Summer Internship Project

Claim Automation Process

E-Claim Portal

Submitted in partial fulfillment of PGDM program 2011-13

Submitted by

Vishal Mahajan 19/039

Company Mentor Faculty Mentor

Mr. Vikas Mathur Finance Manager Glaxosmithkline

Dr. Srirang Kumar Jha Associate Professor

Apeejay School of Management New Delhi July 2012

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ACKNOWLEDGEMENT

The satiation and euphonies that accompany the successful completion of task would be incomplete without the mention of the people who made it possible. I thank all those whose guidance and assistance made it possible for me to complete my report successfully. I feel it is my privilege to place on record my warm salutation to Apeejay School of Management, New Delhi, which gave me an opportunity to work on this project. A task is never complete without a proper supervision and direction provided by its Guru. A word of appreciation would not be enough to credit the aid of corporate mentor Mr. Vikas Mathur (Finance Manager, GlaxoSmithKline) without whom this project would not have been completed. I also thank Dr. Srirang Kumar Jha for his support extended in completion of my project. I would always be in gratitude to him for assisting in the course of Idealizing, Processing, and Implementation of the assignment. Finally, I would like to thank my family and friends without whose help and support it would not have been possible for me to prepare this report.

CERTIFICATE

This is to certify that the project work done on Claim Automation Process submitted to Apeejay School of Management, Dwarka by Vishal Mahajan in partial fulfillment of the requirement for the award of PG Diploma in Management, is a bona fide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried out during 26th April 2012 to 26th June 2012 in GlaxoSmithKline Consumer Healthcare Ltd.

Date: 27th June 2012

Dr. Srirang Kumar Jha Associate Professor

TABLE OF CONTENT

Chapter 1 Introduction ...................................................................................................................... 7 Chapter 2 Company Profile ............................................................................................................ 11 Chapter 3 About The project........................................................................................................... 35 Chapter 4 Data Analysis and Findings ......................................................................................... 70 Chapter 5 Conclusion.... 81 Chapter 6 Recommendations...86 Chapter 7 Bibliography......87

EXECUTIVE SUMMARY

Claim automation process I undertook in the GlaxoSmithKline was a live project. I was just a part of this project. It is still going in the organization and will continue later on. My responsibility was to initiate the project in which I completely registered all the distributors of the company. The two months summer internship project with GlaxoSmithKline gave me a platform to understand business environment. The whole process was completed in 3 Stages 1. Making user Id for the distributors 2. Talking to the Distributors and telling them to verify their User Id 3. Making a visit to them and giving them a demo to fill the claims Online

In the first stage first I have to generate a user Id for the distributors so that they can use the Portal for filling their claims online. In the second stage, my duty was to inform them to verify their user id by verifying the email sent on their email id. So that there user id will be verified and start to work. In the third stage I made visits to the different distributors in the Delhi and Ncr Regions. My duty was to give them a demo on how to fill the claims online and get its expenses which they incurred to recover back from the organization.

INTRODUCTION

Distribution is the process of making a product or service available for use of consumption by a consumer or a business user, using direct means, or using indirect means with intermediaries. The distribution of products takes place through channels. Distributors are the end of this channel as they make the product available to the retailers who make the product available to the end consumers. The Claims are the important for both the distributors and the organization. For the organization, its a way to pay back the distributors who have worked hard for increasing the sales of the company by pushing the products into the sales of the final people. And for the Distributors, its important to get the reward for their hard work which they have put behind the product in the market. A huge amount of cash-flow is involved in the claim process and that makes it all the more important for the organization, because even a small mistake or lapse can put the company back by a huge amount of sum. Due to this large impact of huge cash transaction the efficient management of the claims becomes all the more important and the day-to-day tracking and handling of claims gets the maximum attention since this aspect is something which cannot be affected. This activity is not done by a single person in an organization because its too lengthy and important task to be done by a single person as its not just an activity but its a complete process consisting of a number of steps and each step is equally important from the point of view of the organization. Hence, different personnels are deployed at these levels and all of them are assigned with different tasks so that the process can move smoothly with the system.

The normal process of claims management was quite lengthy as it was totally based on the print-outs and hard copy of the claims. There was lot of wastage of time, money and labor in this system, due to which it became unfavorable with the passage of time as the amounts & number of claims started increasing. With the advancement in technology and the increase in the usage and availability of Internet connection & personal computers in even the remotest part of villages of India, or the world as a whole, a new advanced system of claims management through online portal came into picture.

This system was not radically different from the earlier as the back-bone of both the management systems is the same but the approach in handling the claims was changed from manual to online methodology. This was done through shifting the major process online which can be accessed by all the required personnels through a pre-defined ID & Password. This has helped in greatly reducing the processing time, and also helped in better tracking and control of the different schemes. This was not an easy task because there are so many Distributors and officials of the company who act as link between the Distributors and the top management. All these people were needed to be provided with adequate training and experience so that they can fill the claims through the online process. Since the number of the people involved in the process was huge, the problems were also too many, since every persons capacity to learn and implement things and moreover a process like this was being carried out for the 1st time in the organization, so all these factors made the overall process all the more lengthy but this was important because without making the service at least 99.9% glitch-free technically, it cant be launched in the market. Hence a whole new team was set up for the development, testing and maintenance of the portal. The maintenance of the product will go on forever along with the constant
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development of the portal as new features will be added to the system to make it more user-friendly and to cover a wide range of areas, making it all the more beneficial for both the parties. In the later stages of development, the plan is to link all the Distributor with a common database of the company, so that, therell not be the need to submit any file or form, as at the end of the month, this job will be done automatically by the system and the new account for the next month will start for the Distributor concerned. Thisll be a long process and will be a part of the future expansion of the Claim Portal. The Claim Portal was 1st launched by Nestle India Pvt. Ltd. In 2010 in India, where as in European countries this system is in place since long ago. The main reason was that earlier the access to Internet was limited. GSK-CH is now officially the 2nd company to launch a project on Portal like this. Other players are expected to join soon in this automation process as it has benefits for both the parties. The Portal doesnt only have strengthened but it also has a few weaknesses which the company needs to address for the benefit of both the parties. There is a positive and a negative side to every situation and same is the case here. The usage of the portal requires a good amount of knowledge on computers and the Distributors who are in towns and villages dont have this kind of knowledge, expertise, and experience, to bring on a change like this. But the easiest way to solve this problem is by providing adequate training to them so that they can use the portal effectively and efficiently. Later on as the use of the Portal increases, the training of the Distributors must also be carried out at regular intervals so as to keep them updated about the latest in that field. We can conclude by saying that the Portal is a new start and actually a blessing both the parties, but for this the people need to trained effectively so that they are able to use the Portal in the best way. Moreover with this project, the scenario in the company will also lead to a slight shift in the mannerisms of the industry about the competitors view the project and the company as a whole.

This project will not bring radical change and effective technology, but what will it lead to is increased efficiency in the processing of claims in the organization. The way in which this settlement is carried out will be changed for the benefit of both the Distributors and the organization.

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COMPANY PROFILE

COMPANY INFORMATION

Full Name: GlaxoSmithKline Consumer Healthcare Ltd. Headquarters: DLF Plaza Tower, DLF City Phase I, Gurgaon, Haryana-122002 Legal Address: Patiala Road, Nabha, Punjab-147201 Status: Listed Legal Form: Public Limited Company Operational Status: Operational ISIN Code: INE264A01014 Financial Auditors: Price Waterhouse (2011) Total Employees: 3100

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COMPANY PROFILE

GlaxoSmithKline Consumer Healthcare Ltd is one of the largest players in the Health Food Drinks industry in India. The company is an Indian associate of GlaxoSmithKline Plc, UK.

The company's principal activities are to manufacture and distribute a wide range of healthcare foods, drugs, pharmaceuticals and dairy products. The products include malted milk food, malted foods, biscuits, energy and protein foods, milk Powder, ghee, milk fluid and milk cream. The company has their manufacturing facilities located at Nabha in Punjab, Rajahmundry in Andhra Pradesh and Sonepat in Haryana.

The products of GSK Consumer are categorized as Nutritional and Over the Counter (OTC) products. The Nutritional division includes health food drinks like Horlicks, which includes Junior Horlicks, Mother's Horlicks, Women's Horlicks, Horlicks Lite, and Horlicks biscuits, Boost, Viva and Maltova. The OTC division promotes and distributes a number of products in diverse categories, including prominent brands such as, Crocin, Eno and Iodex.

