About Client

PharmEasy provides accessible and affordable healthcare solutions for consumers in India. By delivering healthcare products and services to the consumer's doorstep, PharmEasy has become a leading online pharmacy aggregator and the highest-rated online pharmacy app in India. Today, their network spans over 20000+ serviceable pin codes and 1200+ cities across India, catering to the needs of over 1 million families. With a user-friendly mobile app and intuitive website, in 5 years, the platform has become the preferred choice for users making it the highest average order value e-pharmacy in India.

The Problem

PharmEasy operates its pharmacy business in 1200+ cities across India handling over 4 million orders and 100K+ SKUs every month. Facilitating such a high volume of commerce creates a whirlwind of financial dealings with payment gateways, vendors, and advertisers. The humongous order volume, complex discount structure, and 30-day return policy made the reconciliation of accounts, and inventory a challenging task for the accounts team. The accounts team at PharmEasy previously relied on using excel sheets and an in-house platform for the reconciliation process. The existing solution couldn’t help PharmEasy avoid continuous delays in the accounting close process.

Ensuring complete visibility on its inventory is critical for PharmEasy to deliver on its promise of "providing affordable healthcare to one and all". The accounts team identified key challenges in the current process as follows:

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

In the B2B transactions reconciliation process, the accounts team identified key challenges in the current process:

• 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.

Inventory Reconciliation

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.

The Solution

Osfin.ai’s reconciliation platform “fastest and the most accurate in the world” is designed to handle scale and complexity at speed, having the capability of processing millions of transactions in minutes. Osfin.ai discussed all the use cases with the PharmEasy team and provided an end-to-end automated solution for the reconciliation of B2B, inventory, and B2C business.

The data flow was streamlined into the Osfin.ai platform within 2 weeks of the kick-off meeting and the team was able to start performing the reconciliation at scale. Some of the benefits of Osfin.ai’s platform are as follows:

• 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

The Result

Integrating Osfin.ai into their financial operation process created a massive impact on the way the accounts team functioned at PharmEasy. Their focus completely shifted from matching the transactions at different files to handling exceptions and bringing into focus operational processes that needed improvement.

Let's discuss key outcomes and advancements that PharmEasy saw from incorporating a modern accounting solution:

• 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

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