Chargeback errors often start with a simple problem: disconnected data. When your contract terms live in one system, customer information in another, and sales data in a spreadsheet, you’re practically guaranteed to have mismatches and disputes. This fragmentation is the root cause of most processing delays and inaccuracies, forcing your team to spend valuable time manually reconciling information that should be unified. A truly effective strategy for how to manage pharmaceutical chargebacks begins with creating a single source of truth. By integrating this critical function into a core system like a serialized ERP, you ensure every department is working from the same accurate, real-time data, eliminating the silos that create so much risk and inefficiency.
Key Takeaways
- Build a Proactive Framework: Shift from reacting to claims to preventing errors from the start. This means standardizing your procedures, ensuring clear communication across departments, and conducting regular audits to stop revenue leakage before it happens.
- Leverage Technology for Accuracy: Manual processes are slow and prone to error. An integrated ERP system automates claim validation, guarantees data consistency, and provides real-time analytics, freeing your team to focus on strategic work instead of tedious data entry.
- Prioritize Compliance and Partner Relationships: Chargeback management is critical for meeting complex regulatory requirements like DSCSA and 340B. It’s also foundational to building trust with your wholesale partners, leading to faster dispute resolution and a more resilient supply chain.
What Are Pharmaceutical Chargebacks?
If you’re in the pharmaceutical industry, you’ve likely heard the term “chargeback,” but the process can feel tangled. Simply put, a pharmaceutical chargeback is a reimbursement a manufacturer pays to a wholesaler. This happens when a wholesaler sells a drug to a healthcare provider at a special, lower price that was pre-negotiated between the manufacturer and that provider. The chargeback covers the difference between the wholesaler’s cost and the lower contract price, ensuring the wholesaler doesn’t lose money. While it sounds straightforward, managing these claims involves many moving parts, and getting it right is essential for your financials and partner relationships.
How the Chargeback Process Works
The process kicks off when a manufacturer and a healthcare entity agree on a contract price for a specific drug. The wholesaler then sells the product to that entity at the agreed-upon lower price and submits a chargeback claim to the manufacturer to cover the discount. It’s the manufacturer’s job to validate that claim against contract terms, eligibility, and sales data before paying the wholesaler. This cycle can expose companies to significant audit risks, making an effective system for compliance critical to avoid financial penalties and legal trouble.
Who’s Involved in the Process?
Managing chargebacks is a team sport. Your sales team negotiates the contracts and pricing that create the chargeback. The finance team validates and processes the claims, ensuring every dollar is accounted for. Meanwhile, your operations team works to make sure all data—from customer IDs to product numbers—is accurate and matches the contract. For the process to run smoothly, these teams need to communicate effectively and work from a single source of truth, often found within a serialized ERP system.
The Financial Impact of Chargebacks
Chargebacks directly impact your company’s bottom line, reducing gross sales to net sales. When managed poorly, they can lead to “revenue leakage,” where small, undetected errors accumulate into substantial losses. A tiny pricing mistake on a single claim can snowball into tens of thousands of dollars in losses each month. Beyond the direct financial hit, inefficient processing can trigger costly audits, waste staff time, and damage relationships with your wholesale partners. Implementing tools for financial automation helps protect your revenue and ensure accuracy.
Meet Your Compliance and Regulatory Requirements
Managing pharmaceutical chargebacks is about more than just balancing the books; it’s about operating within a complex framework of federal and state regulations. From the Drug Supply Chain Security Act (DSCSA) to government pricing programs, every transaction is under scrutiny. Failing to meet these standards doesn’t just risk financial penalties—it can lead to audits, operational shutdowns, and damage to your reputation.
A disorganized chargeback process can easily create compliance gaps. Without a centralized system, it’s difficult to prove that your claims processing, pricing, and data handling adhere to the law. That’s why having a robust process supported by the right technology is so important. It provides the structure and documentation you need to operate confidently and demonstrate compliance at every step. Think of it as your operational safeguard, ensuring every claim is processed correctly and defensibly, protecting your business from unnecessary risk. Let’s break down the key areas where compliance is critical.
Uphold Contract Compliance Standards
Every chargeback is rooted in a contract between a manufacturer and a wholesaler. These agreements are the source of truth for pricing, eligibility, and terms. When chargeback claims don’t align with these contracts, you open the door to compliance and audit risks. Regulators and partners need to see that you are consistently honoring your agreements.
