configured for pharmaceutical complexity

DataCatalyst implemented a market-leading, off-the-shelf PIM/MDM platform, configured specifically to meet the pharmaceutical distributor’s unique requirements. The solution delivered:

  • Unified data model that accommodated the complexity of pharmaceutical product information while maintaining regulatory compliance standards
  • Automated compliance checks that validated product data against FDA requirements in real-time
  • Role-based data steward portals that enabled different teams to manage their specific data responsibilities efficiently
  • Syndication pipelines that distributed accurate product information across all target systems automatically
  • Integrations that reduced duplicate manual data entry and offline reconciliation processes
  • Comprehensive audit trails that provided complete traceability for regulatory reporting

DataCatalyst’s deep understanding of pharmaceutical data complexities enabled them to configure the platform for immediate business value while establishing the foundation for long-term data governance success.

The transformation: Cultural shift from manual processes to automated data quality management

The implementation required significant organizational change as the pharmaceutical distributor moved from manual reconciliation processes to proactive data quality management. This fundamental cultural shift demanded new ways of working across the entire organization.

DataCatalyst supported this transformation by training 20 data stewards and regulatory specialists who became champions of the new system, conducting comprehensive training sessions for 80 key users across different functions, and helping implement new governance structures that established clear accountability for data quality.

Teams had to abandon familiar manual processes and learn to trust automated systems for compliance-critical decisions – a change that DataCatalyst facilitated through hands-on support and clear demonstration of the system’s reliability and accuracy.

The results: Measurable improvements in safety, compliance, and operational efficiency

The transformation delivered substantial, measurable results that validated the investment in unified product data management.  The implementation supported the change that led to:

  • $3 million in total annual savings including $1 million saved through avoided regulatory penalties
  • 40% reduction in order errors supporting $2 million projected annual savings while significantly reducing risks to patient safety
  • Dramatic reduction in manual reconciliation overhead freeing up valuable resources across 200 distribution centers
  • 25% faster SKU onboarding dropping from 8 weeks to under 6 weeks, enabling faster response to market demands
  • 98% FDA labeling accuracy rate virtually eliminating unauthorized product shipments
  • Real-time compliance monitoring providing immediate alerts for potential regulatory issues
  • Streamlined supplier onboarding processing 6,000 new items monthly from 80 supplier feeds

The future: Scalable platform supports continued growth and regulatory evolution

The pharmaceutical distributor now operates much more confidently, equipped with real-time compliance alerts and the ability to scale product introductions. The system processes 6,000 new items monthly from 80 supplier feeds while maintaining accurate product listings across all e-commerce and procurement platforms.

The implemented PIM/MDM platform serves as a core master data system that provides sustained clinical and commercial advantage. As regulatory requirements evolve and the business continues to grow, the unified data foundation positions the organization to adapt quickly while maintaining the highest standards for patient safety and regulatory compliance.

DataCatalyst’s Accelerate methodology ensured that the solution was built for long-term success, with governance processes and technical architecture that can support the distributor’s continued growth and navigate the evolving complexity of pharmaceutical data management.