GENERATING $17M FOR A MEDICAL SUPPLY DISTRIBUTOR IN A PROGRAM FUNDED BY THEIR SUPPLIERS
Business Issue
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.
Our Solution
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 suppliers to create a thoughtful and fair ROI rule structure. We then created a tracking system to provide reporting so suppliers could clearly see the growth being generated. This solved the funding issue that initially made the suppliers reluctant to participate. And since the client’s existing system did not communicate in silos, we isolated communications specific to each supplier and connected directly with the sales reps. Each sales rep was able to use our online portal to view their performance and their accumulated award points at any time.
Outcome
Participating suppliers increased sales by 11.75% over plan. Volume was up more than $17M for selected suppliers.
Participants were awarded their points as a one-time payout at program end, redeemable for name-brand merchandise, travel options or experiences from our expansive online award offerings.
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.
