These four codes are the pillars on which the entire materials spend analysis rests. In this section we explore the logic behind each of the codes & how they help the material spend analysis file as well as the product cost sheets work. These would also aid us in further expanding the analytics and get us to perform various permutations & combinations.
The codes have been developed with a view to accommodate all the business processes of the organization and it is the developer’s vision that the codes would be used universally.
To begin with we analyze the product codes that have been developed:
Product Code:
The products marketed by us have been given a 12-digit code. To illustrate the working of the codes we explain by taking an example.
Serotin AST 100ml Physician Sample
3VST2010100P
First Digit: The first digit of any product code represents the marketing division that handles the product. This helps the spend analytic software to perform analytics for each division. Also it helps segregate products based on the division that is concerned. In this case we have provided the following nomenclature:
1 – ABC
2 – DEF
3 – HIJ
4 – KLM
There is provision for expansion of Divisions so that any new segregation can be done easily.
For e.g.: In this case Serotin AST 100 ml Physician sample is marketed by HIJ hence the first digit is ‘3’.
Second Digit: The second digit of any product code represents the therapy area that the product handles. The same benefits as segregating the product on the basis of the marketing division helps us by segregating on the basis of the therapy area. The software can analyze the portfolio of each therapy area therefore providing essential information on the particular therapy area. In this case we have used the first digit of the therapy area to be represented in the code.
G – Gastroenterology
N – Neuroscience
P – Pain Management
M – Metabolics
U – Urology
V – Vitamins
A – Antibiotics
H – Hospital Care
O - Others
For e.g.: In this case Serotin AST 100ml Physician sample belongs to the therapy area Vitamins, hence the second digit is ‘V’.
Third & Fourth Digits: The third and fourth digits are the first and last digits of the brand whose code has been defined. These are only provided to enable the human mind to identify the product.
For e.g.: In this case Serotin AST 100ml Physician sample has the first and last digits of the brand name as ‘S’ & ‘T’. Therefore the code contains ‘ST’ as the third & fourth digits. Similarly Glaco Total is ‘GL’ and Glaco OD is ‘GD’.
Fifth Digit: The fifth digit represents the type of packing that the product has undergone. This is one digit, which would need further refinement. As of now the nomenclature stands as follows.
1 – Tablets/ Capsules in blister/ PVC/PVDC or foil
2 – Bottles whether they contain capsules or liquid.
3 – Injections/ Vials
The above coding system allows users to identify the kind of primary packing and develop appropriate distribution/ Packing strategies.
For e.g.: In this case Serotin AST 100ml Physician sample is packed in bottles in liquid form therefore the code contains the fifth digit as ‘2’
Sixth, Seventh, Eighth Digits: The sixth, seventh, eighth digits represent the potency of the drug. This helps users differentiate between two drugs with the same brand name and with the same packing. A classic case in question would be Blickan 200, Blickan 400 & Blickan 600. These are only differentiated by the potency of the drug involved.
In this case, 10ml of Serotin is the recommended size of dose. Therefore the sixth, seventh, eighth digits are ‘010’ respectively.
Ninth, Tenth, Eleventh Digits: The ninth, tenth, eleventh digits represent the pack size of the drugs. They help the user identify the primary pack size. A classic example would be Blickan 200 9’s pack and Blickan 200 15’s pack. The last three digits help in differentiating each other.
For e.g.: In this case Serotin AST 100ml Physician sample is packed in bottles of 100ml each. Therefore the ninth, tenth, eleventh digits are ‘100’
Twelfth Digit: The twelfth digit if left blank represents a sale pack and if denoted by ‘P’ represents the physician sample. The digit has been provided only to distinguish between a sale pack and a physician sample pack.
The product codes may be expanded to include other details as well. In a few exceptions, where the names of the products are very similar the third and fourth digits have been appended with one more small case digit. This differentiates between two similar products with similar spellings and similar attributes.
Third Party Manufacturer Codes (TPM Codes):
The TPM codes are fairly simple and the following is the nomenclature. To explain the coding system we take three examples.
A110 – AKMA
A120 – ACOM
B400 – BLODIA.
First Digit: The first digit of any TPM code is the first letter of the TPM name.
For e.g.: The first digit of Akma and Acom is ‘A’. Therefore the first digit ‘A’ represents both the codes. The first digit of Blodia is ‘B’ hence represented by ‘B’.