To stay protected, you need to maintain meticulous and easily accessible records for every claim. This documentation proves that each chargeback was validated against the correct contract terms. It’s your best defense in an audit and the foundation for transparent, trustworthy relationships with your supply chain partners.
Manage the 340B Drug Pricing Program
The 340B Drug Pricing Program introduces another significant layer of complexity to chargeback management. The program’s regulations require manufacturers to provide discounted drugs to eligible healthcare organizations, and managing these specific chargebacks correctly is non-negotiable. The rules can sometimes be ambiguous, leaving room for interpretation.
To protect your organization, it’s a best practice to thoroughly document your processes, including any open questions or working assumptions you’ve made while awaiting clearer regulatory guidance. This demonstrates a good-faith effort to fully comply with the law. A clear, documented approach shows regulators that you are proactive and diligent in your efforts to manage the program correctly.
Ensure Data Integrity
In chargeback management, your data is everything. Inaccurate or incomplete information—whether it’s customer identifiers, product details, or contract terms—can lead directly to payment errors and compliance failures. Good data prevents lost revenue and keeps you out of regulatory trouble. Without it, you can’t be sure you’re making the right decisions or following the rules.
Regularly auditing your data is essential. You need to implement processes that validate information at every stage, from submission to final payment. By ensuring your data is clean and reliable, you create a strong foundation for your entire chargeback process and fuel the business intelligence analytics that drive smarter decisions.
Follow Controlled Substances Regulations
When dealing with controlled substances, the stakes for compliance are incredibly high. Chargeback data is often scrutinized by manufacturers and regulators to monitor for suspicious sales patterns and help combat issues like the opioid crisis. Inaccurate processing or a failure to flag unusual activity can have severe consequences.
For example, some pharmacies have faced purchase restrictions after manufacturers halted chargebacks based on suspicious sales data from wholesalers. This shows just how critical it is to have a system that can accurately track and report on these sensitive products. Your chargeback process must be precise enough to ensure compliance and help maintain the integrity of the supply chain.
Overcome Common Chargeback Management Challenges
Managing chargebacks in the pharmaceutical industry can feel like a constant uphill battle. From messy data to confusing contracts, several common hurdles can trip up even the most diligent teams. The good news is that these challenges are solvable. By identifying the root causes and implementing targeted strategies, you can protect your revenue, strengthen partner relationships, and streamline your entire process. Let’s walk through the most frequent pain points and the practical steps you can take to overcome them.
Tackle Data Inaccuracy and Validation
Inaccurate data is the number one cause of chargeback disputes. A single misplaced decimal or incorrect customer ID can invalidate a claim, leading to delays and lost revenue. Your first line of defense is to meticulously check every claim against contract terms, including pricing, products, and dates. While manual checks are better than nothing, they’re prone to human error. A far more reliable approach is to use software that automates validation. An integrated system ensures every submission is accurate before it even leaves your desk, helping you maintain compliance and reduce rejection rates from the start.
Eliminate Processing Delays
Time is money, especially when it comes to chargebacks. Delays in processing can strain your cash flow and damage relationships with your wholesale partners. These lags often happen when teams rely on manual data entry or batch processing, creating bottlenecks where information sits waiting for action. The solution is to share chargeback data digitally and in real-time. When your partners have immediate access to the information they need, you can resolve issues faster and keep the process moving. Implementing financial automation helps you get paid faster, improves forecasting, and builds a foundation of trust with your partners.
Simplify Complex Contracts
Pharmaceutical contracts are notoriously complex, with varied pricing tiers, rebate structures, and eligibility rules. When this information is scattered across different documents or systems, it’s easy for your team to make mistakes. You can cut through this complexity by standardizing contract language wherever possible and storing all agreements in a single, centralized repository. When your sales, finance, and operations teams all pull from the same source of truth, everyone works with the same correct information. A unified platform with robust features ensures consistency and makes contract management much more straightforward.
Close Communication Gaps
Chargeback management is a team sport, but it often breaks down when departments operate in silos. If your sales, finance, and contract teams aren’t communicating effectively, critical information can fall through the cracks. Fostering a collaborative environment where information is shared quickly is essential. Beyond internal alignment, building strong relationships with your wholesale partners is key. Regular meetings and open lines of communication can help you solve problems faster when they arise. A good CRM system can help you track these interactions and ensure everyone stays on the same page.
