A global medical technology company

Background

Local and global competition in the medical technology industry had become ever more intense amid fierce competition from cheaper, mainly Asian and especially Chinese alternatives. Another factor was a growing trend to transfer the decision to purchase new medical technology and conduct major procurements from physicians and medical technicians to managements at county councils and hospitals and government officials in charge of central procurements with a strong focus on price pressures. Lead times from initial business contact to revenue-generating contract became protracted, resulting in planned revenues being pushed back. The staff were knowledgeable about existing and new products and enjoyed good relations with physicians but because the decision-making landscape had changed the company was struggling to deliver on the tough internal target of +10 per cent annual growth in a market that was expanding by two or three per cent annually without eating into profit margins.

Reforce’s value contribution

Reforce was chosen in competition with two global consulting firms to assist the Managing Director for the Nordic and Baltic region in accelerating revenue, cut the time to contract and reduce costs (increase efficiency) in four focus areas through a RaaS agreement. KPIs are directly linked to an increase in sales and earnings as well as time savings and reduced costs. Reforce introduced a weekly control, acceleration and monitoring system, and trained staff in HOW to succeed in accelerating profit growth and a change in behaviour.

Results

Reforce has increased its sales by 20 per cent in one year and has received the biggest order in its history, worth over SEK 200 million. By working with the CEO and management and through vast areas of the organisation, Reforce’s efforts resulted in improvements that were consistently more than the agreed sales and earnings targets. Today the company uses a defined control, acceleration and monitoring system continuously and in a structured manner to achieve success in the market as well as internally in the organisation.

Facts

  • Net sales increased by 20% in Sweden
  • The acceleration is +33% for all agreed KPIs
  • Revenue increased by SEK 200 million in the agreed focus areas
  • The sales cost for the average strategic account was reduced by 56% (SEK 69 million)
  • The time to strategic contract was reduced by 59% compared with the reference case
  • Today the company has relations with decision-makers at 90% of all hospitals and county councils in Sweden

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