GlaxoSmithKline Consumer Healthcare Ltd was incorporated in the year 1958 as Hindustan Milkfood Manufacturers Pvt. Ltd. and was promoted by Horlicks Ltd. The company became public in the year 1961. In the year 1969, Beecham plc acquired Horlicks Ltd and became the majority shareholder in Hindustan Milkfood Manufactures Ltd and in the year 1979, Beecham India Pvt Ltd merged with the company. In the year 1991, the name of the company was changed to HMM Ltd.

In the financial year 2000, the company acquired two new brands Viva and Maltova along with their patents and trademarks from Jagatjit Industries Ltd. The company also tied up the manufacturing capacity of Jagatjit Industries Ltd for the manufacture of Viva
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and Maltova on a long term contract. Glaxo Wellcom plc and SmithKline Beecham plc merged and form a global organization GlaxoSmithKline plc. As the company is an associate company of GlaxoSmithKline plc, the name of the company was changed from SmithKline Beecham Consumer Healthcare Ltd to GlaxoSmithKline Consumer Healthcare Ltd with effect from April 23, 2002.

In the year 2002, the company commissioned their new Spray Drier plant at Sonepat and the commercial production was started form July 1, 2002. Also, Gusseted Pouch packing operations were relocated from Nabha factory to a 'State of Art' greenfield facility set up by a contracted third party at Mangaldoi, Assam. The company is a consignment sales agent for marketing, selling & distribution of the brand Iodex with effect from January 1, 2002.

In the year 2004, the company has launched Junior and Mother's Horlicks, Ready-toDrink Horlicks & Boost and Hot Vending Machines. In July 2004, they launched Boost Energy Shake, a new chilled ready-to-drink variant of Boost in Tamil Nadu. Boost Energy Shake will be available in a 200 ml tetra pack. In the year 2005, the company opened a new secondary manufacturing site (Legacy Foods) at Baddi in Himachal Pradesh. In February 2005, they launched Horlicks in a new Toffee flavour. Toffee Horlicks is the sixth flavour in the Horlicks portfolio. The other flavours are Chocolate, Vanilla, Honey Buzz, Standard and Elaichi.

In the year 2008, the company launched Women's Horlicks, which is specially formulated for women. Also, they launched Active Base and Boost White during the year.

In January 2009, the company launched 'Activ Grow', which is a nutritious product launched for infant population. They launched Horlicks Nutribar, which is a nutritious snack. Horlicks Biscuits was relaunched with a new strategy and packaging. The company also launched ActiGrow under the GlaxoNutrition umbrella to tap into the fast
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growing specialist nutrition segment. The company also entered the noodles segment with the launch of Horlicks Foodles, instant noodles with seasoning.

In the year 2010, the company launched Junior Horlicks 4, 5 & 6 and Badam Masti. They launched Horlicks Cream Biscuits in 3 flavours and Horlicks Cookies. In the year 2011, the company entered into the breakfast market in India with the launch of Horlicks Oats, thereby adding another category to its growing Foods portfolio.

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COMPANY HISTORY

1948
Beecham (India) Pvt. Ltd., was incorporated at Mumbai on 8th December, under the name Group Laboratories (India) Pvt. Ltd., as a wholly owned subsidiary of Beecham Group, Ltd., U.K. The Company manufactured dairy and milk products, toiletries, drugs and pharmaceuticals. The dairy products are marketed under the name Horlicks, Elaichi Horlicks, Boost and Gopika ghee.

1958
The SmithKline Beecham Consumer Healthcare Ltd. was incorporated on 30th October, as a private limited company under the name Hindustan Milkfood Manufacturers, Pvt. Ltd. It became a public limited company on 28th March 1961.

1978
The Indian participation in the Company progressively increased and stood at 60%.

1991
Effective 16th September, the name was again changed to SmithKline Beecham Consumer Brands Ltd.

1994
Once again, the name of the Company changed from SmithKline Beecham Consumer Brands Ltd. to SmithKline Beecham Consumer Healthcare Ltd.
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 1998

SmithKline Beecham Consumer Healthcare (SBCH) launched its Ribena brand in India with amla flavour as a refreshing health drink.

1999

SmithKline launched Junior Horlicks for young consumers and additional flavor Variants like elaichi and chocolate.

2000
Smithkline Beecham Consumer Healthcare has launched the `Horlicks Plus'. The Company enter the analgesics segment by piggybacking on Crocin, a Paracetamol based formulation, commonly marketed as an antipyretic. In the oral care category, the company launched Aquafresh brand. In Sep. 2000, the `Aquafresh Magic Box' promotion, the first-ever scratch-and-win Campaign in the toothpaste category was launched by SBCH.

2002
The SmithKline Beecham Consumer Healthcare (SKBCH) has undergone a change of name to GlaxoSmithKline Beecham Consumer Healthcare, by adding of Glaxo tag to itself.

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 2003
. GSK phased out its premium toothpaste brand Aquafresh from the Indian Market.

Horlicks, the flagship brand of GlaxoSmithKline which slipped from 10th position to 16th position in the brand equity survey of India has been relaunched by the company.

2004
GlaxoSmithKline Consumer Healthcare launches Boost energy shake.

2006

GlaxoSmithKline Consumer Healthcare re-launched its Junior Horlicks 1-2-3 with a new packaging. This is for the first time that a health drink for pre-school kids was introduced in India.

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CORPORATE LOCATIONS

Corporate Head Office - Gurgaon, Haryana Regional Offices- New Delhi, Kolkata, Mumbai, Chennai Depots (South) Bangalore, Chennai, Cochin, Pondicherry, Kandlakoya(Hyderabad), Madurai Depots (East) Cuttack, Guwahati, Ranchi, Dankuni (Kolkata), Patna, Siliguri Depots (West) Ahmedabad, Goa, Indore, Pune, Raipur Depots (North) Dehradun, Jaipur, Delhi, Lucknow, Panchkula, Zirakpur RDCs - Kandlakoya (Hyderabad), Ambala, Delhi

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Head office- Gurgaon Regional Offices Manufacturing Centers

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MISSION

Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer. We at GSK dedicate ourselves to delivering innovative products that help millions of people around the world live longer, healthier and happier life.

VISION

We want to become the indisputable leader in our industry - not simply in terms of size, but in how we use that size to achieve our mission and improve the quality of human life. Becoming the indisputable leader in our industry means conquering the challenges that face us as an industry, and as a global society.

ORGANISATIONAL STRUCTURE

GSK is a public company traded on the London and New York Stock Exchanges. The Executive body of the company is the Board of Directors, which consists of 14 Directors, 11 of which are independent. The Chairman of the Board is a non-executive Director.

The shareholders elect the companys Directors at the annual general meeting. GSK has a Corporate Executive Team, which consists of senior managers and Headed by the CEO. It is responsible for managing the companys businesses. The Board has six

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committees:

Audit,

Remuneration,

Nominations,

Financial

Results,

Corporate

Responsibility, and Corporate Administration.

The Corporate Responsibility Committee oversees stakeholder and investor relations, environment, health and safety, and other public policy issues.

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PRODUCTS

1. Nutritional 2. OTC (Over-the-Counter) 1. NUTRITIONAL a. Horlicks Horlicks is the leading Health Food Drink in India and as the 'Most Trusted Drinks Brand' (Economics Times Survey, 2004) in India enjoys more than half of the Health Food Drink market. Although it has been a popular brand in the Indian market since the 1930s, Horlicks underwent a revamp in 2003 to further increase its relevance. The modern & contemporary Horlicks offers 'pleasurable nourishment' with a delicious range of flavours including Vanilla, Toffee, Elaichi and Chocolate

b. Junior Horlicks It is especially formulated for young kids to supplement them in their daily requirement of vital nutrients.

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c. Mothers Horlicks

Mother's Horlicks, launched in 1997, is a superior nutritional supplement with 26 vital nutrients that is scientifically designed keeping the nutritional needs of the pregnant and breast feeding women in mind. An attempt to enhance nutritional superiority saw the launch of its new variant in May 2004 - Mother's Horlicks fortified with DHA.

d. Horlicks Lite Lite Horlicks is a High Fiber Drink (HFD) specially designed to suit the nutritional needs of adults. Packed with 23 vital nutrients, including high quality protein and antioxidants, Lite Horlicks has no added sugar and no fats. Lite Horlicks was launched in 2005, and holds the distinction of being the only nutritional drink which is endorsed by diabetes India as being suitable for people with diabetes.

