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36. KPI in All Industries

36.9 Pharma

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Field-force interviews ask whether a visit became an order, and whether stock will expire. A day of doctor visits with no order is a vanity metric. Names below are the class list. This is not a company's secondary-sales audit.

KPI What the number means Who uses it Action it drives
Order conversion Orders divided by doctor visits. Area manager A low rate means the call list or the stock, not "do more calls".
Expiry % Expired stock value divided by stock value. Stockist and the manager High expiry stops the next dispatch to that city.
Secondary sales Sales value to pharmacies in the period, in ₹. Area manager Read it with expiry. Sales that sit and expire were not demand.

Fictional sample rows. One month.

MR City Visits Orders Secondary sales Expired Stock value
Ravindra Bagale Pune 40 16 ₹80,000 ₹2,000 ₹40,000
Shraddha Bagale Nashik 24 12 ₹60,000 ₹500 ₹30,000
Raja Kolhapur 50 5 ₹15,000 ₹4,000 ₹20,000
Rani Nagpur 30 12 ₹48,000 ₹1,000 ₹25,000
Amir Mumbai 20 10 ₹40,000 ₹0 ₹15,000
Zoya Sambhaji Nagar 36 6 ₹18,000 ₹3,000 ₹18,000

Worked from those rows.

  • Visits 200. Orders 61. Secondary sales ₹2,61,000. Expired ₹10,500. Stock ₹1,48,000.
  • Order conversion is 61 ÷ 200 = 30.5%.
  • Expiry % is 10,500 ÷ 1,48,000 = 7.1%.

Shraddha in Nashik: conversion 12 ÷ 24 = 50.0%, expiry 500 ÷ 30,000 = 1.7%. Raja in Kolhapur: conversion 5 ÷ 50 = 10.0%, expiry 4,000 ÷ 20,000 = 20.0%, on 50 visits.

Good KPI Vanity metric
From the same rows Raja's conversion 10.0% and expiry 20.0% Raja's 50 visits
Why Five orders from fifty visits, and one fifth of the stock value expired. The visit card makes Kolhapur look like the hardest-working city.

What the manager does. The Nashik manager keeps Shraddha's list (half the visits became orders). The Pune manager looks at Ravindra's expiry of ₹2,000 on ₹40,000 stock (5.0%) before sending the next carton. The Kolhapur manager stops ranking MRs by visits. Zoya's expiry is 3,000 ÷ 18,000 = 16.7%. Same action: no fresh stock until the expired batch is written off in the practice file.

Ravindra Bagale's Tip

Many students put secondary sales and primary sales in the same column. Primary means the company sold to the stockist. Secondary means the stockist sold to the chemist. In interviews, ask first which column it is. Don't make this mistake!