Among all the "hidden assets", customer contact channels and loyal user groups are undoubtedly the unique advantages of dealers. Cardina made full use of this advantage and successfully started to deal with customers in the health care market frequently-hospitals, pharmacies, pharmaceutical companies, health care institutions and other participants. In the investigation, Cardina saw her limitations in the industry, such as cost control, talent shortage and outdated information management. Taken together, these three problems make Cartier's customer base face the contradiction between reducing costs and providing high-quality medical services, and each problem is actually a potential opportunity.
Integrating core business to solve difficult problems for hospitals.
Faced with various contradictions, Cardina's first reaction can be summarized as a "tracking pill" plan to help hospitals save time and cost.
When the medicine is delivered to the customer's door, more than 99% of the suppliers think that the service is over at this time. Katina Company did not stop at delivering drugs to hospital warehouse, but extended its service tentacles to all aspects related to pills, such as pharmacy management, environmental protection treatment of waste drugs, and even extended to the upstream detection and packaging of pills.
The method of tracing Pyxis enables Cardina to penetrate into the hospital more deeply, and the acquisition of Paikes Company, which produces medicine fetching machines, further consolidates Cardina's connection with the hospital. The products of this company are like ATMs in banks. The hospital stores the most commonly used drugs. Patients can enter the prescription signed by the doctor and be identified by the machine with their fingerprints. In the past, it was difficult for hospitals to dispense drugs, because handwritten prescriptions were easily misread, and because of the shortage of medical staff, pills were often lost, which made the dispensing process very dangerous, which not only led to the death of patients, but also led to the hospital taking legal action. The acquisition of Paikes will undoubtedly smash these thorny issues easily.
Through mergers and acquisitions, Cartina Health Company has made 90% hospitals in the United States become its customers, bringing good fixed income and broadening the company's access, because hospitals equipped with Pyxis machines will be more inclined to buy Cartina Health Company's drugs for convenience.
Paikes' success made Cardina realize that the same method can also be applied to external objects. The distribution of medical surgical supplies is Cardina's second largest business after clinical drugs. Its annual sales are $6 billion-accounting for 15% of the company's total revenue, while profits account for a quarter of the total profits.
In fact, Cartier's products are not high in technology and cheap, and most of them are disposable consumer goods, such as gauze, bandages and suction tubes. However, Cadine has become the source of profit growth by controlling costs and improving efficiency. Because Cardina found a key point, that is, customized services.
General surgery requires about 200 kinds of medical tools. Of course, this number will be slightly different due to different operations and personal preferences of doctors. In general, there are thousands of different tools on the medicine shelves in hospitals. Before the operation, the relevant staff will manually select what they need, then put it on a plate and send it to the operating room. This process is not only time-consuming, but also has a high probability of making mistakes.
Cardina provided a complete set of surgical medical supplies to help the hospital solve this stubborn disease. The online customization service provided by Cardina allows surgeons to simulate the operation process in advance and choose the equipment and items they need. Cardina offers 2,200 kinds of products to choose from, and its own products only account for one third of them. For example, endoscopic surgery for knee joint recovery requires the use of about 200 products. On the morning of the operation, these supplies were sent to the hospital in sterile packaging. The tools in the bag are placed completely according to the surgical procedure, and all the tools are selected online by the doctor himself in advance. So, Cardina integrated those ordinary gloves and gauze into sterile bags, took a customized convenient car and sold it at a good price.
The "customized distribution system" has established an unbreakable position for Cartier in the non-traditional supply and marketing chain. Cartier not only improved its position in the eyes of customers, but also gained new income and profits, and customers also benefited a lot.
Integrate upstream business to provide all-round services for pharmaceutical companies.
The benefits of the "distribution system" do not stop there. Cardina makes full use of its value and collects sales information of various drugs. For example, which products are best-selling products, which user groups are, and so on. Pharmaceutical companies can grasp the market demand in time through the feedback of news, so as to adjust the production strategy and create a win-win situation for pharmaceutical companies and Cardina.
For pharmaceutical companies, once a drug passes the patent protection period, it will become worthless again like a commodity. Helping suppliers solve the problem of reducing supply chain has become the biggest challenge for Cartina Health Company. The difficulties and troubles of customers are often your opportunities, so Cardina bought a packaging company, which can be processed for pharmaceutical factories. When pharmaceutical companies are busy developing new drugs, the manufacturing, packaging and distribution of many drugs can be outsourced to Cardina Health Company, which owns the packaging company, thus saving complicated procedures and costs.
As an important partner of pharmaceutical companies, Cardina has a deep understanding of her efforts in upstream business. Providing pharmaceutical companies with services such as formulation, testing, production and packaging can create new value, enable pharmaceutical companies to concentrate on developing hot-selling drugs and bring higher efficiency to both parties. Thanks to the extensive distribution system, Cartina can effectively collect and package drugs from multiple manufacturers. It has established important customer relationships and has access to senior managers of leading pharmaceutical companies in the industry. At the same time, we have rich experience in providing customized drug packaging services for hospitals and users in Paikes, and have always maintained an excellent and effective operating record.
In order to fully tap the potential of upstream business, Cardina has also formulated a comprehensive acquisition strategy to supplement its core assets. Acquisition companies are mainly concentrated in those companies that prepare, produce, package and test drugs.
Jim, Chairman of Katina Company? 6? 1 Miller is also the chief operating officer in charge of drug distribution and external products business. He described the growth opportunities according to the "contact volume" with customers: "Where customers can be reached, there are opportunities. This is also an advantage of our business diversification. If we are just a drug distributor, we may not be able to negotiate with many customers. But now that we have more products and services, we have knocked on door after door and found more sources of income. "
Integrating downstream business to improve the capital efficiency of pharmacies
In American medical services, chain pharmacies mainly rely on the third party to intervene in the insurance institutions of pharmacies to pay directly, that is, after customers pay part of the fees to pharmacies, pharmacies send remittance notices to insurance institutions to pay the rest. Generally speaking, the cash repayment rate in the payment system should be updated once a month. However, chain pharmacies often lose money because they often forget the recent increase in proportion. A study shows that pharmacies lose 59 cents per prescription.
In order to help pharmacies determine the exact payment amount, Cardina cooperated with many drug chain stores to develop a system called ScriptLINE, which can automatically update the cash repayment rate every day and check the cash payment amount of drugs. It not only improves the efficiency of the use of funds, but also makes the relationship between pharmacies and Cardina closer.
Now, Cardina not only supplies drugs for traditional distribution business, but also helps pharmacies to establish income accounting system and become an important partner of customers.
Arc system plays an important role in the application of this system. The data collected by ScriptLINE is transmitted to the upstream pharmaceutical companies through it. At present, 13 pharmaceutical companies have become customers of ArcLight, providing data of up to 10 billion prescriptions every year, with an amazing growth rate.
By integrating upstream and downstream businesses, Cartier's entire industrial chain has been deeply explored and its ability to control customers is stronger. A large number of innovative services, improve customer satisfaction, enhance competitive differentiation, and at the same time get rich profits for themselves. Cardina knows that customers have no reason to abandon themselves and turn to other competitors.
"Our core strategy is to provide a wide range of product lines." Due to the deepening of communication with customers, Cartier is easier to observe, study and understand the needs of customers, thus establishing deeper and closer customer contact. "Customers win the world", and the integrated business model has brought huge profits to Cardina.