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e. Horlicks Biscuits

Horlicks Biscuits has been growing in popularity ever since it was launched in 1992. Extending the benefits of Horlicks to 'solid' nourishment, Horlicks Biscuits is a favourite among parents and children alike.

f. Boost

Boost is India's leading malt-based Health Food Drink in a chocolate flavor. It was developed by the company's R&D team in 1974 and launched in 1975-76. Boost has a market share of 13.5% countrywide amongst all Health Food Drinks (HFD), while in South India - the biggest region for the category - it commands a market share of 26%. (Source: ACNeilsen Retail Audit).

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g. Maltova

Maltova, a chocolate Health Food Drink, was acquired from Jagatjit Industries Limited in Feb 2000. Maltovas is positioned as the fun health drink, which is extremely tasty, and makes nourishment truly enjoyable and exciting.

h. Viva

Viva is positioned in the market as a family health drink but it is positioned lower than Horlicks and the major customer base of Viva is in Tier-2 & Tier-3 cities.

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2. OVER THE-COUNTER (OTC)

a. Crocin

Crocin has been a trusted household healthcare name for over three decades and enjoys a strong medical heritage. Widely used as an effective remedy for fever and mild-to-moderate pain, Crocin is an over-the-counter medicine which is easily accessible to patients. It commands a strong medical equity and enjoys the confidence and trust of medical practitioners across the country.

b. Eno

A 100 year old global brand, Eno enjoys a presence in More than 40 countries, with India being its second largest market after Brazil. The leading antacid is taken for providing instant relief from acidity, gastric discomfort and heart

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c. Iodex

A heritage brand in India since 1919, Iodex continues to be amongst the most trusted brands in India. It is one of the leading brands in the topical pain relief segment with a range of variants that provide quick & effective relief from head, neck, back joint and muscular pain.

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MARKETING STARTEGIES

Continued emphasis on improving product mix. Focus on (high margin) products to drive growth. Prepare for successful launch of new products and new iterations of existing products.

Target improvements in sales-force structure in order to access newer opportunities.

Develop new channels to leverage GSK-CH brand. Optimize marketing spends and develop expertise. Develop channels for tapping rural opportunity.

TAXATION POLICY

GSK-CH follows the financial year starting from 1st April of this year to 31st March of next year. Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Deferred tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is provided using rates of tax that have been enacted or substantively enacted by the balance sheet date. Deferred tax liabilities and assets are not discounted.
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PEER COMPARISON
Company Market Cap (Rs. in Cr.) 43,833.01 10,947.17 8,566.48 6,425.22 1,504.25 10.99

Nestle India GlaxoSmith C H L Jubilant Food Britannia Inds Cadbury India Swojas Energy

competitors
0% 2% 9%

12%

Nestle India GlaxoSmith C H L Jubilant Food Britannia Inds

15%

Cadbury India 62% Swojas Energy

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HR PHILOSOPHY

The Human Resource Philosophy of GSK-CH is to ensure continued success of the organization; by selecting the Right People for the Right Jobs. The recruitment and selection process at GlaxoSmithKline Consumer Healthcare is designed to attract applicants with the competencies, experience, qualifications and potential to meet the requirements of the positions and the needs of GSKCH. There is extensive use of competency based assessment tools to identify the best candidate for the job. Beyond qualifications and experience, new recruits who are smart, caring and energetic with good judgment and a sense of humor are welcome in the organization. GSKCH helps the employees to enjoy great opportunities and rewards, develop their skills, as well as add their efforts to our daily quest to help millions of people around the world lead longer, healthier and happier lives. However diverse are the individual backgrounds of the employees, GSKCH provides a common belief that we can make the future better, and gives us the support to make sure that we do. GSKCH, conducts its business with integrity and honesty, and aspire for excellence in all what is done. The organization gives people with energy and ideas, the freedom and support to make things happen. It allows talented people to exchange insights and expertise freely - across different specialties and between different countries - creating a culture of possibility that's more than the sum of its parts. As a front runner in the Health Food Drinks segment, GSKCH recruits from diverse disciplines and offer an array of internships and lateral entry opportunities. Recruitments are across Production, Engineering, Logistics, Sales, Marketing, Finance, Information Technology (IT), Procurement/Purchasing
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and

Human

Resources.

MAJOR PROBLEMS

Growing a mature and ageing portfolio under threat from significantly increased competitive pressures.

Increased competition in rural & urban areas resulting in margin pressure. Local players & MNCs expanding fast in this sector. Possibility of arbitrary price reductions. Changing government policy for pricing of products. Skills on Regulatory front to meet timelines for new launches. Managing attrition / retention of talent.

ACHIEVEMENTS

In the year 2011, the Company recorded a 16.5% increase in sales and an 18.5% increase in PAT over the previous year.

Horlicks registered 17.8% growth with all its variants registering double digit growth.

Horlicks Mega Brand crossed the Rs. 2000 Crore mark during the year.\ Biscuits recorded a 30% growth from the last year. The price of 1 share reached close to Rs. 2600 at the close of the year, 2011 an increase of 13% in little over 12 months.

Dividend of Rs. 35 per equity share of Rs. 10 each for the financial year ended 31 December 2011 was paid to all the shareholders.

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MANAGEMENT INFORMATION

The year 2011 was probably one of the toughest years for the Indian economy in recent times. The adverse performance of all the key economic indicators weighed heavily on the Indian economy throughout the year. Headline and food inflation indices were at high single digit levels and showed no signs of cooling off throughout the year.

The RBI adopted a hawkish stance in its monetary policy with multiple rate hikes making credit expensive and investments sparse. The strict monetary policy coupled with a slowdown in exports resulted in a slowdown in industrial activity. The IIP declined by 10% in the first 10 months of 2011.

During the year, the stock indices performed poorly, depreciating by over 24% and FII outflows from India were the highest amongst the BRIC nations. The slowdown in exports and FII outflows amongst other factors caused the Indian Rupee to depreciate by around 18% during the year. The Indian economy, being a net importer was adversely impacted by the weak rupee. Further, the weak rupee also hit companies having outstanding foreign currency loans particularly those having redemption commitments in the near term.

The fiscal deficit is also expected to significantly exceed the budget estimate having serious implications on domestic inflation. GDP, which grew by 7.3% during the first half of the current fiscal, to grew at 7% against the initial expected growth of 9% and 8.5% growth during the last fiscal.

Amongst all the economic woes, policymaking and the reforms process also took a backseat as a result of which some key reforms such as GST, DTC, FDI in Retail, Companies Bill, etc. could not be enacted during the year.

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Amidst all the challenges faced by the Indian economy throughout the year, there were signs of improvement as year came to end. There was a significant dip in headline inflation and negative food inflation. Expectations were running high for a cut in interest rates. Respite from high inflation and interest cost will be a major relief to the Indian economy.

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CONCLUSION

GlaxoSmithKline Consumer Healthcare Ltd. (GSKCH) is an Indian associate of GlaxoSmithKline plc, U.K. GSKCH is one of the largest players in the Health Food Drinks industry in India. The Company, with its manufacturing plants located in Nabha, Rajahmundry and Sonepat, has a total workforce of over 2700 people, each driven by a spirit of enterprise. Its flagship product, Horlicks, is a highly respected brand which is over 100 years old in India. The Company also manufactures and markets Boost, Viva, Maltova, Biscuits, Foodles and in addition promotes and distributes a number of products in diverse categories, including prominent brands such as Eno, Crocin, Iodex and Sensodyne. GSKCH has a strong marketing and distribution network in India comprising over 4800 wholesalers and direct coverage of over 7,00,000 retail outlets. GlaxoSmithKline's Consumer Healthcare business is based on scientific innovation. The company has dedicated consumer healthcare R&D centres and takes research as seriously as marketing excellence, offering cutting-edge capability in both.