Prevent Revenue Leakage
Every rejected or mismanaged chargeback directly impacts your bottom line. These small, seemingly minor errors can accumulate over time, leading to significant financial losses known as revenue leakage. This isn’t just about the direct cost of a denied claim; it also includes the administrative overhead of investigating and resubmitting it. Preventing these mistakes is the most effective way to protect your profits. By using powerful business intelligence analytics, you can proactively identify patterns in chargeback errors, address the root causes, and stop revenue from slipping away unnoticed.
Adopt These Chargeback Management Best Practices
Managing chargebacks effectively isn’t about reacting to claims as they come in; it’s about building a proactive system that minimizes errors and protects your revenue from the start. When you have a solid framework in place, you can handle discrepancies with confidence and maintain healthier relationships with your trading partners. Think of these practices as the foundation for a more streamlined and accurate chargeback process. By implementing a few key strategies, you can turn a complex, often frustrating task into a manageable part of your operations. It all starts with creating consistency, leveraging technology, and ensuring your teams are aligned and well-informed. These steps will help you reduce disputes, prevent revenue leakage, and free up your team to focus on more strategic work.
Standardize Your Procedures
The first step toward control is consistency. When every team member follows a different process for handling contracts, pricing updates, or claim submissions, errors are bound to happen. You need to create a strict, documented procedure that clearly defines everyone’s role. Make sure all departments—from Sales and Contracts to Finance and Customer Service—understand their specific responsibilities and work from a single source of truth. This alignment ensures that when a contract is updated or a price changes, the information flows correctly through the entire system, preventing the mismatches that lead to invalid chargebacks. This unified approach is critical for all the different entities in the pharmaceutical supply chain.
Implement Automated Validation
Manually reviewing every single chargeback claim against contract terms is not only time-consuming but also highly susceptible to human error. A simple typo or missed detail can lead to significant financial loss over time. This is where automation makes a huge difference. By using software to automatically validate each claim, you can instantly cross-reference submissions with the original contract terms, pricing, and customer eligibility. The system can flag discrepancies immediately, allowing your team to address them before they become bigger problems. This level of financial automation is much more reliable than manual checks and is essential for processing claims at scale.
Create Clear Communication Channels
Chargeback errors often happen in the space between departments. A salesperson might agree to special pricing, but if that information isn’t communicated properly to the finance and contract teams, the wholesaler will inevitably submit a chargeback that doesn’t match your records. You can close these gaps by establishing clear and consistent communication channels. This could mean regular inter-departmental meetings or, even better, using a unified platform where all teams can access the same real-time data. When your sales, finance, and contract teams are in sync, you ensure that everyone is operating with the most current and accurate information, which is fundamental to a smooth chargeback process.
Conduct Regular Audits
You can’t fix problems you don’t know you have. That’s why regular audits of your chargeback process are so important. Think of them as routine health checks for your financial operations. By reviewing your processes every few months, you can catch small issues before they snowball into major revenue leakage. Audits can uncover recurring data entry mistakes, patterns of invalid claims from a specific partner, or internal process bottlenecks. Using business intelligence analytics can help you spot these trends more easily, allowing you to make data-driven adjustments that strengthen your entire chargeback management system over time.
Invest in Staff Training
Your technology and processes are only as effective as the people who use them. Investing in comprehensive training for your staff is one of the best ways to prevent errors and improve efficiency. Make sure your team understands the entire chargeback lifecycle, your company’s specific policies, and how to use your software tools correctly. When your staff is confident in their roles and understands the financial impact of their work, they become your first line of defense against inaccurate claims and revenue loss. Providing ongoing education and resources ensures your team stays sharp and can adapt to any changes in contracts or regulations.
Use Technology to Streamline Chargebacks
Relying on spreadsheets and manual data entry to manage chargebacks is a recipe for errors and delays. The sheer volume of claims and the complexity of contracts demand a more sophisticated approach. Technology isn’t just a nice-to-have; it’s essential for streamlining your processes, ensuring accuracy, and gaining valuable insights into your financial operations. By adopting the right tools, you can transform chargeback management from a resource-draining headache into a smooth, efficient, and transparent process. Modern platforms can help you automate tedious tasks, validate claims with incredible precision, and access the data you need to make smarter decisions.
The Power of ERP Integration
When your chargeback system is separate from your core operational software, you’re forced to work with disconnected data. This creates inconsistencies and requires constant, manual reconciliation that eats up time and invites errors. The solution is a fully integrated Enterprise Resource Planning (ERP) system that serves as a single source of truth for your entire operation. A purpose-built serialized ERP embeds traceability directly into your core system. This means chargeback data is seamlessly connected to inventory, sales, and compliance information, eliminating the data silos that cause so many problems. This unified view ensures that every department is working with the same accurate, up-to-date information.
