5 Medical Distribution Strategies Doomed to Fail in 2012
Upcoming SlideShare
Loading in...5
×
 

5 Medical Distribution Strategies Doomed to Fail in 2012

on

  • 482 views

 

Statistics

Views

Total Views
482
Views on SlideShare
405
Embed Views
77

Actions

Likes
0
Downloads
4
Comments
0

3 Embeds 77

http://www.tigi.net 66
http://www.linkedin.com 7
https://www.linkedin.com 4

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

5 Medical Distribution Strategies Doomed to Fail in 2012 5 Medical Distribution Strategies Doomed to Fail in 2012 Presentation Transcript

  • 5 Medical Distribution Strategies Doomed to Fail in 2012 Gunter Wessels, Ph.D., MBA Sam O’Rear, M.A. BAPartner, Practice Principal, TIGI Senior Partner, Founder, TIGI gunter@mytigi.net sam@mytigi.net @gunterwessels @TIGI_Inc www.tigi.net © TIGI 2012 All rights reserved
  • Objective Help you make good decisions in an uncertain time.How?→Discuss some observed mis-steps and best practicesResulting in?→Actionable implications for your business © TIGI 2012 All rights reserved
  • Failure Defined What is failure? • Sluggish Growth • Marketshare Decline • Price/Margin Erosion • Commoditization • Diminished Profitability • Increased Uncertainty © TIGI 2012 All rights reserved
  • The New NormalMajor Changes in Healthcare:• Accountable Care Organizations• Value Based Purchasing• IT Integration and Health IT Incentives• Reimbursement Declines• Readmission Penalties• Bundled Payments © TIGI 2012 All rights reserved
  • Top 10Concerns ofDistributors
  • Top Concerns of Distributors 1 Acquiring brands that open doors to parts of their portfolio 2 Obtaining product lines that turn over quickly 3 Maintaining focus within market segment 4 Supporting manufacturers while staying true to their own mission. 5 Finding products with low acquisition cost, high margin, high volume © TIGI 2012 All rights reserved
  • Top Concerns of Distributors 6 Managing GPO Contracts 7 Backorders, support issues & customer service from manufacturers 8 Field support from manufacturers, and training 9 Avoiding/Mitigating channel conflict10 Managing lead and referral processes and programs © TIGI 2012 All rights reserved
  • The Big Five 1 Portfolio Expansion 2 Focus on High Volume SKUs 3 Manufacturer and Product Focus 4 Private Label Products 5 Feature-Advantage-Benefit Sales and Marketing © TIGI 2012 All rights reserved
  • 1 Portfolio Expansion Priority: Acquire OEM Brands that “open doors” © TIGI 2012 All rights reserved
  • Portfolio Expansion Remedy • Recognize that it’s your brand that opens doors • Maintain Focus on your area of expertise and value-add © TIGI 2012 All rights reserved
  • 2 Focus on High-Volume SKUs Priority: Acquire High Volume, High Margin, or Low-Cost products © TIGI 2012 All rights reserved
  • - High volume is correlated with increased price sensitivity, switching, and cost of sales- Manufacturers control much of this market- Exclusivity is rare in high volume- Primary lines can unbalance the portfolio- GPO contracts drive margins down in high volume SKUs © TIGI 2012 All rights reserved
  • Competing in Healthcare in 2012 Maximize m ize M axi se rea Inc Offset Minimize © TIGI 2012 All rights reserved
  • Focus on High-Volume SKUs - Remedy• Look for areas where you can add stability to your transaction volume; high, medium, and low frequency purchases• Recognize that high volume is not always associated with high value• Look for gaps and hard-to-find products and consider specializing there• Add complimentary products that relate to your focus and expertise © TIGI 2012 All rights reserved
  • 3 Manufacturer and Product Focus Priority: Increase the value of your business with alignment in a category © TIGI 2012 All rights reserved
  • Service Lines Dominate HealthcareA Service Line is:- A Center of Excellence- Focused on a patient population with a range of conditions and symptoms.- Engaged in meeting providers’ and patients’ needs for: • Quality • Access • Convenience Service Lines are comprehensive, “product lines” including:Screening & Prevention Diagnosis Treatment Aftercare support © TIGI 2012 All rights reserved
  • Manufacturer & Product Focus Remedy• Consider the VAR industry and adapt your business model to selling services and value-adds - Look at your portfolio and examine it for solutions - Sell implementation services and value-adds• Consider where your infrastructure provides unique advantage for customers and manufacturers - e.g. Logistics, inventory management, service and support, education © TIGI 2012 All rights reserved
  • 4 Private Label Products Priority: Source un-branded products to substitute or bundle in sets or kits © TIGI 2012 All rights reserved
  • • Risks: - Backorders - Support - Quality - Regulatory review - Liability © TIGI 2012 All rights reserved
  • Private Label Products - Remedy - Focus your core business on service lines - Sell services that solve the business problem associated with your lines - Consider a spin-off of packaging business - If you’re in this business, bulk up compliance and risk management © TIGI 2012 All rights reserved
  • 5 Feature-Advantage-Benefit © TIGI 2012 All rights reserved
  • A Balanced Approach © TIGI 2012 All rights reserved
  • What are the Hurts? Department Service Line Facility IDN/System ACO/Network Care Coordination Population Growing or Clinical Evidence-Based Definition of Reducing and Management Utility Medicine Services Service Line and Services Offered Portfolios Cooperation Equipment, Community Staffing Skill-Mix Shared ServicesOperational Resource and Process Facilities, Outreach and Required MD/RN/ Efficiency Technology Marketing AH Coordination Outsourcing Capitalization, Market Power Allocated Financial Favorable Market Adequate EBITDA Debt Service, Aggregation with Revenues and Conditions Margin Leverage, Suppliers andPerformance Expenses Acquisitions Payers © TIGI 2012 All rights reserved
  • What to Do? • Sell Services: Create Solutions, Sell Related Services, Augment Core Product Lines • Focus on Service Lines: Service Line Managers, Continuum of Care, Non-Acute and Acute Care • Brand Building: Leverage Your Personal Brand, Brand the Company, Carefully Consider Private Branded Goods • Upgrade skills: Business Acumen, Evidence-Based Medicine, Salesmanship, RFP Strategy • Update the playbook: Corporate Accounts, GPO Contracts, Coverage Models • Assess and Develop Talent: Specialists, Generalists, Managers, and Support © TIGI 2012 All rights reserved
  • Questions? www.tigi.net © TIGI 2012 All rights reserved
  • Upcoming EventsWebinars:June: How Healthcare Reform Impacts Your Business TodayJuly: 5 More Medical Device Strategies Doomed to Fail in 2012 To Register: http://www.tigi.net/webinar-calendarOpen Enrollment, 1 Day Workshop:TIGI and MassDevice Present, TIGI Bootcamp 2012The Changing Healthcare Buying Environment: Adapting to the New Normal,August 13 in Boston & August 20 in the Midwest (location TBD). To Register: http://www.tigi.net/the-changing-healthcare-buying-environment/ © TIGI 2012 All rights reserved
  • Thank You Gunter Wessels, Ph.D., MBA Sam O’Rear, M.A. BAPartner, Practice Principal, TIGI Senior Partner, Founder, TIGI gunter@mytigi.net sam@mytigi.net @gunterwessels @TIGI_Inc www.tigi.net © TIGI 2012 All rights reserved