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ABOUT THE TOPIC

GSK receives claims from various channels, which comprise of General customers Wholesalers/Distributor), Cooperatives, Key Accounts, CSD and Modern Trade. For any Trade Marketing/Medical/Rural activity, a Sales Activity Control Sheet (SI-9) is prepared. The purposes of preparing SI-9 are: To ensure that the Trade Marketing activities are planned and well thought out before their implementation actually happens To provide the Regional head with sufficient information about the activity to be carried out, so as to make the approval process, fact and data based and suitably documented on SI-9. To create provision in the books of accounts every month end basis TMControl sheet.

a. Business Overview - Marketing claims are of following types: Super Distributor mark up Super Distributor Additional Mark-up NHC redistribution margin Breakage Inspection Report claim/ Stock Destruction Report claim Upcountry sales Subsidy/Merchandiser claim Salary Claim Shelf Hiring Claim Displays Quantity purchased discount scheme(Qty free/Discount) Sampling
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SIR SDR/QVR/BIR Price off PWR Medical Discount Sales man incentive Octroi /TOT SD Liquidation Price Difference Other Claims

The claims listed above can be bifurcated into four major categories: Trade Marketing Claims Inventory Claims Canvas Claims Other non inventory Claims.

Non trade marketing claims are claims that are processed on the basis of either a predetermined percentage of primary/secondary sales or are norm driven.

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PROMOTIONAL & CANVAS CLAIMS

Overview on Trade Marketing Claims

Trade Marketing claims refer to claims raised by the distributor at the conclusion of a trade marketing activity carried out by GSK. These are processed on the basis of the work order generated at the time of launching a trade marketing activity. In case of Trade Marketing Claims a sales activity control sheet is prepared (SI-9) and approved by Regional Head basis which work order number is generated in JDE. This work order shall form the basis of processing such claims.

STEPS SSC receives scanned/ hard copy of approved SI9 forms from CMM (Customer Marketing Manager) SSC generates area wise WON for the activity of request and send the same to CMM by E-mail. CMM generates TM-4 distributor wise and circulate to all distributors to start the activity basis on the conditions mentioned in TM-4.

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CANVAS CLAIMS

Canvas claims are of following types:

a. Recurring Distributor Claims - Recurring Distributor Claims are claims that are processed on the basis of either a predetermined percent age of primary/secondary sales or are norm driven. A list of such claims along with the formats is provided below:

S.N o 1

Claim

Definition

Super Distributor Mark up

It is a claim which is paid at an agreed %age to Super Distributor for his upcountry sales (Including Van Sales) valued at price to wholesaler inclusive of VAT. It is a claim which is paid to compensate Super Distributor for the freight incurred by him on his upcountry sales (Including Van Sales) valued at price to wholesaler inclusive of VAT. It includes the salary and other expense claims e.g. travel expense etc which is paid to Merchandisers appointed by Super Distributor for merchandising/display activities This claim is paid at a defined %age of the sales made to semi wholesaler. The sale is valued at PTR. It includes the salary and other expense claims e.g. travel expense etc which is paid to USRs appointed by Super Distributor. It is the incentive paid to the distributors sales personnel for achieving the specific targets

Additional Super Distributor Mark up (Super Distributor Freight)

Merchandiser claim

NHC Redistribution Margin

USR Salary

KBC

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Overview of Trade Marketing Claims Processing

GSK receives claims from four main channels, which comprise of: 1. General Customers (Wholesalers/Distributor) 2. Cooperatives 3. Key Accounts 4. CSD

The Sales Activity Control Sheet is prepared by: National Customer Marketing Manager : For All India activity

Regional Customer Marketing Manager : For Region specific activity

The following details are mentioned in the SI-9 form:

Objective of the Activity Description of Activity Target Audience Region and area Start and Completion date Details of estimated expenditure to be incurred

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Canvas Claims Processing

Following table explains the detailed process of verification and processing of recurring distributor claims in respect of Canvas:

S.no

Claim Form

Additional Supporting Where Available Forum Report mentioning the turnover of SUB-D Forum Report mentioning the turnover of SUB-D Forum Report mentioning the turnover Money receipt

SD Margin

Claim In Approved Format ( canvas) signed by distributor ,verified by TSE/ASE and approved by ASM Do

Sd Addt Margin(freight Subsidy) NHC Redistribution

Do

USR/Merchan diser Claims Shelf hiring Rural Markup

Do

Do Do

Display receipts Forum Report mentioning the turnover of SUB-D Money receipt & TO report

DSR IncentiveKBC Programme

Do

Claims in above format is required to be approved by ASM and verified by ASE/TSE for Processing. In case of any discrepancies the ASM approval overwrites the TSE/ASE approval.
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TRADE MARKETING /KEY ACCOUNT&OTHER CLAIMS

The Claim Form and Supporting for various Trade Marketing activity is given in table below:

S.N o

Type of Claim

Clai m Form
TM-4 TM-4 TM-4 TM-4 TM-4 TM-4

Criterion Of Processing

1 2

Displays QPDS( Qty)/Disc QPDS(Rate)/Free qty

All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM

Sampling(Direct) Sampling(In Direct)

Liquidation Scheme

(Visibility Related) (Linked to Volume)

TM-4 TM-4 TM-4 TM-4 Nil

All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM

6 7 8

Price off Medical Discount Price Difference Claim Octroi Claim Turnover Tax Cess

9 10 11

nil nil nil

All Claims to be approved by ASM All Claims to be approved by ASM All Claims to be approved by ASM

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PROCESS FLOW

Distributors to prepare the claim as per the prescribed format and as per TM -4 TSE and ASM to check and approve the claim as per TM 4 SSC approves the claim online. Claims are verified at SSC as per claim checking table above. Upon claim being validated as above, the claim is processed at SSC and credit given to Distributor account in JDE (Customer Address Book).

Escalation Cases

If SSC finds during verification that claims have not been approved by ASM or are defective on any other count, then SSC will send such cases for clarification with a valid reason from the portal. ASM is required to review the case and respond to the escalation. In case the ASM sends a resolution, then the processor processes the case and credit note is entered in JDE. In case the ASM does not respond to the first notification of escalation then auto consolidated escalation reminder needs to be sent to the ASM with copy to BSM every 10 days for all the open cases till such time that a resolution to all open cases is received.

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Rules for Processing Claims

When a final resolution is received by either Workflow or by way of E-Mail, processes at SSC is required to process claim in JDE and update status of case in Workflow.

Any claim not signed by ASM/Distributor will not be processed by SSC. Claims may not be processed during month-end days. (Month end being last working day of the month (-) 1 day (+) 2 working days.

Only 1 claim must be sent for each activity for processing. Account statement shall be sent to distributor by SSC on a monthly basis In case of TM Claims, in case the activity period changes/ get extended, CMM shall send the same to SSC and distributor shall authenticate such change in the circulated TM Claim Form.

In case claims are processed on the basis of photocopies/without supporting etc. In Exceptional cases the same should be approved by RH.

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45

Policy on Claim processing of photocopy/Scan copy/Without Supporting

In some special cases like claims lost in transit we have to process claims basis photocopies or without supporting.

In those cases prior approval from RH should be taken After taking Approval from RH Claims will be processed at SSC

WON: Work Order Number

A work Order number (WON) is a very critical and important part which can ensure better controllership and identification as every scheme is allotted a WON automatically so it becomes easier for the personnel to view and control that scheme specifically. A Work order number (WON) comprises of 8 digits.

WON Control Sheet

A WON Sample sheet can be treated as a one stop document. It gives an overall perspective of the business, like per category how much has been spent. A WON Control sheet gives a better controller and identification about each WON.

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No dues Certificate (NDC)

Once in a year post completion of claims processing for the year the No dues Certificate from all Distributors are required. The NDC is circulated to all distributors with a copy to ASMs. The Wholesaler needs to reply on the NDC format to GSK. On the basis of the reply GSK will check and settle all pending claims and give a reply to Distributor with a copy to ASM by mentioning the claims settlement document numbers on the letter and ask the Distributor to forward the clean NDC stating that all Claims have been settled. No Due certificate is a confirmation by the super distributor/distributor that all claims raised by him for a particular period have been received by him. If some of the claims raised have not been received by him till the date of issue of No due Certificate, the super distributor/distributor shall give a NDC Certificate subject to pending claims.

Every Super distributor/distributor needs to fill and submit a No due Certificate in the given format.

ASM shall be responsible for obtainment of such certificates for all super distributor/distributor in his area.

The signing authority for No due certificate shall be a Partner or Proprietor.

The No dues certificate shall be submitted on an annual basis

The Exercise is initiated once the substantial portion of previous year claim is submitted and settled for a particular region.

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In case of distributors delaying/not providing NDC, the same has to be escalated to the sales team in region.

Secondly, a standard letter confirming no dues from GSK has to be sent to concerned distributors.