Validate Claims with AI
Manually verifying every line of a chargeback claim against complex contracts is a monumental task. Artificial intelligence can handle this with speed and precision that humans simply can’t match. AI-powered tools can automatically cross-reference claims with your pricing agreements, contracts, and sales data to confirm their validity in seconds. More importantly, AI excels at identifying anomalies and patterns that might otherwise go unnoticed. It can flag potential issues like duplicate submissions or incorrect pricing, helping you prevent revenue leakage from invalid claims. This allows your team to focus their attention on resolving exceptions rather than sifting through mountains of valid transactions.
Automate Claims Processing
Beyond validation, automation can streamline the entire claims processing workflow from start to finish. Instead of manually entering data, correcting errors, and processing payments, you can use software to handle these repetitive tasks. An automated system can ingest claim data, run it through validation checks, and flag any discrepancies for review, significantly reducing the risk of human error. This not only speeds up the entire cycle but also frees up your team for more strategic work. When your staff isn’t bogged down by routine processing, they can focus on analyzing trends, improving partner relationships, and optimizing your overall chargeback strategy.
Access Real-Time Analytics and Reporting
Making informed decisions requires timely, accurate data. Waiting for end-of-month reports means you’re always looking backward, reacting to problems instead of preventing them. Modern chargeback management systems provide real-time analytics and customizable dashboards that give you an immediate, clear view of your operations. You can track key performance indicators, monitor claim statuses, and identify bottlenecks as they happen. With powerful business intelligence analytics, you can drill down into the data to understand the root causes of disputes and identify opportunities for improvement. This proactive approach helps you maintain financial health and strengthen your supply chain partnerships.
Build Stronger Partner Relationships
Managing chargebacks effectively goes beyond just processing claims and crunching numbers. At its core, it’s about the relationships you build with your supply chain partners, especially your wholesalers. When you have a strong, collaborative partnership, you can resolve issues faster, reduce friction, and create a more efficient process for everyone involved. Think of it less as a transactional task and more as a continuous dialogue.
A proactive approach to partner relationships can transform chargeback management from a source of conflict into an opportunity for mutual improvement. By establishing clear communication protocols, solving problems as a team, and aligning on data standards, you build a foundation of trust. This trust is your greatest asset when navigating the complexities of pricing contracts, claim validations, and dispute resolutions. Ultimately, a healthy partnership means fewer errors, faster payments, and a more resilient supply chain.
Establish Clear Wholesaler Communication
Open and consistent communication is the bedrock of a good wholesaler relationship. Instead of waiting for a problem to arise, make a point to connect regularly with your key partners, like AmerisourceBergen, Cardinal Health, and McKesson. Having a personal connection and a dedicated point of contact can make all the difference when you need to solve a problem quickly. These relationships help you understand each other’s processes, anticipate potential challenges, and work together more effectively. By knowing who to call and having a pre-existing rapport, you can cut through the red tape and get straight to a solution, which is invaluable for all partners in the supply chain.
Solve Problems Collaboratively
When a chargeback error occurs, your response sets the tone for the partnership. Instead of approaching it as an adversarial issue, treat it as a shared problem to be solved. When you find a mistake, notify the wholesaler and any other internal teams immediately. The longer an error goes unaddressed, the greater the financial impact. A swift, transparent approach shows that you are a reliable partner committed to accuracy. This collaborative mindset turns a potential dispute into a chance to identify and fix underlying process gaps, strengthening your operations and your relationship at the same time. Using a robust CRM can help track these communications and ensure nothing falls through the cracks.
Prevent Disputes Before They Start
The most effective way to manage a dispute is to prevent it from ever happening. This starts with a meticulous focus on data accuracy from the very beginning. Before submitting or processing any claim, ensure every detail perfectly matches the contract terms—from pricing and products to customer IDs and effective dates. This careful validation is your first and best line of defense against errors that lead to disputes. By getting the data right upfront, you minimize back-and-forth communication and protect your revenue. This commitment to precision not only streamlines your workflow but also demonstrates your dedication to upholding contract compliance standards, building wholesaler confidence in your processes.
