ROLE PLAY 1 Below is AB’s Value Proposition as AB believes it

ROLE PLAY 1

Below is AB’s Value Proposition as AB believes it to be

AmerisourceBergen is driving innovative partnerships with global manufacturers, health providers and pharmacies to improve product access and efficiency throughout the healthcare supply chain. As part of the largest global generics purchasing organization, the leading specialty pharmaceutical services provider and the partner with more community and health system pharmacy relationships than any other—we’re well positioned to help you capitalize on the dynamic changes in healthcare. From product commercialization and distribution to pharmacy, provider and manufacturer solutions, we’re working with you every day to enhance patient care.

Background

The Healthcare Supply Chain industry has become extremely complex and dominated by three very large companies; Cardinal, McKesson, and AmerisourceBergen, it is highly likely that healthcare networks are currently using one of these three companies. From the big 3, healthcare networks buy logistics from manufacturers, information, administration services, compliance to the Federal and State governments, and generic drugs. The marketplace has become extremely competitive, and most brand name drugs are sold at a loss. The big three make their money selling services and their brands of generics.

What is the PRxO (Preferred Rx(Drug) Option) Generics Program?

This program essentially highlights the items AB offers that come with the best pricing, supply and guaranteed support. We have a portfolio of over 8,000 generic drugs in the PRxO Generics Program. These are all sourced directly from preferred manufacturers. Not only does our customer save money by purchasing the PRxO Generics version of a drug, but AB makes higher profit margins on them to boot. It’s a win-win scenario.

PRxO Generics Savings Opportunities

Identifying “PRxO Generics Savings Opportunities” does two extremely helpful things for our customers:

Shows our customers where they can save money (because PRxO Generic items are usually the most competitively priced)

If customers spend more than $5,000 per month on PRxO Generic products alone, they will receive an additional 5% discount on said products

Customers have to buy products regardless, so why not purchase the lower priced item for a short-term benefit, which also happens to be contributing to a long-term benefit

PRxO Generic Savings Opportunities identify a Non-PRxO Generic item (brand, generic, OTC, etc.) that a customer purchased, and present a PRxO Generic equivalent item (same size, strength – just a different manufacturer) that is a better price than the Non-PRxO Generic option. These opportunities can be found through an internal dashboard, and we can also create PRxO Generic Savings Opportunity reports to send to customers. Below are a list of some common branded drugs, as well as the PRxO Generics Savings applied to them:

Invoice

Invoice Product Name

Invoice Unit Price

Invoice Quantity (last 30 days)

Current Spend (last 30 days)

10056746

Tylenol

$86.64

30

$2,599.20

10047393

Advil

$54.66

64

$3,498.24

10038297

Aleve

$34.45

10

$344.50

10028493

Glucophage

$73.53

45

$3,308.85

10027783

Ambien

$48.85

12

$586.20

PRxO Generics:

PRxO Invoice

PRxO Product Name

PRxO Unit Price

Potential PRxO Spend

Potential Monthly Savings

10147395

Acetaminophen

$65.53

$1,965.90

$633.30

10194824

Ibuprofen

$42.19

$2,700.16

$798.08

10102348

Naproxen

$13.27

$132.70

$211.80

10128392

Metformin

$58.79

$2,650.50

$658.35

10139534

Zolpidem

$39.27

$471.24

$114.96

Role-Play Scenario:

You are an AmerisourceBergen sales representative calling on local, community hospitals (health systems). You get your leads/prospects from a defined territory within salesforce.com. In your role, you can close a sale during your first call with a prospect. Most of your prospects are already doing business with you or your competitors.

Today you are meeting with Sam Smith, the pharmacy director of John Baptist de La Salle Hospital. Sam’s health system is a small community hospital located in the highly populated suburbs of Philadelphia. AmerisourceBergen is the primary healthcare distributor for Sam’s health system, meaning they buy most of their branded, generic, and OTC products from AB.

Because of the COVID-19 pandemic, the small community health system has taken on massive increases in costs of goods sold and is struggling to remain profitable. They are interested in finding a way to reduce costs, but still needs to purchase all of the products prescribed to La Salle Hospital’s health system’s patients.

Role Play 1 Objective:

As the AmerisourceBergen sales representative, it is up to you to uncover Sam’s needs, present the PRxO Generics program to them, overcome objections, and get them to switch to the basket of the PRxO Generics for a 90 day trial. This could not only potentially provide cost savings to Sam, but could also grow the business between John Baptist de La Salle Hospital and AB.