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Process Map for Promotional-Trade Marketing Claim

Claims Process Flow

Trade Marketing Claims
CAM/ KA Manager/ Medical Mkt Mngr to prepare SI-9 document and obtain approval of RH (IFRS spend) or other designated authority (NFRS) Refer section on Schedule of Authority. The SI-9 to specify the list of distributors to which the activity pertains. CAM/ KA Manager/ Med. Mkt Mngr to scan and send SI-9 to SSC for opening Work Order No. in JDE. SSC shall open Work-Order in JDE and send back details to CMM/ KA Manager/ Med. Mkt Mngr

All Claims (TM, Canvas & Others)

TM-4 shall be issued by the CMM/KA/ Med. Mkt Mngr

Customers prepare claims & TSE/ASM to approve the claims

Approved Hard copy of Claim documents may come to SSC directly through ASMs (Addressed to SSC-OTC Section : HO (Ggn)

Claims verified at SSC

Yes SSC shall escalate cases to ASM (through Workflow) for claims with improper supportings, inadequate approval Claims shall be retained at SSC for further processing

Escalate No Claim Form and supporting Documentation In order

Is resolution received

Reject

No

SSC shall reject cases and intimate to ASM (through Workflow) for claims without signatures, WON/ Sr. Numbers etc. .Claims retsined by SSC only

Yes

Claims shall be processed at SSC

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Spec ial claims

Rate Differential Claims

The claim is relating to price difference happened at the time of invoicing. The Process Flow of Rate Differential Claims will be: A claim/request should reach to SSC for such difference in invoicing. The Invoice number and the product for which the wrong pricing happened should be disclosed. The claim/request is verified at SSC for the correctness.JDE report provides the Octroi amount for other than POP invoicing. If the claim is correct the same is processed and credit note/Debit Note is given to the Customer.

Claims Checking and Processing On receive the hard/soft copy of the documents the claim processing team should check the claims for following: Check whether the invoice number, date, and product is mentioned Check whether the correct price claimed is matching as per Price structure Calculate the difference if any, in price charged in invoice and price as per Price Structure for that period.

Once all the above conditions are satisfied then the claims will be processed by SSC in JDE.

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Damaged/Destruction Goods Claims

1. Quality Variation Report (QVR) The QVR is a document that is prepared by the GSKCH field force and counter signed and stamped by Super Distributor/Distributor, to record any cases of variations in the quality of goods. Such variations are normally reported by the end consumers to retailers, who in turn contact the Distributors. In case of Sub-Dist. operation the retailers contact Sub- Dist, who in turn contacts/informs Super Distributor. Sometimes these end consumers also report quality variations directly to the company. After due investigation by the ASE/TSE, such products are normally replaced.

2. Second Point Breakage Second Point Breakage is the breakage of goods that occurs during transportation of goods from depots/ C&FAs to the Super Distributors/Distributors. Such breakage is identified at the Super Distributor/ Distributors premises.

3. Shortage Inspection Report (SIR) The SIR is a document that is prepared by the GSKCH field force, to record any shortages (of jars, bottles, etc.) detected at the time of opening of sealed cartons. Such shortages generally occur due to lapse at the time of packing of goods at the manufacturing locations.

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4. Stock Destruction Report (SDR) The SDR is a document prepared by the GSKCH field force, to record goods, which have been damaged due to expiry of shelf life or have been spoiled due to rodent damage. Such goods may either be lying at the Super Distributor/Distributors/Sub-Distributors godown or at the retail Outlets. These damaged goods are brought back to the Super Distributor/ Distributors godown and subsequently destroyed.

Process for Checking and processing SDR/BIR claims

Customers to prepare the claim as per the prescribed format TSE /ASM / BSM/RH to check and approve the claim Approved Hard copy of claims sent to SSC Claims are verified at SSC check right entity claims in one sheet Upon claim being validated as above, the claim is processed in SOP at SSC Super visor approves in SOP and it interfaces with JDE to issue a credit note to distributor.

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Settlement Of Claims (Prior to 2010)

Prior to 2010, the distributor claims were settles in the respective Regional Offices instead of the Headquarter. The SI-9s were prepared in the HO before sending them to the RO so that the scheme can be launched in the market. The ROs received the SI-9s through courier and then the responsibility was on them to make it available to the respective ASMs of the different trade areas. All the schemes are not made for every trade area so the ROs decide that which scheme has to run in which area and it makes the necessary changes according to the area and the market.

The SI-9 forms are sent to the Area Sales Managers (ASMs) who forward it to the respective Territory Sales Executives (TSEs) in whose territory the scheme will run. The ASMs can choose the specific Trade Areas in which they want the scheme to run. Next up, is the role of TSEs who generate TM-4 forms and forward the scheme to their Distributors so that they can the scheme.

There were more than 1000 Distributors of GSK-CH at 1 point of time but now the number has been reduced to around 600 as the Distributors have been divided into 2 categories: Super-Distributors Distributors

A Super Distributor has a number of Distributors working under him. This division has been done to streamline the process because it was becoming increasingly difficult to manage the large number of Distributors. So the authority has been delegated in the hands of the SDs and they work as a link between the representatives of the company and the Distributors.

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The distributors need to fill up the TM-4 form of the scheme which they are running after the End date of the activity and then submit it to the RO before the last submission date given in the form. Any form received after the submission date has passed will not be considered as eligible. The distributor needs to fill the form according to the different slabs of the scheme and then it needs to be duly signed by the Distributor and then the TSE and ASM before sending them to the RO. Any TM-4 form without the signature of the above mentioned people will not be entertained by the company. The TM-4 form should also be duly complemented with supporting which contains the evidence that the scheme has been run by the Distributor and the claim amount being sought after by the Distributor is correct. The TM-4 sheet needs to be checked and signed by the Distributor and then by the TSE & ASM before it is sent to the RO for payment. Any TM-4 form without adequate supporting and without the signature of any of the above-mentioned persons will not be considered as legal by the RO and will not be processed further. Once reaching the RO the Finance department will further process the claims and that includes a number of steps for efficient handling of claims. Each of the claims are attached to a Credit Note and then they are J.D.Edwards software for tracking and to keep a record of them. All the claims are thoroughly checked by the Claim Settlement team and only the complete TM-4 with all the adequate documents are further processed to the Regional Finance Manager who then finally makes the payments. Other incomplete TM-4s are rejected with proof and are kept separately. The passed claims were binded so that they can be used for any reference in the future by the department.

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Settlement Of Claims (From 2010 to Online Settlement)

Since 2010, the flow of Claim settlement changed and instead of sending the claims to RO, the claims were now send to the Head Office, Gurgaon directly. This was done by keeping in mind the main objective which was of Automation of Claims in the coming 2 years. This change of sending the claims to HO helped the employees of the finance department to learn and understand that how the claims are processed which has to be ultimately done after the Automation of the process. The Distributors were also needed to send the claims directly to the HO now, so they also got the required training before the Automation began. Other than this, the process saw many major changes, with theSI-9 being made by the HO, and then being passed on to the Regional Head (RH) which in turn issued it to the Shared Service Centre(SSC) who has to approve the SI-9 form.

Then the form was transferred to the Customer Marketing Manager (CMM) has to generate the TM4 and forward it to the respective ASMs who need to select the territories in which they want the scheme to run. Normally there are many schemes running at the same time but all the schemes have specific Work Order Number (WON) which is used to differentiate one scheme from another.

The WON has a structure which contains all the information likes the time period, area code, region code, etc., in which the scheme has to run. The ASMs forwarded the TM-4s to the distributors so that they can run the respective schemes in their areas. After the scheme period ends, the Distributor fills the TM4 forms and sends it to the TSE for verification.

The TSE verifies it and then sends it to the ASM for further verification along with the Supporting. The ASM finally send sends it to the HO, for final approval.
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In HO, credit note is issued for every claim and then a Bar-Code is given to the claim which helps in the tracking of claims by the ProFlow software. After the tracking the claims are entered into J.D. Edwards for further processing.

The claim is thoroughly checked with supporting and only then it is finally transferred to the Finance Manager for approval and the payment. The signature of ASM, TSE & Distributors Signature and stamp are most important for any claim. If anything of this is missing then the claim cannot be processed further and it is sent for escalation and then the Distributor is informed through E-Mail or through ASM informing about the fault to the Distributor. Furthermore the claims are sent for binding so that a proper record can be kept about each claim. Earlier binding was done in-house by employees but as the number of claims increased it became difficult to keep a record of the claims by the employees. So the binding work was outsourced to a company who handles this aspect and it has lessened the amount of work and moreover the employees of GSK can concentrate more on their job as the part of filing and maintaining the old claims is not with them.