Second Digit: The second digit of any TPM code is the CST applicable when the product is billed from that location.
For e.g.: The CST applicable when the products are billed from Akma or Acom is 1% therefore the code given is ‘1’.
Third Digit: The third digit is the serial numbers to differentiate between two TPM’s with in the same location and with the same starting letters. A classic example is Akma & Acom. Since both begin with the same letter the serial no 1 & 2 have been used to differentiate the two.
Scope of Expansion:
The fourth digit has been left blank on purpose. The same may be used to denote a TPM located in the excise free zone Vis a Vis a TPM located in the non-excise free zone. Alternatively any other important attribute may be used to signify the fourth digit.
RM/PM Code:
The RM/PM code developed is in a very rudimentary stage as the different attributes of the RM/PM need to be understood before defining the codes. Nevertheless it allows for functioning and currently the following have been incorporated in the codes.
The first 2000 digits 0000 to 2000 represent the Active Pharmaceutical Ingredient that go into the product. The code for each of the API is given alphabetically. Based upon further important criteria, codes may be modified.
The digits from 2001 to 5999 represent excipients, which aid in binding, sweetening and other properties. The structure followed to code the excipients is as given below.
2001 – 2300: These are the Binders. The unique codes for each of the product are given alphabetically.
2301 – 2800: These are the Coatings. The unique codes for each of the product are given alphabetically.
2801 – 3000: These are the Glidants. The unique codes for each of the product are given alphabetically.
3001 – 3300: These are the Fillers. The unique codes for each of the product are given alphabetically.
3301 – 3400: These are the Disintegrants. The unique codes for each of the product are given alphabetically.
3401 – 3600: These are the Lubricants. The unique codes for each of the product are given alphabetically.
3601 – 3900: These are the Preservatives. The unique codes for each of the product are given alphabetically.
3901 – 4800: These are the Flavors & Colors. The unique codes for each of the product are given alphabetically.
4801 – 5000: These are the Sweetners. The unique codes for each of the product are given alphabetically.
5001-5999: These have been left blank intentionally to accommodate for any expansion in the excipient category/ excipients.
The digits from 6000 to 9999 represent the Packing material that is used to pack the product. The different kinds of packing used are Primary, Secondary & Tertiary packing.
The primary packing material is further subdivided into bottles, foils etc. The coding system is as given hereunder.
6000 – 7499: Primary packing material. The primary packing is further subdivided as follows.
6000 – 6099: These are the Plastic containers & Caps. The unique codes for each of the product are given alphabetically.
6100 – 6350: These are bottles. The unique codes for each of the product are given alphabetically.
6360 – 6599: These are the caps. The unique codes for each of the product are given alphabetically.
6600 – 6699: These are PVC foils. The unique codes for each of the product are given alphabetically.
6700 – 6799: These are PVDC foils. The unique codes for each of the product are given alphabetically.
6850 – 7139: These are Aluminum foils. The unique codes for each of the product are given alphabetically.
7140 – 7249: These are Blister foils. The unique codes for each of the product are given alphabetically.
7250 – 7349: These are Glassine foils. The unique codes for each of the product are given alphabetically.
7350 – 7399: These are cups. The unique codes for each of the product are given alphabetically.
7400 – 7499: These are miscellaneous primary packing items. The unique codes for each of the product are given alphabetically.
7500 – 7949: Secondary packing material. The secondary packing is further subdivided as follows.
7500 – 7849: These are cartons. The unique codes for each of the product are given alphabetically.
7850 – 7949: These are Catch Covers. The unique codes for each of the product are given alphabetically.
7850 – 9999: Tertiary packing material. The tertiary packing is further subdivided as follows.
7950 – 7959: These are Hologram labels. The unique codes for each of the product are given alphabetically.
7960 – 8299: These are Labels. The unique codes for each of the product are given alphabetically.
8300 – 8789: These are DFC’s. The unique codes for each of the product are given alphabetically.
8790 – 8839: These are Shippers. The unique codes for each of the product are given alphabetically.
8840 – 8999: These are miscellaneous items provided for expansion of scope of products. The unique codes for each of the product are given alphabetically.
9000 – 9199: These are Gum pastes/ adhesives/ BOPP Tapes. The unique codes for each of the product are given alphabetically.
9200 – 9300: These are labels. The unique codes for each of the product are given alphabetically.
