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Medical Supply Distributor

Motivation Excellence

Case Study

GENERATING $17M FOR A MEDICAL SUPPLY DISTRIBUTOR IN A PROGRAM FUNDED BY THEIR SUPPLIERS

The Big Picture

Our Medical Supply Distribution client wanted to drive sales with a dynamic incentive for their preferred, non-competitive suppliers that would be completely funded by their sales efforts. The suppliers — 6-10 participated in various years — were initially reluctant to participate due to a lack of confidence in their return on their investment. We knew we needed to overcome their skepticism.

Research & Analysis

A thoughtful and fair ROI rule structure and tracking system was needed. In the initial analysis stage, we examined the previous two years of sales by rep, and then set individual growth goals for each of the six suppliers.

Our Solution

We created an incremental growth program for each supplier so that together, they would fund the program on our sponsoring client’s behalf.

After we created incremental goals by supplier, we set up a system to provide reporting so they could clearly see the growth being generated. This solved the funding issue that initially made the distributors reluctant to participate; They were happy to fund the program when they could easily see the growth it was fostering.

Since the client’s existing system did not communicate in silos, we sought to isolate communications specific to each supplier and connect directly with the sales reps that sell those products.

This program was points-driven. We set goals for each supplier and assigned point values to those goals. Each sales rep was able to use our online portal to view their performance and their status at any time.

Quantifiable Results

ROI

Participating suppliers increased sales by 11.75% over plan.
Volume was up more than $17M for selected suppliers.

Equity

At program end, participants were awarded their points as a one-time payout and were able to redeem for name-brand merchandise, travel options or experiences from our expansive online catalog.

Data & Analytics

Getting 6-10 different suppliers to work together in an equitable arrangement is the kind of data-driven, personalized work that sets Motivation Excellence apart.
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