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Settlement Of Claims (Online Settlement)

At the Annual general meeting, it was decided to automate the whole process of claim settlement and responses of all the shareholders were taken into account. The main objective of this plan was in simplifying the whole process so as to reduce the time, cost & amount of work involved in settlement of claims. The earlier process was good but it was not up to date and a lot of manpower was wasted in the form of employees who used to work for settlement of claims and time was also wasted as it would take a couple of days for the claims to reach from the Distributor to the next person and this thing would continue till the claims reached the HO. So to tackle all these problems the concept of Online E-Claim Portal came into being and extensive research was carried on in this aspect before any decision was rolled out. This was not the 1st software for this purpose in its sector or India, as other companies like Nestle, HUL, etc. have been using it since last few years. But all the more it was the 1st time for the company in India and the successful completion and implementation will do a lot of good for the employees, stakeholders and the company as a whole. So the entire structure was not changed, but just the mode of claim settlement was transformed from hard-copy based to online base. Unlike the previous system the HO didnt send any hard copy of SI-9 to RH but now the CMM issues the SI-9 form and then forwards it to the RH who approves the form online. For this purpose every person involved in the claims settlement process has been given a unique ID & Password which theyll use to Login to their accounts for this whole process. The Distributors have also been assigned an ID & Password which theyll use to Login and fill the desired claims which are present in the basket. After RH approves the SI-9 form, the form then goes to Shared Service Center (SSC) who approves the SI-9 form and then the SI-9 form is again transferred to the CMM so that it can issue the TM-4 form.

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The TM-4 form then goes to the ASM, who forwards the form to the Distributor. The ASM can choose at this level that he wants to send the claim to which Distributor and to whom he doesnt wants to send. This selection of the Distributor depends on the ASM as hes the most aware of the people of that area and he can take a better decision that which Distributor will be able to better handle the scheme and run in the market. The Distributor receives the claim in his basket which he can view by logging into his portal. He has to fill the form for the settlement of claims online only and then take a print of the page of the Submitted form, attach with the supporting and send it directly to the HO, for the settlement. Meanwhile TSE & ASM will have to approve those claims online through the claim portal. They need to check the amount given on portal by the Distributor. Currently the distributors can send claims regarding the Trade Claims and Canvas Claims. But on the later stage other reports like QIR (Quality Inspection Report), BIR (Breakage Inspection Report), etc. will also be included in it at later stage. Theres no requirement of any signature in the computer generated print-out of TM4 form as it is self sufficient. Hence the form is directly sent to the HO. The tracking which was done earlier through Pro Flow is not required now as the entire process is online and the employees at SSC can search the scheme by searching the specific WON of the supporting. J.D. Edwards is only used for generating the Credit Note for the claims and its not used for tracking and entering the claims now. Hence the dependence on the extensive software has reduced in the case and then the process has became fast and easy for the employees to handle. In the end, SSC approves the claims and it is finally send to the finance manager for

approval and payment. And finally the claims are sent for binding to the outside party for having a record of all the claims.

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Process Followed in HO For Settlement of claims

The wholesaler sends a Credit note for the claims with the supporting of the TM4 form to the Head office. In the next step the Data is entered in the JD Edwards software. In the next step tracking of the claims is done. After the tracking it comes to finance manager for approval. Claims being approved by the finance manager are transferred for the final binding and payment is made to the concerned party.

CREDIT NOTE TM4 FORMS J D EDWARDS TRACKING APPROVAL BY FINANCE MANAGER TRANSFERRED FOR BINDING

Every year GlaxoSmithKline receives lots of claims from the distributors. The claim amount of distributors is very huge .In 2010 only, GSK received around 1lakh claims from distributors from all over India .The claim amount in 2010 from all the distributors was approximately Rs.250 Crores. The company repays the claim amount of the distributors as earliest as possible.
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Benefits of Online E-Claim Portal

1. Transparency

With the arrival of the E-Claim portal the transparency in the settlement of claims has increased. There are pre-specified level through which the SI-9, TM-4 forms will move and this process cant be changed or altered. Moreover theres a separate column of Status at each level, so any employee or distributor has the Login ID & Password can login to the account and check the status of the claim that it is at what level. This would lead to better management and handling of claims and as well as, the process becoming more accessible to every person.

2. Reduces Paperwork

Earlier being the process as hard-copy based, there was a lot of paperwork involved, so it was increasingly becoming difficult to manage all these files and papers. But now as all the work will b done online so theres not much of filing involved. Only the supporting is required to be with print-out of the TM-4 form. Later on in the development of the portal and additional softwares, even the supporting will not be required as the software will directly save all the details of the sales in the future.

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3. Reduces Time Lag

Time is of utmost important and the Portal will in reducing the time taken to process a claim. Earlier time was wasted in courier of the claims at each level whenever the claim was passed from 1 level to another. But now with the portal the Distributor will send the print-out of TM-4 form along with the supporting directly to the HO, whereas the TSE & ASM will approve the claim online.

4. Quick Claim Settlement

With the Portal, the claims can be settled at a fast pace from before. Earlier the claims had to be recorded in ProFlow for tracking, and then entered into J.D. Edwards for further processing. But now these steps are not there as theres no need of tracking since every record is available online in the respective IDs of the person concerned. The only use of J.D. Edwards is to create debit note now. So the speed of settling a claim has increased after the introduction of the portal.

5. Reduced Dependency

The dependency on the factors such as signatures before the TM-4 forms are forwarded at the next level is reduced. Earlier no TM-4 forms were settles if there was no signature from TSE, ASM & the Distributors Stamp. But now theres no requirement of any signature as the print out is a computer generated document & it has to be send directly to the HO with supporting. The TM-4 forms are accepted online by the TSE & ASM after checking it thoroughly on the portal from their ID.
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6. Reduction in Manpower

The Portal will lead to the slimming of the manpower required for processing of the claims. Unlike before when there was a number of steps associated with the processing like tracking, punching the information, all these steps will be eliminated and the manpower required for these jobs will also cease to exist in the Finance dept. of HO. This slimming workforce will also lead to more efficiency in the work as the claims will be processed at a higher speed since the number of steps required has reduced and the claims will have to travel from the hands of less number of people. Reduction in manpower will also lead to additional savings for the organizations as a whole.

7. Reduction in Processing Time

The processing time of the claims has been reduced. The time saving is now done at every level, like from filling up online TM-4 forms, to approving the claims by TSE & ASM online only and last but not the least removal of processes like ProFlow & reduced usage of J.D. Edwards for the processing of claims. These all steps have leaded to a significant reduction in the processing time of claims. This will be a benefit for the Distributors and the company both as the whole process of claim settlement will be more streamlined. The distributors will be more responsive in running the schemes as theyll be sure that theyll get the claim amount at the earliest. The company will benefit from faster processing so that they can run multiple claims at the same time.

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Working on ERP Software

The Finance department uses 2 ERP software for the claim settlement process. These are extensively used to track the claims from the Distributors and also help in the processing and smooth functioning of the claim settlement process. Without the help of ERP software the process will not give the required results. Now with the integration of online Portal, the dependency on these ERP software because the Portal will only act as a link between the Company and the Distributors. So the usage will decrease for these ERP but the Portal can itself be termed as a part of ERP since it performs all the functions of an ERP system but in a different way where it makes the stakeholders a part of the ERP. As a part of current claim settlement process 2 ERP software packages are extensively used. These are:

1. J. D. Edwards

J.D. Edwards World Solution Company or JD Edwards, abbreviated JDE, was an Enterprise Resource Planning (ERP) software company. As an ERP system, JD Edwards World comprises three basic areas of expertise: a. Functional/ Business Analyst b. Programmer/ Software Developer c. CNC/ System Administration. Over time, these three roles developed the product into a full featured enterprise resource planning, or ERP system which is used by the companies all over the world for their financial solutions.

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The current software of J.D. Edwards products are currently known as JD Edwards Enterprise One and JD Edwards World which were launched in April 2012, with many upgrades and new features. But on the same hand Oracle announced that JD Edwards support would continue indefinitely for even the older products. The software can be modified for using in different types or organizations and to support various activities hence, we can say that it has a large user base since anyone can use it according to their needs and demands of their company. J.D. Edwards in GSK-CH is used in claim automation process as it is used to process the claims when they reach the HO. And its also used to create the Credit Note and the top sheet which helps in synchronizing the data for further uses in the organization. With the arrival of the Portal, the dependence on this software will decrease as all the information will be present in the portal as its own database and it can be searched anytime by the person. But still the software will be used for creation of Credit Notes for record keeping in the future.