Follow Data-Sharing Best Practices
Strong partnerships are supported by strong data infrastructure. To minimize discrepancies, it’s essential that you and your wholesalers are working from a single source of truth. The best way to achieve this is by integrating your chargeback system directly with your core business software. A unified serialized ERP connects inventory, sales, and financial data, ensuring everyone is on the same page. This integration eliminates manual data entry, reduces the risk of human error, and provides a reliable, auditable trail for every transaction. When both parties have access to the same accurate, real-time information, trust is built into the process, making collaboration seamless.
Measure and Optimize Your Performance
Managing chargebacks effectively isn’t a one-and-done task. It’s a continuous cycle of monitoring, analyzing, and refining your approach. To truly get a handle on the process and protect your bottom line, you need to know what’s working and where the friction points are. This means digging into your data to find actionable insights. By consistently measuring your performance, you can turn your chargeback management from a reactive chore into a proactive strategy that strengthens your financial health and partner relationships. It’s about making informed decisions that prevent small issues from becoming costly problems down the road.
Track the Right Key Performance Indicators (KPIs)
You can’t improve what you don’t measure. Key Performance Indicators (KPIs) are the vital signs of your chargeback management health. Start by tracking a few core metrics to get a clear picture of your performance. Focus on numbers like your claim accuracy rate, the average time it takes to process a claim from start to finish, and your dispute resolution win rate. These figures tell a story about the efficiency and effectiveness of your operations. With the right business intelligence analytics, you can visualize these trends on a dashboard, making it easy to spot progress and identify areas that need attention without getting lost in spreadsheets.
Assess the Impact on Your Revenue
Chargebacks are more than just an operational headache; they have a direct impact on your company’s sales and profits. Every dollar lost to an incorrect or preventable chargeback is a dollar straight from your revenue. When managed poorly, small, recurring errors can add up to significant financial losses, a phenomenon often called “revenue leakage.” It’s crucial to quantify this impact. By tracking the total value of chargebacks and identifying the root causes, you can see exactly how much these issues are costing you. This financial clarity helps build a strong business case for investing in better tools and processes, like financial automation, to plug those leaks for good.
Measure Processing Efficiency
How quickly and smoothly does your team handle chargebacks? Measuring processing efficiency helps you answer that question. It’s not just about whether a claim gets resolved, but how much time and effort it takes to get there. You should regularly review your chargeback data—on a weekly or monthly basis—to spot trends or anomalies. A sudden spike in claims from a particular partner or a slowdown in processing times can signal an underlying issue, like a new contract causing confusion or a system bottleneck. Digging into these changes helps you understand why they’re happening so you can address the root cause before it disrupts your workflow further.
Implement Quality Control
The best way to manage chargebacks is to prevent errors from happening in the first place. This is where quality control comes in. Instead of relying on manual spot-checks, which are prone to human error, use software to automatically review every claim against the original contract terms. A robust serialized ERP provides the detailed, accurate data needed to validate claims with precision. Automated checks are far more reliable and scalable than manual reviews, ensuring that every submission is scrutinized for accuracy. This systematic approach catches discrepancies early, reduces the number of disputes, and builds a foundation of trust with your partners.
Strive for Continuous Improvement
Effective chargeback management is a journey, not a destination. The goal should be continuous improvement, where you regularly refine your processes to adapt to new challenges and opportunities. Make it a habit to check your workflows every few months to catch small issues before they escalate. Schedule quarterly meetings with your team to review your KPIs, discuss what’s working well, and brainstorm solutions for persistent problems. This creates a proactive culture focused on optimization. By treating chargeback management as an evolving strategy, you ensure your operations remain efficient, compliant, and resilient over the long term.
Future-Proof Your Chargeback Management
The pharmaceutical landscape is always evolving, with new regulations, technologies, and market pressures emerging constantly. A chargeback management process that works today might become a liability tomorrow. To stay ahead, you need to build a strategy that’s not just efficient now but also resilient and adaptable for the future. Future-proofing isn’t about predicting what’s next with a crystal ball; it’s about creating flexible, scalable systems that can handle whatever comes their way. By integrating modern technology, staying informed about industry shifts, managing risks proactively, and planning for growth, you can ensure your chargeback process remains a well-oiled machine that supports your business instead of holding it back. This forward-thinking approach will help you maintain compliance, protect your revenue, and build a stronger foundation for long-term success.
