Reconciliation of B2B Transactions
PharmEasy manages its operations through 8 warehouses and 8 retailers spread across the country. The warehouses keep a stock of 100K+ SKUs which they ship to retailers for each order. Warehouses also purchase bulk stock from local vendors and distribute the same to warehouses at other locations to optimize margins. Therefore, the accounts team needed to reconcile the following 2 types of transactions:
- Transactions between warehouses and the retailers
- Transactions between the warehouses
- Complex state-wise taxes and charges for each medicine and batch size needed to be incorporated.
- Partial refunds of orders that are spread over multiple months.
- Processing multiple files and combining different columns from those files to create unique identifiers of each order, SKU, and batch.
- Reconciling marketing discounts that vary with states and cities.
In the e-pharmacy industry, the number of SKUs is very high, PharmEasy sells 100K+ types of medicines to their customers. With such a large number of SKUs, comes the challenge of managing and tracking inventory at the SKU level. Live tracking of stock becomes especially critical as each customer expects on-time 100% fulfilment of orders from PharmEasy. Inventory reconciliation had the following challenges:
- Real-time tracking of shortages and excesses of 100K+ medicines in 8 different warehouses.
- Auto-adjustment of stock at the SKU level by processing 4+ million transactions per month, along with refunds and cancellations
- Real-time calculation of stock in transit
Reconciliation of B2C transactions
PharmEasy processes 4+ million transactions every month. Orders are placed from their app and website. To have an actual picture of their finances and achieve complete visibility of the cash flows, an error-free reconciliation of the Internal transactions files, multiple payment gateway files, and bank settlement files is required. Key complexities that the team faced in the same are as follows:
- The sheer volume of data made the manual process error-prone and time-consuming. The errors frequently went unidentified.
- Customer refunds need to be incorporated in the previous month's transactions files.
- Failure and reversal transactions at the payment gateway files needed to be identified and adjusted in reconciliation.
- End-to-end process automation, making reconciliation a 1-click process.
- Highly flexible rule engine to incorporate complex use cases and achieve 99.5% auto reconciliation.
- Audit ready always. The platform maintains complete audit trails of transaction-level data, so even 5 years back data can be fetched and reviewed in minutes.
- Flexible and user-friendly dashboards to turn disconnected data into powerful information with role-based reporting, dashboards, KPIs, and alerts
- Achieved a 99% reduction in stockouts. The company was able to get a live view of stocks at different warehouses at the SKU level.
- Simplified tracking stock-in-transit at the end of each day by reconciling 4+ million transactions and refunds.
- Gained 100% visibility of money flow and an accurate picture of revenues, and margins of each retailer, order, and SKU.
- Streamlined different methods of payment and fees associated with each payment gateway achieving a real-time view of charges, failure rates, and ageing analysis of different payment gateways
Reduction in Stockouts
1 Click Reconciliation (no. of transactions)