2. ProFlow

ProFlow is an ERP software used in GSK-CH for tracking the claims. It was used in the earlier procedure when the claims were sent in Hard-Copy to the HO, as there was a huge number of pending claims so every claim was assigned a Barcode and this software was used to find the status of claim by the employees. The entry of each claim was made in here after scanning it so that the employees can see that the claim has reached which stage. It made the work of storing the claims easy as every claim and its supporting was differentiated on
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Barcode and they can be segregated according to that. The claims were tracked with the help of the Barcode number on this software. Now with the Portal, this software is not used because the claims can be tracked automatically from the Portal as the status can be seen automatically on the Portal. Hence the usage of the software is now a thing of the past in the company as the company moves on to a new process in the form of the Portal. Hence the dependency on the software is almost Nil with the advent of the Portal but it was an integral part of the Claim Settlement process earlier.

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Standard Operating Procedure (SOP)

An SOP is a written document or instruction detailing all steps and activities of a process or procedure. An SOP provides employees with a reference to common business practices, activities, or tasks. New employees use an SOP to answer questions without having to interrupt supervisors to ask how an operation is performed. Every activity in an organization has an SOP so that the standard can be fixed and it can be referred to in the future if any such need arises. The SOP is also of very much use to any new employee who has joined the company or has been transferred on to a specific process, so as to learn about the new task in hand. The SOP needs to be updated whenever there is any change, addition or alteration in the process and the same change must be reflected in the SOP too. Every change must be showed in the SOP, like even a change in the screen and this is because the user must not have any doubts in the mind regarding the process. The navigation from a specific page & the result must also be reflected so as the user can check whether he has done the right thing or not. So due to these factors SOPs become all the more important for any process in an organization. While working on claim automation portal, I got to make and work on 2 SOPs. These were:
1. Registration Process 2. Claim Flow at each level, from CMM to Distributor & Reverse Approval

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1. Registration Process

Every distributor needs to be registered on the Portal so that he can access the Portal to fill his Claim forms. Its only after the registration that the Distributor gets a unique User ID & Password which they can use to Login to the Portal. For registration the Distributors has to provide an E-Mail ID which was registered on the Portal by us and then the Distributor was provided with the ID & Password which was different for each one of them. The Distributor was also needed to verify their account once they are registered so as to confirm that the right person has got the ID & Password. It was a process including creation of the IDs, Passwords, feeding the back-end information into the porta foe the future references.

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Flow-Chart of Registration Process

Open the webpage www.myeclaim.gsk.com

Enter the E-Mail ID of the Distributor

Create UserID & Password and select the country of operation

Enter the Name, Address, and Contact Information of the Distributor in the next page

Enter the reason for which Distributor wants the access to the E-Claim Portal

Registration is now complete. The Distributor will get an automatically generated Mail from the Portal on his ID

Distributor must open the Mail in his E-Mail ID, and click on the Link given there to verify the account and punch in the E-mail ID & Password

Once verified, the HO needs to approve the request of the Distributor

After the approval from HO, the Distributor can use the Portal to fill in the Claim forms

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2. Claim Flow at each level, from CMM to Distributor & Reverse Approval The SOP was aimed at the process of flow of claims from the formations of SI-9 forms, to the filing of the TM-4 form by the Distributors, and ending at the processing of the claim at the HO in the end.

Flow-Chart of Claims Customer Marketing Manager (CMM) - Issues SI9 Form Regional Head (RH) - Approves SI9 Form Shared Service Centre (SSC) - Approves SI9 Form Customer Marketing Manager (CMM) - Issues TM4 Area Sales Manager (ASM) - Forwards TM4 Wholesaler Territory Sales Executive (TSE) - Approves TM4 Area Sales Manager (ASM) - Approves TM4 Shared Service Centre (SSC) - Approves TM4 Finance Manager

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DATA ANALYSIS

There were more than 1200 distributors of GSK-CH in India till 2010, but they were reduced and converted into Super-Distributors & Distributors so that the control can be better and the focus of the company can be on these distributors. Now, there are 800 distributors of the GSK-CH all over India. They are divided into different 4 regions north, south, east and west. Out of which 735 have been registered. The remaining will be registered till June end and start filling their claims

900

800

700

600

500

400

300

200

100

0 Total Filled claims Registered Pending

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Region-Wise Portal Registration Data 1. SOUTH

Total number of distributors in the South region = 200 Registered with portal = 190 Distributors filling claims= 175

205 200 195 190 185 180 175 170 165 160 Total Filled claims Registered

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2. NORTH

Total Number of distributors in the North region = 230 Registered with portal = 210 Distributors filling claims= 200

195 190 185 180 175 170 165 160 155 150 145 Total filledn claims Registered

users

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3. WEST

Total Number of distributors in the West region = 180 Registered with portal = 160 Distributors filling claims= 150

195 190 185 180 175 170 165 160 155 150 145 Total filledn claims Registered

users

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4. EAST

Total Number of distributors in the East region = 190 Registered with portal = 175 Distributors filling claims= 160

195 190 185 180 175 170 165 160 155 150 145 Total filledn claims Registered

users

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CLAIM SETTLEMENT

GSK-CH receives around 2 lac claims worth 150 crores every year from its Distributors. GSK received claims worth Rs 15 crores in May 2012 which were in both manual and portal form. Out of the claims of 15 crores, claims worth Rs 6 crores were manual claims sent as a hard-copy whereas, Rs 9 crores claims were through portal. The company plans to receive 100% claims through Portal maximum by June-end. After this date only the Claims which were run by the distributor before March, 2012 will be available to be filled in the Offline mode. Claims worth Rs.5 crores has been settled through the portal and the company plans to settle the remaining claims till end of the June, 2012.

Claims Recieved

40% Portal Manual 60%

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Portal claims

28%

Settled Unsettled

72%

More than 70% of the Claims through Portal have been processed and the payment has been made or in cases which had some problems, the claims were escalated. The remaining claims from the portal will also be settled before June, 2012. All the claims will be settled through Portal only after 2012, as no claims will be issued as a hard-copy.

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Learning from E-Claim Portal

1. Ethics & Values

Ethics can be defined as a system of differentiating between the right and wrong actions of a behavior. A person needs to follow the Ethics while working in the organization to be on the right side. Moreover in the larger scenario, even the organization needs to follow the Ethics of the society as the company is a part of the society on the whole. In the same way Values is something which a particular person, group of persons, nation, or culture thinks and accepts to be right. Everyone has a personal set of values which they need to follow. So here, GSK-CH, employees, stakeholders, society, etc. everyone has their own set of values and ethics. Meanwhile by introducing the Portal, the company aims at the overall growth & development of all its stakeholders by means of increase in the transparency, accuracy and trust, whereby everyone will be able to communicate and b aware of what others are up to freely.

2. Project Management
The portal in itself is an ongoing Project about the automation of claims. It has already started functioning, and with time in the later stages, more information and activities will be included in it, making it all the more complete in itself, which will be beneficial for both the Company and its various stakeholders. Project management includes planning, organizing, managing, controlling to achieve specific goals. The goal here was the automation of the claim process so that the communication between the company and the stakeholders increase and the process also becomes simpler.

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The project is in the development stage further because a portal like this needs constant improvement and supervision so as to keep it update and be helpful to all the persons associated with it.

3. Interpersonal Skills
Interpersonal skills deal with the skill of communicating and interacting with others. While working in the organization one needs to deal with different kind of people like other employees, seniors, juniors and even outside the company like its various stakeholders like the Distributors and people providing other services. The communication can also be in any way, like verbal, non-verbal, written, telephonic, video-conferencing, etc. So theres a code of conduct that how one needs to communicate in the organization in the best possible manner. This code can be defines as Socialization in the company. As working on this project I got to interact with different people who are a part of company in any way like the colleagues and all the other stakeholders. This gave an interesting opportunity to deal with them and help & guide them towards the ultimate goal in the best possible manner.