Integrate Advanced Technology
Manual data entry and claim validation are time-consuming and ripe for human error. Integrating advanced technology is the single most effective step you can take to make your chargeback process more accurate and efficient. Modern ERP systems can automate data handling, validate claims against contracts in seconds, and flag discrepancies before they become costly problems. For example, AI can be trained to spot unusual patterns, like duplicate claims or incorrect pricing, that a person might miss. This not only speeds up processing but also adds a powerful layer of oversight. By letting technology handle the repetitive, data-heavy tasks, your team can focus on strategic analysis and resolving complex exceptions. A strong financial automation tool is no longer a luxury—it’s essential for a future-ready chargeback system.
Stay Ahead of Industry Trends
The pharmaceutical industry doesn’t stand still, and neither should your processes. Trends like the push for greater price transparency and the move toward near-real-time payment processing are reshaping how chargebacks and rebates are handled. Keeping a pulse on these changes allows you to adapt your strategy proactively. Are you prepared for faster payment cycles? Is your system equipped to handle more complex pricing models? Staying informed means you can anticipate new requirements and adjust your workflows accordingly, preventing last-minute scrambles. Following industry news and participating in relevant discussions are great ways to keep your finger on the pulse and ensure your operations remain current and compliant.
Develop a Solid Risk Management Strategy
Chargebacks are deeply connected to compliance and audit risks. With regulations like the Drug Supply Chain Security Act (DSCSA) and programs like 340B, a single mistake can lead to significant penalties. A robust risk management strategy is non-negotiable. This involves more than just processing claims correctly; it means regularly auditing your procedures to ensure they align with all current rules and contractual obligations. You should have clear protocols for data security, record-keeping, and dispute resolution. Think of it as a health check for your chargeback process. By identifying and addressing potential vulnerabilities before they become major issues, you can protect your company from financial loss and regulatory scrutiny. You can learn more about what DSCSA is and how it impacts your operations.
Plan for Scalability and Growth
A process that works for a small operation can quickly become overwhelmed as your business grows. As transaction volume increases, manual or disjointed systems often lead to bottlenecks, errors, and lost revenue. That’s why it’s critical to design your chargeback management process with scalability in mind from the start. This means creating clear, documented, and standardized procedures that anyone on your team can follow. Your technology should also be able to handle increased complexity and volume without a drop in performance. A scalable serialized ERP provides the foundation you need, ensuring that as your company expands, your chargeback system can grow right along with it, seamlessly and efficiently.
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Frequently Asked Questions
Why can’t I just manage chargebacks with spreadsheets? While spreadsheets might seem like a simple solution, they often create more problems than they solve. They are prone to human error, like typos or incorrect formulas, which can lead to significant financial losses over time. Spreadsheets also make it difficult for different departments to work from the same up-to-date information, creating data silos that cause confusion and invalid claims. As your business grows, a spreadsheet-based system simply can’t keep up, making a dedicated, automated platform essential for accuracy and scalability.
My chargeback denial rate is high. What’s the first thing I should check? If you’re seeing a lot of denials, the first place to look is your data integrity. The most common reason for a rejected claim is a simple mismatch between the information submitted by the wholesaler and the terms in your contract. Check for inconsistencies in customer identifiers, product numbers, pricing, and eligibility dates. A thorough audit of your master data can often reveal the root cause of recurring denials and is the most effective first step toward fixing the problem.
How does an integrated ERP system specifically help with chargebacks? An integrated ERP system acts as the single source of truth for your entire operation. Instead of having your chargeback data in one place and your inventory, sales, and contract information in another, an ERP connects them all. This means when a chargeback claim comes in, the system can automatically validate it against real-time sales and inventory data. This eliminates the need for manual reconciliation, reduces errors, and ensures that every department is working with the same accurate information.
What’s the connection between chargebacks and DSCSA compliance? Chargeback data provides a detailed financial record of a product’s journey through the supply chain. Regulators can use this information during an audit to verify that your financial transactions align with the physical product tracking required by the Drug Supply Chain Security Act (DSCSA). If your chargeback records don’t match your traceability data, it can raise red flags. A system that manages both ensures your operational and financial records are perfectly in sync, strengthening your overall compliance posture.
Besides technology, what’s one of the most effective ways to reduce chargeback errors? One of the most powerful things you can do is standardize your internal procedures and improve communication between your teams. Many errors happen because the sales, finance, and contract departments aren’t aligned. By creating a clear, documented process that everyone follows for things like updating contracts or pricing, you can prevent the internal miscommunications that lead to incorrect claims. When everyone is on the same page, your process becomes much more reliable.
