Table of Contents
Summary
Client Details: A European-based medical devices and equipment manufacturer
Challenges: The client faced challenges in efficiently utilizing their salesforce and maximizing revenue impact in the highly competitive medical device sales channels. Their salesforce struggled with inefficient routes, resulting in excessive travel time, decreased face-to-face sales opportunities, and suboptimal revenue generation. The client recognized the need for a solution that could optimize their salesforce routes, improve time management, and enhance revenue impact in the complex medical device sales channels.
Solutions: To address these challenges, we developed a customized salesforce route optimization solution for the client. The solution integrated advanced algorithms and machine learning algorithms to optimize salesforce routes based on factors such as customer locations, sales targets, historical sales data, and market trends in medical device sales channels. It also considered real-time variables, such as traffic conditions and customer availability to dynamically adjust routes.
Impact Delivered
All of the above initiatives resulted in:
- 45% reduction in traveling time
- 57% reduction in average distance traveled
- 7% average increase in meetings/sales rep
Industry Overview
- The European-based medical devices and equipment manufacturing industry hold a prominent position in the global market. Known for its technological advancements, quality standard, and regulatory compliance, Europe has established itself as a hub for innovation in medical device manufacturing.
- European manufacturers benefit from a skilled workforce, robust infrastructure, and strong research and development capabilities. Moreover, the industry is driven by increasing healthcare expenditures, an aging population, and the demand for advanced healthcare solutions. With stringent regulatory frameworks, like CE marking, European medical device manufacturers prioritize safety, efficacy, and quality, ensuring their products meet the highest standard.
About the Client
- A European-based medical devices and equipment manufacturer, with a market capitalization exceeding $1 billion, was grappling with significant challenges with their current route planning and overall network strategy.
- These issues resulted in frequently missed meetings by their sales representatives, increased travel expenses, dissatisfied sales reps, and the potential loss of revenues. The company urgently needed a solution to streamline its route planning and optimize its network strategy to overcome these obstacles and enhance its overall sales performance.
Challenges
- Despite having a tool in place for salesforce performance management and network planning, the client faced a significant setback as the tool failed to readjust to changes in market dynamics and shifting business priorities. Consequently, the route plans generated by the tools became outdated and inefficient, exacerbating the challenges faced by sales representatives. The inability of the tool to readjust and align with the evolving requirements of the company resulted in missed opportunities, increased costs, and reduced overall productivity. It became evident that a more flexible and responsive solution was essential to address the changing landscape and optimize salesforce performance and network planning effectively.
- The existing tool relied solely on the distance traveled as a primary factor for route planning, leading to a situation where sales representatives allocated a significant amount of time and effort to less important accounts. This pure distance-based approach resulted in a misallocation of resources, with sales reps spending excessive time on accounts that had lower revenue potential or lower strategic importance. Consequently, more valuable accounts were neglected, causing missed opportunities for sales and potential revenue loss. It became evident that the tool’s reliance on distance alone was insufficient for effective route planning and that a more sophisticated approach was needed to prioritize accounts based on their strategic value and revenue potential.
- The client needed a solution that can account for business dynamics, and priorities and then provide an optimal network plan. Specifically, they required a tailored approach that would consider the unique challenges and requirements of their medical device sales channels. This included factors such as varying product lines, target markets, customer preferences, and geographical considerations. By incorporating these variables into the route planning process, the client aimed to ensure that their sales reps could efficiently navigate the complex landscape of medical device sales, maximize their time with key accounts, and ultimately drive revenue growth. The goal was to implement a solution that would empower the salesforce to adapt to market shifts, respond to emerging opportunities, and enhance customer engagement within the medical device sales channels.
Solutions
- First, Quantzig conducted an in-depth analysis of the medical device sales channels to create a comprehensive mind map. They considered account priority as a critical factor, determining which accounts were of utmost importance in their route planning. They also evaluated potential business opportunities associated with different sales channels, taking into account factors such as market demands, customer preferences, and competition. Distance and time were additional factors that we incorporated within the mind map, recognizing the significance of optimizing travel routes and minimizing time spent between sales engagements. By considering all these factors, we aimed to generate an optimal route plan that would maximize sales efficiency and revenue generation for their medical devices.
- We further evaluated multiple statistical techniques like 2-opt, nearest neighbor, first insertion, and last insertions and then selected the best-fit model. Each technique was carefully analyzed based on its performance and suitability for our specific problem. The evaluation process involved running multiple iterations and assessing the results obtained from each technique. We considered factors such as solution quality, computational efficiency, and ability to handle large datasets. Our best-fit model exhibited superior performance in terms of both solution quality and computational efficiency, making it the most suitable choice for our needs.
- Further to handle the dynamic nature of business priorities, the client was given a real-time simulator for optimal future planning. The simulator took into account various factors that impact the medical device sales channels, such as market trends, regulatory changes, competitive landscape, and customer preferences. By incorporating these variables, the simulator provided the client with valuable insights into how different scenarios may unfold in the sales channels. The company was able to simulate the introduction of new products, changes in pricing strategies, or modifications to distribution channels to understand their potential impact on sales performance.