4. Knowledge about Company & Exposure to Corporate World

GSK-CH being large MNC, and 1 of the biggest players in its sector of consumer healthcare in India its a highly admired and respected company and its always in the news from 1 reason to another. So working in such a company on such an important project has given me a big opportunity to understand the company from inside and working on the project has given me the opportunity to work in the corporate world. MNCs means coming together of people from different backgrounds but working for a common goal of achieving the objectives set by the company. Here the common objective is to provide quality products to the

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consumers for their all round development in general health. Hence everyone works with this common agenda in their minds. Corporate world is the world in which 1 has to work for himself and as well as the company for the betterment of both of the entities. So as a part of working here, I was introduced to this new world in this company and it was an amazing experience.

5. Interaction with Stakeholders

Claim automation being a project which links the Distributors with the company for claim settlement, the interaction with the Distributors, TSE, ASM, etc., who are stakeholders in the company was very important. The distributors are the persons who are the link between the company and the consumers so its very important for the company to have a healthy and long relationship with them. The TSE & ASMs are on company pay-roll and hence they are the employees of the company. The Portal was a new experience for them and hence, it needed a large amount of training and supervision before they were able to fill up their claims online. First of all they were provided with a unique ID, which was linked to their E-Mail ID, and password which they would use to Login to the Portal to fill the claims. The TSE & ASMs were also provided with the same for their purpose of accepting or rejecting the claims online. Then the training started through, phone calls, teleconferencing, video conferencing and even visits to the distributors centre by the Portal Support Team so give them actual Demonstration sessions about the portal. There was a initial euphoria that how will it be done, and how the claims will be settled but after training and demo sessions, the attitude of the people changed towards the Portal and they were more inclined towards it since they understood that this will reduce their pressure and improve the overall process.

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6. Building Business Networks

Many business networks were formed with the introduction of the Portal. Along with the Distributors the companies supplying ancillary services like the software and the systems developers have also came into the picture. Moreover new recruits were done to maintain, and develop the new system. On the whole the Portal has also lead to the expansion of business networks as now the claims processing will be done online, so any person with a PC & Internet connection sitting in any remote location in India can file the claims. The status can also be checked anytime, so theres an ease in the total usage of the system and GSK-CH has got a boost in its approach as technology based and hence, more people would like to be associated with it, whereby making this an even better opportunity to expand.

7. Experience on the ERP Software

Enterprise Resource Planning (ERP) Software integrate the internal & external management information across the whole organization, including finance, manufacturing, sales, Customer Relationship Management (CRM), etc. the ERP systems automate these activities and it allows the flow of information inside the organization and allows the stakeholders to have connections with the company. ERP systems have been used in GSK-CH for long and they help in a variety of ways to the employees and the organization & its stakeholders on the whole. Here ERP gives support to the higher management which helps in their decision making, and it helps the company becoming able to adapt to changes and then proceed accordingly. It also helps in increasing the quality of output as it smoothens the flow of communication which leads to better qualitative output. The company uses a number of ERP software to assist in the daily activities and help in the decision making for the top level management. The finance department uses J.D. Edwards & ProFlow for the settlement of claims and I got to work 1st hand on these as a part of my project.
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CONCLUSION

Q.1 In which department of the company was the Summer Internship taken? Please describe the business unit, its business concentration and objectives. Answer 1 From the very first day of my summer internship I have learn something new every day during my summer internship. My corporate Mentor Mr. Vikas Mathur (Finance Manager) taught me so many things everyday in a very friendly way so that I can understand each and everything easily and clearly. Mr. Vikas gave me a brief idea about my summer internship project and then he told me that how I suppose to make my summer internship project. After that he gave me some useful knowledge regarding GlaxoSmithKline. Then he told me my duties and responsibilities which I was to perform under his supervision and during my summer internship. I have taken my summer internship in following departments. Finance IT

The objectives of business unit: Improved claim tracking. Improved distributor satisfaction. Integration with other business processes. More claims can be processed in the same amount of time.

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Q.2 how was monitoring/supervision of the Summer Internship process/work organized at the company? Was there anyone acting as your Mentor and/or

Supervisor during the Summer Internship, so you could seek advice and directions in your work? Answer 2 Summer Internship Process was full of learning and gaining positive experience here at GlaxoSmithKline. I was assigned a corporate mentor Mr. Vikas Mathur. He enforced confidence in me and gave me a project that was full of practical implication of whatever I had done theoretically. He showed great trust on me by sharing live company data with me and. The trust shown was a great motivation for the successful completion of my project. Supervision here at GSK was very beneficial and most importantly even the Interns were treated as a part of the professional environment.

Q.3 what was the purpose of your summer internship at the company? What responsibilities were given to you? What kind of challenges did you face? What have you achieved during the summer internship?
Answer 3

The purpose of my summer internship was to get all the distributors registered on the EClaim Portal. Moreover my work was also to get their user id verified by them and tell them the whole procedure for filling online claims and guide them during the whole process of claim automation. I faced many challenges during my internship like during the whole process of registration; the biggest problem was that some of the distributors were not enough IT skills. So some of them could not verify user id. So it was my duty to create an alternative user id for them and verify that on their behalf.

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My achievements were that I have learned that how to talk to a customer and I came to know that how things work in a company.

Achievements Improved Communication skills Team work capability Self confidence Patience level Time management Immense knowledge on corporate world

Q.4 what kind of business experience (positive and negative, if applicable) did you gain? Answer 4 I have experience so many things during my summer internship and it is a unique experience for me. Overall the experience was exciting. Working for the world known company and trying to understand their working and suggest remedial measures for improving their Claim portal is a challenge in itself I have gained both kinds of business experiences positive as well as negative also. Positive experience in the sense of that I have gained knowledge while working with the colleagues, I learned how to behave and communicate in an organization also came to learn about business ethics. Negative experience in the sense of that when I used to tell the distributors the whole process for claim filling, some of them were least interested. So this was a little bit demotivating.

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Q.5 what new concepts, ideas, approaches etc did you learn during the Internship? Answer 5 During my summer internship at GlaxoSmithKline, I learned something from my corporate mentor, IT head, employees and a lot from other management trainees also. I have learn Leadership Cooperation How to behave in an organization Punctuality Regularity Time management Project scheduling Team work Communication skills Importance of I.T. Practical knowledge of the market Various policies of the company

Q.6 what was your interpersonal, leadership, teambuilding, project management, time management experience that you acquired during the summer internship, if any? Answer 6 I have acquired a lot experience at GSK during my summer internship.

Improved Communication skills:

In the beginning of my summer internship I couldnt be able to talk to the distributors clearly but my corporate mentor helps me and taught me the way of communicate with people and this improved my communication skills a lot.
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Tem building:
During my summer internship I had to work with another management trainee, his name is Amit Anand and we were to work in a team and report to the Mr. Vikas Mathur about all the work which we had done. Both of us did all the work as a tem and thats how I learned team building. And after the completion of one month at GSK, two new management trainees came for the summer training and then Mr. Vikas gave us a responsibility to lead the team.

Time management:
Time management is a very necessary element which is all we need to learn. At GSK I have learn the value of time management because I use to report at 9.30 A.M in the morning and do all the work assigned to us for the whole day and report at 5.30 P.M. Every organization has various departments for them working together to achieve common goal of making customer happy with the on time performances. The organization has to have a deep sense of coordination between various departments for proper functioning of the organization. So, in the same manner at GlaxoSmithKline, there are various departments like Customer Service, Operations, Sales and Marketing, Finance and Administration, Credit Control and Human Resource Department which work together for customers satisfaction. 1. The claim automation process will be beneficial for both the organization and the distributors. Company can have better control over the different claims. 2. Company will bear less cost per claim. 3. Improved claim tracking. 4. Improved distributor satisfaction. 5. Integration with other business processes. 6. More claims can be processed in the same amount of time.

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Recommendations

Distributors should be provided proper training for using the Claim portal online by conducting a demo sessions for them.

Sometimes the whole process was messed up due to server problem. So they should work properly on this.

This is a upcoming project, so GSK should get more employees to work on this. So that project should keep working properly.

Time to time group discussion among the developers should take place so that they come to know what problem they are facing

Coordination between the IT department and finance department should be strengthened.

Portal rates should b updated on regular basis.

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Bibliography

Most of data has been taken from website. Various website referred are as below:-

1. www.gsk-ch.in assessed on 20-06-2012 2. www.fundoodata.com assessed on 22-06-2012 3. www.google.com assessed on 22-06-2012

All other information about the project was taken from SOP (Standard Operating Process) By Mr. Vikas Mathur

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