9300 – 9999: These are blank codes provided for expansion of scope of products. The unique codes for each of the product are given alphabetically.
The codes have been developed with a view to accommodate all the business processes of the organization and it is the developer’s vision that the codes would be used universally.
To begin with we analyze the product codes that have been developed:
Product Code:
The products marketed by us have been given a 12-digit code. To illustrate the working of the codes we explain by taking an example.
Serotin AST 100ml Physician Sample
3VST2010100P
First Digit: The first digit of any product code represents the marketing division that handles the product. This helps the spend analytic software to perform analytics for each division. Also it helps segregate products based on the division that is concerned. In this case we have provided the following nomenclature:
1 – ABC
2 – DEF
3 – HIJ
4 – KLM
There is provision for expansion of Divisions so that any new segregation can be done easily.
For e.g.: In this case Serotin AST 100 ml Physician sample is marketed by HIJ hence the first digit is ‘3’.
Second Digit: The second digit of any product code represents the therapy area that the product handles. The same benefits as segregating the product on the basis of the marketing division helps us by segregating on the basis of the therapy area. The software can analyze the portfolio of each therapy area therefore providing essential information on the particular therapy area. In this case we have used the first digit of the therapy area to be represented in the code.
G – Gastroenterology
N – Neuroscience
P – Pain Management
M – Metabolics
U – Urology
V – Vitamins
A – Antibiotics
H – Hospital Care
O - Others
For e.g.: In this case Serotin AST 100ml Physician sample belongs to the therapy area Vitamins, hence the second digit is ‘V’.
Third & Fourth Digits: The third and fourth digits are the first and last digits of the brand whose code has been defined. These are only provided to enable the human mind to identify the product.
For e.g.: In this case Serotin AST 100ml Physician sample has the first and last digits of the brand name as ‘S’ & ‘T’. Therefore the code contains ‘ST’ as the third & fourth digits. Similarly Glaco Total is ‘GL’ and Glaco OD is ‘GD’.
Fifth Digit: The fifth digit represents the type of packing that the product has undergone. This is one digit, which would need further refinement. As of now the nomenclature stands as follows.
1 – Tablets/ Capsules in blister/ PVC/PVDC or foil
2 – Bottles whether they contain capsules or liquid.
3 – Injections/ Vials
The above coding system allows users to identify the kind of primary packing and develop appropriate distribution/ Packing strategies.
For e.g.: In this case Serotin AST 100ml Physician sample is packed in bottles in liquid form therefore the code contains the fifth digit as ‘2’
Sixth, Seventh, Eighth Digits: The sixth, seventh, eighth digits represent the potency of the drug. This helps users differentiate between two drugs with the same brand name and with the same packing. A classic case in question would be Blickan 200, Blickan 400 & Blickan 600. These are only differentiated by the potency of the drug involved.
In this case, 10ml of Serotin is the recommended size of dose. Therefore the sixth, seventh, eighth digits are ‘010’ respectively.
Ninth, Tenth, Eleventh Digits: The ninth, tenth, eleventh digits represent the pack size of the drugs. They help the user identify the primary pack size. A classic example would be Blickan 200 9’s pack and Blickan 200 15’s pack. The last three digits help in differentiating each other.
For e.g.: In this case Serotin AST 100ml Physician sample is packed in bottles of 100ml each. Therefore the ninth, tenth, eleventh digits are ‘100’
Twelfth Digit: The twelfth digit if left blank represents a sale pack and if denoted by ‘P’ represents the physician sample. The digit has been provided only to distinguish between a sale pack and a physician sample pack.
The product codes may be expanded to include other details as well. In a few exceptions, where the names of the products are very similar the third and fourth digits have been appended with one more small case digit. This differentiates between two similar products with similar spellings and similar attributes.
Third Party Manufacturer Codes (TPM Codes):
The TPM codes are fairly simple and the following is the nomenclature. To explain the coding system we take three examples.
A110 – AKMA
A120 – ACOM
B400 – BLODIA.
First Digit: The first digit of any TPM code is the first letter of the TPM name.
For e.g.: The first digit of Akma and Acom is ‘A’. Therefore the first digit ‘A’ represents both the codes. The first digit of Blodia is ‘B’ hence represented by ‘B’.
Second Digit: The second digit of any TPM code is the CST applicable when the product is billed from that location.
For e.g.: The CST applicable when the products are billed from Akma or Acom is 1% therefore the code given is ‘1’.
Third Digit: The third digit is the serial numbers to differentiate between two TPM’s with in the same location and with the same starting letters. A classic example is Akma & Acom. Since both begin with the same letter the serial no 1 & 2 have been used to differentiate the two.
Scope of Expansion:
The fourth digit has been left blank on purpose. The same may be used to denote a TPM located in the excise free zone Vis a Vis a TPM located in the non-excise free zone. Alternatively any other important attribute may be used to signify the fourth digit.
RM/PM Code:
The RM/PM code developed is in a very rudimentary stage as the different attributes of the RM/PM need to be understood before defining the codes. Nevertheless it allows for functioning and currently the following have been incorporated in the codes.
The first 2000 digits 0000 to 2000 represent the Active Pharmaceutical Ingredient that go into the product. The code for each of the API is given alphabetically. Based upon further important criteria, codes may be modified.
The digits from 2001 to 5999 represent excipients, which aid in binding, sweetening and other properties. The structure followed to code the excipients is as given below.
2001 – 2300: These are the Binders. The unique codes for each of the product are given alphabetically.
2301 – 2800: These are the Coatings. The unique codes for each of the product are given alphabetically.
2801 – 3000: These are the Glidants. The unique codes for each of the product are given alphabetically.
3001 – 3300: These are the Fillers. The unique codes for each of the product are given alphabetically.
3301 – 3400: These are the Disintegrants. The unique codes for each of the product are given alphabetically.
3401 – 3600: These are the Lubricants. The unique codes for each of the product are given alphabetically.
3601 – 3900: These are the Preservatives. The unique codes for each of the product are given alphabetically.
3901 – 4800: These are the Flavors & Colors. The unique codes for each of the product are given alphabetically.
4801 – 5000: These are the Sweetners. The unique codes for each of the product are given alphabetically.
5001-5999: These have been left blank intentionally to accommodate for any expansion in the excipient category/ excipients.
The digits from 6000 to 9999 represent the Packing material that is used to pack the product. The different kinds of packing used are Primary, Secondary & Tertiary packing.
The primary packing material is further subdivided into bottles, foils etc. The coding system is as given hereunder.
6000 – 7499: Primary packing material. The primary packing is further subdivided as follows.
6000 – 6099: These are the Plastic containers & Caps. The unique codes for each of the product are given alphabetically.
6100 – 6350: These are bottles. The unique codes for each of the product are given alphabetically.
6360 – 6599: These are the caps. The unique codes for each of the product are given alphabetically.
6600 – 6699: These are PVC foils. The unique codes for each of the product are given alphabetically.
6700 – 6799: These are PVDC foils. The unique codes for each of the product are given alphabetically.
6850 – 7139: These are Aluminum foils. The unique codes for each of the product are given alphabetically.
7140 – 7249: These are Blister foils. The unique codes for each of the product are given alphabetically.
7250 – 7349: These are Glassine foils. The unique codes for each of the product are given alphabetically.
7350 – 7399: These are cups. The unique codes for each of the product are given alphabetically.
7400 – 7499: These are miscellaneous primary packing items. The unique codes for each of the product are given alphabetically.
7500 – 7949: Secondary packing material. The secondary packing is further subdivided as follows.
7500 – 7849: These are cartons. The unique codes for each of the product are given alphabetically.
7850 – 7949: These are Catch Covers. The unique codes for each of the product are given alphabetically.
7850 – 9999: Tertiary packing material. The tertiary packing is further subdivided as follows.
7950 – 7959: These are Hologram labels. The unique codes for each of the product are given alphabetically.
7960 – 8299: These are Labels. The unique codes for each of the product are given alphabetically.
8300 – 8789: These are DFC’s. The unique codes for each of the product are given alphabetically.
8790 – 8839: These are Shippers. The unique codes for each of the product are given alphabetically.
8840 – 8999: These are miscellaneous items provided for expansion of scope of products. The unique codes for each of the product are given alphabetically.
9000 – 9199: These are Gum pastes/ adhesives/ BOPP Tapes. The unique codes for each of the product are given alphabetically.
9200 – 9300: These are labels. The unique codes for each of the product are given alphabetically.
9300 – 9999: These are blank codes provided for expansion of scope of products. The unique codes for each of the product are given alphabetically.
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